The Research On China’s Securities Test Case System

In recent years,the collective and massive nature of securities civil compensation cases in China has become increasingly apparent,putting pressure on securities civil trials.The traditional approach of "one case,one ruling,separate trials"is no longer suitable for current securities infringement compensation litigation.The purpose of the demonstration litigation system is to extract common facts or legal issues from collective litigation and transfer them to higher courts as demonstration litigation.The demonstration litigation plaintiff is selected separately,so that the higher court can unify the common issues through an intermediate procedure within a new two-party litigation framework.The result of the demonstration litigation is then used as the basis for all individual case trials,thereby avoiding the duplication of judicial resources.The typical example of this system is Germany’s demonstration litigation system.Although China’s laws do not have clear provisions for the demonstration litigation system,the practice of courts in handling collective litigation by "splitting cases and trying them in batches"has a similar effect to demonstration litigation.Given that false statement cases account for a high proportion of securities collective infringement disputes,and many domestic securities demonstration litigations have selected false statement cases as demonstration litigation,this article uses practical data and patterns of false statement cases as research samples to radiate the overall thinking of China’s securities demonstration litigation system.Through comprehensive induction,it is found that there are many problems with China’s securities demonstration litigation,such as unclear case selection standards,flawed announcement procedures,insufficient incentives for demonstration cases,blocked mediation mechanisms,and unreasonable litigation cost sharing.To solve these problems,suggestions are made to improve China’s securities demonstration litigation system by drawing on Germany’s method of selecting demonstration plaintiffs and announcement regulations,the United States’demonstration litigation contract,and the United Kingdom’s demonstration litigation mediation regulations.Among them,in determining the standard for demonstration cases,it is necessary to consider the necessity and non-necessity factors of demonstration cases,such as the nature of the defendant,the time of case acceptance,the recommendation situation,and the amount of the claim.In constructing a written trial mode for parallel cases,it is proposed to introduce a litigation contract system,form a system of joint efforts between preliminary judgments and demonstration litigation,and use the expansion of judgment effectiveness to achieve its demonstration effect.After individual case trials,reflection is conducted to achieve pre-correction,promote reconciliation and mediation based on the predictability of the law,achieve fairness and justice through litigation economics and distribution justice,and complement the traditional litigation system.