Research On Representative Litigation System Of China Securities Investor Services Center

Compared with Europe and America,China’s retail investors account for more than 90%.The cost of lawsuits filed by a single investor may be the same as the expected income,resulting in the lack of litigation power of small and medium-sized investors.The representative litigation system can be a solution to these problems.In practice,the litigation status between small and medium-sized investors and listed companies is quite different.Based on the consideration of cost and income,there are two advantages for CSISC to file representative litigation.One is that disputes in the securities field are often professional,and CSISC,as a specialized institution for investor protection,is more conducive to investors’ rights protection.Second,the representative litigation system can greatly save judicial resources and promote trial efficiency.China set up CSISC in 2014,which is a company based non-profit organization.The establishment of CSISC is in line with the legislative spirit of investor protection,and it is a sign of moving towards the rule of law.However,the existing representative litigation system has limitations in investor protection.First of all,article 14 of Several Provisions on misrepresentation of the Supreme Court stipulates that the plaintiff of joint litigation before the trial It must be determined.This practice limits the scope of representative litigation system.In financial practice,representative litigation with a certain number of people is very rare.If the plaintiff of a joint action is uncertain,it can not bring a lawsuit.As a result,the rights and interests of small and medium-sized investors are difficult to be protected through litigation.The author suggests amending the provisions of this conflict.Secondly,in the empirical analysis,the author finds that there are 19 litigation cases in the CSISC: the causes of the cases are concentrated in the false statements(16),the majority of litigation cases are in Shanghai,and the overall litigation cases are less.I hope that the analysis of the operation status of the CSISC,combined with the experience of group disputes in major countries and regions,can put forward representative litigation for the CSISC in the future Some suggestions,in view of the representative action that the CSISC will bring,the author suggests that the CSISC can try new cases of securities disputes such as insider trading.Second,special funds can be set up for part of the winning compensation to ensure the daily operation of the CSISC and increase its independence.The third is to reduce and remit the cost of the representative lawsuit filed by the CSISC.Expect the system to be more perfect and the role of "guard Knight" in the CSISC to be more prominent...