Research On The Legal Issues Of The Advance Compensation System In China’s Securities Market

As an important force to drive the economy,the stock market achieves the purpose of reasonable allocation of capital through capital circulation.Due to the unequal information and weak professional ability,ordinary investors are vulnerable to securities malpractice.In addition,in our country,most of the securities disputes are solved through judicial proceedings,and the litigation cycle is long,the implementation is difficult,and the protection of investors’ interests is not in place.Therefore,in order to ensure the stable and healthy operation of the securities market,it is necessary to strengthen the protection of the legitimate rights and interests of ordinary investors.The advanced compensation system in the securities market is an empirical model based on the actual situation of China’s securities market,which is in line with the difficulty of ordinary investors in safeguarding their rights in the securities market.The securities law of the People’s Republic of China stipulates the system of compensation in advance in the securities market in the special chapter of investor protection,which marks the correct establishment of the system.Wanfu Shengke case adopted the advanced compensation system for the first time,and its sponsor Ping’an securities set up a special compensation fund for compensation,which triggered the academic discussion on the system.The academic research on the system is short,and it is not deep enough.At the same time,the system of compensation in advance was born in practice,and there are still some shortcomings.In addition,the legislative provisions are too simple,leaving a lot of gaps in the actual operation.This paper briefly discusses the development,concept and theoretical nature of the advance compensation system in the securities market,and fully explains the advance compensation system in the securities market from two aspects of theoretical value and practical basis.Based on the introduction of the securities investor protection system in Britain and the United States,this paper puts forward some suggestions on the advance compensation system in China’s securities market.This paper summarizes the content,application and guarantee of the advanced compensation agreement in China’s securities market,and analyzes the existing problems.In view of the above three aspects,this paper puts forward the improvement measures to protect the investors in the securities market.