Security Litigation Guide

Author: Xu Haifeng, Meng Xianggang (editors)
Publisher:
Publish Date: 2002-08-01
Features: The Chinese securities market has taken only a dozen years from establishment to development and improvement, with its achievements being undeniable when compared to the hundreds of years of history of foreign securities markets. However, cases such as the fraudulent restructuring of Zheng Baowen, the stock price manipulation of Zhongke Chuangye and Yian Technology, and the profit fabrication of Yin Guangxia, which severely infringed on investors' rights, were successively exposed. Amidst public shock, there was a strong call for the People's Courts to intervene in the civil trials of such cases, uphold the principles of openness, fairness, and justice in the securities market, and protect the legitimate interests of millions of investors. As civil subjects, securities market investors enjoy statutory right of action. As long as their lawsuits meet the four conditions stipulated in Article 108 of the Civil Procedure Law and fall under the jurisdiction of the People's Courts, the courts should accept them. Therefore, the People's Courts should adopt a proactive attitude toward such cases. As for the technical difficulties that may arise during the trial process, they can be resolved through the timely issuance of directives and the promulgation of judicial interpretation documents. Even if the claims of the parties cannot be legally supported, a conclusion should still be reached through the trial. Given that there are as many as 60 million securities investors, if their legitimate civil rights are protected by the judiciary, it will undoubtedly have a positive and far-reaching impact on establishing the image of judicial fairness of the People's Courts, enhancing their credibility, stabilizing the securities market, and maintaining social order.