Laying the Groundwork for China’s Securities Class Action Legal System

Jan 21, 2021
Liu Siyuan of Jingtian & Gongcheng Law Firm discusses the revised Securities Law and the rules issued by the Supreme People’s Court that provide support for the implementation of a securities class action legal system in China, and the benefits and difficulties for investors and listed companies in future litigation.

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The class-action rules have attracted a lot of attention because this is the first time that class-action rules enacted in China and brought a significant increase in both cases and claimed amounts

On March 1, 2020, the latest revision of the Securities Law (证券法) was implemented, and the long-awaited class action rules came out. The class-action rules have attracted a lot of attention because this is the first time that class-action rules enacted in China and brought a significant increase in both cases and claimed amounts. Subsequently, after extensive research, the Supreme People’s Court (SPC) issued the Provisions on Several Issues Concerning Representative Litigations in Securities Disputes (the Judicial Interpretation of Representative Litigations) (关于证券纠纷代表人诉讼若干问题的规定), which provide support for the implementation of class action rules. Based on these rules, and the actions and responses from regulatory authorities and courts at all levels, this article analyzes the class action legal system (or “representative litigation”) and its prospects in future litigation.

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