The Dilemma and Way out of Special Representative Litigation System in Securities Disputes

Securities transaction is not only a powerful driving force for China’s economic development, but also an important way for investors to share the development achievements. However, illegal and disciplinary phenomena such as false statements, market manipulation and insider trading occur frequently in securities disputes, causing serious damage to the order of the securities market. The special representative litigation system is a bright spot in the current Securities Law. It stipulates that the investor protection agency is a specific special representative, which greatly narrows the power gap between the plaintiff and the defendant, is conducive to cracking down on securities fraud and illegal behaviors, and maintains the stability of the market order. However, China’s special representative litigation system is still in the pilot stage, and there are difficulties in the application of judicial practice. This paper takes Kangmei Pharmaceutical case as an example to put forward its own views on the improvement of the system.