By referring to such cases, investors seeking legal help in disputes can get access to a simplified litigation procedure or apply for pre-litigation mediation to avoid lengthy procedures, according to Lin Xiaonie, deputy director of the court, the country's first court devoted exclusively to financial cases.
Authorities in China have stepped up the fight against illegal behavior, including false statements and manipulating the market, and as small and medium-sized investors have become more aware of their rights, investor lawsuits against securities companies and their major shareholders have surged, the court said. To handle the increasing number of disputes, the Supreme People's Court and China Securities Regulatory Commission encouraged provinces and municipalities to look for creative ways to resolve such disputes.
The Shanghai court, which has been working on the mechanisms since August, said it is reviewing disputes involving nine listed companies suspected of making false statements and leading to economic losses for investors. Common characteristics of such disputes include large numbers of people and long-term litigation, Mr Lin explained. Ne concluded, ‘so we have given priority to representative cases.’