Lawsuits against listed companies and stock market
intermediaries have surged in recent years1 in China
against the backdrop of intensified investigations into misconduct
in the financial market (especially misstatements on securities)
launched by the China Securities Regulatory Commission (CSRC).
Individual investors who have become increasingly assertive of
their rights have no doubt contributed to this surge. However, from
our experience and based on cases we have observed, Chinese Courts
would usually entertain such lawsuits only on a singular
"one-case-one-file" basis. Such an approach, regularly
pilloried by the press, not only serves to make already aggrieved
individual investors feel further victimised but also saddles the
Courts with additional (but arguably not entirely necessary)
workload.
