Reflections on the Scope of Rights Holders in Securities Representative Litigation

— Insights from the Kangmei Pharmaceutical Case

Abstract

The Kangmei Pharmaceutical case, as the most representative example of securities representative litigation, has opened up a new situation where representative litigation, which had long been on hold in China, has been activated. It holds significant value for the activation of representative litigation. However, in reality, the application of representative litigation still faces many complex issues, such as who initiates the representative litigation, how to determine the jurisdiction of the court, and the effect of the judgment. Solving these problems is not something that can be achieved overnight but requires a step-by-step approach and multi-faceted arguments. Due to space limitations, this article will focus on the scope of rights holders in securities representative litigation based on the particularity of the securities market, with the aim of providing some thoughts on how representative litigation can better protect the rights and interests of small and medium-sized investors.