Reforming private securities litigation in China: The stock market has already cast its vote

Private securities litigation has been very weak since the establishment of China’s stock market some 30 years ago. A new law on securities took effect in March 2020 and introduces some reformist changes to this area. This article will examine the likely effect of the new Securities Law on this form of litigation. In particular, it will examine China’s most celebrated ‘quasi-class action’ system, i.e. Special Representative Litigation. This procedure is borrowed from Taiwan’s non-profit organization model. The essay argues that, since the new Securities Law has made only limited efforts in addressing the primary reason for the weak private securities litigation, namely, lack of judicial independence, it is unlikely to make any significant changes to private securities litigation in China. Keywords: private securities litigation; securities law; class action; cost of litigation; judicial independence.

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Predicting Stock Market Performance

Journal of Individual Differences ◽

10.1027/1614-0001/a000330 ◽

2020 ◽

pp. 1-10

Author(s):

Thomas Plieger ◽

Thomas Grünhage ◽

Éilish Duke ◽

Martin Reuter

Keyword(s):

Stock Market ◽

Risk Taking ◽

Life Stress ◽

Price Volatility ◽

Individual Characteristics ◽

Self Report ◽

Financial Behavior ◽

Market Simulation ◽

Stock Market Performance ◽

Risk Taking Behavior

Abstract. Gender and personality traits influence risk proneness in the context of financial decisions. However, most studies on this topic have relied on either self-report data or on artificial measures of financial risk-taking behavior. Our study aimed to identify relevant trading behaviors and personal characteristics related to trading success. N = 108 Caucasians took part in a three-week stock market simulation paradigm, in which they traded shares of eight fictional companies that differed in issue price, volatility, and outcome. Participants also completed questionnaires measuring personality, risk-taking behavior, and life stress. Our model showed that being male and scoring high on self-directedness led to more risky financial behavior, which in turn positively predicted success in the stock market simulation. The total model explained 39% of the variance in trading success, indicating a role for other factors in influencing trading behavior. Future studies should try to enrich our model to get a more accurate impression of the associations between individual characteristics and financially successful behavior in context of stock trading.

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