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Stock Market Investors Should be Able to Sue Market Manipulators: Expert
A renown Chinese legal expert has put forward the proposal to establish proper legislation to provide average stock market investors with the right to sue irregular stock market dealings.
Wang Liming, member of the Financial and Economic Committee of National People's Congress, made the call at a legislative symposium held today in Beijing.
"China's stock market is flourishing, but we have a crisis on our hands," he warned, noting that "illicit market manipulations are becoming more conspicuous."
Merely relying on the government to tackle the problem will not do, since capital and manpower are limited, Wang said.
"However, if laws are established to encourage average investors to sue market manipulators, it would cost the government nothing and the victims will be compensated if they win their lawsuits," Wang added.
Currently, such lawsuits against stock market manipulators are usually thrown out of court because there are no clear legal laws concerning market manipulation.
"In order to meet the needs of the market economy and international practices, improper intervention from the government should be reduced to a minimum," he said.
In addition to providing a remedy for those who have suffered market manipulation, improving the current legislation can provide a favorable environment for the government to more effectively regulate the market, he said.
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