Judicial Dilemmas and Improvement Paths of Special Representative Litigation in Securities Disputes

The special representative litigation system for securities disputes is centered on the principle of "implied participation and explicit withdrawal," aiming to resolve the collective action dilemma that hinders small and medium investors from protecting their rights. It represents a milestone in the legal construction of China's capital market. However, in judicial practice, the special representative litigation system faces numerous dilemmas that restrict its full functionality, such as unreasonably set preconditions, a single activation subject mode, and the lack of supervision by insurance institutions. Based on this, it is necessary to gradually relax preconditions, explore multiple activation subjects, and strengthen the supervision of insurance institutions, thereby fully safeguarding investors' rights and interests.