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The lawyer of Hubei Thinksunny Wuhan Law Firm remarked on the "Oolong means" event of Everbright Securities and pointed

Post:2013-09-22    Views:4843    Copy link   
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The "Oolong means" event of Everbright Securities affected the interests of a huge number of securities investors some of which reaped huge gains. However, most of the securities investors suffered huge loss. Different people have different ideas about how to define responsibilities and how to claim for compensation.

The lawyer Liu Zhongzhou from Hubei Thinksunny Wuhan law firm thinks that the "Oolong means" event operated by securities operations has the legal characteristics of securities transactions, such as real-time trading, the object of uncertainty, presumed intention authenticity. Therefore, it is presumed that the transaction is completed and the deal is real, legal and valid. But from the perspective of civil law, if the transaction is indeed a mistake instead of the real will of the parties and the transaction price deviates from the market price significantly, the counterparty will be unable to defend by “acquirement in good faith". Due to the operational errors, the trading party who has suffered huge losses may request the court to confirm that the transaction is invalid and the property should be returned. However, China's securities laws and regulations haven’t defined it clearly. What’s worse, there is no corresponding relief terms in stock exchange regulations and obtaining proof is also extremely difficult. Therefore, in the legal practice, the relief of "Oolong means" event will be very difficult.

The lawyer of Hubei Thinksunny Wuhan Law Firm suggests that as the securities regulatory authority of China, China Securities Regulatory Commission should attach great importance to the systemic risk and the "Oolong means" event. The relevant securities legislation should be made to promote the securities market and safeguard the interests of all participants. Securities investors should also make full use of the existing legal system to safeguard their legitimate rights and interests actively. The people's court should explore research-related trial practice and give judicial explain to guide judges in the trials which are related to securities business.

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