ABSTRACT
This chapter focuses on some important aspects of the disputes between investor principals and securities company agents in the share issuing and trading market. As the disputes between investor principals and securities company agents take a large portion of the disputes involving shares, especially in the share trading market, it is important to examine the way in which those disputes are dealt with by the people's courts. China started enterprise reform programs in the early 1980s. State-owned enterprises, which had been the dominant form of enterprises after 1949, began a restructuring process. Securities companies may make various kinds of mistakes in the process of share issuing and trading on behalf of investor clients, such as the mistakes made when processing a sale or purchase order instructed by investor clients. The designated share trading system refers to a system under which investors appoint one securities company as their sole agent for their share trading.
