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China gives individual investors the green light for class action lawsuits in historic reform

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China will allow the nation’s army of small investors for the first time in history to file class action lawsuits in cases such as fraud and price manipulation, as policymakers toughen penalties in the wake of scandals involving local businesses on stock exchanges at home and abroad.

The landmark decision by the country’s Supreme Court paves the way for the world’s largest group of individual investors to seek compensation for investment losses by suing . . .

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