Court to provide quality judicial services for new sci-tech board
China's sci-tech board gets ready to hit trading floor. [Photo/IC]
The Shanghai Financial Court will be responsible for dealing with financial and commercial lawsuits as well as financial administrative disputes related to the new science and technology innovation board that was launched at the Shanghai Stock Exchange on June 13.
The Shanghai courts will also deal with criminal offences related to the new board, which is tasked with helping the country's small and medium-sized innovation enterprises gain funding, the Shanghai Higher People's Court said on June 10 when releasing a 29-point guideline to better serve the development of the board from a legal perspective.
The financial court will handle civil compensation disputes arising from fraudulent acts in the securities transaction process, such as false statements, insider trading, and manipulation of securities, the higher court said.
The court also intends to use demonstration cases to solve securities disputes. By referring to demonstration cases, investors seeking legal help in disputes can get access to a simplified litigation procedure or apply for pre-litigation mediation, the court said.
Statistics from the Shanghai Higher People's Court showed that there were 170,000 financial cases received by the city's courts last year, including nearly 2,300 disputes over liability for false statement of securities, a year-on-year rise of 86 percent.
Mao Ronghua, vice president of the Shanghai Higher People's Court, said that the court will establish a professional trial mechanism compatible with the science and technology board and an experimental registration-based system for initial public offerings, standardize and guide financial innovation, and prevent financial risks.
"We are committed to creating a good rule of law for the new board and providing quality judicial services and guarantees as Shanghai strives to build itself into an international financial center and a science and innovation hub," he said.