Diversified False Statements Dispute Resolution Under Chinese Securities Law

Guangdong Cheng, General Counsel, Nanshan Group

In 2019, the People's Republic of China (the "PRC") amended its Securities Law and adopted the normal representative and special representative action mechanism in the multi-party securities fraud case. For a long time, some courts have adopted a typical case - parallel case mechanism according to Notice on Carrying out the Pilot Program of Diversified Dispute Resolution Mechanism for Securities and Futures in Certain Areas ("the Diversified Dispute Resolution Notice") published by the Supreme Court of the People's Republic of China (the "Supreme Court") and the China Securities Regulatory Commission (the "CSRC"). The representative action mechanism and the model case-parallel case mechanism constitute the diversified securities fraud dispute resolution mechanism with traditional dispute resolutions, such as cases consolidation and judicial mediation. This article will explain the different resolution mechanisms, analyze some leading cases, and help readers understand the practice trend in securities false statements civil cases.

Read full paper Subscribe to the IICJ
China Regulation Manufacturing March 2022 Vol.15, No. 58, Winter 2022

Guangdong Cheng

More

Guangdong Cheng is the Senior VP - General Counsel of Nanshan Group Co., Ltd. He leads a team of 80 members responsible for Nanshan Group’s legal and compliance operation. He is a Chinese, UK, and New York qualified attorney. He has been a lecturer at the Yantai University School of Law. He also serves as a arbitrator at Shanghai International Arbitration Center.

Nanshan Group

More

Nanshan Group was established in July 1992, a company controlled by the Nanshan Villagers’ Committee. The predecessor of the Nanshan Group was Qiansong Village Glass Fiber Factory a village-owned enterprise in Dongjiang Town, Longkou City, which was established in 1979. Nanshan Group focuses on the business of aluminum, textile and apparel in both of domestic and overseas markets. For the year ended 2020 December 31, the group has approximately 400,000 employees and an income of RMB 48.9 billion, respectively.

China Regulation Manufacturing March 2022 Vol.15, No. 58, Winter 2022
© International In-House Counsel Journal. ISSN 1754-0607. All rights reserved. Registered in England Company Number: 6187841. VAT Registration Number: 946 7381 82. | Terms & Conditions .