Beijing Sheds Light on Plans for New Municipal Financial Court

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The Chinese capital of Beijing is on the verge of launching a new court of law that will specialise in the handling of financial cases.

On 16 March the Chinese Supreme Court issued its “Provisions Concerning the Case Jurisdiction of the Beijing Financial Court,” (最高人民法院关于北京金融法院案件管辖的规定), shedding further light on its plans for a new specialised court of law.

According to an official from the Supreme Court the new financial court will be responsible for handling cases in the Beijing municipality that should be heard by a middle court and fall under six categories.

These categories include:

  1. Civil and commercial disputes involving finance as outlined by regulations, including disputes in relation to securities, futures transactions, trusts, insurance, bills, letters of credit, independent guarantees, factoring, bank cards, financial leasing contracts, entrusted wealth management contracts, deposit contracts and bank settlement contracts.
  2. New forms of civil and commercial disputes involving finance, including asset management operations, asset-backed securities operations, privately-offered fund operations, forex operations, financial product sales, credit operations and payments operations.
  3. Disputes between financial institutions and companies.
  4. Financial institution bankruptcy cases.
  5. Arbitration judicial review cases.
  6. Application for the recognition and enforcement of judgements by Hong Kong, Macao, Taiwanese and foreign courts.

The Provisions further stipulate the the Beijing Financial Court will be responsible for handling securities and futures disputes involving harm to the rights and interests of investors within its jurisdiction, where those securities and futures involve Chinese companies that are listed offshore.

The Beijing Financial Court will also possess “cross-regional concentrated jurisdiction” for securities disputes involving companies that are registered on China’s New Third Board over-the-counter market of small and medium-sized enterprises.

The Chinese central government first announced plans to launch a new financial court in Beijing at the end of 2020, in order to deal specifically with legal disputes in the burgeoning regional financial sector.

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