XU Jing [1]
The Chinese securities industry has been long plagued with a problem that small investors cannot afford the high cost of seeking a remedy through litigation in securities disputes. Finally, on November 13th, 2018, the Supreme People’s Court (“SPC”) and the China Securities Regulatory Commission (“CSRC”) jointly issued Opinions on Comprehensively Advancing Establishment of Diversified Resolution Mechanism of Securities and Futures Disputes (“Opinion”) to provide a practical non-litigation channel for small investors.[2]
This note gives a preliminary assessment of the Opinion’s securities disputes mediation mechanism. Though the latest mechanism improves the credibility and efficiency of meditation, there are still problems with its sector-based scheme, the sustainability of funding, and protection to individual investors.
A. Background… Read the rest