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shanghai financial court launched 15 measures to servesafeguard the financial opennessinnovation in shanghai ftz, lingang
[2020-07-30]

 

 

      

On July 30, 2020, the first anniversary of the establishment of Lingang section of Shanghai Pilot Free Trade Zone, the Shanghai Financial Court held a press conference to release the Measures of Shanghai Financial Court to Serve and Safeguard the Financial Openness and Innovation in Lingang Section of Shanghai Pilot Free Trade Zone (hereinafter referred to as the "Measures"). Zhao Hong, Secretary of the Party Leadership Group and President of the Shanghai Financial Court, and Xiao Kai, Member of the Party Leadership Group and Vice President of the Shanghai Financial Court, attended the conference.

Zhao Hong introduced the background, purpose, main contents and highlighted innovations of the Measures. Establishing Lingang section of Shanghai Pilot Free Trade Zone is a major strategic arrangement for further opening made by the CPC Central Committee with Comrade Xi Jinping at the core taking into account the big picture and through scientific decision-making. At the end of 2019, the Supreme People's Court and Shanghai High People's Court successively issued opinions on providing judicial services and safeguards for the construction of Shanghai FTZ, Lingang. It's clearly proposed to improve the financial trial systems and mechanisms, support the Shanghai Financial Court to respond positively to the judicial needs for reform and opening up in the financial sector in Shanghai FTZ, Lingang, carry out specialized trials of financial disputes, and ensure the smooth implementation of various innovative measures in Shanghai FTZ, Lingang. In the first half of 2020, with the purpose of fully planning and deploying the new tasks for the financial reform in Shanghai, People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange and Shanghai Municipal People's Government jointly issued "30 Opinions on Further Accelerating the Construction of Shanghai as an International Financial Center and Providing Financial Support for Integrated Development of the Yangtze River Delta", while the Administrative Committee of Shanghai FTZ, Lingang and financial regulatory authorities jointly issued "50 Measures to Comprehensively Promote the Financial Opening and Innovation in Lingang Section of Shanghai Pilot Free Trade Zone".

As the first special financial court in China, the Shanghai Financial Court has taken the initiative to respond to the new judicial needs for financial opening and innovation in Shanghai FTZ, Lingang, and with focus on financial trials and enforcement, put forward 15 service measures from the perspectives of clarifying the adjudication principles, detailing and implementing the case filing, hearing and enforcement mechanisms, strengthening science and technology support as well as capacity building, etc.

As proposed in the Measures, we should promote the innovation and improvement of financial trial mechanisms to make financial trials more professional, convenient and credible. We should equally protect the legitimate rights and interests of Chinese and foreign parties in international financial transactions according to law, strengthen the building of financial trial organizations in Shanghai FTZ, Lingang, and explore the employment of compatriots from Hong Kong, Macao and Taiwan as people's jurors to participate in the trial of cases. We should also respect the agreement of the parties concerned on court selection, support the parties to select the Shanghai Financial Court as agreed to try cases involving cross-border financial transactions, offshore financial transactions and other foreign-related financial disputes relating to Shanghai FTZ, Lingang, and enhance the influence of Shanghai as an International Financial Center on the financial market rules. Moreover, we should build a "one-stop" foreign financial dispute resolution platform and work together to create a "one-stop" diversified dispute resolution pattern that integrates litigation, arbitration and mediation. We should also establish the system of specially-invited mediators including Chinese and foreign experts and promote a full-chain and diversified dispute resolution mechanism to resolve mass financial disputes through integrating demonstration judgment, professional mediation and judicial confirmation. We should optimize the rules of procedure for foreign-related financial cases, formulate guidelines for foreign-related financial trials, standardize the trial procedures for foreign-related financial cases, and improve the mechanisms of service abroad of documents, remote verification of evidence, investigation and evidence collection, online court hearings and ascertainment of foreign laws, etc. to make foreign-related financial trials more convenient comprehensively.

The Measures suggests that we should actively carry out research and judgment on the types of financial cases, and provide more just, efficient and predictable financial judicial safeguards. We should properly deal with new types of cross-border financial disputes that may arise in the fields of banking, securities and insurance according to law, and give full play to the functions of financial trials in market orientation, value guidance and rule creation. We should also give full play to the role of financial judicial cases, establish a practical research platform with PBC Shanghai Head Office and well-known colleges and universities jointly, and regularly publish typical cases in both Chinese and English, so as to provide stable expectations for the resolution of cross-border financial disputes.

The Measures stresses that we should actively carry out financial justice practices and align with the financial system innovation in Shanghai FTZ, Lingang. We should build a sound information ecosystem for rule of law in finance, strengthen the protection of financial information under the Internet environment, and support the rational use of cross-border flow of financial transaction data according to law. Moreover, we should support the regulation on fintech innovation according to law, implement the principle of legality review, support regulatory authorities to establish the conditions for access and withdrawal of pilot regulation on fintech innovation and improve its implementation processes, and protect the right to know and right to choose of financial consumers who voluntarily participate in the pilot-related tests according to law. We should also explore the establishment of a "test case" mechanism to encourage market players in Shanghai FTZ, Lingang to bring test litigations on disputes that have a significant impact on the market. Through "test cases", we need to set up market rules, define the boundary of rights and obligations of market players, effectively guide and respond to the financial opening and innovation in Shanghai FTZ, Lingang, so as to realize governance at the source of litigations.

The Measures requests that we should strengthen the safeguards in all aspects to ensure that the measures are fully implemented. We should intensify the enforcement with judicial assistance, establish online judicial assistance mechanisms with securities registration and clearing institutions to realize online inquiry and freezing of property, so as to assist with the enforcement of cases. We should also deepen the application of financial judicial technologies, utilize the latest judicial technologies, such as intelligent case filing, intelligent litigation risk warning, securities investor protection chamber and AI smart trial & simultaneous interpretation system, to improve the integration of paperless litigation services and electronic litigation and enforcement, so as to provide judicial support for the whole-process online case handling and help to resolve cross-border financial disputes in Shanghai FTZ, Lingang efficiently and conveniently. Besides, we should strengthen the training of judicial talented people with good knowledge of foreign financial laws, establish an exchange study and talent training mechanism in line with international standards, and build a high-level and versatile team for financial trials that has a deep theoretical background, is familiar with international financial laws and is good at handling foreign-related legal affairs in financial field, thereby providing strong support for the financial justice in Shanghai FTZ, Lingang.

Zhao Hong said that the Shanghai Financial Court will be more open. It will give full play to its role in financial trials, take the initiative to serve and integrate into the national strategy in a higher political stance, deeper level and wider field, conserve the integrity and pursue innovation, and further improve the financial trial mechanism to make investment and trade in Shanghai FTZ, Lingang liberalized and facilitated, thereby providing a strong judicial guarantee for fostering new advantages in participating in and leading international economic cooperation and competition.

 

 

Measures of Shanghai Financial Court to Serve and Safeguard the Financial Openness and Innovation in Lingang Section of Shanghai Pilot Free Trade Zone .docx 

 

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The English version of this article, which is translated from the Chinese version by CTPC, is for reference only and shall be subject to the corresponding contents on the Chinese webpage.
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