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China Supreme People’s Court Clarifies Issues in Financial Dispute Trials
2023-02-14Kevin Wang

On January 10, 2023, the China National Court Financial Trial Work Conference was held in Beijing and online. The Conference focused on the approach to strengthening an impartial, efficient and authoritative Chinese financial trial system. Liu Guixiang, Grand Justice of the Second Rank, made a specific speech and systematically discussed the major issues related to judicial trials of financial dispute cases. We anticipate that these opinions will serve as the guidance for courts across China for financial disputes trials. The key points are summarized below for reference.



  • Financial regulations can be used as an important basis or reason for judging whether there is a violation against public order and good customs and can be used to determine contractual civil rights and obligations and corresponding civil liabilities.
  • The interest not specified by lending institutions shall not be supported by the courts.
  • Nominal borrowers in entrusted loans do not bear contractual liability.
  • Entrusted loans shall not be recognized as "private lending" and shall be treated in the same way as financial loan contracts.
  • In a financial lease, the mortgage created for the lessor with the leased object is valid, and the lessor may exercise the right of priority of compensation.
  • Subrogation litigation does not presuppose that the creditor obtains a valid legal document against the debtor, and the performance of the counterparty to the debtor during the litigation does not relieve it of its liability to the creditor.
  • Deny the validity of nominee shareholdings by major shareholders of financial institutions.
  • Perform substantial analysis of financial contracts based on the real intention of contracting parties.
  • In the event that a company is unable to settle its debts, the shareholders who have not reached the expiration date of their capital contributions should unconditionally pay their capital in advance at the request of the creditors of matured claims.
  • Contracts involving criminal acts are not necessarily considered as void.



[2] 刘贵祥(2023),《关于金融民商事审判工作中的理念、机制和法律适用问题》《法律适用》2023年第1期。



Thanks Pengxiang Zhou and Xiaorong Luan for their research assistance.