Supreme Court Helps Clear the Air for PE Investors

The legal ambiguity over whether a Chinese private equity investor can sue its investee for failing to live up to its promise finally cleared up a bit after the Supreme People's Court supported a private equity company's claim for compensation.

The verdict in December overruled two lower court decisions and sent a heartening signal to PE investors across China, though it may not necessarily apply to similar cases in the future under the nation's judicial system.