Shenzhen to Set Up Securities Arbitration Center

What’ new: Shenzhen will set up a securities arbitration center to address securities and capital market disputes.

China (Shenzhen) Securities Arbitration Center will be established by the Shenzhen Court of International Arbitration and the Shenzhen Stock Exchange and will be open for handling global disputes, according to a proposal approved Wednesday by the Shenzhen municipal government.

The arbitration center will explore a new "arbitration institution + self-discipline” approach to resolving disputes related to listed companies, securities firms, investor protection and cross-border securities business, according to the proposal. The document cited the arbitration jurisdiction and international credibility of the Shenzhen Court of International Arbitration and the self-regulatory function of the Shenzhen Stock Exchange.

The background: With the expansion of China’s securities market and the increase in new securities products, disputes often occur among market participants such as publicly traded companies and investors. With the rapid development of private equity funds and cross-border wealth management and other businesses in recent years, related disputes are also increasing.

In 2020, the Shenzhen Court of International Arbitration accepted 7,453 cases involving a total of 61.6 billion yuan ($9.48 billion). Among them, financial and capital market-related cases accounted for more than half of the disputes accepted.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Contact reporter Denise Jia (huijuanjia@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

Download our app to receive breaking news alerts and read the news on the go.

Get our weekly free Must-Read newsletter.