China Securities Cases Rise in 2025 as Courts Step Up Market Misconduct Action
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Chinese courts accepted 392,000 insurance dispute cases in 2025, up 21.3% year-on-year, while securities dispute cases rose 63.6% to 27,000. Photo: Visual China
Securities disputes in China jumped nearly 64% in 2025, as courts stepped up the use of investor protection mechanisms to address misconduct in the capital markets.
The year-on-year rise took the total securities cases handled by courts across China last year to 27,000, the Supreme People’s Court (SPC) said Tuesday. The increase outpaced a 21.3% rise in insurance disputes.
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- Securities disputes in China rose nearly 64% in 2025 to 27,000 cases, with over 96% linked to false financial statements.
- The “special representative action” mechanism enabled mass investor lawsuits, such as a $110 million payout involving 43,000 investors.
- Courts emphasized demonstration judgments and broadened accountability to include company executives, controlling shareholders, and intermediaries amid increasing financial case complexity.
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Who’s Who
- Jiangsu Jin Tong Ling Technology Group Co. Ltd.
- Jiangsu Jin Tong Ling Technology Group Co. Ltd. is a Shenzhen-listed company that was ordered by the Nanjing Intermediate People’s Court to pay over 770 million yuan ($110 million) to 43,000 investors. This was due to investment losses stemming from the company inflating its revenue and profits between 2017 and 2022, for which it received an administrative penalty from a top securities watchdog in 2023.
- Jiangsu Misho Ecology & Landscape Co. Ltd.
- Jiangsu Misho Ecology & Landscape Co. Ltd. was delisted from the Shenzhen Stock Exchange in 2024. The company committed several violations, including providing misleading information in its 2015 IPO prospectus and its annual reports from 2015 to 2019. A "special representative action" against them has been accepted by the Shenzhen Intermediate People’s Court.
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