Chinese Supreme Court urges careful handling of shadow banking cases

This will promote healthy development of private investment.

The Supreme People’s Court of China called on lower courts to prudently handle shadow banking cases to prevent financial risk and promote the development of private investment.

Xi Xiaoming, vice president of the SPC, said courts should carefully handle conflicts of interest and assignment of responsibility issues triggered by reforms in accordance with the law.

Xi also said courts should promote elimination of excessive production capacity and integration of production factors through their handling of stock rights transfer, corporate litigation, bankruptcy and reorganization cases.

Courts should also address the difficulty of financing small businesses by regulating financing methods.

China’s court system has dealt with 5.57 million commercial disputes involving US$297.4 billion.