In response to suggestions put forward by deputies to the National People's Congress (NPC) regarding the prevention of financial risks and the maintenance of social integrity, the Supreme People's Court (SPC) has taken active measures to leverage judicial functions to safeguard stability of the financial market and provide robust judicial support for preventing and defusing financial risks.

The SPC has established an online mediation and coordination mechanism for financial disputes, where local securities regulators and courts work together to conduct professional mediation effectively. 

By harnessing the expertise of industry associations, mediation workshops, and securities and futures practitioners, a new online framework for diversified resolution of disputes in the securities and futures sector has been formed, where mediation is carried out at pre-litigation stage.

Moreover, the SPC, the Supreme People's Procuratorate, the Ministry of Public Security, and the China Securities Regulatory Commission jointly formulated guidelines on handling securities and futures-related cases in May 2024. 

The guidelines provide overall requirements for handling such cases, and clear guidance on synergy between administrative enforcement and criminal justice, jurisdiction over criminal cases, as well as evidence collection, examination and utilization, and highlight the importance of strict law enforcement and enhancing collaborative mechanisms.

A case database of diversified resolution of disputes was officially launched on Jan 22, showcasing cases where various entities resolved disputes through mediation and arbitration, and offering references for dispute resolution efforts across different sectors.

To combat instances of financial fraud and uphold the lawful rights of listed companies and investors, courts have implemented a zero-tolerance policy towards such crimes. 

Courts nationwide will establish a comprehensive accountability system by rigorously punishing violators through civil, administrative and criminal means, leveraging the role of judiciary in supporting the capital market, to protect investors' interests and promote the healthy development of the capital market.

In response to concerns raised by NPC deputies regarding malicious actions that infringe upon the legitimate rights and interests of private enterprises and disrupt market order through false and malicious litigation, the SPC has taken steps to crack down on such behaviors in accordance with the law.

Through the issuance of judicial interpretations and regulations, release of exemplary cases, and the establishment of case databases, the SPC has clarified law application rules and addressed procedural issues in order to effectively deter false litigation and enhance public awareness of preventing such crimes. 

To further strengthen efforts in combating false litigation, the SPC released four typical cases of effectively punishing false litigation crimes on Feb 20 to provide guidance and reference for judicial practice.

Courts will continue to refine its institutional mechanisms and intensify efforts in identifying, investigating and punishing various types of false litigation crimes in accordance with the law to contribute to the cultivation of a social environment of honesty and integrity governed by a sound legal framework.