2018.8.7
Karl Zhang
The Supreme People’s Court recently issued a circular to promulgate the Provisions of the Supreme People’s Court on the Jurisdiction of the Shanghai Financial Court (the “Provisions”), which came into force on August 10, 2018 and primarily stipulate the types of cases under the jurisdiction of the Shanghai Financial Court. The Provisions are highlighted below:
Pursuant to the Provisions, the Shanghai Financial Court has jurisdiction in the following cases:
1. First instance civil commercial finance cases
The following first instance civil commercial finance cases, which were previously heard by the Intermediate People’s Court of Shanghai, are now under the jurisdiction of the Shanghai Financial Court:
(1) Disputes with respect to securities, futures trading, trusts, insurance, negotiable instruments, letters of credit, loan contracts, bank cards, financing lease contracts, trust management contracts, and pawning.
(2) New types of civil disputes in commerce with respect to independent guarantees, factoring, private equity funds, online payments not handled via bank payment institutions, online lending and Internet crowd funding.
(3) Bankruptcy disputes where the creditors are financial institutions.
(4) Review of arbitration cases involving civil commercial disputes in finance.
(5) Application for recognition and enforcement of decisions or orders rendered by foreign courts over civil commercial finance disputes.
In addition, the Shanghai Financial Court also has jurisdiction over first instance civil commercial finance cases in which the financial market infrastructure in Shanghai is the defendant, or cases pertaining to the performance of duties by any third party.
2. First instance financial administration cases where a financial supervision agency is named as the defendant
Previously handled by the Intermediate People’s Court of Shanghai, first instance cases involving financial administration matters and a financial supervision agency defendant are now under the jurisdiction of the Shanghai Financial Court.
In addition, the Shanghai Financial Court also has jurisdiction over first instance cases involving financial administration matters in which a financial market infrastructure entity domiciled in Shanghai is the defendant, or cases pertaining to the performance of duties by any third party.
3. Appeal of first instance civil commercial finance cases and cases involving financial administration matters
Appeals filed by parties against decisions rendered by the Shanghai Basic People’s Court in first instance civil commercial finance cases and cases involving financial administration matters will be heard by the Shanghai Financial Court.
Meanwhile, appeal against the first instance decisions or orders rendered by the Shanghai Financial Court will be heard by the Shanghai Higher People’s Court. Civil commercial finance cases which had been accepted but not yet concluded by the intermediate people’s courts in Shanghai before the Shanghai Financial Court was established will continue to hear such cases.
The Provisions further clarify the scope of jurisdiction of the Shanghai Financial Court and provide services and protections for the development of the Shanghai International Financial Center. Enterprises conducting or intending to conduct financial business in Shanghai should keep the Provisions in mind when considering dispute resolution mechanisms.