On 20 August, marking the 8th anniversary of its establishment, the Shanghai Financial Court (SFC or the "Court"） held a press conference to release the Opinions on Providing Judicial Safeguards for Enhancing the Competitiveness and Influence of Shanghai as an International Financial Center (the "Opinions"）, together with typical cases of foreign-related and Hong Kong, Macao and Taiwan-related financial disputes. Zhao Hong, Secretary of the Leading Party Members’ Group and President of the SFC, briefed the press on the main contents of the Opinions. Tian Jun, member of the Leading Party Members’ Group, Head of Political Department and spokesperson, chaired the press conference. Fu Wang, Standing Member of the Adjudication Committee, released the typical cases.
“The core of the competitiveness and influence of Shanghai as an international financial center lies in the competitiveness and influence of rules. Financial adjudication establishes rules through judgments, and participates in and leads international financial governance,” Zhao Hong noted. As the 15th Five-Year Plan incorporates the development of Shanghai as an international financial center into the national agenda, Shanghai’s function as a gateway to and hub of financial opening-up has continued to become more prominent. The Opinions are released to give full play to the role of financial adjudication, meet the financial market’s judicial needs for greater compatibility and alignment between domestic and overseas rules, promote connectivity between the domestic and international markets, further improve a law-based and internationalized business environment, and help enhance the competitiveness and influence of Shanghai as an international financial center.
The Opinions comprise 18 provisions in two parts: general requirements and specific measures. In terms of general requirements, the core political requirement of upholding the Party’s absolute leadership runs through the Opinions, and the Opinions expressly set out the overall principles of helping enhance global competitiveness and influence; coordinating institutional opening up in the financial sector with systemic security; providing integrated safeguards for both "going global" and "bringing in"； and equally protecting the lawful rights and interests of Chinese and foreign parties—thereby building a systematic and well-conceived framework of judicial safeguards for foreign-related finance. In the specific-measures part, the Opinions focus on substantive legal issues in key areas such as Shanghai’s development of an offshore financial system; the building of a science and technology innovation center with global influence, a global asset management center, a global allocation center for RMB assets, and an international reinsurance center; and stronger interconnectivity of financial infrastructure, and clarify financial adjudication rules and the judicial stance. They also comprehensively enhance the capacity of foreign-related adjudication across the stages of jurisdiction, trial and enforcement, providing Chinese and foreign parties with financial judicial services that are impartial, efficient, convenient and predictable. At the same time, the Opinions put forward a series of supporting measures, offering all-round judicial support for Shanghai’s participation in jointly building a just and equitable global financial governance system.
The Opinions have the following three features. First, they are aligned with the strategic positioning and fully implement the decisions and arrangements of the CPC Central Committee and the Shanghai Municipal Party Committee. The judicial safeguard measures are closely integrated with the strategic direction of Shanghai’s financial opening-up and its key areas of development; they accurately grasp the essence of institutional opening up and by establishing foreign-related financial adjudication rules and standards, create new advantages for Shanghai as an international financial center in participating in international cooperation and competition. Second, they take a problem-oriented approach and proactively respond to the judicial needs of financial opening-up. Facing new circumstances and new challenges in building Shanghai as an international financial center, they address, item by item, emerging legal issues such as offshore finance practice, the application of artificial intelligence, cross-border market connectivity, and reinsurance innovation, with a view to closing loopholes, bringing order to the market, stabilizing expectations and leading development. Third, they emphasize practicality and effectiveness, and substantively enhance the capacity of judicial safeguards for foreign-related finance. Each of the 18 provisions is linked to related cases and institutional measures; through stronger rule-making and institutional innovation, they create a series of replicable and scalable judicial practices for global financial governance.
Zhao Hong said: “We hope that, through the release and implementation of the Opinions, we will enhance the competitiveness of Shanghai as an international financial center in the formulation of rules and standards, increase the attractiveness of the financial rule-of-law environment, and expand the influence of financial risk management and control.” The Opinions are designed to serve three main functions. First, promoting the organic alignment of domestic and overseas rules, and helping Shanghai improve its function as a source of international rules. Second, regulating the two-way flow of financial elements, and supporting Shanghai in playing its role as a hub of opening-up. Third, preventing the cross-border transmission of financial risks, and safeguarding the security and stability of China’s financial markets.
The cases released this time cover representative legal issues in typical cross-border financial scenarios, including independent guarantees, cross-border guarantees, cross-border securities issuance, and the conduct of cross-border business operations. They have the following three features. First, they accurately apply international treaties and foreign law, respect and protect party autonomy in accordance with the law, and demonstrate the internationalized, specialized and cross-jurisdictional adjudication capacity of financial judges in the new era. Second, they recognize and enforce judgments and arbitral awards from other jurisdictions in accordance with the law, demonstrating an impartial, open, and inclusive judicial stance, which is conducive to strengthening international and interregional judicial assistance and promoting judicial reciprocity and mutual trust among jurisdictions. Third, they reflect frequently recurring disputes in foreign-related financial cases, equally protect the lawful rights and interests of Chinese and foreign parties, clarify transaction expectations, improve the law-based business environment, and enhance the international credibility and influence of China’s financial adjudication.
“The Shanghai Financial Court will continue to advance the implementation of the Opinions and improve the relevant supporting measures as soon as possible, so as to provide higher-quality judicial safeguards for high-level opening-up in the financial sector, and stronger judicial support for enhancing the competitiveness and influence of Shanghai as an international financial center,” Zhao Hong said.
Journalists from central and Shanghai-based media outlets attended the press conference.
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