China amends regulations to facilitate civil litigation against false statements in securities markets

BEIJING -- China's Supreme People's Court (SPC) on Friday issued amended regulations on the trying of cases involving civil compensation arising from false statements in securities markets, scraping the pre-litigation procedures required for court acceptance.

The new regulations stipulate that administrative penalties or criminal judgments will no longer be preconditions for people's courts to accept such civil compensation cases, lifting the restrictions for victims to file lawsuits, according to the SPC.

In addition to stock exchanges and securities trading venues approved by the State Council, the regulations are also applicable to misrepresentations in lawfully established regional equity markets.

Efforts will be made to coordinate the handling of cases by people's courts and relevant investigations by the securities regulator to address the difficulties victims may encounter in collecting evidence for litigation, the SPC said.