Key factors in ascertaining mis-representation in the Chinese
security market
Introduction
Upon the rapid development of Shanghai / Shenzhen Stock Exchange
Market (SSE / SZSE) and the ChiNext Market (ChiNext) in China over
recent years, increasing number of case precedents regarding
mis-representation on securities (e.g. fraudulent listing,
fictitious profit etc) have been reported. Meanwhile, After the
"Provisions of the Supreme People's Court on Trial of
Cases on Compensation for Arising out of False Presentation in
Securities Market (Mis-representation Provisions)
entered into force in 2003, more than 110 cases regarding
mis-representation on securities have been filed before competent
courts in China as of 2016, among which more than 40 judgements
have been made. Additionally, in 2017, the Xin Tai Electrical
fraudulent listing case has blazed the trial for mis-representation
on securities regarding CHINEXT listed company. In the
circumstances, this newsletter
