On May 11, 2017 the first court of fund industry in China was formally established in Beijing Fund Town. This is the first professional court specially targeted at the fund industry in China, which aims to perfect the fair and righteous professional judicial system, promote the professional levels of fund cases and the judicial mechanism construction of capital management field, and safeguard the scientific, healthy and sustainable development of Chinese fund industry.

Hong Lei, secretary of the party committee and president of Asset Management Association of China, Shan Guojun, the presiding judge of the First Civil Court of the Municipal Senior Court, Wei Guangxun, district standing committee member and secretary of the Political and Judiciary Commission, Shao Mingyan, secretary of Party Committee and president of Fangshan Court jointly unveiled the nameplate for the establishment of the first court of fund industry in China.

In recent years, with the structural reform of the supply side, the adjustment of industry structure, development of science & technology innovative industry and the constant innovation of the investment and financing mode, Chinese fund industry has attained the explosive growth. The fund industry has become one of the four pillars of the modern financial system, along with banks, securities and insurance.

Hong Lei, secretary of the party committee and president of Asset Management Association of China: establishing the court of fund industry is an epoch-making thing. It is favorable for constructing the good legal orders and optimizing the financial ecological environment.

As the financial innovation activities get increasingly active, related complaints and judicial demands are also gradually increasing. According to the previous statistics of Asset Management Association of China, it received 1454 complaint matters and clues in 2016, even more doubling than the previous year. In addition, the relevant lawsuit cases of high relevant objects, strong professionalism and complicated authority-responsibility relationship in some fund industries also proposed higher requirements for the judicial departments.

Commission, Shao Mingyan, secretary of Party Committee and president of Fangshan Court: the establishment of the court of fund industry is the response targeting at the large-scale growth of the fund cases and the judicial demands of the fund industry, and also the important measure of further optimizing the resource allocation, promoting the professional level of trial and improving the trial quality and effect under the background of judicial reform. In the future, the court of fund industry will be constructed to the professional judgment base of the fund and financial cases.

The court of fund industry is set up in Beijing Fund Town. The hearing cases include the disputes covering the corporate type, the stock right type and partnership in the operation process of the fund organizations, the brokerage and entrustment contract between fund organizations and investors, the loan contract dispute between the fund organizations and borrowers.

Deng Huanle, director of the Legal Department of Asset Management Association of China: setting up the court of industry keeps in line with the international practices and the expectations of the market-participating subjects. The court of fund industry requires the more professional teams. The stronger the court hearing is, the fairer and more righteous the judgment results will be.

To set up the court of fund industry practices the important speech spirits of financial safety made by General Secretary Xi, which is favorable for constructing the good law orders and optimizing the financial ecological environment. It will play an irreplaceable role in terms of reducing the fund operation cost, improving the market operation efficiency and maintaining the stable development of the financial ecological system.

It is said that the professional court of the fund industry will further perfect and set up the professional mechanisms such as the fund expert consultation, professional jury and information sharing on the basis of the smooth operation of the current framework, strengthen the professional judicial research and judicial exploration and provide a better judicial guarantee for standardizing the financial orders, solving the financial risks and maintaining financial safety.