In a significant move to bolster its financial legal framework, China’s Supreme People’s Court (SPC) has unveiled comprehensive plans to develop specialized judicial strategies for emerging financial sectors. The initiative specifically targets complex areas including private equity funds and virtual currencies, aiming to strengthen judicial protection in these rapidly evolving markets.
Chief Judge Wang Chuang of the SPC’s Second Civil Division announced that the court will draft detailed judicial interpretations concerning civil compensation for securities market violations, particularly insider trading and market manipulation. This effort seeks to refine legal proceedings and establish clearer guidelines for handling such cases.
The announcement comes amid a substantial increase in financial litigation throughout China. Official data reveals that Chinese courts handled over 2.7 million financial cases in 2025, marking a 1.7 percent increase from the previous year. These cases spanned multiple emerging sectors including technology finance, digital finance, pension finance, and green finance.
Notably, securities and insurance disputes have seen particularly dramatic growth. Courts nationwide processed 27,000 securities cases and 392,000 insurance disputes in 2025, representing staggering increases of 63.6 percent and 21.3 percent respectively compared to 2024. This surge has prompted judicial authorities to intensify efforts to protect investors and consumers through strengthened legal mechanisms.
Beyond immediate case management, the SPC is pursuing structural enhancements to China’s financial judiciary system. Plans are underway to improve the establishment of specialized bankruptcy courts across the country and optimize adjudication processes within this sector. These developments represent China’s proactive approach to creating a robust legal environment capable of supporting its increasingly complex financial ecosystem.