Publish time: Thu Sep 20 16:24:01 CST 2018
On 24th August, 2018，Beijing Arbitration Commission/Beijing International Arbitration Center (BAC/BIAC) and China Banking Association (CBA) held the joint conference on “Annual Review on Financial/Investment Dispute Resolution in China”. This conference was based on BAC/BIAC’s Annual Review and discussed issues in area of finance and investment, which attracted nearly 240 participants from banking association, commercial banks, financial corporates, law firms and media.
Conference site
At the beginning of the conference, Mr. Xiangrui Pu, General Counsel of China Banking Association, and Dr. Fuyong Chen, Deputy Secretary General of BAC/BIAC, separately delivered welcome speech.
Mr. Xiangrui Pu, General Counsel of China Banking Association, delivered welcome speech.
Mr. Xiangrui Pu first acknowledged the importance of this conference as being the sample of cooperation between BAC/BIAC and CBA. Since 2012, financial industry in China has developed rapidly. At the same time, financial innovation has almost evolved into systematic risks. 2017 National Finance Working Conference and the 19th National Congress of CPC put forward “Serving the real economy, managing financial risks and deepening financial reform”. The People’s Bank of China, State Administration of Foreign Exchange, China Banking Regulatory Commission have issued over 300 normative documents and over 100 regulations. These measures on one hand alleviated the systematic risks and guide a healthy development of financial industry, on another hand illustrated the new balance among risk prevention and financial innovation in Chinese financial market. The long-term cooperation between CBA and BAC/BIAC allows reflection on BAC/BIAC’s dispute resolution practice in financial sectors. It could be concluded that the taylor-making procedures and financial expertise are needed in term of financial dispute resolution need. Cooperation and exchange between arbitration institutions and financial sectors are expected to advance arbitration in financial dispute resolution mechanisms, safeguard the financial institutions’ operation, and help stabilize the overall financial market.
Dr. Fuyong Chen, Deputy Secretary General of BAC/BIAC, delivered welcome speech.
Dr. Fuyong Chen, on behalf of BAC/BIAC, welcomed all participants warmly and respond to two questions of “What factors make an outstanding institutions in arbitration field?” and “What is the core competitiveness of arbitration institutions?” He articulate BAC/BIAC’s intention of holding this conference: it is a component of BAC/BIAC’s effort in enriching the dispute resolution theories by reflecting our practice in every industries. The other components includes “BAC/BIAC Library”, “BAC/BIAC Collection of Translations”, “Collection of Excellent Arbitral Award”, “Commercial Dispute Resolution in China Annual Review and Preview” and “Beijing Arbitration Quarterly”. These works support BAC/BIAC’s endeavor to excel ourselves consistently in providing credible arbitration service and make BAC/BIAC competent in financial dispute resolution regardless of its difficulties and hardship. BAC/BIAC also maintains high thresholds in its arbitrator panel, compulsory training sessions focusing latest movement in the field of arbitration, and merit-based evaluations among arbitrators, case managers, and users. In addition, BAC/BIAC also pursues a greater transparency within the arbitration. Users are able to make informed decision by accessing necessary arbitrators’ information including arbitrators’ caseload and tracked case record in advance. The abovementioned infrastructures not only guarantee BAC/BIAC’s credibility in the field, but also demonstrate BAC/BIAC’s determination of being a world-class dispute resolution center and providing commercial dispute resolution services at international standards for all parties.
The second part of this forum was about “The latest movements in the evolution of financial regulatory policy”. This section was moderated by Mrs. Haiyan Chen, Legal General Manager of China Agricultural Bank Beijing Branch, on the topic of “Rule of Law in Financial Regulations”. Mr. Xiuming Tao, Founding Partner of JunZeJun Law Offices, made a speech on this topic. And Mr. Jun Ma, Chief Judge of Civil Tribunal of Beijing No.4 Intermediate People’s Court, Mr. Jianjun Dong, Legal General Manager of China Industrial and Commercial Bank, and Mr. Haiquan Lin, Researcher of Science of Civil and Commercial Law Research Center Renmin University of China, made comments to the speech.
Discussing hot issue in the field of finance
Mr. Xiuming Tao, Founding Partner of JunZeJun Law Offices, made a speech.
Mr. Xiuming Tao first reviewed recent situation of disputes in the market of financing and investment. He notes a surge of disputes relating to private lending, equity investment (VAM/earn out disputes), Internet financing (P2P, crowd funding, asset pool), asset management products for financial institutions (non-standard asset business), bond and shares pledge financing of listed company. Regulatory inclination of risk preventing challenges traditional reasoning in financial dispute resolution. Arbitrators now must carefully assess the nature of transactions and carry out quantitative analysis, whilst pay attention to compliance factors and appropriateness of the asset managers’ behavior. By establishing the direct reason of disputed loss, a judgement must stick to positive values such as acknowledge industrial norms, protect positive innovation, maintain stability of transaction and address good faith in transactions.
 |
 |
 |
 |
| Guests were speaking on issues in the field of finance disputes | |
After the speech made by Mr. Xiuming Tao, Mr. Jun Ma shared his observation on financial innovation and regulation. He also articulate his understanding of the interaction between litigation and arbitration in financial dispute resolution. Mr. Jianjun Dong shared his detailed observation of financial market from the perspective of commercial bank and he called for actively financial risks prevention measures including the adoption of “firewall mechanism”. At last, Mr. Haiquan Lin pointed out, based on his abundant judiciary experience, that courts always protect positive financial innovation and deny tactics of evading regulation.
The topic of the third part was “The risk prevention and dispute resolution in the new economic environment”. This part was moderated by Mr. Gang Dong, Morgan Stanley's China Chief Compliance Officer and Executive Director. After that, Mr. Haifeng Li, Partner of Baker & McKenzie FenXun Joint Operation Office, made a speech about the Commercial Dispute Resolution in China Annual Review and Preview (2018). Then Mrs. Xuemei Zhang, Presiding Judge of 2rd Civil Tribunal of Supreme People’s Court, Mr. Jianwei Li, Professor of China University of Political Science and Law, and Mr. Rongwei Ma, General Manager of Legal and Compliance Department of Kunlun Trust Co., Ltd, made comments accordingly.
Mr. Haifeng Li, Partner of Baker & McKenzie FenXun Joint Operation Office, made a speech.
 |
 |
 |
 |
| Speakers were sharing their views in the field of investment disputes | |
Mr. Gang Dong had had further input into the discussion by contributing his observation of investment market. Mr. Haifeng Li discussed how to solve the VAM (earn out) disputes and what are the key points in equity investment by citing BlueFocus case which is included in “Commercial Dispute Resolution in China Annual Review and Preview (2018)”. After that, Mrs. Xuemei Zhang discussed the most frequent courts’ reasoning in issues such as debt in the name of equity, withdrawal of capital, nominee shareholding. Mr. Jianwei Li shared his understanding on SPC’s Forth Judicial Interpretation of Company Law and the relationship between administrative regulations and the invalidity of behavior. Mr. Rongwei Ma shared the his reasoning in the abovementioned issues and shares his thoughts on Macro level of the overall financial market.
 |
 |
| Participants were interchanging ideas. | |
After the final session, all speakers and the participants had an active interaction concerning the field of financing and investment and dispute resolution.
Mr. Fang Hu, Vice-chairman of Equity and Venture Capital Committee of The Investment Association of China, delivered closing remarks.
At the end, Mr. Fang Hu, Vice-chairman of Equity and Venture Capital Committee of The Investment Association of China, delivered closing remarks from the aspect of financial education, moral building and policy making.
“Commercial Dispute Resolution in China: Annual Review and Preview”, as the first series of reports designed by Chinese arbitration institution and written by professionals in different fields, is always reviewing and interpreting the development change and trend of commercial dispute resolution in China. It has become the important reference of Chinese practice for readers since its birth in 2013. “Annual Review and Preview” now includes over 50 reports in different areas. Based on its content, various roadshows were held in London, Paris, Frankfurt, Cologne, Hague, Vienne, Zurich, Hong Kong and Beijing. It deserves attention among scholars, lawyers, counsels and other stakeholders of Chinese commercial dispute resolution industry.
There will be the remaining series of joint conference in later this year, which base on different chapters of “Commercial Dispute Resolution in China Annual Review and Preview” , including area of construction project, real estate and international trade. Please stay tuned on BAC/BIAC’s website and WeChat account “Beijing Arbitration Commission”.