Supreme People's Court, Minutes of Symposium on the Trial of Bond Dispute Cases by Courts Nationwide

最高人民法院全国法院审理债券纠纷案件座谈会纪要

July 30, 2020 | BY

Susan Mok

The Supreme People's Court issues the first guidelines on trial of bond disputes

Clp Reference: 1420/20.07.15 Promulgated: 2020-07-15
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Issued: July 15, 2020

Main contents: The Symposium aims to correctly try civil and commercial contractual, tort and bankruptcy cases arising in connection with the offering and trading of company bonds, enterprise bonds and non-financial enterprise debt financing instruments and unify the application of the law thereon (Preamble).

Fundamental principles for the trial of bond dispute cases are mitigating the risk of each individual case while taking into account factors such as state economic policies, financial market regulation and social impact (Article 1).

The Symposium covers the determination of the qualifications of the litigation subjects, protection of the rights of the bond holders, civil liability of the issuer, liability of other liable subjects and liability of the issuer's bankruptcy administrator.

If a bond holder demands that the issuer repay the principal and pay the interest thereon early on the grounds that the issuer has committed a breach of contract specified in the bond offering documents, the people's court shall render its determination by comprehensively considering the specific provisions of the bond offering documents concerning anticipatory breach, cross default, etc. and the specific circumstances of the event that occurred (Article 21).

clp reference: 1420/20.07.15 issued: 2020-07-15

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