Supreme Court: Crack down hard on financial fraud; last year, courts nationwide handled 27,000 securities-related disputes.

Gelonghui March 10 — According to the Supreme People’s Court, last year, 29,000 “zombie companies” and outdated capacity enterprises legally underwent bankruptcy liquidation procedures, resolving 4 trillion yuan in debt. Vice President of the Civil Trial Second Division of the Supreme People’s Court, Zhou Lunjun, stated that strictly cracking down on financial fraud is a major focus of cases. To increase the cost of violations, the courts are actively targeting “ringleaders” and “accomplices” involved in financial fraud, conveying a firm judicial stance through case handling and continuously signaling zero tolerance for financial fraud. It is understood that the Nanjing Intermediate Court handled the third nationwide case of securities false statements involving a special representative lawsuit, ruling in favor of Jin Tongling Company to compensate 77 million yuan for investment losses suffered by 43,000 investors. The Shenzhen Intermediate Court is processing the Meishang Ecology case, and the Shenyang Intermediate Court is steadily advancing the Jinzhou Port special representative lawsuit case. Zhou Lunjun noted that these cases better demonstrate the “gathering sand into a tower, gathering small pieces into a coat” effect of special representative lawsuits, using large civil compensation to legally increase the cost of violations and create a strong deterrent.