Civil Law

New Regulations on Receivables Financing in the Context of Supply Chain Finance

In the past, due to the lack of specialized legislation for the supply chain finance industry and the fact that receivables financing is a new type of financing model, there may be a lack of clear and reasonable solutions for receivables financing disputes. The Civil Code, which takes note of this situation and focuses on responding to the relevant issues, is the latest development in the civil legal regulation of supply chain finance. The Supreme People's Court issued the Interpretation of the Relevant Guarantee System and the Interpretation of the General Provisions of Book Contracts. On the basis of summarizing the trial practice experience in recent years, the Supreme People's Court issued the Conference Minutes (draft) of the National Courts’ Financial Trial Work. These legal updates, as the basis for trials in judicial practice, set new norms for receivables financing transactions and refined the relevant rules. These legal updates have responded well to the problems of multiple

Feng Shun

China Law Update 16 Tsinghua China L. Rev. 157 (2023)

Securities Law

Key Step towards a Fair, Market-based Capital Market: The Unprecedented Private Investment Fund Regulation

The implementation of Private Investment Funds Regulation marks a significant stride toward establishing a fair and market-based capital market. This regulation encompasses comprehensive protection throughout the fundraising, investment, management, and exit stages, embodying an "all-round protection" framework. Notably, the Regulation strengthens the registration and disclosure requirements for fund managers, and also, clarifies the consequences for the violation of their legal obligations, protecting investors from both ex-ante and post-ante perspectives. On top of this, the inclusion of a special chapter for VC funds demonstrates the efforts of the authority to explore a differentiated approach to private fund regulatory framework. However, excluding VC funds, the Regulation maintains uniform regulatory requirements to other types of private funds. Indeed, there are common characteristics among private funds. Most of these funds target high-risk investments, emphasizing the qualifi

Xu Changle

China Law Update 16 Tsinghua China L. Rev. 139 (2023)

Securities Law

Analysis on New Regulations and Future Road of Independent Director in China

Based on the history of independent directors system in China, this article mainly reviews the major changes made by the China Securities Regulatory Commission (CSRC) in Measures for the Administration of Independent Directors of Listed Companies issued on August 1, 2023 compared with the Rules for Independent Directors of Listed Companies issued previously, and analyzes the progress and shortcomings of this revision from the perspective of comparative law compared with the UK. Furthermore, in view of the historical experience of the UK, this article puts forward the suggestion on clarifying the role of independent directors and focusing more on capacity as well as management function rather than the independence character and supervisory duty.

Ma Kehui

China Law Update 16 Tsinghua China L. Rev. 125 (2023)

Procedural Law

Development of Parallel Litigation Regulation in China’s Amended Civil Procedure Law

The Amended Civil Procedure Law of the People’s Republic of China in September 2023 (“the Amended CPL”) emerged in response to perceived deficiencies within the existing domestic legal framework and the escalating challenges encountered in cross-border scenarios. The Amended CPL has strategically addressed this predicament by expanding the jurisdictional ambit and exclusive authority of Chinese courts, precisely defining their competence in adjudicating parallel litigation cases. It has also introduced crucial principles such as the rule of prior in tempore and the doctrine of forum non conveniens to facilitate the harmonization between international proceedings. This essay is a comprehensive analysis of these legislative changes, delving into their intricacies and implications. In doing so, it aims to unravel the balance that the legislator sought to strike between two conflicting values: judicial sovereignty and international comity.

Pan Yan

China Law Update 16 Tsinghua China L. Rev. 109 (2023)