Shanghai courts to speed resolution of securities litigation

Shanghai will pioneer the use of demonstration cases to solve securities disputes, which have been rising rapidly in recent years, the Shanghai Financial Court announced on Wednesday.

By referring to such cases, investors seeking legal help in disputes can get access to a simplified litigation procedure or apply for pre-litigation mediation to avoid lengthy procedures, according to Lin Xiaonie, deputy director of the court, the country's first court devoted exclusively to financial cases.

As authorities have stepped up the fight against illegal behavior, including false statements and manipulating the market, and as small and medium-sized investors have become more aware of their rights, investor lawsuits against securities companies and their major shareholders have surged, the court said.