Supreme Court: Crack down severely on illegal and violations in the capital market such as financial fraud by listed companies

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The Supreme People’s Court reports the overall situation of civil and commercial trials in people’s courts in 2025. Last year, disputes over false statements in securities accounted for as much as 96.3% of securities disputes. The people’s courts implemented the principles of “pursuing the primary culprits” and “cracking down on accomplices,” requiring strict action against behaviors such as financial fraud by listed companies. In 2025, the Supreme People’s Court jointly issued guidance on judicial support for the capital market with the China Securities Regulatory Commission. Throughout the year, courts nationwide accepted 27,000 securities disputes, a 63.6% increase year-on-year. Efforts included promoting representative litigation, legally supporting ordinary representative litigation, and fully implementing model judgment mechanisms, with a focus on cracking down on financial fraud and other illegal activities in the capital market. (The Paper)

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