STAR investors get better protection

The Shanghai Financial Court will enhance its protection of investors involved in cases related to STAR Market by expanding the range of entities which can apply for investigation writ from the court, according to a guideline issued by the court on Tuesday.

Protection agencies for securities investors will be allowed to make applications, instead of mainly lawyers previously. For those refusing to assist the writ holder on getting evidence, the court will give them civil punishment.

“That can help investors to get the evidence needed,” said Xiao Kai, deputy head of the court. “We will use the online platform to simplify procedures and reduce costs.”

Guides and counseling will be bilingual.

Xiao said on disputes over information disclosure, they will give tougher penalties but will also consider the negative influence it may bring to the listed companies’ business.

“We will have some evaluation on the risks brought by the law on the involved companies, taking the influence on their business into consideration.” said Xiao. “We will execute their property other than the stock rights first and reduce the negative impact to their operation.”

Earlier this year the financial court was assigned to deal with civil, commercial and administrative cases in connection with the new science and technology innovation board by local high court.