Financial court marks first anniversary

The Shanghai Financial Court has accepted more than 6,600 cases with over 110 billion yuan (US$15.7 billion) involved in the past year, the court said at its first anniversary summary on Wednesday.

The major types of cases handled included false statement of securities, financial loan contracts, financial lease contracts, corporation bond trading and pledged securities repurchase.

It said it handled the country's first case of share transfers between a foreigner and a Chinese national entrusted by him to manage his shares.

In 2005, the two signed an agreement about the foreigner's purchase of 880,000 shares of a company from the Chinese at 4.36 yuan for each share. The shares would be managed by the Chinese under the foreigner's orders. The Chinese could exercise shareholder’s rights under his own name but the income should go to the foreigner.

In 2017, the company was listed on the Shanghai Stock Exchange. As a shareholder, the Chinese made statements several times that he didn't hold any shares for others.

Last year the company gave each of shareholder 4 yuan per 10 shares as a cash dividend and increased each 10 shares to 14 shares. The number of shares under the Chinese's name rose to more than 1.2 million.

Later the two sides were in dispute over allocation of shares income and the foreigner took the Chinese to court. He demanded the income from the company's shares or compensation based on the market value.

According to the ruling, the court said the two sides can have a negotiation and sell the shares. If they failed to reach an agreement, the foreigner could apply to sell or auction the shares and get back more than 3.8 million yuan for his investment. He could take 70 percent of the extra part and the Chinese the remaining 30 percent.

The Chinese was also ordered to pay the foreigner 70 percent of the 352,000-yuan cash dividends he got in 2017.