A court of arbitration specializing in financial disputes was
inaugurated in Shanghai yesterday, marking what industry analysts
say is a milestone in the city's efforts to establish itself as an
international financial center.
Shanghai's Vice-Mayor Feng Guoqin said at the launch ceremony:
"The inauguration of the new Shanghai Court of Financial
Arbitration demonstrates a great effort to ensure the city's legal
system keeps pace with the rapid development of Shanghai as a
leading financial center."
The court will provide a base for a team of financial and legal
experts from China and overseas involved in the arbitration of
financial disputes at home and abroad, officials said.
Experts yesterday praised the introduction of the arbitration
system, calling it an essential feature of any international
financial center where complex transactions involving many
different parties are common.
Lu Fang, deputy director of the Shanghai Arbitration Commission,
said: "The construction of the arbitration system is an integral
part of improving financial services.
"A well-functioning financial legal system will enable the city
to attract many more international financial institutions, which
will bring new expertise and vast global links enabling Shanghai to
plug into the world's financial marketplace."
Industry players have said the resolution of financial disputes
through courts of arbitration, handled by arbitrators with
extensive financial knowledge, is a common practice worldwide and
preferable to litigation.
Liu Hua, director of the Shanghai municipal government's legal
system office, said: "In the history of China's financial sector,
there have been many disputes that should have been resolved
through arbitration.
"As the domestic financial market expands, there is great
potential for financial arbitration."
Fang Xinghai, director of the local government's financial
services office, said the new arbitration court will lay a solid
legal foundation for more financial innovations.
He said innovations are key to the development of an
international financial center.
"Most of the time, the law simply cannot keep up with the
fast-evolving financial market. Without a transparent and efficient
arbitration mechanism, financial innovation will be thwarted," he
said.
The official said the introduction of the arbitration mechanism
will also help collect firsthand information on dealing with
financial disputes and problems.
Moreover it will be able to provide guidance for the government
to take macroeconomic measures for the sound and steady development
of the financial sector.
(China Daily December 19, 2007)
