Extraterritorial Jurisdiction of China’s New Securities Law

Chapter 4 looks at the issue of extraterritorial jurisdiction of Chinese securities law over Chinese companies listed overseas. In 2019, Chinese securities law was revised significantly to introduce an explicit provision on extraterritorial jurisdiction, but it is not clear how the provision may be applied in practice. In 2020, Luckin Coffee, a China-based US-listed company, was found to have committed serious accounting fraud, which generated an intense discussion on the application of extraterritorial jurisdiction. In this regard, China may consider national interests, the principle of international comity, and the issue of judicial recourse constraints.