China’s Recognition and Enforcement of Foreign Securities Judgments

Chapter 9 examines the issue of whether and how foreign civil judgements against overseas-listed Chinese companies will be recognized and enforced in China. As overseas-listed Chinese companies usually have their main assets located in China, it is important that Chinese courts recognize and enforce foreign securities judgments. However, there are many difficulties in this area, which undermines the efficacy of the regulation of cross-border securities transactions. In quest of solutions, this chapter assesses the possibility of suing Chinese companies in the offshore financial centers where they are incorporated, finding that there would be similar issues with judgment enforcement in China. It also examines the viability of using arbitration as an alternative, arguing that arbitration may only supplement, rather than substitute, court litigation for resolving securities disputes.