China’s top court backs legal action against corrupt firms amid equity markets rally
AdvertisementChina stock marketBusinessMarketsChina’s top court backs legal action against corrupt firms amid equity markets rallyThe court’s initiative marks ‘a positive sign that the market would sustain its upward momentum’, hedge fund manager Zhou Ling says
Reading Time:3 minutesWhy you can trust SCMPDaniel Renin ShanghaiPublished: 6:00pm, 24 Feb 2026Beijing is encouraging equity investors to pursue representative action against unscrupulous listed or delisted firms in an apparent effort to bolster confidence in the country’s stock markets, as trading resumed on Tuesday following a 10-day break.
The Supreme People’s Court, mainland China’s highest judicial organ, also announced at a press conference that it would issue more edicts on civil compensation for insider trading and market manipulation to better safeguard retail investors’ interests.“People’s courts are taking an active stance on representative actions against multiple firms and companies already delisted,” Wang Chaohui, ..
