The Supreme People's Court of China announced Wednesday that it would enhance the proceedings of financial cases to avert risks in the domestic financial system and ensure its sound development.
The high court has released 30 guidelines in recent days to improve its proceedings of financial cases to tackle potential financial risks in the domestic economy, including illegal fundraising, a housing bubble and local government debt, the official chinanews.com website reported.
"Illegal fundraising endangers the security of citizens' assets and social stability; fighting illegal fundraising is key in preventing financial risks," the guidelines said. "[The court] will keep on taking strong measures against illegal fundraising."
The guidelines said that the court will "severely punish" securities crimes to disperse systemic risks in the capital markets. The court will also shore up efforts to prevent local debt risks from further accumulating.
As to the housing bubble, the guidelines said, the court will better handle certain cases to prevent them from threatening the overall financial system and guide real estate transactions to focus more on the function of providing shelter rather than serving as an investment.
The guidelines also included several new measures for supporting financial reform, including active oversight of regulatory agencies' responsibilities in regulating the markets and enhanced coordination between financial regulation and court proceedings.
The guidelines were issued after a high-profile Financial Work Conference held in Beijing in July, where fending off systemic financial risks and guiding more capital into supporting the real economy were designated as top priorities.
