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On May 18, 2018, Li Ming, CEO of the National Equities Exchange and Quotations Corporation Limited (NEEQ Co. Ltd.) and Wang Chengjie, Deputy Director and Secretary General of China International Economic and Trade Arbitration Commission (CIETAC) sign a framework agreement for cooperation in CIETAC on behalf of both sides, and hold opening ceremony for the CIETAC Mediation Center.
The agreement is an important measure for the two sides to put into action the guiding principles of the 19th National Congress of CPC, the requirements of the Central Economic Work Conference, and the spirit of the pilot work between the Supreme People's Court and the CSRC to carry out the pluralistic resolution mechanisms for securities and futures disputes. The agreement not only offers high-efficient, professional and low cost dispute resolution method for market participants, but also provides more solid institutional guarantees for the NEEQ to grow from scale to high quality by improving mechanisms for investor protection as well as market risk prevention and control.
According to the cooperation framework agreement, NEEQ Co. Ltd. will work with CIETAC to guide parties concerned in disputes where mediation is appropriate to turn to CIETAC for solutions by media coverage and training. CIETAC and NEEQ select senior experts with professional background, mediation capability, good public credibility and professional integrity to provide professional and efficient mediation services for timely and effective resolutions. Where a settlement agreement is reached through the CIETAC, the parties concerned can apply for a rapid arbitration by CIETAC to make the agreement legally enforceable and to ensure a thorough settlement of the dispute.
NEEQ is a national securities trading venue approved by the State Council. Under the leadership of the CSRC and the strong support from all walks of society, and after five years of unremitting efforts, NEEQ has seen more than 11,300 companies listed, and the accumulated trading value and the funds raised have both exceeded RMB 400 billion. The implementation of market classification and trading system reform at the end of 2017 marks a milestone in deepening NEEQ reform. However, with the expansion of the market and the increasingly complex interest relations, the economic disputes among the investors, the chief agency brokers, the listed companies and their directors, supervisors and senior managers have also been on the rise. These disputes are new, complex and frequent, which call for low-cost, efficient, professional and authoritative dispute resolution. As the earliest, most influential and internationally renowned permanent arbitration institution in China, CIETAC has rich practical experience in mediation. In order to better meet the demand of the market, CIETAC sets up the mediation center, relying on its own arbitration work, and will vigorously promote the establishment of a mechanism to link mediation to arbitration and litigation, so as to facilitate the parties concerned to solve disputes at one-stop. The NEEQ market dispute resolution mechanism of ‘professional mediation plus commercial arbitration’ established by NEEQ and CIETAC will help to solve the dispute thoroughly.
NEEQ and CIETAC will deepen cooperation, improve working mechanism, strengthen cooperation in mediator selection, business training, mediation information sharing, case research and media coverage, and actively guide all kinds of market participants to solve disputes through mediation, with lower cost and higher efficiency.