Recently, the Supreme People's Court ("SPC") issued Several Provisions on the Trial of Cases of Civil Damages for False Statement Infringement in the Securities Market (the "Provisions"), with effect on January 22, 2022.

The Provisions encompass 35 articles in eight parts, including general provisions, determination of false statement, materiality, and causality of transactions, among them. The Provisions cancel the administrative or criminal pre-procedure stipulated in the original judicial interpretation, to timely and comprehensively protect the right of action of the investors suffering losses, and also introduce a safe harbor system for predictive information, optimizing and improving how to determine the date of releasing and disclosing false information, materiality, and transaction causality in the false statement case. Under the Provisions, the information disclosure obligor shall bear civil liability in the securities trading market for the actual losses incurred by the plaintiff from false statement. The plaintiff's actual losses include the loss from the investment differential, the commissions and the stamp duty relating to the loss.

(Source: Supreme People's Court)