In the afternoon of December 22, 2021, Seminar on Hot Issues in Fund Dispute Resolution was successfully held in Shenzhen. This seminar was hosted by the South China Sub-Commission of the China International Economic and Trade Arbitration Commission (hereinafter referred to as the "CIETAC South China Sub-Commission") and co-organized by Commerce & Finance Law Offices, Hui Zhong Law Firm, Holch Capital and ZD Proxy.

(The scene of the seminar)

This seminar invited many senior industry experts, scholars and practitioners. The discussions focused on hot and complicated topics covering legal risks prevention of raising, investing, managing and redeeming of private equity funds, the boundary of the manager's fiduciary obligations, market supervision and regulation, investor protection, and institutional shareholders post-investment management practices. It helped the fund industry to recognize the advantages of arbitration as a dispute resolution mechanism.

Dr. Li Xiaoguang, Secretary-General of CIETAC South China Sub-Commission, delivered an opening speech for the seminar. Mr. Zhuang Zhiyun, Secretary-General of Shenzhen Private Equity Funds Association, delivered a speech at the seminar as a special guest. Ms. Jin Xi, Deputy Secretary-General of CIETAC South China Sub-commission presided over the seminar.

Secretary-General Li Xiaoguang first expressed her heartfelt thanks to the guests and participants for their arrival and support. She pointed out that the fund plays an important role in the new concept of the national economy and provides important boost to the rapid development of our country's economy. Since the Securities Commission of the State Council has designated CIETAC as the designated agency to provide securities dispute arbitration solutions in the 1980s, a large number of pan-financial and quasi-financial disputes such as securities, futures and funds have emerged and resolved through arbitration. As the earliest and largest professional commercial arbitration institution in China, CIETAC has received more than 700 fund-related disputes over the past five years, with the amount of disputes exceeding RMB 30 billion yuan. Beijing, Shanghai and Shenzhen are the three most representative cities for the development of China's financial industry, as well as the three cities with the largest number of fund companies. Shenzhen is a pilot demonstration zone of the rule of law with Chinese characteristics, an engine city in the Guangdong-Hong Kong-Macao Greater Bay Area, and an important financial city. To hold the seminar in Shenzhen indicates special and practical significance. She hoped that this seminar would contribute to the high-quality and healthy development of the fund industry from the perspective of dispute resolution and help investors and asset managers maintain their investment value.

(Secretary-General Li Xiaoguang delivered an opening speech)

Secretary-General Zhuang Zhiyun expressed his gratitude for the invitation to this seminar. In his speech, Zhuang gave a detailed introduction to the development status of the private equity industry in Shenzhen. He also introduced the work carried out by the Shenzhen Private Equity Funds Association in terms of self-discipline management and services.

(Secretary-General Zhuang Zhiyun delivered a speech)

(Deputy Secretary-General Jin Xi presided over the seminar)

The seminar was divided into two sessions: Thematic Sharing and Roundtable Dialogue. In the first session, Ms. Yin Tianshu, senior case manager of CIETAC, Mr. Fei Ning and Mr. Zhang Ruicun, partners of Huizhong Law Firm, were invited to share their thoughts on relevant topics respectively.

The topic of Ms. Yin Tianshu's speech was "CIETAC Arbitration on Funds Disputes: Time, Direction and Trend ". By reference to a number of data, she first introduced the basic situation and characteristics of the fund-related financial disputes accepted by CIETAC. Then, she summarized the commonalities of disputes arising from different investment stages in the fund-related cases. By analyzing the review of contract legal liabilities in arbitration cases, she referred to the practical problem of qualitative and quantitative judgments, and emphasized the importance of quantification in the process of dispute resolution. Finally, Ms. Yin Tianshu looked ahead to the impact of the new asset management regulations and the PRC Arbitration Law amendments on arbitration and dispute resolution.

(Ms. Yin Tianshu shared online)

The sharing of Mr. Fei Ning and Mr. Zhang Ruicun focused on the hot issues of fund dispute resolution. From the four stages of fund raising, investment, management and redemption, they explained typical disputes through case studies. The two speakers made their speeches with interactive questions and answers. By citing typical cases, they introduced the legal risks faced by fund managers, investors and other parties involved in the dispute resolution process. In addition, they analyzed the similarities and differences of the arbitrators’ and judges' discretionary thinking in arbitration and litigation cases based on the current legislation in China, and interpreted the important role of lawyers as agents in the process of fund dispute resolution.

(Mr. Fei Ning and Mr. Zhang Ruicun shared in the first session)

The subsequent Roundtable Dialogue session was conducted on two topics, and respectively hosted by Mr. Wang Jialu, Senior Advisor of Holch Cpital, and Ms. Zeng Ying, Partner of ZD Proxy.

(Mr. Wang Jialu chaired the Roundtable Dialogue session)

The first topic of the Roundtable Dialogue is themed on "diversified dispute resolution mechanism in the fund industry". Mr. Han Junping, General Counsel of China Merchants Capital Investment Co., Ltd., Mr. Long Chao, Director of Compliance and Risk Control Department of Midea Capital (Guangdong) Investment Management Co., Ltd., Mr. Zhao Liang, Chief Counsel of Green Pine Capital Management Co., Ltd., Mr. Ma Xiaohu, Partner of Huizhong Law Firm, and Mr. Wang Jialu, Partner of Commerce & Finance Law Offices and Senior Advisor of Holch Capital, shared their dispute resolution experience. Combining domestic and foreign experience, they analyzed the difficulties in and provided suggestions for some core issues regarding funds VAM agreements, transactional business logic, and dispute resolution for private equity funds. In addition, they looked ahead to the use of third-party funding in fund dispute resolution.

(Roundtable Dialogue guests from left to right: Mr. Wang Jialu, Senior Advisor of Holch Capital , Mr. Zhao Liang, Chief Counsel of Green Pine Capital Management Co., Ltd., and Mr. Long Chao, Director of Compliance and Risk Control Department of Midea Capital (Guangdong) Investment Management Co., Ltd.; Mr. Han Junping, General Counsel of China Merchants Capital Investment Co., Ltd. participated in the discussion online)

The theme of the second topic is "The Path to Protect the Rights of Asset Management Institution Shareholders under the Background of the New Securities Law". Ms. Song Pingping, Partner and Director of the Risk Control Committee of Shenzhen Oriental Fortune Investment Management Co., Ltd., Mr. Lin Liang, Head of Risk Control Department of Qianhai Fund of Funds Equity Investment (Shenzhen) Co., Ltd., Mr. Zhu Tao, Chief Legal Counsel of China Merchants Securities Co., Ltd., Professor Xiao Wei of Xiamen University Law School, and Liu Wen, Partner of Commerce & Finance Law Offices, expressed their views on this topic. They analyzed the rights and obligations of shareholders of asset management institutions from multiple perspectives of lawyers, investment institutions and academics. Combining their own practical experience, the speakers put forward their opinions on issues such as risk prevention and post-investment management of asset management institutions, and maintenance of powers of asset management institutions as shareholders.

(Roundtable Dialogue guests from left to right: Ms. Song Pingping, Partner and Director of the Risk Control Committee of Shenzhen Oriental Fortune Investment Management Co., Ltd., Mr. Lin Liang, Head of Risk Control Department of Qianhai Fund of Funds Equity Investment (Shenzhen) Co., Ltd., Professor Xiao Wei of Xiamen University Law School, Mr. Zhu Tao, Chief Legal Counsel of China Merchants Securities Co., Ltd., and Liu Wen, Partner of Commerce & Finance Law Offices )

The seminar attracted more than 100 participants including legal and compliance personnel from asset management institutions and fund companies, CIETAC arbitrators, lawyers and other industry professionals. Participants expressed their gratitude to CIETAC South China Sub-Commission for the establishment of an exchange platform. They looked forward to more high-end conferences focusing on hot industries in the future. These meetings help to promote intra-industry exchanges and enhance the understanding of arbitration as a dispute resolution method in various industries.