Trends and Developments in Chinese Insolvency Law: The First Decade of the PRC Enterprise Bankruptcy Law

'Forthcoming in the American Journal of Comparative Law 2018'

51 Pages Posted: 9 Oct 2017

See all articles by Stacey Steele

Stacey Steele

University of Melbourne - Asian Law Centre

Andrew Godwin

Centre for International Finance and Regulation (CIFR); Melbourne Law School, The University of Melbourne

Chun Jin

Doshisha University

Changyin Han

Shanghai Jiao Tong University (SJTU) - KoGuan Law School

Yimin Ren

Zhejiang Capital & Equity Law Firm

Weihong Chi

Liquidation & Bankruptcy Court of Shenzhen Intermediate People’s Court

Date Written: October 4, 2016

Abstract

Insolvency law in the People’s Republic of China has gained increased prominence in the last five years in light of changing economic circumstances and government policies. This article analyzes trends and developments in Chinese insolvency law since the enactment of the PRC Enterprise Bankruptcy Law in 2007, focusing on the dynamic transformation of insolvency practice, jurisprudence and the profession over the last five years. It also draws on examples from Japan to highlight that China is not alone in relation to a number of contemporary debates and developments in insolvency law. Moreover, the article brings together academic, judicial and practitioner perspectives to examine key contemporary issues in China, including the influence of Chinese courts; the treatment of secured creditors; the professionalization, appointment and remuneration of insolvency practitioners; and reorganizations of listed companies, unlisted real estate companies and unlisted foreign investment enterprises. The article also emphasizes the different rates of development in more sophisticated economic regions such as Shenzhen City and Zhejiang Province from which recent data and case studies are drawn. Finally, the article analyzes China’s approach to cross-border insolvencies. Whilst challenges remain, the article evidences China’s indigenous and increasingly sophisticated insolvency framework and highlights future innovations including publication of insolvency-related information and the potential for a personal bankruptcy regime.

Keywords: PRC Enterprise Bankruptcy Law; Insolvency; Re-organisation; Secured Creditors; Insolvency Practitioners

JEL Classification: K22; K19; K35

Suggested Citation

Steele, Stacey and Godwin, Andrew and Jin, Chun and Han, Changyin and Ren, Yimin and Chi, Weihong, Trends and Developments in Chinese Insolvency Law: The First Decade of the PRC Enterprise Bankruptcy Law (October 4, 2016). 'Forthcoming in the American Journal of Comparative Law 2018' . Available at SSRN: https://ssrn.com/abstract=3049685 or http://dx.doi.org/10.2139/ssrn.3049685

Stacey Steele

University of Melbourne - Asian Law Centre ( email )

Melbourne
Australia

Andrew Godwin (Contact Author)

Centre for International Finance and Regulation (CIFR) ( email )

Level 7, UNSW CBD Campus
1 O'Connell Street
Sydney, NSW 2000
Australia

Melbourne Law School, The University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria
Australia

Chun Jin

Doshisha University

Karasuma-Imadegawa Kamigyo
Kyoto 602-8580
Japan

Changyin Han

Shanghai Jiao Tong University (SJTU) - KoGuan Law School

800 Dongchuan Rd., Minhang District
Huashan Road 1954, Xuhui District
Shanghai, Shanghai 200240
China

Yimin Ren

Zhejiang Capital & Equity Law Firm

China

Weihong Chi

Liquidation & Bankruptcy Court of Shenzhen Intermediate People’s Court

China

Register to save articles to
your library

Register

Paper statistics

Downloads
139
Abstract Views
571
rank
209,420
PlumX Metrics