China creates bankruptcy courts in Beijing and Shanghai

China has established specialised courts for bankruptcy in Beijing and Shanghai.

Called the Beijing Bankruptcy Court and the Shanghai Bankruptcy Court, the tribunals have been launched after the first such court in the country was opened in Shenzhen last month.

The courts will take up cases of company bankruptcies, compulsory liquidation, and cross-border bankruptcy.

The Beijing Bankruptcy Court replaces the Liquidation and Trial Divisions of Beijing No. 1 Intermediate People’s Court.

There were 9,542 new corporate bankruptcy cases filed in Chinese courts in 2017, up 68.4% on the year, the state’s Xinhua News Agency reported. That same year, 6,257 corporate bankruptcy cases were settled by Chinese courts, an increase of 73.7% from the previous year.