BEIJING -- Chinese authorities have vowed to put in place a multi-pronged mechanism for financial dispute resolution to protect legitimate rights and interests of financial consumers and prevent and defuse financial risks, according to an official directive.

Jointly issued by the Supreme People's Court, the People's Bank of China and the China Banking and Insurance Regulatory Commission, the directive aims to promote the sustainable and healthy development of the financial sector.

It stipulates that civil and commercial subjects with equal rights can apply for mediation by financial dispute mediation organizations in disputes over contractual and tort liabilities arising from financial business.

As per the directive, an agreement between parties to a dispute that is reached through mediation presided over by financial dispute mediators shall have the nature of a civil contract.

If a party refuses to fulfill a mediation agreement, of which validity has been affirmed by a people's court, the other party may apply for compulsory execution by a people's court, says the directive.

According to authorities, the Supreme People's Court, the People's Bank of China and the China Banking and Insurance Regulatory Commission will jointly establish the working group of the multi-pronged mechanism for financial dispute resolution to guide and coordinate work related to mechanism building.