The Second Civil Division of the Supreme People's Court (SPC) released the top 10 commercial cases of 2022 on Jan 19.

The cases fully reflect the courts' efforts to ensure the equal protection of the legitimate rights and interests of business entities and to optimize the business environment, as well as their contribution in safeguarding the country's high-quality development of the economy.

Case No 1: A series of cases on pledge disputes between pledgees represented by China Cinda Asset Management Co., Ltd. Zhejiang Branch and enterprises affiliated to China Datang Corporation Ltd.

- Defuse the risk of large debt incurred by private enterprises, and improve the mechanism for centralized and specialized hearings of financial cases.

Case No 2: A deposit contract dispute case between Jiacheng Energy Ltd. in Gongyi, Henan province, and Henan Da You Energy Ltd.

- The deposit paid to secure the future conclusion of an agreement shall not be refundable if this agreement is not concluded for reasons attributable to the party who paid the deposit.

Case No 3: A sales contract dispute case between Hu Xingrui and Wang Gang

- After the country issued a regulatory policy explicitly prohibiting "mining" activities, the Bitcoin "mining machine" sales contract signed by the parties shall be regarded as an invalid contract in violation of public order and good customs.

Case No 4: A share repurchase contract dispute case between Nanjing Gaoke Xinjun Growth Phase I Equity Investment Partnership (limited partnership) and Fang XX, Liang XX

- The buyback terms linked to the market value of stocks signed by the investor, the shareholders and the actual controller of the listed company shall be deemed invalid.

Case No 5: A defective investment dispute case between Guangdong Xingyi Digital Printing Co., Ltd. and shareholders represented by Zhang Jubiao

- If the shareholder's subscribed capital contribution is not due, but the company is allowed to publicize its paid-in capital contribution, the published capital contribution date shall be taken as the paid-in capital contribution date to judge the shareholder's liability for compensation to the debtor.

Case No 6: A futures trading dispute case between Zhang Yahong and Tao Junnan, Beijing Capital Futures Ltd.

The futures broker who fails to perform the "investor's propriety obligation" and violates the futures broker's obligations of honesty, trustworthiness, diligence and responsibility, and the futures company who neglects the management of the futures broker shall bear the corresponding liability for compensation respectively.

Case No 7: Case of dispute over security investment consulting between Wei Longwu and Beijing Zhongfang Xinfu Investment Consulting Ltd.

- When providing investment advice to investors, if security investment consulting institutions fail to fulfill their obligations in accordance with the principle of objectivity, prudence and loyalty to customers, and have defrauded investors by failing to fulfill the obligation of revealing risks, promising customers to guarantee returns, and false publicity, they should bear the corresponding compensation liability for investors’ losses based on their degree of fault.

Case No 8: Case of dispute over subrogation rights of insurers between the Qingdao Branch of the People's Property Insurance Company of China and Qingdao Rilian Huabo Technology Co., Ltd

- If the associated company of the insured does not constitute the "constituent of the insured”, as stipulated in Article 62 of the Insurance Law, the insurer may exercise the right of subrogation against the associated company according to the law.

Case No 9: Case of dispute over confirmation of creditor's rights in bankruptcy proceedings between Shenzhen Yizhimi Food Technology Co., Ltd. and Nehe Xinhengyang Biochemical Products Co., Ltd

- If one party claims its rights in accordance with the main terms of the contract, and the other party defends the performance of the contract as inconsistent with the main terms of the contract, the actual performance shall determine the relationship of rights and obligations between the two parties.

Case No 10: A restructuring case of the 17 branch companies of Loncin Motor Co., Ltd.

- Comprehensively apply the systems of pre-restructuring, a substantive merger, and a coordinated trial, give full play to the role of the market, and solve the difficulties of restructuring large comprehensive private enterprise groups.