ABSTRACT
This chapter focuses on some key aspects of securities repurchase agreement disputes. It examines the way in which the disputes are dealt with by the people's courts. The securities repurchase market began in 1991 in China. Disputes involving securities repurchase agreements started coming into the people's courts towards the end of 1995. Securities repurchase agreements are required to be carried out in a securities exchange or a financial center that is approved by the government to provide securities repurchase business services. Default by defendant sellers in one respect or another is a primary source of disputes involving securities repurchase agreements. The default by the defendants and subsequent disputes pose a threat to an orderly operation of the money market and financial stability. In general, the people's courts, in examining the validity of a securities repurchase agreement, ensure that the parties of a securities repurchase agreement have proper qualifications and have been authorized to engage in securities repurchase business.
