On December 8, 2013, the South China Business & Law Forum held its annual conference titled "Equity Investment and Corporate Governance in China" in Shenzhen.

The event was hosted by the Shenzhen Court of International Arbitration (SCIA), supported by the Fourth Civil Division of the Supreme People's Court of the PRC, the Enforcement Bureau of the Supreme People's Court of the PRC, Department of Treaty and Law of the Ministry of Commerce, Shenzhen Stock Exchange and Shenzhen Branch of the China Securities Regulatory Commission.

The conference attracted over 600 participants, including senior legal executives from large enterprises in South China (including the Hong Kong SAR and the Macao SAR), executives or partners from securities, futures and fund management institutions, arbitration and mediation experts from renowned international institutions, judges from the Supreme People's Court and courts in the Pearl River Delta region, regulatory authorities and self-discipline organizations in the capital market, scholars from prominent law schools and leaders of legal associations in the Chinese mainland, Hong Kong SAR and Macao SAR, as well as partners from well-known law firms, both domestic and abroad.

The theme of the conference centered on the most concerning legal issues in the current capital market and legal community, particularly focusing on the legal issues surrounding equity investment and corporate governance. The seminar was presided over by Dr. Liu Xiaochun, Secretary-General of the SCIA, with opening remarks delivered by Dr. Guo Xiaowen, Chairman of the SCIA Council, Dr. Luo Dongchuan, Presiding Judge of the Fourth Civil Division of the Supreme People's Court, Li Chenggang, Director General of the Treaty and Law Department of the Ministry of Commerce, among others.

Dr. Guo Xiaowen, pointed out in his welcome speech that since its establishment in 1983, the SCIA has been committed to the modernisation and internationalisation of commercial arbitration in China, and has been striving to provide a favourable legal environment for the fair transactions of both domestic and foreign enterprises. Since 2008, the SCIA has been actively promoting the establishment of the South China Business & Law Forum based on the cooperation between Guangdong, Hong Kong and Macao, and endeavouring to provide a cross-border, cross-industry high-end communication platform for legal executives from large enterprises in South China. Since the establishment of the South China Business & Law Forum in 2011, SCIA has organised a number of large-scale thematic seminars on hot legal issues concerned by the market, attracting many participants from domestic and overseas and greatly promoting the exchange and cooperation between the business and legal sectors in South China.

Dr. Luo Dongchuan, said in his opening speech that the representatives of the judiciary, arbitration institutions, regulatory bodies, market players, lawyers, academics and others all participated in today's event, it will surely put forward good strategies for equity investment and corporate governance in China. The Supreme Court will, as always, support arbitration and the advancement of diversified dispute resolution mechanisms, contributing to social harmony and market development.

Li Chenggang highlighted that equity investment is one of the main forms of company operation in the modern corporate governance. Today's conference discusses the legal issues involved in equity investment, which is of great significance for the administration to formulate and optimize relevant laws and regulations, and to create a stable and predictable legal environment.

Other distinguished scholars and experts from various fields including law, finance, and arbitration, also shared insights and perspectives on topics such as Valuation Adjustment Mechanism (VAM agreement), preferred shares and corporate governance, mechanisms for resolving equity disputes and corporate deadlock, and the protection of rights and interests of small and medium-sized investors.

The discussions underscored the importance of integrating market economy development with the rule of law, promoting the modernization of governance systems, and establishing a legal environment conducive to stability and predictability in corporate governance and equity investment.

Regarding the establishment of the "Shenzhen Securities and Futures Dispute Resolution Centre" in Qianhai, Shenzhen by the SCIA, together with the Shenzhen Securities Regulatory Bureau of the China Securities Regulatory Commission, the Shenzhen Stock Exchange, the Shenzhen Securities Association, the Shenzhen Futures Association, the Shenzhen Asset Management Association and the Shenzhen Qianhai Equity Exchange, the participants believed that this would be a great impetus to the protection of the interests of small and medium-sized investors, and will further promote the rule of law in the capital market and facilitate stable and orderly business development.

Participants expressed confidence that through platforms like the South China Business & Law Forum, which facilitates exchanges among experts, scholars, legal practitioners, corporate executives and entrepreneurs, China can continue to advance its legal environment, foster internationalization and uphold the rule of law, ultimately contributing to the decisive role of the market in resource allocation and the country's economic prosperity.