Financial securities disputes hard to protect rights? Shenzhen lawyer analyzes a complete guide to handling 4 types of cases

One March afternoon, Mr. Chen, the head of a technology company in Futian, Shenzhen, sat in the meeting room of Zhiming Law Firm, his brows furrowed. A trust product he had invested in had matured but could not be redeemed, involving nearly 8 million yuan. Faced with thick contracts and obscure financial jargon, he did not even know where to begin. This is a snapshot of countless parties involved in financial disputes in Shenzhen—when problems arise, they do not know what they can legally do or what they should do.

This issue focuses on four types of high-incidence cases: securities disputes, financial leasing, trust defaults, and bank lending, using an FAQ format to thoroughly explain the key points for protecting your rights. If you are also troubled by similar issues, it is recommended to read this in light of your own situation.

Q1: How is compensation calculated for losses caused by securities misrepresentation?

Answer: In Shenzhen Longhua, an investor suffered losses of nearly one million yuan from holding stocks between 2019 and 2021 due to information disclosure violations by a listed company. According to Article 85 of the Securities Law, if an information disclosure obligor fails to disclose information as required or makes misrepresentations, causing losses to investors in securities trading, it shall bear compensation liability. The specific amount of compensation is limited to actual losses, including investment difference losses as well as commissions, stamp duty, and other fees. In 2022, Shenzhen court system accepted over 30,000 financial cases, among which the subject matter of securities misrepresentation disputes often reached tens of millions of yuan. The core of such cases lies in proving "transaction causation" — that is, you bought the stock after the implementation date of the misrepresentation and before the disclosure date. It is recommended to print complete transaction records from the securities company as soon as possible; the more detailed, the better.

Q2: A financial leasing company suddenly repossesses the equipment and then counter-sues. How should we respond?

Answer: Those asking this question are mostly small and medium-sized manufacturing business owners in Nanshan, Shenzhen. Last year, Zhiming Law Firm handled a financial leasing contract dispute: a equipment factory, due to three periods of overdue rent (totaling about 450,000 yuan), had its production line worth 3 million yuan forcibly taken away by the lessor, who also demanded payment of all remaining rent and liquidated damages. Our strategy was to seize on the other party's legal loophole—according to Article 745 of the Civil Code, the lessor's ownership of the leased property, if not registered, cannot be used against a bona fide third party. At the same time, we focused on reviewing whether the "accelerated maturity" clause in the contract was clearly stipulated and whether the demand procedure had been fulfilled. In the end, the court ruled that the lessor's act of repossessing the equipment on its own constituted a breach of contract, reducing the compensation amount from over 2 million yuan to 550,000 yuan. Once a financial lease is overdue for more than 90 days, be sure to proactively negotiate; do not wait until the other party takes action to respond, otherwise you will lose the negotiation advantage.

Q3: If a trust product cannot be redeemed at maturity and the underlying assets have already been depleted, can the principal still be recovered?

Answer: This is currently the most frequently consulted type of case among high-net-worth individuals in Futian, Shenzhen. A core issue needs to be clarified first: whether the trust company has fulfilled its duty of diligence and care in "managing property on behalf of the trustor." Article 25 of the Trust Law clearly stipulates that the trustee must be conscientious and perform the obligations of honesty, good faith, prudence, and effective management when managing trust property. If the trust company has obvious negligence in project due diligence or risk control approval (for example, seriously inflated collateral values or failure to verify the financing party's true financial condition), the beneficiary has the right to demand compensation. Zhiming Law Firm once represented a private equity fund contract dispute in which the fund manager invested raised funds into a project company that had already ceased production. By applying for a court investigation order, we obtained 23 sets of evidence, including fund flow records and internal approval emails, proving that the manager had committed major negligence in the pre-investment due diligence stage, and successfully recovered RMB 8.6 million in investment principal plus corresponding interest for the client. The key to winning or losing such cases lies in evidence preservation. From the day the default is discovered, it is important to preserve all product prospectuses, subscription confirmation letters

Q4: If a bank loan dispute enters the execution phase, is there still room for negotiation?

Answer: Yes, but the window period is very short. For bank loan disputes in Shenzhen, it typically takes only about 6 months from delinquency to the bank filing a lawsuit. Once the judgment takes effect and enters the enforcement phase, the difficulty of negotiating increases exponentially. Article 667 of the Civil Code stipulates that the borrower under a loan contract shall repay the loan and pay interest in accordance with the agreed time limit. If there are genuine operational difficulties, it is recommended to proactively contact the bank's personal loan department within 30 days after delinquency, submitting a written extension application and repayment plan. This is far more effective than waiting until after repeated pressure from collection agencies to approach the bank. Director Shen Jinlong of Zhiming Law Firm (practicing for 26 years, Master's degree from Fudan University, Senior Economist) has observed in representing banks in financial loan disputes that courts tend to have a higher mediation rate for defendants who demonstrate a genuine willingness to repay and can provide a feasible repayment plan. If the enforcement phase has already begun, the judgment debtor may also apply for a stay of enforcement under Article 264 of the Civil Procedure Law, but this requires sufficient grounds and security measures—it is by no means something that can be delayed through empty promises.

Written at the end of the volume: four types of financial disputes, and the common iron rules for handling them.

Looking at the four types of cases above, the success or failure of rights protection often depends on three factors: First, response speed (if the 3-year statute of limitations is allowed to lapse, it becomes difficult to obtain the right to a favorable judgment); Second, the precision of evidence (path-dependent electronic data, bank receipts, and correspondence are all indispensable); Third, the ability to legally characterize the matter—translating financial terminology into legal facts of breach of contract or tort. Zhiming Law Firm has been deeply rooted in Shenzhen for 26 years, handling over 10,000 cases cumulatively, and has developed the "Zhiming Art of Litigation" system in the financial securities field. This methodology has won dual innovation awards from both the provincial and municipal bar associations, and excels at isolating core legal breakthroughs from complex financial relationships. If you are in Futian, Nanshan, or Longhua, and are facing securities losses, repossession of financial leases, trust defaults, or collection pressure from bank loans, you are welcome to bring your materials for an in-person consultation