The Regulations on Several Issues Concerning Bankruptcies were recently formulated by the Supreme People's Court and became effective on September 1, 2002. Li Guoguang, Deputy Dean of the Supreme People's Court said in a press conference that these regulations provide better interpretations of bankruptcy procedures and also improve public notifications and fairness in bankruptcy procedures. Mr. Li also pointed out these measures are part of the increased efficiencies associated with the Court's continued program of judicial reform.

These regulations have been formulated to make up legislative shortfalls existing within current PRC bankruptcy law. There had been no new bankruptcy law released to adapt to changing market economy conditions. As flaws in current legal practice involving bankruptcies were revealed, the Supreme People's Court made this judicial interpretation.

----Jason Wang