Beijing unveils first bankruptcy tribunal

Beijing's first bankruptcy tribunal was unveiled at Beijing No 1 Intermediate People's Court on Monday.

The tribunal will specialize in hearing disputes brought by "zombie" companies and accelerate the capital's economic development, according to a statement by the court.

In recent years, the number of cases relating to bankruptcy has been rapidly increasing, "which is why it is a necessity to establish such a tribunal", the statement said.

In 2013, the city heard 117 cases involving litigants applying for bankruptcy, but the figure reached 311 last year, it said.

The new tribunal will collect and hear bankruptcy-related cases that have not been concluded in other Beijing courts, and try to finish them as quickly as it can, it added.

In August, such a tribunal was set up in Guangdong province, which is the first one established within a provincial high people's court.

The establishment of theses bankruptcy tribunals will effectively and legally contribute to cleaning up local "zombie" companies and stimulate local economies, according to Tan Ling, vice-president of the Guangdong court.

"Judicial work should play its role in pushing economic development and providing a fair and effective environment for the market-oriented economy. Such tribunals will give legal protection as the ‘zombie' companies quit the market," Tan said.

caoyin@chinadaily.com.cn