People's Bank of China

By Guan Feng and Wu Sijie, King & Wood’s Litigation & Arbitration Group

In 2008, a financial derivatives dispute arose between a foreign-funded bank (the "Bank") and a local Chinese company (the "Company"). Although both parties executed certain documents to conclude the transaction, due to adverse changes in the international financial environment, the Company denied that the parties had entered into any contract regarding the derivative transaction and refused to perform. As a result, the Bank initiated a lawsuit against the Company to seek damages.
 Continue Reading Culpa in Contrahendo: PRC Judgment in Dispute over Financial Derivatives Services

In conclusion, after the transition from a fixed rate to floating rate for damages, conflicts may still arise during litigation or arbitration.
如上所述,中国人民银行将罚息利率由固定利率变为浮动利率后,在诉讼或仲裁主张逾期付款违约金时仍会存在标准上的争议.

Continue Reading Calculating Late Payment Breach Damages