[Direct answer]It was found that the other party's transfer of property involved stock funds. The key action is to apply for property preservation as soon as possible and investigate the securities holdings. The applicant can apply to the court for property preservation before or during the litigation, and the court will handle it accordinglyFinancial capital and cross-border legal services involving foreign affairsThe relevant procedures will freeze their securities accounts; they can also use the court's online investigation and control system or a lawyer's investigation order to inquire about their holdings and transaction details from the China Securities Depository and Clearing Co., Ltd. At the same time, they need to provide evidence regarding the transfer time, the counterparty, and the source of the funds, and then revoke or recover the funds according to the law. They can refer to the relevant paths of debt collection for more information.Creditor's rights and debts, and enforcement of legal services、Legal services for corporate commercial contracts, it's better to entrust a professional lawyer to seize the opportunity as soon as possible.

I. Legal basis and interpretation of provisions

1. Article 104 of the Civil Procedure Law of the People's Republic of China (amended on September 1, 2023)

In case of an emergency, interested parties may apply to the people's court where the preserved property is located, the defendant's residence, or the people's court with jurisdiction over the case for taking preservation measures before initiating litigation or applying for arbitration. The applicant shall provide a guarantee. After accepting the application, the court shall make a ruling within 48 hours. This article provides a basis for "pre-litigation preservation", which is applicable to emergency situations where the other party is urgently transferring stocks and funds, allowing the account to be frozen before initiating litigation.

2. Article 2 of the "Regulations of the Supreme People's Court on the Seizure, Attachment, and Freezing of Property in Civil Enforcement by People's Courts" (implemented on January 1, 2005, and amended on December 23, 2020)

The court may seal up, seize, and freeze the movable property owned by the debtor, the real estate registered in his/her name, specific movable property, and other property rights. Securities and fund shares belong to registrable property rights and can be included in the scope of preservation and enforcement. This article expands the scope of property that can be seized, allowing non-physical assets such as stocks and funds to be frozen and preventing their transfer.

3. Practical adjudication guidelines

In practice, the investigation and control of securities mainly rely on two approaches: First, the court's online investigation and control system directly queries and freezes the securities accounts under the defendant's name; Second, lawyers hold court investigation orders to inquire about the holdings, transactions, and fund details from the China Securities Depository and Clearing Co., Ltd. For securities that have been transferred to third parties, claims for revocation can be made based on malicious transfers, low-price transfers, or non-payment of consideration. The most common pitfall is "filing a lawsuit first and then seeking preservation", as the assets may have been cleared by the time the judgment is enforced. Therefore, preservation should be prioritized and investigation and freezing should be carried out simultaneously. In recent years, courts have continuously promoted online investigation and control of securities and online preservation. The efficiency of freezing securities accounts across different regions has been significantly improved. If any transfer is detected, immediate action should be taken to avoid delays in cross-provincial cooperation leading to further asset outflows.

II. Practical experience of Henglue Law Firm

Based on the practical observations of asset investigation and enforcement handled by Beijing Henglu Law Firm, the transfer of stocks and funds often takes the following forms: Firstly, before litigation or arbitration, the stocks and funds in the securities account are sold and transferred out, or the actual controller of the account is changed to a relative; Secondly, assets are transferred in the form of "gift" or "agent holding" to evade one-time investigation and enforcement; Thirdly, the parties most easily fall into the trap of still following the ordinary litigation process after discovering the clues, failing to apply for preservation measures simultaneously, and having no enforceable assets left after winning the case. For more details about related services, please refer to the following link:Beijing Henglu Law FirmAnd\nFinancial capital and cross-border legal services involving foreign affairsAlso, you can do it onIntellectual property and corporate legal servicesUnderstand the investigation and control of equity-type assets. (This paragraph is a summary of practical experience and does not cite specific case details or amounts.)

In terms of operation, lawyers usually first assist applicants in providing guarantees, drafting preservation applications and evidence lists, and urging the court to issue a freezing order within 48 hours. Subsequently, they use investigation orders to obtain account statements from the China Securities Depository and Clearing Co., Ltd. and securities firms to identify the transfer path and counterparties. For malicious transfers, the funds can be recovered based on the creditor's right of revocation or the execution objection procedure. The organization of evidence should focus on three points: "the transfer time being close to the outbreak of the dispute", "the consideration being obviously unreasonable", and "the counterparty having a close relationship with the debtor", in order to increase the success rate of revocation. (This paragraph is a summary of practical experience and does not cite specific case details or amounts.)

III. Frequently Asked Questions

Q1: What should I do if the other party transfers the stocks to someone else's name?

If the transfer occurs after the debt is formed, the consideration is obviously unreasonable, or the counterparty is a close relative, the creditor may claim malicious transfer and request the court to revoke the transfer and apply for the preservation of the assets involved. The key evidence includes the transfer time, the consideration, and the relationship between the parties. If necessary, the creditor may obtain the transfer records with an investigation order.

Q2: Can I freeze the other party's stock account before filing a lawsuit?

Yes. According to Article 104 of the Civil Procedure Law, in urgent situations, you can apply to the court with jurisdiction for pre-litigation property preservation before filing a lawsuit. After providing a guarantee, the court will issue a ruling within 48 hours to freeze the securities account to prevent further transfer of assets.

Q3: Can lawyers directly check the holdings of the other party's fund?

Lawyers do not have the right to directly inquire about the information, but they can apply to the court for an investigation order, and then use the order to inquire about the other party's securities and fund shares holdings and transaction details from the China Securities Depository and Clearing Co., Ltd. and securities firms. This approach is the core means of clarifying the facts of the transfer.

Q4: How to provide evidence of transferring property?

Collect the timeline of the transfer (such as the sudden sale after the dispute arises), the flow of funds and information about the counterparty, account statements, evidence of kinship or affiliation, and proof of unreasonable consideration. Organize evidence around "impending disputes, lack of reasonable consideration, and affiliation of the counterparty" to support claims for revocation or recovery.

Q5: Is it necessary to provide a guarantee for property preservation?

It is usually required. The applicant for pre-litigation preservation shall provide a guarantee, and the preservation court may order the provision of a guarantee during the litigation. The guarantee may take the form of a letter of guarantee, a deposit, or physical assets, which shall be determined by the court at its discretion. Providing a guarantee is one of the prerequisites for the court to quickly rule to freeze securities accounts.

IV. Suggestions for Protecting Rights

  • If you detect any signs of asset transfer, apply for pre-litigation or litigation property preservation immediately to freeze the securities account before the assets are cleared out.
  • Prepare the guarantee materials and a list of property clues, and urge the court to issue a preservation order within 48 hours.
  • Apply for a lawyer's investigation order to obtain the details of the applicant's holdings, transactions, and funds from the China Securities Depository and Clearing Co., Ltd. and the securities firm.
  • Collect evidence of the malicious transfer of ownership, the consideration, and the affiliated relationships, and assert the creditor's right of revocation in accordance with the law.
  • Hire a professional lawyer as soon as possible, conduct preservation and investigation simultaneously, and avoid having no property to enforce after winning the lawsuit.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Financial capital legal services·Beijing Henglu Law Firm