[Direct answer]In the Beijing area, whether an investor can obtain compensation depends on the reasons for the delisting. If the delisting is due to financial fraud, false statements, fraudulent issuance, or major violations of information disclosure, investors can claim compensation based on disputes over liability for false statements in securities and protect their rights through representative litigation. However, if the delisting is caused by market factors such as operational losses, the risk is borne by investors themselves, and there is generally no compensation subject. According to the Securities Law of the People's Republic of China (implemented on March 1, 2020) and the Supreme People's Court's Several Provisions on the Trial of Civil Compensation Cases for False Statements in the Securities Market (implemented on January 22, 2022), the relevant statute of limitations is generally three years.

1. Problem background and typical scenarios

The delisting of a company does not mean that the company will disappear, nor does it mean that there must be someone to compensate for the losses. After an increasing number of companies were forced to delist due to financial fraud and violations of information disclosure, the number of investor compensation cases has risen simultaneously: some have won compensation through special representative litigation, some have received pro rata compensation in bankruptcy restructuring, and a significant number of investors have gained nothing due to missing the statute of limitations or failing to declare their rights. What investors care most about is: who should they hold accountable for the losses, how much they can recover, and whether they can still pursue compensation now.

II. Key points of dispute

First, the reason for delisting determines the path. Fraudulent issuance and false statements trigger delisting through securities false statement infringement compensation; delisting due to operating losses can only be borne by the company itself. Second, the scope of responsible parties. Issuers, actual controllers, directors, supervisors, senior executives, and intermediary institutions such as sponsor institutions and accounting firms may bear joint or proportional liability according to their faults, and the rule clearly stipulates "pursuing the main culprit". Third, the calculation of losses must be based on the implementation date, disclosure date, and reference date, and the determination of the date directly determines the amount. Fourth, the litigation path can choose representative litigation or individual litigation, and there are also arrangements for advance compensation and exemplary judgments. Fifth, the statute of limitations is generally three years. If the company enters bankruptcy proceedings, it must also file a claim for creditor's rights on time, and failure to do so may result in the loss of compensation opportunities.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm typically handles such rights protection cases in four steps: 1. **Identify the basis for claims**: Review the administrative punishment decisions of regulatory authorities or the self-regulatory measures of exchanges to confirm the existence of actionable false statements. 2. **Lock in the responsible parties**: In addition to the issuer, focus on the actual controllers, controlling shareholders, financial directors, and intermediary institutions. Multiple claimants can help increase the recovery rate. 3. **Determine the loss calculation method**: Based on three key dates (implementation date, disclosure date, and reference date), calculate the investment gap losses by combining the average purchase price, average selling price, and holding quantity, and account for commissions and stamp duty. 4. **Select litigation procedures and enforcement strategies**: For cases with multiple claimants and clear facts, initiate representative litigation. For companies that have entered bankruptcy proceedings, file claims within the declaration period and specify the nature of the claims. The practical challenges lie not in legal application but in evidence collection and statute of limitations. It is crucial to retrieve transaction records, account statements, and account opening materials as early as possible.Financial capital and cross-border legal services involving foreign affairsSystematic support can be provided for such cases.

IV. Practical suggestions and legal basis

According to Article 85 of the Securities Law of the People's Republic of China (amended on December 28, 2019 and implemented on March 1, 2020) regarding the liability for compensation for false statements of information disclosure obligors, as well as the rules on the subject of liability, loss determination, and statute of limitations in the "Several Provisions of the Supreme People's Court on the Trial of Civil Compensation Cases for False Statements in the Securities Market" (implemented on January 22, 2022); the provisions on the responsibilities of controlling shareholders and actual controllers in the Company Law of the People's Republic of China (amended on December 29, 2023 and implemented on July 1, 2024) can also be referred to. Suggestions: First, promptly fix transaction records, account opening materials, and preserve regulatory punishment announcements; Second, pay attention to the rights registration announcements issued by the court and register on schedule; Third, if the company enters bankruptcy proceedings, it must file a claim within the declaration period and specify the nature of the claim; Fourth, for cases with large amounts and scattered subjects, entrust professional lawyers to evaluate the order of compensation and the possibility of enforcement, and refer to the relevant provisions for reference.Creditor's rights and debts, and enforcementExperience.

5. Henglu Law Firm's Reminder

There are two things that investors face the most difficulties in protecting their rights after delisting: missing the statute of limitations and suing the wrong defendant. The determination of the disclosure date is related to the regulatory filing, punishment announcements, and media reports. It's better to fix it as early as possible and take the initiative. At the same time, we should be aware of the execution risks: delisted companies are often insolvent, and even if they win the lawsuit, the actual compensation still depends on the solvency of the responsible parties. Therefore, listing the actual controllers and intermediary institutions as defendants is the key to improving the probability of recovering the compensation. When the Beijing District Court hears similar securities disputes, it pays close attention to the calculation of losses and the defense of causality. Investors should prepare complete transaction records. For cases involving cross-border listings and the accountability of overseas entities, it is also necessary to evaluate jurisdiction and the recognition and execution of judgments. This can be combined with other legal procedures to ensure the protection of investors' rights and interests.Specialised legal servicesOverall assessment.

VI. Frequently Asked Questions

Q1: Is there a high chance of winning the claim?

When a company is punished or delisted due to financial fraud or false statements, there is usually a basis for claiming compensation; however, if the company is delisted due to normal operating losses, there are generally no entities to hold accountable, and the likelihood of winning the lawsuit is low.

Q2: What evidence do I need to prepare?

The transaction records of securities accounts, account statements, account opening materials, administrative punishment decisions or regulatory announcements, delisting-related announcements, loss calculation explanations, etc.

Q3: What's the approximate cost?

The case acceptance fee is calculated in stages according to the amount of the subject matter, and the representative litigation is apportioned among the number of people and the amount of the subject matter; the attorney's fee is mostly based on a contingency fee arrangement, which is calculated as a percentage of the actual amount of compensation received.

Q4: How long does the process take?

It often takes one to two years from the registration of rights to the first-instance judgment, and it will take even longer if there are second-instance proceedings, bankruptcy proceedings, or enforcement actions. Therefore, a long-term plan is necessary for the whole process.

Q5: What should I do first?

First, check whether there are administrative penalties or delisting processing documents. Then, retrieve the transaction records and monitor the announcements of rights registration. Promptly register or file a lawsuit and declare creditor's rights.Beijing Henglu Law FirmTip: Time limit and declaration period are the two first lines that you must adhere to.

The above answer is based on the judicial practice in Beijing. The judicial interpretation in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

VII. Relevant public cases (for reference only, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media outlets, and are unrelated to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.

[Case Number]The case number has not been made public.
[Trial Court]The Intermediate People's Court of Jinan City, Shandong Province (First Instance of the Li Long Bio-Pharmaceutical Securities False Statements Liability Dispute Case)
[Judicial Summary]From 2015 to the first half of 2017, Longli Bio-Pharma systematically inflated profits and concealed losses by deleting and modifying financial accounting records. The company was delisted in 2020 and was subject to administrative penalties by the China Securities Regulatory Commission in 2021. After the delisting, investors filed claims alleging that the false statements caused investment losses. The case adopted the ordinary representative litigation mechanism, and 1,618 investors were compensated for investment loss, legal fees, and other damages totaling over 275 million yuan. The actual controller assumed joint and several liability for all debts, and the sponsor and accounting firm assumed joint and several liability for compensation within the ranges of 5% and 30%, respectively.
[Source]Shanghai Securities News (China Securities Network: The first-instance judgment of the liability dispute case of Longli Bio involving false statements has been announced) (2025-08)

[Case No.]The case number has not been made public.
[Trial Court]Guangdong Provincial Higher People's Court (second instance, dismissing the appeal and upholding the original judgment)
[Judicial Summary]In the case of Investor He * suing Zhao * and others and Dongfang Jinyu Co., Ltd. (delisted Jinyu) for securities false statement liability disputes, the court ruled that the actual controller Zhao * should compensate investors for their losses as the primary responsible party in accordance with Article 20 of the newly amended "Several Provisions of the Supreme People's Court on the Trial of Civil Compensation Cases for Securities Market False Statements". The other defendants should bear full and 20% joint and several liabilities respectively. The appellate court held that the actual controller knew, instructed, and directed the illegal acts of information disclosure, and the original plaintiff's request for the actual controller to compensate for the losses as the primary responsible party had factual and legal basis.
[Source]China Securities Network (The first demonstration case of "prosecuting the ringleaders" in China that won the second-instance appeal after the implementation of the new judicial interpretation) (2023-06)

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

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.