BEIJING - The Supreme People's Court?of China called for proper handling of shadow banking cases so as to prevent financial risk and promote healthy development of private investment.

Xi Xiaoming, vice-president of the SPC, said recently that courts should prudently handle conflicts of interest and assignment of responsibility issues that have been triggered by reforms in accordance with the law.

Courts should promote elimination of excessive production capacity and integration of production factors through their handling of stock rights transfer, corporate litigation, bankruptcy, and reorganization cases, Xi added.

Courts should also address the difficulty of financing small businesses by regulating financing methods, Xi said.

According to the SPC, China's court system has dealt with 5.57 million commercial disputes involving 1.82 trillion yuan ($297.4 billion).