JC Master Legal News Issue 925

Key Takeaways for This Issue

Accelerate the restoration of the national economy’s normal circulation and continue to deepen reform and opening-up of the financial system.

At the opening of the 12th Lujiazui Forum (2020), Guo Shuqing, Secretary of the CPC Committee of the People’s Bank of China and Chairman of the China Banking and Insurance Regulatory Commission, stated that efforts must be accelerated to restore the normal functioning of the national economy and to further deepen reform and opening-up in the financial sector. He noted that, in response to the pandemic, financial regulators have introduced a series of policies and measures to mitigate its impact. Specifically, during the first five months of this year, loans to the real economy increased by RMB 2 trillion year on year, while policy banks expanded their credit portfolios by nearly RMB 1 trillion compared with last year.

618 post-pandemic consumption surge: transaction volume up fivefold year over year.

The annual “618” mid-year shopping festival is here, drawing widespread attention as the first nationwide shopping event since the pandemic. Early reports from the day of the sale show that consumer spending has surged with remarkable vigor. According to JD.com’s preliminary “618” sales data released in the early hours of the 18th, during the first 10 minutes after the sale kicked off, JD Supermarket’s total GMV jumped 500% year over year, and more than 2,000 brands saw their GMV grow by 100% compared with the same period last year. Over the course of the “618” period (from the 1st to the 17th), JD Supermarket recorded over 3,000 individual SKUs each surpassing RMB 1 million in cumulative sales.

Stabilizing the Economic Foundation: China Calls for Accelerating the Implementation and Effectiveness of Tax and Fee Reductions

At its executive meeting held on June 17, the State Council of China called for accelerating the implementation and effectiveness of fee‑reduction policies to ease the burden on market entities. Experts note that tax and fee cuts are essential for alleviating the operational pressures faced by businesses. This year, China has stepped up its efforts to reduce taxes and fees in order to counteract the difficulties confronting enterprises. By strengthening temporary measures and integrating them with institutional arrangements, the focus is on lightening the tax and fee burdens of small, medium, and micro‑enterprises, individual business households, and offices in struggling sectors. It is estimated that, over the course of the year, these measures will deliver more than RMB 2.5 trillion in additional relief to market entities.

Notice on the Issuance of the “Interpretations on Several Issues Concerning the Accounting System for Non-Profit Organizations”

In order to further clarify the accounting treatment of relevant economic transactions and matters for non‑profit organizations and to enhance the quality of accounting information, the “Interpretations on Certain Issues of the Accounting System for Non‑Profit Organizations” has been formulated in accordance with the provisions of the Accounting System for Non‑Profit Organizations (Caihui [2004] No. 7).