Taihe Legal News, Issue 1213

Key Takeaways for This Issue

Finance and Capital Markets

FINANCE & CAPITAL MARKETS
 

The Hong Kong Exchanges and Clearing Limited has signed a new round of cooperation memorandum with the Fujian Provincial Government.

Recently, the Hong Kong Exchanges and Clearing Limited signed a Memorandum of Cooperation with the People’s Government of Fujian Province.
 

Under the memorandum, the two sides will deepen cooperation and exchanges in the financial sector, including jointly supporting and encouraging technology enterprises from Fujian Province to list in Hong Kong, promoting the participation of Fujian’s financial institutions and enterprises in Hong Kong’s green finance initiatives, assisting Fujian-based companies in issuing green bonds in Hong Kong, helping Fujian enterprises and institutions stay abreast of the latest developments and policies in Hong Kong’s capital markets, and conducting practical training on commodities to enhance their capacity to utilize overseas risk-management tools. The memorandum was signed in Fuzhou by Charles Li, Chief Executive of the Hong Kong Exchanges and Clearing Group, and Xue Hefeng, Director of the Fujian Provincial Local Financial Administration.
 

The People’s Bank of China and the China Securities Regulatory Commission have expressed support for Hong Kong’s recent launch of 5-year RMB government bond futures.

Recently, officials from the People’s Bank of China and the China Securities Regulatory Commission held a press briefing to address questions regarding Hong Kong’s recently launched five-year RMB government bond futures.
 

The People’s Bank of China and the China Securities Regulatory Commission stated that they support the recent official launch by Hong Kong of five-year RMB government bond futures. They noted that this product is part of the trading‑on‑the‑market arrangements recently announced by the Securities and Futures Commission of Hong Kong. The two authorities further indicated that, in line with the goals of risk prevention, strengthened regulation, and high‑quality development, they will work with their Hong Kong counterparts to enhance market monitoring and analysis, data‑sharing, and cross‑border regulatory cooperation, thereby jointly ensuring the stable and orderly functioning of both markets.
 

Hong Kong Exchanges and Clearing and the Hong Kong Monetary Authority launch a post‑closing digital payment pilot for derivatives.

Recently, the Stock Exchange of Hong Kong and the Hong Kong Monetary Authority announced a joint pilot project to explore the use of “digital Hong Kong dollars” for pre‑depositing margin in after‑hours trading on the derivatives market.
 

The pilot focuses on providing a wholesale‑level central bank digital currency payment solution for after‑hours trading in derivatives, operating outside regular banking hours, while keeping existing operational processes unchanged. Under the current arrangement, clearing participants must submit their applications to the Hong Kong Futures Clearing Corporation by 3:00 p.m. for the corresponding funds to be available during the subsequent after‑hours trading session. The new scheme aims to enhance the flexibility and efficiency of pre‑funding margin payments through a 24/7‑operating “digital Hong Kong dollar,” thereby strengthening risk management capabilities during non‑banking hours. The Hong Kong Exchanges and Clearing is inviting clearing participants under the Futures Clearing Corporation to voluntarily conduct live‑trade trials; further rollout will depend on regulatory approvals, market readiness, and other factors.
 

Business and Corporations

COMMERCIAL & CORPORATE
 

Three departments have issued the first batch of the Catalogue of Cybersecurity‑Marked Products and the corresponding Implementation Rules.

Recently, the Cyberspace Administration of China, the Ministry of Industry and Information Technology, and the Ministry of Public Security have released the “Catalogue of Products Subject to Cybersecurity Labeling (First Batch)” along with the relevant implementation rules.
 

The first batch of products covered by the scheme comprises consumer‑grade networked cameras. The use of the certification mark is subject to registration and may be obtained on a voluntary basis. The rules specify that cybersecurity capabilities are graded from one to three stars, corresponding to basic, enhanced, and leading levels, respectively. The designated registration authority is the China Electronics Standardization Institute. To apply for registration, product manufacturers must submit a test report, the mark’s design, a declaration of conformity, their business license, and other required documents. The registration authority shall complete a formal review within ten working days of receiving a complete set of materials. The mark is valid for three years; if key technical parameters change or the validity period expires, retesting and re‑registration are required. In cases of falsification of submitted materials, discrepancies between the mark and the actual capability, or fraudulent testing, the registration may be revoked and publicly announced.
 

Three departments have issued an action plan to leverage foreign investment for stabilizing the economy and promoting high-quality development.

Recently, the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Finance released the “Action Plan for Leveraging Foreign Investment to Ensure Stability and Promote Quality.”
 

The Plan sets forth fifteen measures centered on expanding market access, enhancing the convenience of foreign investment, elevating investment promotion, improving the service and support system, and optimizing foreign‑investment management. These include further opening up the services, financial, and pharmaceutical sectors; refining the framework for foreign‑invested mergers and acquisitions; streamlining cross‑border data‑flow regulations; implementing tax incentives for overseas investors who reinvest their dividends; and supporting the establishment of R&D centers with foreign capital. The Plan also commits to ensuring national treatment for foreign‑invested enterprises, enabling their equal participation in government procurement, public tenders, and consumption‑stimulating policies, strengthening support mechanisms for major foreign‑invested projects, and optimizing the information‑reporting and sharing systems for foreign investment.
 

The State Administration for Market Regulation and five other departments have issued a document to promote the high-quality development of the advertising industry in the new era.

Recently, the State Administration for Market Regulation and five other departments jointly issued the “Opinions on Vigorously Promoting the High-Quality Development of the Advertising Industry in the New Era.”
 

The “Opinions” comprise 22 articles, setting forth provisions aimed at optimizing industrial layout, fostering industrial innovation, advancing integration and empowerment, expanding high‑level opening-up, improving the development environment, and strengthening implementation. The document calls for promoting regional coordination and cluster‑based industrial development, while nurturing leading enterprises, specialized, refined, distinctive, and innovative firms, as well as high‑quality small and micro businesses. It also supports the application of technologies such as big data, blockchain, the Internet of Things, and artificial intelligence in the advertising sector, seeks to develop new digital‑intelligent advertising business models, and advances the digital transformation of traditional media advertising and the intelligent upgrading of outdoor advertising. Furthermore, it strengthens oversight of illegal citation‑based advertising, unlawful livestream e‑commerce advertising, and AI‑generated illicit advertisements, and refines rules for safeguarding advertising data throughout its entire lifecycle, regulating cross‑border data flows, and protecting personal information.
 

The State Administration for Market Regulation has released a Q&A on the implementation of the Measures for the Supervision and Administration of Contract Manufacturing of Food.

Recently, the State Administration for Market Regulation released a Q&A document on the implementation of the Measures for the Supervision and Administration of Contract Manufacturing of Food. The measures will take effect on December 1, 2026.
 

The Q&A clarifies that contracted food production refers to the act by the contract manufacturer of undertaking all or part of the production process in accordance with the client’s requirements and delivering the finished food product. It further specifies the applicable scope for trademark licensing, franchising, intra‑group contracting, co‑branded products, and multiple‑party contracting. The Measures require the client to obtain the necessary permits or file the required records in compliance with the law and to possess adequate oversight capabilities, while the contract manufacturer must hold the relevant production license, sufficient production capacity, and the ability to ensure food safety. Both parties are obligated to establish systems for verifying qualifications, preparing contractual reports, controlling raw and auxiliary materials, reviewing labeling, conducting supervisory inspections, retaining samples for testing, and managing product recalls. For prepackaged foods, the names of both the client and the contract manufacturer must be clearly indicated on the label in close proximity to each other. Food products shall be subject to “inspection by the contract manufacturer and verification by the client,” and any non‑conforming products must be recalled by the client in accordance with the law.
 

The State Administration for Market Regulation convened the second Enterprise Fair Competition Symposium of 2026.

On June 25, the State Administration for Market Regulation convened the second Enterprise Fair Competition Symposium of 2026.
 

The meeting focused on “removing various bottlenecks and obstacles to safeguard fair market competition,” with executives from seven companies in sectors including manufacturing, artificial intelligence, pharmaceuticals, and construction participating in the exchange. The State Administration for Market Regulation outlined the policies and measures it has already introduced—such as strengthening antitrust enforcement and enhancing governance for fair competition—and emphasized its commitment to a problem‑oriented approach, advancing law enforcement and regulatory oversight, and eliminating barriers that impede the development of a unified market and fair competition. Meng Yang, member of the Party Leadership Group and Deputy Director of the Administration, chaired the meeting and delivered remarks. Wang Tiehan, Director-General of the Antitrust Department, along with responsible officials from relevant departments and units, also attended.
 

Litigation and Arbitration

LITIGATION & ARBITRATION

The Ministry of Public Security has issued the “15th Five-Year Plan for Public Security Development,” outlining key tasks.

Recently, the Ministry of Public Security released the “15th Five-Year Plan for Public Security Development.”
 

The Plan sets forth the guiding principles, fundamental tenets, and development objectives for public security work during the 15th Five-Year Plan period, and outlines tasks including safeguarding political security, maintaining social stability, fortifying the public safety defense line, deepening comprehensive governance of cybersecurity, strengthening international law enforcement and security cooperation, and supporting high-quality development. It also calls for bolstering smart public security, advancing the modernization of technological equipment and infrastructure, building a law-based public security system at an even higher standard, and reinforcing personnel development, while making arrangements for organizational leadership, overall coordination, planning alignment, and monitoring and evaluation.
 

The Supreme People’s Procuratorate has released a 40-year development report on juvenile prosecution work.

Recently, the Supreme People’s Procuratorate released the “40-Year Development Report on China’s Prosecutorial Work Involving Minors.”
 

The Report systematically traces the evolution of juvenile prosecution since 1986, highlighting the transition from a purely criminal‑prosecution focus to the comprehensive exercise of “four major prosecutorial functions”—criminal, civil, administrative, and public interest litigation. It covers institutional developments such as social investigations, the presence of suitable adults during proceedings, conditional non‑prosecution, guardianship supervision, mandatory reporting, pre‑employment background checks, and one‑stop case handling and assistance. The report also outlines key advances, including the centralized and unified handling of juvenile prosecution matters, the punishment of crimes harming minors, preventive measures and governance of juvenile delinquency, guidance on family education, oversight through public interest litigation, and the coordinated mechanism for the “sixfold protection” framework.
 

The Supreme People’s Court has released typical cases of maritime adjudication nationwide for 2025.

Recently, the Supreme People’s Court released a selection of typical cases in maritime adjudication for 2025.
 

The cases focus on three areas—seafarers’ rights, the resolution of international maritime disputes, and countermeasures against unilateral sanctions—totaling six matters. First, it clarifies that a seafarer’s prior signature of a waiver of ship‑priority rights is legally ineffective. Second, it sets forth judicial rules governing ship arrest as a precautionary measure, mediation facilitated by such measures, and the recognition and enforcement of arbitral awards rendered in Hong Kong, China. Third, in general average disputes, it applies the 1994 York–Antwerp Rules, upholding the selection of a reasonable repair plan and the allocation of associated costs. Fourth, in disputes arising under contracts for the carriage of goods by sea, it invokes Article 12 of the Anti‑Foreign Sanctions Law, holding that foreign unilateral sanctions may not be invoked as a defense to refuse performance.
 

Shenzhen has issued the Measures for Handling Complaints Against Personal Bankruptcy Administrators.

On June 24, 2026, the Shenzhen Bankruptcy Administration Bureau promulgated the “Measures for Handling Complaints Against Personal Bankruptcy Administrators of Shenzhen.”
 

The Measures stipulate that debtors, creditors, and other interested parties may file written complaints in their own names via postal address, email, or other channels, submitting a complaint letter, proof of identity, and supporting documentation; multiple complaints concerning the same matter may be consolidated for joint processing. The scope of accepted complaints encompasses issues related to the qualifications, recusal, dereliction of duty, improper performance of duties, and other violations of the Shenzhen Special Economic Zone Personal Bankruptcy Regulations by administrators or members of bankruptcy teams. Complaints involving court judgments, court‑directed implementation measures, bankruptcy administrators in corporate insolvency cases, or professional conduct unrelated to personal bankruptcy proceedings shall not be accepted. The Measures set forth time limits for rectification, acceptance, response, investigation, recusal, termination, and decision‑making, and provide for the replacement of administrators or team members, the urging of proper performance of duties or corrective action, and the referral of matters to the courts or relevant authorities for handling. These Measures shall enter into force on July 13, 2026, with a validity period of five years.
 

The Supreme People’s Procuratorate has issued a notice on typical cases of judicial protection of land resources.

Recently, the Supreme People’s Procuratorate issued the “Notice on the Publication of Typical Cases of Judicial Protection of Land Resources.”
 

This release features eight typical cases, covering criminal matters, administrative non‑litigation enforcement supervision, and administrative public interest litigation, and addressing issues such as permanent basic farmland, high‑standard farmland, natural grassland, urban public‑benefit forest land, and peri‑urban woodland. The criminal cases focus on illegal dumping of construction waste, unauthorized reclamation of grassland, and encroachment on forest land, clarifying that liability is pursued under the crime of illegally occupying agricultural land, with sentencing and disposition taking into account guilty pleas, acceptance of punishment, and measures for restoration and remediation. The administrative supervision cases involve obstacles to the enforcement of penalties for illegal land occupation, procedural defects in compulsory enforcement, and omissions in forest‑land restoration. The public interest litigation cases concern substandard land reclamation following mine‑site restoration, irregular site selection for high‑standard farmland, and false reporting of acreage, among other issues.