Taihe Legal News, Issue 1215

The China Banking and Insurance Regulatory Commission, in coordination with the Hubei Provincial Government, has placed Wuhan Zhongbang Bank under receivership.

Recently, the National Administration of Financial Regulation and the Hubei Provincial Government issued the “Announcement by the National Administration of Financial Supervision and the People’s Government of Hubei Province on the Implementation of Receivership over Wuhan Zhongbang Bank Co., Ltd.”

The People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong have jointly issued an announcement supporting the development of a trading platform in Hong Kong.

On July 7, 2026, the People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong issued the Joint Announcement of the People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong on the Establishment of a Trading Platform in Hong Kong.

The Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council has commended outstanding collectives and individuals from state-owned enterprises under central government oversight in the “Two Excellences and One Pioneer” awards.

On July 7, the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council announced the decision to commend outstanding collectives, outstanding individuals, and advanced primary-level Party organizations among central enterprises and the SASAC itself.

Finance and Capital Markets

FINANCE & CAPITAL MARKETS

The China Banking and Insurance Regulatory Commission, in coordination with the Hubei Provincial Government, has placed Wuhan Zhongbang Bank under receivership.

Recently, the National Administration of Financial Regulation and the Hubei Provincial Government issued the “Announcement by the National Administration of Financial Supervision and the People’s Government of Hubei Province on the Implementation of Receivership over Wuhan Zhongbang Bank Co., Ltd.”

The announcement clarifies that, owing to severe credit risks at Wuhan Zhongbang Bank, the China Banking and Insurance Regulatory Commission has decided to place the bank under lawful receivership. During the receivership period, under the supervision of the CBIRC and the Hubei Provincial Government, Hankou Bank will, in accordance with applicable laws and regulations, assume the relevant assets, liabilities, business operations, and personnel of Zhongbang Bank. Effective from the date the receivership commences, the shareholders’ meeting, the board of directors, and the supervisory board of Zhongbang Bank shall cease to perform their duties; all related functions will be assumed by the receivership team, which will exercise the bank’s management and operational authority.

The People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong have jointly issued an announcement supporting the development of a trading platform in Hong Kong.

On July 7, 2026, the People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong issued the Joint Announcement of the People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong on the Establishment of a Trading Platform in Hong Kong.

The announcement stated that it supports the China Foreign Exchange Trade System and the Hong Kong Exchanges and Clearing in jointly establishing a Hong Kong‑based electronic fixed income and currency trading platform. Grounded in Hong Kong and oriented toward the international market, the platform is positioned as an open, fair, efficient, and stable marketplace for fixed income and currency trading. The announcement further clarified that the platform’s development will adhere to international market standards and practices and comply with relevant regulatory requirements in Hong Kong; provide comprehensive product and service offerings to global investors; align with the local financial ecosystem and broader development objectives; and, guided by market demand, enhance trading efficiency and transparency, facilitate price discovery, reduce transaction costs, and explore how technological innovation can empower financial services.

The National Administration of Financial Regulation and the Shanghai Municipal Government have issued measures to accelerate the development of Shanghai as an international reinsurance center.

On July 7, 2026, the National Administration of Financial Regulation and the Shanghai Municipal People’s Government jointly released the “Several Measures to Accelerate the Development of the Shanghai International Reinsurance Center.”

The “Several Measures” set forth arrangements in eight areas, including guiding institutions to cluster in the Lingang New Area, promoting the unified registration of reinsurance contracts and claims information at the Reinsurance Registration and Trading Center, and supporting overseas reinsurers and brokers to leverage the Center for introductions while enhancing its on‑exchange digital trading capabilities. The measures also support reinsurance institutions in raising capital through equity expansion and issuing capital‑supplementing instruments, broaden channels for dispersing catastrophe risks and other specialized perils, facilitate the opening of dedicated custody accounts and funds‑settlement accounts, and update guidelines on cross‑border transfers of reinsurance data. At the same time, regulatory oversight will be strengthened over solvency, related-party transactions, and business‑financial matters, and a monitoring system tailored to reinsurance risks will be studied and established.

The National Administration of Financial Regulation has deployed financial and insurance services for flood prevention and disaster relief, as well as post-disaster reconstruction.

On July 9, the General Office of the National Administration of Financial Regulation issued the “Notice of the General Office of the National Administration of Financial Regulation on Providing Relevant Financial and Insurance Services for Recent Flood Prevention and Disaster Relief as well as Post‑Disaster Recovery and Reconstruction.”

The Notice requires insurance companies to streamline claims assessment and settlement, rationally allocate survey and rescue vehicles, claims adjusters, and indemnity funds, simplify procedures, establish green channels, and set up centralized claims service points in severely affected areas. It calls for prompt and full compensation, as well as reasonable advance payments, while leveraging the mutual recognition mechanism for major‑disaster claims assessments under motor insurance. Banking and insurance institutions are also instructed to activate disaster recovery and emergency response plans, conduct thorough inspections of branch offices, data centers, and self-service equipment to identify potential risks, and swiftly restore operations at affected branches and infrastructure, ensuring uninterrupted access to both online and offline basic financial services. Furthermore, banking institutions are directed to increase credit support for flood prevention and relief efforts, livelihood protection, the production, transportation, and storage of emergency supplies, and post‑disaster reconstruction. For enterprises temporarily unable to operate due to flooding but with promising prospects, banks must refrain from arbitrarily withdrawing, cutting off, or suppressing loans.

Business and Corporations

COMMERCIAL & CORPORATE

The Ministry of Industry and Information Technology is seeking public comments on three mandatory national standards.

On July 7, 2026, the Ministry of Industry and Information Technology issued a public notice soliciting comments on three draft mandatory national standards, including the “Safety Technical Specification for Ceramic‑Disc Sealed Water Taps.” The deadline for submitting feedback is September 4, 2026.

This public notice concerns three mandatory national standards: “Safety Technical Specification for Ceramic‑Disc Sealed Water Taps,” “Limit on Harmful Substances in Thermoplastic Polyurethane,” and “Flame‑Retardant Requirements for Spray‑Applied Rigid Polyurethane Foam Blends and Products Used for Building Thermal Insulation.” The draft documents respectively set forth safety requirements and test methods for water taps; limit values, inspection procedures, and reporting requirements for eight harmful substances—including heavy metals and phthalates—in thermoplastic polyurethane; and flame‑retardant requirements, acceptance criteria, packaging and labeling, and application guidelines for spray‑applied rigid polyurethane foam blends and products used in building thermal insulation. The proposed effective date for all three is 12 months after their publication.

The Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council has commended outstanding collectives and individuals from state-owned enterprises under central government oversight in the “Two Excellences and One Pioneer” awards.

On July 7, the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council announced the decision to commend outstanding collectives, outstanding individuals, and advanced primary-level Party organizations among central enterprises and the SASAC itself.

The conference honored outstanding Communist Party members, exemplary Party affairs workers, and advanced primary-level Party organizations within state-owned enterprises and central SOEs. Specifically, 99 comrades were awarded the title of “Outstanding Communist Party Member of Central Enterprises,” two comrades were posthumously awarded this honor, 98 comrades received the title of “Outstanding Party Affairs Worker of Central Enterprises,” and 200 primary-level Party organizations were recognized as “Advanced Primary-Level Party Organizations of Central Enterprises.” Concurrently, the State-owned Assets Supervision and Administration Commission of the State Council announced its decisions on commending outstanding individuals and advanced organizations within its directly affiliated institutions under the “Two Excellences and One Pioneer” initiative. The conference also outlined plans to advance high-quality development, technological innovation, and reform of state-owned assets and enterprises, emphasizing adherence to the principle of “upholding both principles in all endeavors,” the improvement of a modern enterprise system with Chinese characteristics, and the integration of rectification and institutional building with the outcomes of central inspection and oversight.

The National Medical Products Administration convened a meeting to advance the “Qingyuan” initiative for consolidating and upgrading pharmaceutical distribution.

On July 8, the National Medical Products Administration convened a national conference to advance the “Qingyuan” initiative for consolidating and upgrading pharmaceutical distribution.

The meeting reported on progress made this year in regulating the pharmaceutical distribution sector, covering offline channel rectification, online business‑model governance, digital system development, and cross‑jurisdictional law‑enforcement coordination. The meeting emphasized that, going forward, oversight of online retail of pharmaceuticals will be deepened, the establishment of a full‑product‑and‑full‑process traceability system will be accelerated, risk‑assessment and hazard‑identification efforts will be sustained, corporate principal responsibility will be firmly enforced, illegal and non‑compliant activities will be rigorously cracked down upon, and implementation of the “Clearing the Source” initiative will be advanced to consolidate and enhance results.

The State Administration for Market Regulation is seeking public comments on the General Provisions for the Review of Certification Body Qualification Licenses.

On July 9, 2026, the State Administration for Market Regulation released the “General Provisions for the Review of Certification Body Qualification Licenses (Draft for Public Comment),” with the deadline for submitting feedback set for August 8, 2026.

The draft for public comment comprises 46 articles, clearly stipulating that the review of certification body qualification licensing shall be conducted under a classified management system and a unified procedure, covering the examination of application materials, on-site inspections, expert evaluations, and ongoing oversight. The document specifies detailed timelines for acceptance, supplementary submissions, the six-year validity period of approval certificates, as well as rules governing renewal, amendment, and reapplication; it requires that applications for new establishment or scope expansion be publicly announced for no less than 10 days. It also sets forth circumstances under which on-site inspections may be initiated, deferred, suspended, or terminated, and limits expert evaluation to no more than 30 days. Furthermore, it clarifies that applications from entities listed on the serious violation and dishonesty blacklist will not be approved, mandates that any required corrective measures be completed within one month after rectification, and stipulates that certified bodies must undergo at least one supervisory inspection within 12 months of obtaining their qualifications. Finally, it establishes a three-year ban on applying for certification for entities whose qualifications were obtained through deception or bribery, as well as provisions for revocation and cancellation.

Litigation and Arbitration

LITIGATION & ARBITRATION

The Supreme People’s Procuratorate has released a report on the standardized development of the work of people’s supervisors over the past three years.

On July 6, the Supreme People’s Procuratorate released a report on the work of people’s supervisors over the past three years.

According to the report, since 2023, procuratorial organs nationwide have invited people’s supervisors a total of 959,500 times, supervised case-handling activities 619,700 times, and put forward more than 300,000 supervisory suggestions and opinions. Of these, procuratorial organs have adopted over 265,000, representing an adoption rate of 88.3%. The Supreme People’s Procuratorate has, either independently or in collaboration with the Ministry of Justice, formulated and implemented documents such as the “Regulations on the Supervision of Case-Handling Activities by People’s Procuratorates,” the “Administrative Measures for the Selection and Appointment of People’s Supervisors,” and the “Opinions on Strengthening Two-Way Information Feedback between People’s Procuratorates and Judicial Administrative Organs in the Work of People’s Supervisors.” These measures have expanded the scope of people’s supervisor oversight to cover criminal, civil, administrative, and public-interest litigation matters, integrating it into key stages of case handling, including case review, public hearings, case deliberations, judicial transparency, and legal explanation and reasoning.

Six departments have deployed efforts to carry out the “crackdown on illegal activities and rectification of violations” campaign in workplace safety.

Recently, the Office of the State Council Work Safety Committee, the Central Political and Legal Commission, the Supreme People’s Court, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Justice jointly issued the “Notice on Launching the Campaign to Crack Down on Illegal Activities and Rectify Violations in Production Safety.”

The Notice outlines measures to be implemented in conjunction with the three-year campaign to address root causes and tackle major safety hazards, as well as efforts to identify and rectify significant accident risks. It focuses on key sectors such as mining, chemical production, fire safety, and industrial and commercial enterprises, with particular emphasis on cracking down on violations including operating without proper qualifications, falsification of information, deliberate non-compliance, compelling workers to breach regulations, and engaging in hazardous operations. The Notice specifies that enforcement will target practices such as coal mines concealing working faces or conducting unlicensed mining; the unlicensed production and operation of hazardous chemicals, or operating beyond the scope of permits; the unauthorized use of flammable or combustible insulation materials in high-rise buildings; unauthorized hot work in places with dense crowds; deficiencies or damage to fire‑safety facilities in elderly care institutions; and the unauthorized shutdown of monitoring and alarm systems at dust‑explosion‑prone enterprises. It also calls for strengthening coordination among administrative, criminal, and disciplinary authorities, improving the referral of case leads, and imposing penalties on entities and individuals found to be in breach of trust.

The Supreme People’s Court has released the fourth batch of typical cases on the application of model texts.

Recently, the Supreme People’s Court released the “Typical Cases on the Application of Model Texts (Fourth Batch).”

This release features five typical cases, covering labor disputes, sales contracts, liability for false statements in securities, credit card disputes, and administrative compensation. The cases demonstrate that standardized forms have been integrated into procedures such as case filing, preliminary mediation, model litigation, mass‑case resolution, and dispute resolution at comprehensive governance centers. Courts, in collaboration with legal aid organizations, commercial mediators, administrative dispute‑resolution bodies, and the “top‑to‑top” mechanism, address key issues including contract performance, payment settlement, apportionment of liability, calculation of losses arising from false securities disclosures, and disputes over credit card interest and fees. The accompanying materials also reveal that, since 2026, more than 70 percent of parties and lawyers have voluntarily submitted element‑based complaint forms when filing lawsuits.

Shenzhen is soliciting public comments on the draft amendment to the Regulations on Planning and Land Supervision.

On July 8, 2026, the General Office of the Standing Committee of the Shenzhen Municipal People’s Congress published the “Regulations on Planning and Land Supervision of the Shenzhen Special Economic Zone (Draft Amendment)” and opened it for public comment until August 7, 2026.

The draft revises the structure of planning and land‑use supervision and enforcement, designating the municipal planning and natural resources authority as the city‑level supervisory body, while assigning the relevant responsibilities to district‑level agencies under the district governments. It stipulates that subdistrict offices shall, in accordance with their prescribed duties, handle complaints and reports, conduct routine inspections, and halt illegal activities, and may, in accordance with the law, assume certain powers related to administrative penalties, inspections, and coercive measures. The draft also further clarifies rules on territorial jurisdiction and dispute resolution, specifies the competent authority for recusal decisions, and provides that documents such as administrative penalty decision notices may, with the recipient’s consent, be served by fax or email. Moreover, it mandates that information on violations subject to administrative penalties be incorporated into the public credit information system, and adjusts provisions concerning assessment, enforcement assistance, and the wording of certain articles.