Taihe Legal News, Issue 1216

Finance and Capital Markets

FINANCE & CAPITAL MARKETS

The People’s Bank of China has released the Financial Statistics Report for the First Half of 2026.

On July 15, the People’s Bank of China released the “Financial Statistics Report for the First Half of 2026.”

The report shows that as of the end of June, the outstanding balance of social financing stood at RMB 462.06 trillion, up 7.4% year on year; in the first half of the year, the incremental amount of social financing totaled RMB 20.84 trillion. At the end of June, M2 grew 8% year on year, while the outstanding balance of RMB loans reached RMB 282.63 trillion, up 5.2% year on year. During the first half of the year, RMB loans increased by RMB 10.72 trillion, and RMB deposits rose by RMB 17.76 trillion. Over the same period, net corporate bond financing amounted to RMB 2.07 trillion, and domestic equity financing by non-financial enterprises totaled RMB 293.3 billion. In June, the monthly weighted average rates for interbank lending and repurchase agreements with collateral were 1.41% and 1.43%, respectively. As of the end of June, China’s foreign exchange reserves stood at US$3.42 trillion.

The National Administration of Financial Regulation has issued the Regulations on the Administration of the List of Seriously Dishonest Entities (Trial).

On July 10, 2026, the National Administration of Financial Regulation announced Regulations of the National Administration of Financial Regulation on the Administration of the List of Seriously Dishonest Entities (Trial) 。

The Regulations explicitly specify the circumstances for inclusion, including revocation of business or operational licenses and lifetime bans on engaging in related activities; obtaining licenses through deception; forging or transferring licenses; fraudulently obtaining loans; shareholders or de facto controllers seriously harming the interests of the institution and its clients; organizing or participating in illegal financial activities; and refusing to comply with administrative decisions that have been subject to compulsory enforcement by the courts. The document outlines procedures for prior notice, the right to make statements and defenses, decision‑making, public disclosure, and service of documents. Once listed, such entities may be given significant consideration in matters involving administrative licensing, qualifications, government procurement, and tendering, and will be designated as key regulatory targets. Entities remain on the list for three years before being removed; those meeting the relevant criteria may apply for early removal after one year.

The General Office of the Ministry of Industry and Information Technology has announced the launch of the High-Tech Enterprise Zone on the National Industry-Finance Platform.

On July 15, the General Office of the Ministry of Industry and Information Technology announced… Notice from the General Office of the Ministry of Industry and Information Technology on the Launch of the High-Tech Enterprise Special Zone on the National Industry-Finance Cooperation Platform 。

The notice clarifies that the high-tech enterprise section of the National Industry-Finance Cooperation Platform has officially gone live, integrating features such as policy guidance, streamlined submission of financing needs, intelligent financial service recommendations, and dynamic visualization of financing outcomes. It also provides a management backend to high-tech enterprise certification authorities at all levels, enabling tracking of financing requests and multi‑dimensional filtering. Local certification authorities are required to circulate this notice, regularly monitor, via the government‑administered portal, the progress and results of financing matchmaking for enterprises within their jurisdictions, and submit contact information by July 22, 2026.

Business and Corporations

COMMERCIAL & CORPORATE

Seven departments have issued the Interim Measures for On-site Management of Bidding and Tendering at Public Resource Trading Centers.

On July 15, 2026, the National Development and Reform Commission and six other departments announced… Interim Measures for On-site Management of Bidding at Public Resource Trading Centers 。

The Measures comprise 7 chapters and 47 articles, clearly stipulating that the trading center is responsible for providing service support, maintaining full‑process records, issuing alerts for abnormal behavior, and reporting leads of violations, while prohibiting it from engaging in administrative licensing, filing, inspections, or enforcement activities. Key provisions include zoned management of trading venues and closed‑door operation of bid evaluation areas, as well as remote off‑site bid evaluation, blind‑evaluation procedures, and the application of artificial intelligence. The Measures require the recording of both offline paper documents and online electronic data, along with audio and video recordings; project dossiers must be prepared within 30 days after the award contract is signed or the activity concludes and retained for at least 15 years. They also enumerate 22 types of abnormal behaviors subject to alerting under four categories and 26 categories of violation‑related leads to be reported, with such leads to be submitted within 10 working days of discovery. These Measures shall enter into force on January 1, 2027.

The State Administration for Market Regulation is seeking public input on measures to strengthen metrological oversight of electronic pricing scales.

On July 15, 2026, the State Administration for Market Regulation announced Opinions on Further Strengthening Metrological Supervision of Electronic Pricing Scales (Draft for Public Comment) , Feedback is accepted until August 14, 2026.

The draft for public comment applies to electronic price‑computing scales of medium and ordinary accuracy classes with a maximum capacity not exceeding 100 kg. It requires that domestically produced and marketed products obtain type‑approval certificates in accordance with JJF 2184–2025 and be manufactured and sold in compliance with the approved design. For imported products or those sold in China by foreign manufacturers, type‑approval certificates will no longer be issued through mutual recognition of OIML certificates. Effective January 8, 2027, at the sales and maintenance stages, the operation or repair of electronic price‑computing scales that do not meet the requirements of JJF 2184–2025 shall, in principle, be prohibited. The verification of electronic price‑computing scales used for commercial settlement shall be conducted in accordance with JJG 1204–2025; products originally approved under other technical specifications may, during a transitional period, continue to be verified according to JJG 539–2016, with a verification interval of one year. Fair scales in farmers’ markets must, as of January 8, 2027, pass verification in compliance with JJG 1204–2025.

The Ministry of Industry and Information Technology is soliciting public comments on 173 industry standard development and revision projects.

On July 16, the Ministry of Industry and Information Technology released the “ Public Notice on Soliciting Comments on 173 Industry Standard Project Proposals, Including “Industrial Internet Platform Blockchain Construction and Management Specification – Part 1: Subchain Construction” 》; The public notice is valid until August 14.

This public notice pertains to the 15th batch of industry standard development and revision plans for 2026, covering areas such as digital transformation, green and low‑carbon development, quality and reliability enhancement, artificial intelligence, 5G, the Internet of Things, information technology, industrial robotics, high‑end CNC machine tools, engineering construction, workplace safety, compliance management, and network and data security. The disclosed projects include three standards on the construction and management of blockchain‑based industrial internet platforms, several sets of requirements for green factory assessments, as well as technical specifications and evaluation guidelines in sectors such as petrochemicals, steel, and nonferrous metals—covering energy and water conservation, wastewater treatment, carbon capture, hydrogen metallurgy, and other topics. Most of these projects have a duration of 12 months.

Taxation

TAXATION

The “Benchmark for Discretion in Tax Administrative Penalties” is now open to public consultation.

The “Announcement of the State Taxation Administration on the Issuance of the ‘Discretionary Standards for Tax Administrative Penalties (2026 Edition)’” (Draft for Public Comment) has been made available to the public for comments starting July 15.

According to officials from relevant departments of the State Taxation Administration, in recent years, regions including Northeast China, Southwest China, Northwest China, Central and South China, North China, and East China have successively established unified discretionary standards for tax administrative penalties within their respective jurisdictions. These measures have played a positive role in standardizing tax enforcement and strengthening tax collection, while also laying the groundwork for the nationwide adoption of a uniform set of discretionary standards for tax administrative penalties. To better support the development of a unified national market, the State Taxation Administration has formulated the “Discretionary Standards for Tax Administrative Penalties (2026 Edition),” which will be implemented across the country. This initiative aligns with the expectations of frontline tax authorities and the general public.

The Notice clarifies that tax authorities shall impose penalties strictly in accordance with laws and regulations and render penalty decisions within the scope of the discretionary standards. It also specifies a list of matters subject to “no penalty for minor violations,” as well as procedures for collective deliberation, measures to safeguard the legitimate rights and interests of taxpayers and payers, and requirements for the dynamic adjustment of discretionary standards.

The Notice includes two annexes: the “Benchmark for Discretion in Tax Administrative Penalties (2026 Edition)” and the “List of Matters Subject to ‘No Penalty for Minor Offenses’ in Tax Administrative Penalties.” The benchmark covers 66 administrative penalty items across nine categories—tax registration, accounting books and vouchers, tax returns, tax collection, tax inspections, invoices and related documents, tax guarantees, management of tax‑related professional services, and submission of tax‑related information—clearly specifying, for each item, the statutory basis, discretionary tiers, applicable conditions, and specific criteria. The list of “no penalty for minor offenses” comprises eight administrative penalty items distilled from the benchmark and sets out their respective specific conditions for application.

Three departments have clarified the policy coordination arrangements for science and technology enterprise incubators.

On July 1, 2026, the General Offices of the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration announced… Notice on Ensuring Proper Coordination of Policies Related to Incubators for Science and Technology Enterprises 。

The Notice clarifies that the competent authorities for incubators at the provincial level shall, in accordance with the “Administrative Measures for Technology-Based Enterprise Incubators of the Ministry of Industry and Information Technology,” promote the upgrading and development of formerly national-level incubators, support the enhancement of their service capabilities, and guide them to align with and meet relevant standards. At the same time, they are to organize the application process for standard‑level and excellence‑level incubators. From May 1, 2026, to December 31, 2027, standard‑level and excellence‑level incubators recognized by the Ministry of Industry and Information Technology shall be eligible for the tax policies stipulated in the “Announcement on the Continued Implementation of Tax Policies Related to Technology-Based Enterprise Incubators, University Science Parks, and Maker Spaces.”

Litigation and Arbitration

LITIGATION & ARBITRATION

The Supreme People’s Court has released typical cases of lawful protection of biodiversity.

Recently, the Supreme People’s Court released a selection of typical cases in which the people’s courts have safeguarded biodiversity in accordance with the law.

This release features five cases, covering judicial protection of ecosystem diversity, species diversity, and genetic resource diversity. The cases involve the illegal hunting of nationally protected wildlife such as the Oriental White Stork, snow leopard, and wild yak; the unlawful harvesting of nationally second‑level protected wild plants; and the failure of administrative authorities to fulfill their duties in controlling the invasive alien species Lantana camara. The judgments reflect a range of enforcement measures, including holding perpetrators criminally liable, imposing fines, supporting public interest litigation, applying labor‑compensation and reforestation‑based restoration, and ordering administrative agencies to continue performing their statutory obligations.

The Beijing Intellectual Property Court will hold a hearing in the administrative case concerning the authorization and confirmation of trademark rights involving Louis Vuitton.

Notice of the Beijing Intellectual Property Court: Case No. (2026) Jing 73 Xing Chu 4727 will be heard in open court on July 16, 2026.

This case is a first-instance administrative lawsuit concerning the confirmation of trademark rights. The plaintiff is Louis Vuitton Malletier, the defendant is the National Intellectual Property Administration, and Huang Minyao is a third party. Public records indicate that Huang Minyao has applied to register multiple trademarks, including one featuring a logo resembling a four-leaf clover. Previously, Louis Vuitton Malletier filed objections or requests for invalidation of these trademarks with the National Intellectual Property Administration; however, the Administration ruled against its claims. Consequently, Louis Vuitton Malletier initiated this administrative litigation. The central issue in this case is whether the National Intellectual Property Administration’s administrative rulings on the relevant trademarks are lawful.