JC Master Legal News Issue 979

Key Takeaways for This Issue
Administrative Measures for Short-term Financing Bills of Securities Companies
To standardize the issuance and trading of short-term financing bills by securities companies, protect the legitimate rights and interests of investors, and promote the stable and sound development of the money market, the People’s Bank of China has revised the Measures for the Administration of Short-Term Financing Bills of Securities Companies (hereinafter referred to as the “Measures”) and promulgated them on July 23, with effect from September 1. Industry insiders believe that this move will help further broaden financing channels for securities companies, guide their healthy development, and boost the enhancement of their business operations.
Hongxing Erke Strikes “Hong” Fortune
As China’s first sports brand to list overseas, Hongxing Erke, which has been around for 20 years, once captured the nation’s imagination with its iconic slogan, “TO BE No.1.” However, in recent years, the brand’s profile has faded, and it has gradually slipped out of the top-tier sports‑brand market. So where has Hongxing Erke gone over the past decade? And after this wave of online praise, could it become a “revived internet sensation”?

Interprovincial Tax Services Made Easier, Boosting Economic Vitality Across the Country — The tax system is deepening its “delegation, regulation, and service” reform by advancing cross-provincial one-stop processing of tax-related matters.
To implement the “Opinions on Further Deepening Tax Collection and Administration Reform” issued by the General Office of the CPC Central Committee and the General Office of the State Council, to advance the “delegation, regulation, and service” reform in the tax field, and to optimize the business environment, and in accordance with the requirements of the Party history study and education campaign to carry out the practical activity “Doing Concrete Things for the People,” the State Taxation Administration has decided, in order to effectively reduce the reporting burden on taxpayers and payers, to comprehensively implement the integration of the value-added tax and consumption tax return forms with their respective supplementary tax and fee return forms, as stipulated in the “Opinions of the State Taxation Administration on Launching the 2021 ‘Doing Practical Things for Taxpayers and Payers and the Spring Breeze Action for Convenient Tax Services’” (Tax Total Issue [2021] No. 14).
The Regulations on Anti-Doping Management Have Been Released.
According to the website of the General Administration of Sport of China, the Measures for the Administration of Anti-Doping were reviewed and approved at the 12th Director’s Office Meeting of the General Administration of Sport on July 14, 2021. They are hereby promulgated and shall enter into force as of the date of promulgation.

Finance & Capital Markets
Administrative Measures for Short-term Financing Bills of Securities Companies
To standardize the issuance and trading of short-term financing bills by securities companies, protect the legitimate rights and interests of investors, and promote the stable and sound development of the money market, the People’s Bank of China has revised the Measures for the Administration of Short-Term Financing Bills of Securities Companies (hereinafter referred to as the “Measures”) and promulgated them on July 23, with effect from September 1. Industry insiders believe that this move will help further broaden financing channels for securities companies, guide their healthy development, and boost the enhancement of their business operations.
The Measures comprise 22 provisions, with substantive changes concentrated in four key areas: first, the pre‑issuance filing requirement has been abolished, and ex‑ante and ex‑post supervision has been strengthened; second, the eligibility criteria for issuing short-term financing bills by securities offices have been substantially revised, establishing a management framework centered on liquidity management; third, the maximum maturity of short-term financing bills has been extended; and fourth, the mandatory credit rating requirement for securities offices issuing such instruments has been eliminated.
Liu Xinqi, Chief Analyst for the non-bank financial sector at Guotai Junan, believes that abolishing pre‑issuance filing and mandatory credit ratings will help reduce securities offices’ short-term financing issuance costs and enhance issuance efficiency. This move is expected to further facilitate securities offices’ access to public‑market funding through short-term financing instruments, meet their short-term liquidity needs, support business areas with substantial near‑term funding requirements—such as fintech development—and ultimately boost their overall performance.
Specifically, with regard to the issuance process, securities offices authorized to issue short-term financing instruments are required to submit to the People’s Bank of China, prior to the issuance of their first tranche each year, an annual liquidity management plan and an issuance schedule. They must also provide advance notice of any material changes to their year‑long issuance plans. Pre‑issuance approval is no longer required, thereby significantly streamlining the issuance procedure.
With regard to issuance thresholds, the Measures stipulate that securities offices issuing short-term financing bills must possess robust liquidity management capabilities and a well‑established liquidity risk management framework; maintain a sound asset–liability structure with appropriate maturity mismatches, counterparty concentration, and bond pledge ratios; consistently meet regulatory requirements for risk‑control indicators over the past two years; and sustain a liquidity coverage ratio above the industry average over the most recent six months.
It is worth noting that the draft soliciting public comments issued by the People’s Bank of China in March this year stipulated that the liquidity coverage ratio must remain above the industry average for an entire year. The recent reduction to a six-month requirement further underscores the heightened standards for securities offices’ liquidity management capabilities.
According to statistics from Bohai Securities, the average and median liquidity coverage ratios of 40 listed securities offices in the first half of 2020 were 334.17% and 236.10%, respectively—well above the 120% threshold used as an early warning benchmark. Bohai Securities believes that for those offices facing significant pressure on their liquidity metrics, the implementation of these measures will compel them to enhance their liquidity management capabilities and increase allocations to high-quality liquid assets.
Meanwhile, under the new measures, the maturity of short-term financing bills has been extended from a maximum of 91 days to no more than one year. In this regard, Liu Li, a non‑bank financial analyst at Shanxi Securities, notes that this allows securities offices to independently determine the tenor of each issuance, thereby enhancing issuance flexibility. At the same time, it also requires securities offices to carefully calibrate the pace of fund utilization and adopt more sophisticated capital management practices, placing higher demands on their asset–liability management.
Furthermore, with respect to the use of proceeds from short-term financing bonds issued by securities companies, the Measures explicitly stipulate that such funds may not be used for fixed‑asset investment or the construction of business outlets, stock market investments, providing financing for clients’ securities transactions, or long‑term equity investments.
Shenzhen’s comprehensive reform pilot has yielded remarkable results, with capital market reforms taking the lead.
Since 2020, from the implementation of the ChiNext reform and the pilot registration-based system to the formal merger of the Shenzhen Stock Exchange’s Main Board and the SME Board, as well as the listing of the first batch of real estate investment trusts in the infrastructure sector, the capital market has continued to advance with a series of major reforms. All of this represents the interim achievements of Shenzhen’s comprehensive reform pilot program.
Looking ahead, the experts interviewed noted that, in Shenzhen’s comprehensive reform pilot, the reform tasks related to the capital market have yet to be fully implemented, leaving ample room for further development. The city’s capital market could take the lead in piloting initiatives—such as further refining the multi-tiered capital market framework, enhancing the pricing mechanism for bulk commodities, and fostering the private equity sector—to unlock greater reform dividends and advance the construction of the “Dual Zones.”
The most tasks and the fastest results
On the morning of August 24, 2020, the Listing Hall on the eighth floor of the Shenzhen Stock Exchange building at No. 2012 Shennan Avenue was packed with distinguished guests and brimming with festive cheer. As the listing bell rang, the ChiNext Board officially entered the era of the registration-based IPO system. This day marked a significant milestone that will be remembered in the history of China’s capital markets.
As a key component of the first batch of authorized items on Shenzhen’s comprehensive reform pilot list, the ChiNext Board, now powered by the registration-based IPO system, is delivering greater capital market‑reform dividends and stronger momentum to the development of the Guangdong–Hong Kong–Macao Greater Bay Area and Shenzhen as a pioneering demonstration zone for socialism with Chinese characteristics.
Since its launch, the ChiNext Board has cumulatively accepted listing applications from 725 companies, with 93 of them based in Shenzhen—accounting for more than half of Guangdong’s total. These figures exemplify Shenzhen’s role as a “pioneer and model,” leveraging the Shenzhen Stock Exchange to channel capital efficiently and foster a high‑level virtuous cycle of technological innovation and industrial upgrading.
Since 2020, in addition to the reform of the ChiNext Board and the implementation of the registration-based system, the Shenzhen Stock Exchange has successively advanced a series of major reforms: on February 5 this year, it officially launched work to merge the Main Board and the SME Board; on April 6, the merger was formally implemented. After a gap of 21 years, the Shenzhen Stock Exchange’s Main Board resumed its functions for issuing and listing, further strengthening Shenzhen’s position as a financial center and supporting innovation-driven, high-quality economic development. On February 26, the Shenzhen Stock Exchange and the Shanghai Stock Exchange separately issued measures governing the transfer of companies listed on the New Third Board to the main board, effectively opening up a channel between the New Third Board and the A-share market and fostering organic linkages across the multi-tiered capital market. On June 21, the first batch of real estate investment trusts in the infrastructure sector were listed on the exchanges, broadening financing channels for social capital.
“The most ambitious tasks, with the fastest results.” Recently, Shenzhen held a conference to advance its pilot reforms and tackle key challenges, during which it highlighted the city’s significant achievements in pioneering efforts to support the development of the capital market. Summarizing the Shenzhen Stock Exchange’s accomplishments over the past year, a relevant official encapsulated them in this concise statement.
Major reforms continue to advance, and the Shenzhen Stock Exchange has fully leveraged its pivotal role in supporting innovation and entrepreneurship, fostering industrial transformation and upgrading, and reshaping the economic structure—thereby providing stronger impetus for Shenzhen’s “Dual Zone” development.
Data speaks for itself. Since the implementation of the registration-based IPO system on the ChiNext Board, as of July 20 this year, a total of 160 companies have been officially listed, including 26 based in Shenzhen, which have raised cumulative financing of RMB 20.6 billion and achieved a combined market capitalization of nearly RMB 190 billion. Among the nation’s first batch of nine infrastructure REITs projects, three are located in Shenzhen, placing the city first nationwide in terms of the number of such offerings.
Tang Rui, Deputy General Manager of the Shenzhen Stock Exchange, stated at the Shenzhen Comprehensive Reform Pilot Breakthrough Promotion Conference: “The institutional mechanisms for transferring from the New Third Board to a main board listing, as well as the pilot program allowing innovative enterprises to issue shares or depositary receipts domestically, have been largely put in place, and all reform initiatives have made significant progress.”
Yu Lingqu, deputy director of the Institute of Finance and Modern Industries at the China (Shenzhen) Institute for Comprehensive Development, told a Securities Times reporter that the successful implementation of one landmark, milestone‑level reform initiative after another underscores the notable achievements of Shenzhen’s comprehensive reform pilot in pioneering and experimenting with capital market reforms.
Reform requires greater breakthroughs.
It is the shared aspiration that Shenzhen’s comprehensive reform pilot program will achieve even greater breakthroughs and deliver more substantial results. Reform of Shenzhen’s capital market remains an ongoing endeavor.
“Over the past year since the launch of the comprehensive reform pilot, the Shenzhen Stock Exchange, as a pioneer and builder of the capital market, has keenly felt the weight of its mission and the enormity of its responsibilities,” said a relevant official at the Shenzhen Stock Exchange in an interview with the Securities Times. At present, all tasks led or participated in by the Exchange are progressing smoothly according to plan, ensuring that each initiative is successfully implemented and delivered as a high‑quality project.
Yu Lingqu believes that “at present, the reform tasks related to the capital market within Shenzhen’s comprehensive reform pilot have not yet been fully implemented, leaving considerable room for further development.” In his view, Shenzhen still needs to make concerted efforts in areas such as launching stock index futures on the Shenzhen Stock Exchange and continuously expanding the range of stock index‑based derivatives; refining the domestic issuance and listing regime for innovative enterprises; and encouraging companies that serve as models of innovation to issue shares or depositary receipts (CDRs) and list on the Shenzhen Stock Exchange.
Tian Lihui, Dean of the Institute for Financial Development at Nankai University, believes that, in pioneering and piloting initiatives to bolster capital market development, Shenzhen should vigorously champion a culture of value investing, enhance the efficiency of commodity pricing, and foster the growth of the private equity market. As a hub of technological innovation, Shenzhen needs to develop, regulate, and refine its private equity sector, thereby providing superior support for more diverse products, larger‑scale ventures, and higher‑level innovations.
“At present, Shenzhen is home to a large number of innovative small and medium-sized enterprises. It is essential to further refine the multi-tiered capital market system and build a comprehensive capital‑services ecosystem,” noted Yu Lingqu. He added that, comparatively speaking, companies in the ideation or seed stages are in greater need of capital support, yet market participants tend to focus primarily on offices that are planning to go public or have already listed. Consequently, bolstering support for these early‑stage enterprises remains a priority. The Shenzhen Stock Exchange should serve as the linchpin of this ecosystem, channeling more venture capital to benefit a broader range of SMEs and thereby advancing Shenzhen’s drive for innovation‑led development.
Chen Li, Chief Economist and Director of the Research Institute at Chuancai Securities, recommends that Shenzhen foster a more transparent and equitable market environment, dismantle hidden barriers, and encourage and support the robust development of high-quality private equity funds, thereby enabling them to better serve the real economy.
Chen Wei, Chairman of Oriental Fuhai, recommends that Shenzhen capitalize on the policy dividends of its role as a pilot demonstration zone and seize the opportunity presented by the registration-based reform of the ChiNext Board at the Shenzhen Stock Exchange. He suggests formulating appropriate standards to permit, encourage, and facilitate eligible leading venture capital management offices in Shenzhen to enter the capital markets—through IPOs, mergers and acquisitions, and other means—to grow stronger and more competitive. Furthermore, he advocates establishing and refining mechanisms for seamless connectivity between venture capital and financial infrastructure such as the capital markets, thereby helping high‑quality VC managers broaden their financing channels, refine their incentive structures, attract top talent, and elevate the overall quality of their management and service offerings.

CSRC: Strictly investigate and prosecute financial fraud, and work in concert to purify the market ecosystem.
Yesterday, the China Securities Regulatory Commission announced penalties for the first batch of financial fraud cases subject to the new Securities Law. Dong Wenyuan, deputy director of the CSRC’s Enforcement Committee Office, stated that the Commission will rigorously investigate and prosecute serious violations such as financial fraud, resolutely hold relevant institutions and individuals accountable, and employ a comprehensive, multi‑pronged accountability framework that integrates administrative enforcement, civil remedies, and criminal sanctions. This approach will pool efforts to crack down on securities‑related illegal activities in accordance with the law, safeguard the market’s principles of fairness, justice, and transparency, purify the market environment, and promote the stable and sound development of the capital market.
Financial fraud by listed companies is a “cancer” in the securities market, severely undermining the foundations of market functioning and harming investor interests, and has long been a key focus of the China Securities Regulatory Commission’s regulatory and enforcement efforts. In recent years, the CSRC has steadily intensified its crackdown on egregious violations such as financial fraud and market manipulation, resolutely implementing the provisions of the new Securities Law, effectively raising the cost of illegal and non‑compliant behavior in the capital market, and strengthening the deterrent effect of regulatory enforcement. Recently, the first batch of cases involving severe financial fraud that are being prosecuted under the new Securities Law have entered either the pre‑notice stage or have resulted in administrative penalties, including the cases of Yihua Life (600978, stock forum), Guangdong Rongtai (600589, stock forum), and Zhongqian Shares (300526, stock forum), with proposed fines totaling nearly RMB 40 million.
Dong Wenyuan stated that the three cases mentioned above exhibit the following characteristics: long-term, systematic financial fraud involving enormous sums of money and spanning extended periods—up to four years in the longest instance; core decision-making and organizational execution by the actual controller, demonstrating clear subjective malice; sophisticated and concealed fraudulent methods that continually evolve, leveraging novel or complex financial instruments and cross-border transactions to achieve illicit objectives; and, accompanying the financial fraud, other violations such as failure to disclose material information as required. In some of these cases, the proportion of falsified figures is particularly high, the circumstances are grave, and the resulting impact is extremely adverse. The China Securities Regulatory Commission (CSRC) is officely committed to wielding the powerful tools of the new Securities Law, imposing severe penalties and taking resolute enforcement actions to safeguard market confidence and protect investors’ legitimate rights and interests. Guided by three core enforcement principles: first, for cases where evidence is sufficient and the facts of violation are clear, the CSRC pursues them relentlessly with the harshest possible measures—striking hard at the root of the problem rather than engaging in token punishment—imposing fines exceeding ten million yuan and individual liability awards exceeding one million yuan, ensuring violators feel the full force of the law and are deterred from repeating their offenses; second, focusing on the “key few,” targeting precisely, differentiating responsibility and severity—most notably, in this batch of cases, the principal offenders have been dealt with rigorously, with heavy fines and lifetime bans from the securities market imposed on the actual controllers; third, establishing a comprehensive accountability framework, referring suspected criminal conduct without exception and showing zero tolerance, so that violators bear appropriate consequences through administrative sanctions, criminal prosecution, and civil compensation. With the exception of the Guangdong Rongtai case, for which an administrative penalty has already been issued, all other cases have been formally notified, and the CSRC will, in strict accordance with statutory procedures, expedite their handling.
Dong Wenyuan pointed out that the China Securities Regulatory Commission will earnestly implement the “Opinions on Strictly Cracking Down on Securities Law Violations in Accordance with the Law,” issued by the General Office of the CPC Central Committee and the General Office of the State Council, fully uphold the principle of “zero tolerance,” make full and effective use of the powers conferred by relevant laws, rigorously investigate and prosecute egregious violations such as financial fraud, resolutely hold the relevant institutions and individuals accountable for their unlawful conduct, and employ a comprehensive, multi‑pronged accountability framework that integrates administrative enforcement, civil recovery, and criminal sanctions. This approach will pool efforts to combat securities law violations in accordance with the law, safeguard the market’s principles of fairness, justice, and transparency, purify the market environment, and promote the stable and sound development of the capital market.

Rectifying “Collusive Bidding”: The Shanghai Stock Exchange Has Launched a Special Inspection
　Issues such as “collusive bidding” by offline investors during the pricing phase of new share offerings have drawn attention from issuers, investors, and regulatory authorities. According to a Securities Times reporter yesterday, the Shanghai Stock Exchange has recently intensified its oversight and launched a special inspection campaign targeting offline investors on the STAR Market, aiming to guide and urge relevant institutions to participate in new‑share issuance and underwriting activities in a compliant manner.
Earlier, the Shanghai Stock Exchange and the Securities Association of China conducted on-site inspections to assess the compliance of offline investors’ bid submissions. Based on the findings, the Shanghai Stock Exchange issued regulatory warning notices to six private equity investment offices, while the Securities Association imposed self-regulatory measures—such as suspending eligibility for offline trading or issuing warnings—against 11 offline investors.
On July 9, in order to further strengthen regulatory oversight of underwriting, sponsorship, financial advisory, and other related activities under the registration-based system, the China Securities Regulatory Commission issued the “Guiding Opinions on Urging Securities Offices to Fulfill Their Duties and Responsibilities in Investment Banking Business under the Registration-Based System,” which explicitly states that it is necessary to refine institutional rules, enhance the standardization of regulation and professional practice, and intensify supervision and inspection of quoting institutions and securities offices to ensure orderly quoting and pricing practices.
According to reports, the Shanghai Stock Exchange has established a regular oversight and inspection mechanism to address abnormal quoting behavior by offline investors. In its day-to-day regulatory work, for IPO projects with concentrated bids, the Exchange promptly seeks information from issuers and lead underwriters; for institutional investors exhibiting unusual pricing patterns, it conducts telephone or on-site interviews to clarify the circumstances and reiterate quoting discipline and regulatory requirements. Meanwhile, the Exchange has developed an analytical model for offline investor quoting behavior, applying big‑data analysis to the bid details of recent STAR Market offerings to identify institutions that display unusually high consistency in their quotes or adopt a notably lax quoting approach. Targeted on‑site and off‑site supervisory measures—such as fact‑finding missions, interviews, and review of working papers—have been undertaken with respect to these entities, involving 10 fund management companies, 6 private equity managers, 1 insurance company, and 2 securities asset management offices.
In response, the Shanghai Stock Exchange established seven specialized inspection teams, which simultaneously conducted on-site inspections in multiple locations, including Beijing, Shanghai, Guangzhou, and Shenzhen, with the participation of the Securities Association. Preliminary findings indicate that some institutional investors exhibit weak compliance awareness, failing to implement internal control mechanisms such as dual‑person review of critical processes and stringent management of communication devices, or showing a disconnect between actual practices and internal policies. For instance, quotation information is communicated to trading personnel via verbal instructions or group messages, creating risks of price leakage. Additionally, certain institutions have not developed effective valuation and pricing models; their research reports either do not specify recommended quotation ranges or lack detailed explanations of parameter settings, and the valuation ranges are presented without a clear derivation leading to the final quote. Furthermore, some institutions fail to maintain documented records of research reports, pricing decision‑making processes, and the rationale underlying those decisions; in isolated cases, even research reports retained for archival purposes have not been finalized or uploaded to internal systems prior to the conclusion of the inquiry process.
In accordance with market‑based and rule‑of‑law principles, the STAR Market has established a mechanism for bookbuilding, pricing, and allocation that places institutional investors at the core of the issuance and underwriting process. However, some offline investors lack a sufficient understanding of how to effectively fulfill their role as professional institutional investors, failing to participate in new‑share subscriptions in an independent, objective, and prudent manner, thereby, to some extent, disrupting the orderly conduct of new‑share offerings on the STAR Market.
In response to the relevant violations, the Shanghai Stock Exchange will, in accordance with the spirit of the CPC Central Committee and the State Council’s “Opinions on Severely Cracking Down on Securities Law‑Violating Activities in Accordance with the Law,” implement the principle of zero tolerance for illegal and non‑compliant conduct. Working in concert with the relevant authorities, it will impose strict legal sanctions and resolutely adopt appropriate self‑regulatory measures.
Going forward, the Shanghai Stock Exchange will continue to strengthen regulatory coordination with the Securities Association, intensify oversight and inspection efforts, and impose strict disciplinary measures in accordance with applicable rules to safeguard the sound ecosystem of new‑stock offerings on the STAR Market.

Regulators are taking a multi-pronged approach to optimize the quotation process.
Recently, issues surrounding the pricing of new shares under the registration-based system and the price‑earnings ratio have drawn intense market attention. According to the Securities Times, regulatory authorities have taken note of these concerns. Relevant departments of the China Securities Regulatory Commission, stock exchanges, and the China Securities Industry Association are actively soliciting market feedback and conducting in-depth research to address these matters. They plan to implement measures on two fronts—optimizing relevant rules and strengthening oversight—to safeguard a sound issuance order.
Since the beginning of this year, the IPO pricing of some companies has continued to decline, prompting market concerns about practices such as institutional “group‑hugging” to suppress prices and a high degree of bid‑price concentration.
At present, certain market participants engage in practices that lack professional, independent research and employ pricing that is neither prudent nor objective. Their internal control and compliance frameworks fail to function as intended, and there are also concerns about potential violations such as soliciting or colluding on quotes. Therefore, it is necessary to further strengthen oversight and enforcement.
The Securities Times has learned that relevant departments of the China Securities Regulatory Commission, stock exchanges, and the Securities Association are extensively soliciting market feedback and actively exploring solutions. They plan to implement measures on two fronts—optimizing regulatory rules and strengthening oversight—to safeguard a sound issuance order.
On the one hand, in response to evolving market conditions, we will refine the relevant systems and rules governing stock issuance pricing, underwriting, and allocation; streamline the quotation process; and strike an appropriate balance among the interests of issuers, underwriting institutions, quoting entities, and investors, thereby enabling the market‑based issuance mechanism to function more effectively.
On the other hand, regulatory oversight of pricing institutions will be strengthened to standardize their pricing practices. Emphasis will be placed on cracking down on collusive pricing and other behaviors that distort issuance pricing, promptly weeding out unprofessional and irresponsible offices, and urging pricing institutions to enhance their internal control mechanisms, thereby improving the targetedness and effectiveness of issuance and underwriting supervision.
Since the launch of the registration‑based IPO pilot, a market‑oriented underwriting mechanism for new share offerings has been gradually put in place, with institutional investors serving as the primary participants in bookbuilding, pricing, and allocation, and prices determined by market supply and demand. To date, new‑stock issuance has remained generally stable, yet several issues warrant attention: for instance, the price‑earnings ratios at some IPOs have been trending downward, and the number of offerings that fail to raise their full target capital is increasing; certain offline investors prioritize strategy over research, engaging in coordinated bidding to secure placement and thereby disrupting the orderly conduct of issuances; and there are significant discrepancies between pricing and the valuation ranges cited in investment‑banking reports, with lead underwriters’ valuation reports failing to effectively guide pricing. These developments highlight that some institutions lack rigorous, independent analysis, submit bids that are neither prudent nor objective, and whose internal control and compliance procedures have not functioned as intended; moreover, there may be suspected violations such as soliciting or colluding on bid prices. Accordingly, it is necessary to further strengthen oversight and enforcement. Recently, the Shanghai Stock Exchange conducted special on‑site inspections of offline bookbuilding compliance, issuing regulatory warnings to six asset management offices; meanwhile, the Securities Association of China announced self‑regulatory measures against 11 quoting institutions, including suspending their eligibility as offline investors. In addition, these findings underscore that the pricing mechanism for new‑stock offerings still requires further refinement.
In its recently issued “Guiding Opinions on Urging Securities Offices to Fulfill Their Duties in Investment Banking under the Registration-Based System,” the China Securities Regulatory Commission stated that it will strengthen oversight and inspections of quoting institutions and securities offices, standardize quoting and pricing practices, and refine relevant rules governing stock issuance pricing, underwriting, and allocation. At a symposium for STAR Market‑listed companies, the Shanghai Stock Exchange likewise emphasized the need to actively explore measures to improve new‑share pricing and to reinforce regulatory scrutiny. It can be anticipated that these initiatives will be rolled out once they have been further refined.

Commercial & Corporate
Hongxing Erke Strikes “Hong” Fortune
As China’s first sports brand to list overseas, Hongxing Erke, which has been around for 20 years, once captured the nation’s imagination with its iconic slogan, “TO BE No.1.” However, in recent years, the brand’s profile has faded, and it has gradually slipped out of the top-tier sports‑brand market. So where has Hongxing Erke gone over the past decade? And after this wave of online praise, could it become a “revived internet sensation”?
As Hongxing Erke shot to fame, the public has also been curious: why had this brand remained largely out of the spotlight all these years?
According to its official website, Hongxing Erke Industrial Co., Ltd. was founded in June 2000 and is headquartered in Xiamen. It has grown into a large apparel enterprise integrating R&D, manufacturing, and sales, with nearly 30,000 employees. The company operates more than 7,000 stores worldwide, marketing its products across Europe, Southeast Asia, the Middle East, the Americas, and Africa, and holds trademark rights in over 100 countries. Its brand value has surpassed RMB 35.836 billion. For many years, Hongxing Erke has partnered with top domestic and international events, including the Shanghai ATP 1000 Masters, the China Open, the Australian Open, and the WTA Finals, providing professional tennis gear to world‑class players. At the same time, it has collaborated with national Olympic committees in Asia, Africa, and other regions, proudly appearing alongside global brands on the Olympic stage.
According to information provided by Qichacha, the company’s executive director, general manager, and ultimate beneficial owners are Wu Rongzhao and Wu Rongguang—whose latter is also the founder of Hongxing Erke. Media reports indicate that the two are brothers.
In 2000, at just 25 years old, Wu Rongguang founded Hongxing Erke and launched its own brand, “Hongxing Erke.” Prior to that, he had majored in athletic shoe design at school. After graduation, he joined the family shoe factory his father had established to help manage the family business.
At first, the Wu family specialized in contract manufacturing various types of athletic shoes for several brand-name companies. When orders piled up and they couldn’t keep up, they would subcontract production to other manufacturers. Wu Rongguang explained that back then, he handled all external negotiations—bargaining over prices and quality—before placing orders with the factories. Later, he realized that without its own sales channels, the business remained perpetually reactive. Meanwhile, the Wu family’s shoe factory already employed four to five hundred workers, possessing both robust production expertise and strong R&D capabilities.
Accordingly, Wu Rongguang completely overhauled his father’s family business, registered a new company called Hongxing Erke, and launched his own “Erke” brand of athletic shoes and other sportswear, while vigorously expanding his sales channels. To rapidly boost the company’s visibility, he invested heavily in hiring Chen Xiaochun and Zhang Nala as brand ambassadors and placed advertisements on China Central Television. The slogan “TO BE Number One” also became a nationwide sensation.
Hongxing Erke’s logo is a blue silhouette of a swan, personally chosen by the Wu brothers. Wu Rongguang believes that the swan embodies Hongxing Erke’s spirit of relentless striving and pursuit of excellence, while the blue hue symbolizes the brand’s calm and composed mindset.
In the sports category, where top-tier players abound and industry giants hold sway in the Minnan region, carving out a share of the market is no easy feat.
In fact, Hongxing Erke’s initial strategic move was remarkably forward‑looking: as early as 2005, the brand recognized the potential of tennis, positioned itself in the tennis market, and invested heavily in sponsoring tennis events and signing top players. This decision came more than two years ahead of Anta’s focus on the running sector.
Back then, youthful style was Hongxing Erke’s defining hallmark, holding its own against established brands like Anta and Xtep.
In 2005, Hongxing Erke reached a pivotal moment. At the age of 30, Wu Rongguang led the company to list on Singapore’s Main Board, making it the first Chinese apparel brand to go public overseas. That same year, in the highly coveted ranking of tennis shoes, Hongxing Erke stood alongside Nike and Adidas as one of the “big three,” officely establishing itself as the leading domestic brand in professional tennis footwear.
At the 2008 Beijing Olympics, Hongxing Erke sponsored the North Korean Olympic delegation and later supported the Chinese women’s weightlifting team, helping them win China’s first gold medal of the Games. These initiatives catapulted Hongxing Erke into the spotlight and paved the way for its expansion into overseas markets.
The 2008 Beijing Olympics were a grand feast for China’s entire sports market and a powerful boost to the vigorous growth of Fujian’s sports enterprises. Yet that injection of vitality did not translate into sustained prosperity; instead, it triggered a sudden downturn. The Games not only ignited a boom in the domestic sports‑brand market but also signaled lucrative opportunities to international brands. Nike, Adidas, Puma, Under Armour, and even Uniqlo—formerly known for casual apparel—have all expanded their presence in China, delivering a severe blow to the sports‑brand sector in Jinjiang, Fujian.
In 2008, Hongxing Erke’s shipment forecasts were overly optimistic, directly leading the company to spend the entire year of 2009 working to reduce excess inventory. Data show that the company’s sales that year totaled just RMB 1.999 billion, a year-on-year decline of 30.8%.
Following the pain of destocking, Hongxing Erke has embarked on a major expansion.
Like most domestic sports brands, Hongxing Erke has also faced lingering challenges stemming from overly aggressive expansion that outpaced its management capabilities. The company is seeking to capture market share in the lower-tier markets by penetrating county- and prefecture-level regions.
On May 29, 2010, Wu Rongzhao, then vice president of Hongxing Erke, stated in a media interview: “The next two years will be a period of rapid growth for Hongxing Erke. We plan to expand our store network from the current 4,000 to 6,000, and increase sales from the present level of over 2 billion yuan to 5 billion yuan.”
Against this backdrop, Hongxing Erke’s store count has surged, with the brand now operating over 7,000 outlets worldwide and expanding further into second- and third-tier markets. However, this rapid expansion has also given rise to a host of challenges, including cash-flow constraints and inadequate management.
During this period, Hongxing Erke also suffered a severe blow in the secondary market: starting February 28, 2011, the company was suspended from trading due to issues such as overstating its cash and bank deposits by a total of RMB 1.15 billion in its 2010 financial statements, and it remains delisted to this day. In the interim, Hongxing Erke faced challenges including the resignation of its board secretary and the temporary withdrawal of President Wu Rongzhao from management, further hampering its development plans.
In 2015, a massive fire destroyed nearly half of Hongxing Erke’s production facilities, leaving even customer orders uncertain. Wu Rongzhao recalled, “At our toughest moment, our cash flow wasn’t enough to cover a single week.”
Meanwhile, domestic brands such as Anta and Li-Ning have risen rapidly, accelerating their pace across brand positioning, marketing strategies, and product innovation. Hongxing Erke, by contrast, has gradually found itself being outpaced by its rivals.
In terms of brand positioning, Hongxing Erke has become increasingly ambiguous. Its slogan is “TO BE NO.1,” and its corporate values emphasize “building a globally leading sports brand,” yet its domestic footprint remains officely rooted in the lower-tier, third‑tier and below markets. In 2020, the company’s brand strategy continued to prioritize “strengthening at the county level while excelling at the prefecture‑level.” At the same time, Hongxing Erke has sought to break into the international high‑end tennis apparel market and even sponsored the WTA Finals. This dual‑track approach has made it difficult for the brand to strike a balance, leaving its positioning muddled and inconsistent.
As of now, Hongxing Erke’s official Tmall flagship store shows that the vast majority of its products continue to target the mass‑market segment: prices hover around 200 yuan, with 247 items priced under 100 yuan. These include 12 pairs of socks, 180 apparel items, and 55 pairs of shoes. As the brand’s core product category, footwear starts at a low of 89 yuan, while 70% of its offerings fall below 200 yuan—most of these are basic‑style designs. The most expensive shoe retails for 459 yuan, part of Hongxing Erke’s premium “Qitan” running‑shoe series. However, according to the promotional page, after applying applicable coupons, the final price comes to 379 yuan.
Secondly, Hongxing Erke’s marketing lacks creativity. In recent years, the brand has only enlisted entertainment stars like Zhang Binbin and Douyu streamer Zhou’er Ke—“non‑traffic‑driving” celebrities who fail to ignite enthusiasm among younger audiences. By contrast, Anta has partnered with top-tier idol Wang Yibo. Ahead of the official announcement, Anta cleverly unveiled a silhouette image, inviting fans to guess who it was. Meanwhile, Xtep’s latest spokesperson is Fan Chengcheng, a move also seen as an effort to capture the attention of the new‑generation consumer base.
In addition, Hongxing Erke once found itself at the center of public scrutiny for excessive imitation. Online, memes like “Which is better, Hongxing Erke or XX (a well-known brand)?” frequently surfaced.
Notably, on the very day it trended on social media, its latest design was criticized for lacking style: “Boss, maybe you should switch designers. Your shoes are certainly well-made, but they don’t quite match today’s young people’s tastes.”
Another netizen suggested, “Mr. Wu, I’m really impressed to hear that your company has been quietly making donations. As a consumer, I’d like to offer a simple suggestion: could you please adopt a more minimalist approach to your product designs? In terms of color schemes, it would be great if you avoided overly saturated hues—trendy pastel shades like macarons or Morandi tones are very appealing. Also, the product pages could benefit from a cleaner, more elegant design, and the image quality could be improved by drawing inspiration from popular online stores.”
Wu Rongzhao replied directly on Weibo: “You’re very knowledgeable. In the past, we’ve always prioritized the wearing experience, but going forward, we’ll put more effort into design. If you’re in this field, you’re welcome to join Hongxing Erke.”
This exchange has also been jokingly dubbed “online training” and “BOSS Direct Hiring” by netizens.
In fact, Wu Rongzhao has already recognized this issue. In an interview at the end of 2019, he stated, “In the past, we always prioritized capturing market share based on cost-effectiveness; now, that’s no longer the case—products must possess sufficient appeal and generate meaningful buzz.”
Today, popular brands like Nike, Adidas, Anta, and Li-Ning are ubiquitous, each boasting its own core competitive advantages—leaving Hongxing Erke in an even more challenging position.
Hongxing Erke’s top priority remains shedding the stereotypes of imitation, knock-offs, and non‑fashionability, while sustaining its innovation and creativity. In an era of rapid economic growth, without a clear area of expertise or robust technological backing, it is destined not to become Number One.
Secondly, there is a need to continuously explore new market territories. Although Hongxing Erke officially announced its entry into the children’s apparel market in July 2019, the response was rather muted. On December 21 last year, the Shanghai Municipal Administration for Market Regulation reported on its official website that it had recently conducted random inspections of 50 batches of children’s footwear sold on five e‑commerce platforms and on the official websites of seven brands, including Decathlon, Li‑Ning, and ZARA. The tests revealed six non‑compliant batches, with Hongxing Erke among the affected brands.
Based on a comparison of 2020 revenue figures among Chinese sportswear brands, Hongxing Erke’s financial performance is far from encouraging. In 2020, the company reported total revenues of RMB 2.843 billion—less than one-tenth of Anta’s RMB 35.51 billion. Meanwhile, 361°, a brand with a similar positioning to Hongxing Erke, also posted annual revenues exceeding RMB 5 billion in 2020.
Hongxing Erke’s road to revival is long and arduous.
Log in to the ERKE official website, where you’ll find the following passage in the company’s introduction: “We are committed to bringing a sunny, vibrant lifestyle to young people around the world through diverse channels, encouraging them to maintain a positive and optimistic outlook, face life with a smile, and radiate their own passion, joy, and vitality—thus unleashing boundless creativity, imagination, and positive energy.”
Today, young consumers are rallying behind Hongxing Erke through frenzied online shopping sprees, aiming to boost the brand’s confidence and encourage it to remain upbeat and optimistic—sparking “unlimited creativity, imagination, and positive energy” that empowers the brand.
Of course, Hongxing Erke’s heartfelt gesture—donating even as it teetered on the brink of bankruptcy—undoubtedly won it a loyal fan base, but such support ultimately can’t be sustained in the long term.
Perhaps only by upholding the business philosophy of “staying grounded while creating the extraordinary” can Hongxing Erke soar to great heights, traveling a thousand miles in a single bound, its wings fully grown and ready to span the four seas.
At noon on the 23rd, Hongxing Erke’s official Weibo account posted an update that once again won over fans: “Hongxing Erke is determined to become a century-old brand—otherwise, we’d be letting down the members who’ve shown us their support.”

Heavy rainfall has struck many regions, and the impact on the steel industry is widening.
Rain has been falling in Zhengzhou night after night, with surging floodwaters submerging underpasses, vehicles, streets, homes, and even entire villages. As of now, the rainy weather in Zhengzhou has yet to abate. Meanwhile, Hebei, Shanxi, Xi’an, and other regions have also recently been battered by torrential downpours, disrupting transportation and halting outdoor construction projects, which could further amplify the impact on the steel industry.
However, steel prices have continued to climb recently, with rebar futures surging by more than 100 yuan today. On the Shanghai Futures Exchange, the most active rebar futures contract closed at 5,671 yuan per ton, up 122 yuan per ton, a gain of 2.2%. Year-to-date through July, the contract has risen by 524 yuan per ton, an increase of 10.18%.
Today, spot prices for threaded steel also broke through the 5,300 yuan mark. According to monitoring data from the Lange Steel Cloud Commerce platform, on July 23, the average price of Grade III Φ25mm threaded steel in key domestic cities stood at 5,313 yuan per ton, up 41 yuan per ton from the previous day. Year-to-date, prices have risen by 449 yuan per ton, a gain of 9.23%.
First, from the demand side, southern regions have experienced continuous rainfall since the start of the flood season, severely disrupting outdoor construction projects. In addition, recent heavy downpours across many parts of the country have caused traffic disruptions. According to Wang Guoqing, Director of the Lange Steel Research Center, the intense rainfall is having a noticeable impact on the transportation of raw materials and finished steel products in affected areas. In particular, restrictions on raw material logistics are constraining production, while downstream steel demand is also being weighed down. With both supply and demand weakening in regional markets, overall market activity has declined in the short term, resulting in subdued trading volumes.
In terms of output, crude steel production saw a marked decline in the first half of July but rebounded slightly in the middle of the month. According to data from the China Iron and Steel Association, as of mid-July 2021, key steelmakers produced 21.9369 million tonnes of crude steel and 21.2681 million tonnes of steel products; average daily crude steel output stood at 2.1937 million tonnes, up 2.62% month-on-month and 2.59% year-on-year, while daily steel product output reached 2.1268 million tonnes, up 8.35% month-on-month and 4.29% year-on-year. Notably, recent reports of environmental‑related production restrictions and cuts have been mounting across many regions nationwide, with some areas even holding meetings to stipulate that this year’s steel output must not exceed last year’s level. Consequently, the possibility of a substantial production cut in the second half of the year cannot be ruled out.
This week, the growth rate of steel inventories held by end‑users has slowed significantly. According to data monitored by the Lange Steel Cloud Commerce platform, as of July 23, total steel inventories in 29 key cities nationwide stood at 13.447 million tonnes, up 20,000 tonnes from the previous week, with the pace of increase decelerating by 1.16 percentage points compared with the prior week. Among these, rebar inventories turned from rising to falling, while flat‑steel inventories edged up slightly. Ge Xin, deputy director of the Lange Steel Research Center, noted that it remains possible for inventories to reverse course and start declining next week; however, given that demand has yet to fully recover, steel inventories are likely to experience further fluctuations in the near term.
In addition, steelmaking costs continue to provide strong support for steel prices. According to data monitored by the Lange Steel Cloud Commerce platform, the Platts iron ore index stands at 201.5, up 82.5% year-on-year; Tangshan scrap steel prices are 3,375 yuan per ton, a 31.32% increase compared with the same period last year; and Tangshan coking coal prices have reached 2,600 yuan per ton, up 44.44% from a year earlier. Ge Xin stated that, amid robust demand, raw material and fuel prices are unlikely to fall sharply in the near term.
Regarding the outlook, Ge Xin noted that prices are currently under strong cost‑driven support. Despite weak demand, expectations of a decline in steel production in the second half of the year have kept steel prices on a steady upward trajectory, with prices likely to remain elevated in the third quarter.

Steel prices have soared—three key variables in the near term warrant close attention.
This week, the domestic steel market has been trading in a high‑range consolidation pattern. Over the weekend, as positive factors continued to build and intensify, black‑steel commodities surged sharply, though individual grades showed some divergence due to differing industry fundamentals.
Amid a near‑certain reduction in steel mill output, iron ore prices have posted three consecutive declines, with the benchmark price now hovering around the 1,100 yuan mark. Although coking coal and metallurgical coal both belong to the raw‑material segment, supply‑demand mismatches driven by summer electricity shortages and heightened safety‑production requirements have kept coal and coke on an upward trajectory against the broader market trend. Coking coal easily broke through its previous resistance at 2,750 yuan, climbing as high as the psychologically important 2,800‑yuan level, while metallurgical coal extended its six‑month highs, surpassing the 2,100‑yuan threshold.
Threaded steel futures edged close to the 5,700-yuan mark, while hot-rolled coil futures, after surging to a weekly high of 6,060 yuan early in the week, lacked fresh momentum and failed to break above their previous peak over the weekend, settling temporarily below 6,000 yuan.
Spot market prices have risen in tandem with broader trends, driving a surge in both end‑user and speculative demand. In some regions, sellers have become noticeably reluctant to part with their inventories. As prices continued to climb and demand peaked, end‑user purchasing in southern China eased slightly, with some major players cutting their shipments by half, while trading activity in northern China remained relatively robust.
As of July 23, 2021, the Lange Steel Composite Price Index stood at 5,795 yuan, up 0.87% from last weekend and 43.59% year-on-year; the Lange Steel Long Products Price Index reached 5,462 yuan, up 1.61% from last weekend and 41.17% compared with the same period last year; and the Lange Steel Flat Products Price Index totaled 6,068 yuan, up 0.21% from last weekend and 46.71% year-on-year.
Construction steel
On the front‑end spot market, data from the Lange Steel Cloud Commerce platform show that as of July 23, the average price of Φ25mm Grade III rebar in China’s ten major key cities stood at RMB 5,311 per tonne, up RMB 102 from last weekend and RMB 429 from the same period last month. Meanwhile, the average price of Φ6.5mm HPB300 high‑strength wire rod in these same ten cities was RMB 5,836 per tonne, up RMB 87 from last weekend and RMB 339 from the same period last month.
According to monitoring data from the Lange Steel Cloud Commerce Platform, as of July 23, social inventories of construction steel in 29 key cities nationwide totaled 6.7548 million tons, up 10,000 tons from last weekend—essentially unchanged from the previous week—up 6.1% year-on-year, but down 8.72% compared with the same period last year.
Sheet material
On the hot-rolled coil price front, data from the Lange Steel Cloud Platform show that as of July 23, the average price of 5.5-mm hot-rolled coil in 10 key domestic cities stood at RMB 5,804 per tonne, up RMB 11 from last weekend and RMB 489 from the same period last month. In terms of inventory, as of July 23, total stocks of hot-rolled sheet and coil across 29 major domestic cities reached 2.8354 million tonnes, an increase of 50,100 tonnes—up 1.79% from last weekend—6.68% higher than the same period last month, and 16.77% above the level a year earlier.
Regarding cold‑rolled coil prices, as of July 23, the average price in 10 key domestic cities stood at RMB 6,488 per ton for 1.0 mm cold‑rolled coil, up RMB 29 from last weekend and RMB 371 higher than the same period last month. In terms of inventory, as of July 23, stock levels in 24 major domestic cities totaled 1.1697 million tonnes, down 4,300 tonnes (0.37%) from the previous weekend, 0.84% lower than the same period last month, and 7.46% above the level recorded a year earlier.
Regarding medium‑thick plate prices, as of July 23, the price of 20‑mm medium‑thick plate in 10 key domestic cities stood at RMB 5,615 per ton, up RMB 23 from last weekend and RMB 324 higher than the same period last month. In terms of inventory, as of July 23, the total stock of medium‑thick plate coils across 29 key domestic cities reached 1.2723 million tonnes, down 19,000 tonnes (a 1.47% decline) from last weekend, up 3.07% from the same period last month, and 15.09% higher than the level a year earlier.
Prediction
For most of this week, heavy rainfall prevailed, with extreme weather in Henan severely disrupting steel mill operations and transportation. With the intense downpours now largely over, some steelmakers have begun preparing to resume production; however, subsequent tasks such as wastewater discharge, sediment removal, and equipment maintenance could extend the resumption of normal operations by approximately three months. Likewise, restoring normal traffic on highways and railways will also require time.
With steel mill production cuts in the second half of the year becoming increasingly clear, mills in Shandong, Shanxi, Jiangsu, Hebei, and other regions have successively received notices, marking a formal shift from expectation to reality.
In addition, the joint prevention and control measures in Hebei Province have been extended. According to the latest notice issued by the Office of the Leading Group for Air Pollution Prevention and Control in Fengrun District, Tangshan City, from 00:00 on July 24 to 09:00 on July 27, with the exception of vehicles required to meet essential public needs, the transport of bulk materials—including coal, coke, steel, ore, and sand and gravel—is prohibited (except for new-energy vehicles). Meanwhile, Guye District has mandated that all steel plants keep their blast furnaces idle from July 20 to July 31, and has extended the coking time at coke ovens to 48 hours. These measures affect nearly 7 million tons of pig iron production capacity, and expectations of a tightening supply are supporting persistently high steel prices.
From the perspective of inventory trends, steel mills’ production cuts and the gradual recovery in demand are clearly reinforcing each other. According to data from Lange Steel Network, as of July 23, steel inventories in key domestic cities totaled 13.4469 million tons, up slightly by 19,800 tons from the previous week—a weekly increase of 0.14%. This week’s inventory level was 1.98% lower than the same period last year. Among them, construction‑grade steel stocks stood at 8.1695 million tons, down 7,000 tons from the prior week, a weekly decline of 0.09%, and 10.18% below the level of the same period last year. With regard to flat products, except for hot‑rolled coil inventories, which increased, all other categories saw declines.
On the steel mill side, according to data from Lange Steel Network, as of July 23, in‑plant inventories of construction steel at sampled mills across major regions totaled 6.15 million tonnes, down 171,000 tonnes from the previous week—a weekly decline of 2.7%. This marks the third consecutive weekly drop in mill inventories, and it is expected that this downward trend will persist in the period ahead.
Recently, the market continues to be driven by supply-and-demand dynamics on the industrial side, and the likelihood remains high that, following the digestion of positive factors, prices will continue to hover at elevated levels.
Key factors to watch include: first, the government’s continued sensitivity to commodity price movements; second, whether steel mills’ production cuts are being implemented as planned and whether progress aligns with expectations; and third, investor sentiment—particularly the risk that profit-taking could materialize after the recent temporary price rally. Market participants should closely monitor capital outflows. Should even a minor catalyst trigger a sharp spike followed by a pullback, the overall trend of volatile but upward‑moving prices remains intact, and the market is unlikely to break out of its current high‑range trading pattern for now.
Taxation TAXATATION

Interprovincial Tax Services Made Easy, Boosting Economic Vitality Across the Country
— The tax system is advancing the cross-provincial “one-stop” handling of tax-related matters to further deepen the reform of tax administration characterized by deregulation, regulation, and service.
To implement the “Opinions on Further Deepening Tax Collection and Administration Reform” issued by the General Office of the CPC Central Committee and the General Office of the State Council, to advance the “delegation, regulation, and service” reform in the tax field, and to optimize the business environment, and in accordance with the requirements of carrying out the practical activity “Doing Concrete Things for the People” during Party history study and education, the State Taxation Administration has decided, in order to effectively reduce the reporting burden on taxpayers and payers, to comprehensively implement the integration of the value-added tax and consumption tax return forms with their respective supplementary tax and fee return forms, as stipulated in the “Opinions of the State Taxation Administration on Launching the 2021 ‘Doing Practical Things for Taxpayers and Payers and the Spring Breeze Action for Convenient Tax Services’” (Tax Total Issue [2021] No. 14). The following is an interpretation:
I. What does it mean to integrate the VAT and consumption tax return forms with the supplementary tax and fee return forms?
When filing value-added tax (VAT) and consumption tax returns, taxpayers shall simultaneously declare the associated surcharges, including the urban maintenance and construction tax, the education surcharge, and the local education surcharge. The integration of VAT and consumption tax return forms with their respective surcharge‑related forms means that the “VAT Return Form (for General Taxpayers),” the “VAT Return Form (for Small-Scale Taxpayers)” together with their supplementary schedules, the “VAT Advance Payment Return Form,” and the “Consumption Tax Return Form” are each consolidated into the “Urban Maintenance and Construction Tax, Education Surcharge, and Local Education Surcharge Return Form.” Accordingly, the “VAT and Surcharges Return Form (for General Taxpayers),” the “VAT and Surcharges Return Form (for Small-Scale Taxpayers),” the “VAT and Surcharges Advance Payment Return Form” along with its supplementary schedules, and the “Consumption Tax and Surcharges Return Form” are now in effect.
II. Why is it necessary to integrate the VAT and consumption tax return forms with the supplementary tax and fee declaration forms?
To further optimize the tax-related business environment, enhance tax administration efficiency, and improve the taxpayer experience, the State Taxation Administration, building on the successful implementation of consolidated filing for all property‑related taxes, has now integrated the value‑added tax and consumption tax returns with their respective supplementary tax and fee return forms.
First, we are streamlining tax‑filing procedures. Since additional taxes and fees are levied alongside value‑added tax (VAT) and consumption tax, separate filing of these ancillary charges often leads to inconsistencies with VAT and consumption‑tax returns. To address this, we have integrated the main‑tax and ancillary‑tax return forms and adopted a “single‑form filing, unified collection and administration” approach. Under this framework, information on ancillary taxes and fees is incorporated as supplementary schedules to the VAT and consumption‑tax returns, enabling shared data across these filings. This enhances filing efficiency and simplifies operations for taxpayers.
Second, it reduces the tax compliance burden. By consolidating the main tax and additional tax/fee return forms and comprehensively streamlining and integrating the existing forms and data items, the number of forms and data fields has been significantly reduced. The new return form makes full use of inter‑agency shared data and data from other tax administration processes, enabling automatic pre‑population of existing information, thereby substantially easing the reporting burden on taxpayers and payers and lowering the likelihood of filing errors.
Third, we will enhance the quality and efficiency of tax administration. By consolidating the main tax and additional tax/fee return forms and leveraging information technology, we can automate tax calculation, perform data cross‑checking and comparison, and flag reporting anomalies—effectively preventing underreporting and misreporting, thereby ensuring high‑quality filings and facilitating the timely implementation of preferential policies. Furthermore, by integrating the return forms for various taxes and fees, we have achieved a “single form, one filing, one payment, one receipt” process for multiple tax types, significantly improving tax administration efficiency.
III. How to File VAT, Consumption Tax, and Related Surcharges?
In the newly implemented “Value-Added Tax and Additional Taxes and Fees Return (for General Taxpayers),” “Value-Added Tax and Additional Taxes and Fees Return (for Small-Scale Taxpayers),” “Value-Added Tax and Additional Taxes and Fees Prepayment Form” along with their supplementary schedules, and the “Consumption Tax and Additional Taxes and Fees Return,” the additional taxes and fees return is treated as a supplementary schedule or annex. Taxpayers may file the additional taxes and fees return concurrently with their value-added tax and consumption tax returns.
Specifically, after the taxpayer completes the VAT and consumption tax return information, the system automatically populates the supplementary schedules for additional taxes and fees. Once the taxpayer has entered the remaining additional tax and fee details, they return to the main VAT and consumption tax return form, where the data for the current period’s payable VAT, consumption tax, and additional taxes and fees is generated. All of the aforementioned pre‑filled information is automatically populated by the system.
IV. After the integrated declaration form is implemented, can the original supplementary tax and fee declaration forms still be used?
Following the consolidation of the VAT, consumption tax, and ancillary tax return forms, not only have the forms been refined, but the underlying information systems and the e‑tax platform have also undergone functional optimization and enhancement, covering all scenarios for filing VAT, consumption tax, and ancillary taxes. Consequently, after the integrated return forms take effect, the original “Urban Maintenance and Construction Tax, Education Surcharge, and Local Education Surcharge Return Form” is no longer in use.
V. What changes have been made to VAT filing following the consolidation of tax return forms?
In the newly filed tax return forms, in addition to the consolidated filing of main taxes and ancillary taxes and fees, the VAT return has also been optimized and adjusted.
(1) After adopting the new tax return form, what changes have been made to the VAT return filing requirements for general taxpayers?
The newly implemented “Value-Added Tax and Additional Taxes Return (for General Taxpayers)” and its supplementary schedules feature three major changes: First, columns 39 through 41 under the “Additional Taxes” section have been added to the main form of the original “Value-Added Tax Return (for General Taxpayers),” and the form’s title has been revised to “Value-Added Tax and Additional Taxes Return (for General Taxpayers).” Second, column 23 of the original “Supplementary Schedule II to the Value-Added Tax Return (Details of Input Tax for the Current Period)” — titled “Other Cases Requiring Transfer of Input Tax” — has been split into two new columns: column 23a, “Input Tax Transferred Due to Abnormal Certificates,” and column 23b, “Other Cases Requiring Transfer of Input Tax.” The schedule’s title has also been updated to “Supplementary Schedule II to the Value-Added Tax and Additional Taxes Return (Details of Input Tax for the Current Period).” Specifically, column 23a is designated for reporting the transfer of input tax arising from abnormal VAT credit certificates, while column 23b continues to reflect the content previously reported in column 23. Third, a new supplementary schedule, “Supplementary Schedule V to the Value-Added Tax and Additional Taxes Return (Schedule of Additional Taxes),” has been added.
The primary change concerning VAT tax return filing is that, when submitting their returns, taxpayers must report the input VAT amounts that, in accordance with regulations, are to be transferred out as abnormal VAT credit certificates for the current period in Column 23a of “Supplementary Schedule (II) to the VAT and Additional Tax Return” (Details of Input VAT for the Current Period), under the heading “Input VAT Transferred Out Due to Abnormal Certificates.” For cases where such transfers were previously made, but the abnormal status has since been lifted or the tax authorities have verified that the credits may continue to be deducted, and the taxpayer has re‑conofficeed the input VAT to be used for deduction, a negative figure should be entered in this column.
(2) After adopting the new tax return form, what changes have been made to the VAT return filing requirements for small-scale taxpayers?
The newly implemented “Value-Added Tax and Additional Taxes Return (for Small-Scale Taxpayers)” and its supplementary schedules feature three major changes: First, columns 23 through 25 under the “Additional Taxes” section have been added to the main form of the original “Value-Added Tax Return (for Small-Scale Taxpayers),” and the form’s title has been revised to “Value-Added Tax and Additional Taxes Return (for Small-Scale Taxpayers).” Second, the names of certain columns in the main form of the original “Value-Added Tax Return (for Small-Scale Taxpayers)” that pertain to sales revenue from special VAT invoices and ordinary invoices have been adjusted to more precise wording: specifically, columns 2 and 5 have been renamed from “Sales Revenue Excluding Tax on Special VAT Invoices Issued by the Tax Authorities” to “Sales Revenue Excluding Tax on Special VAT Invoices”; and columns 3, 6, 8, and 14 have been renamed from “Sales Revenue Excluding Tax on Ordinary Invoices Issued via Tax-Controlled Devices” to “Sales Revenue Excluding Tax on Other VAT Invoices.” The specific reporting requirements for these columns remain unchanged. Third, a new supplementary schedule, “Supplementary Schedule (II) to the Value-Added Tax and Additional Taxes Return (for Small-Scale Taxpayers)” (the Additional Taxes Information Form), has been added.
The content and scope of the value-added tax (VAT) return, as well as its supplementary schedules, applicable to small-scale taxpayers, remain unchanged.
(3) For tax periods falling on or after July 2021, if a taxpayer receives a Tax Matter Notification from the competent tax authority informing them that a special VAT invoice they have already declared for input tax credit is an abnormal VAT credit certificate, how should the taxpayer proceed when filing their tax return?
In accordance with the Instructions for Completing the “Value-Added Tax and Additional Taxes Return (for General Taxpayers)” and its supplementary schedules, the “Supplementary Schedule II to the Value-Added Tax and Additional Taxes Return,” column 23a, “Input VAT Transferred Out Due to Abnormal Certificates,” shall be used to report the amount of input VAT transferred out this period as a result of abnormal VAT credit certificates.
If a taxpayer’s tax credit rating is not Class A, in accordance with Article 3, Paragraph (1) of the State Taxation Administration’s Announcement No. 38 of 2019 on Matters Relating to the Administration of Abnormal VAT Credit Certificates (hereinafter referred to as “Announcement No. 38”), when filing the VAT and additional tax returns for the tax period to which the relevant tax‑related notice pertains, the taxpayer shall, as required by the instructions for completing Form II of the VAT and Additional Tax Return, enter the amount of VAT already credited against the corresponding special invoice in Column 23a of Form II.
If a taxpayer’s tax credit rating is Class A, in accordance with Article 3, Paragraph (4) of Announcement No. 38, the taxpayer may, within ten working days from the date of receiving notification from the tax authority, submit a verification application to the competent tax authority. Until the tax authority issues its verification result, no outbound transfer of input VAT shall be made, nor is it necessary to enter the VAT amount already credited on the corresponding special invoice into Column 23a of the “Supplementary Information (II) to the Value-Added Tax and Additional Taxes Return.”
If a taxpayer fails to submit a verification request within the prescribed time limit, or if a verification request is submitted but the relevant invoice is subsequently verified and found not to comply with the applicable provisions governing the input VAT credit, the taxpayer shall continue to account for the input tax as an outgoing transfer.
(4) For tax periods falling on or after July 2021, if a taxpayer receives a Tax Matter Notification from the competent tax authority informing them that an abnormal VAT input tax credit certificate—previously subject to transfer—has been de‑listed as abnormal, the corresponding special VAT invoice may continue to be used for input tax credit in accordance with the current regulations. How should taxpayers handle this when filing their tax returns?
In accordance with the Instructions for Completing the Value-Added Tax and Additional Tax Return (for General Taxpayers) and its supplementary schedules, fill in Column 23a of Supplementary Schedule (II) to the Value-Added Tax and Additional Tax Return—“Input VAT Transferred Out Due to Abnormal Certificates”—with the amount of input VAT transferred out this period as a result of abnormal VAT credit certificates. If, following verification, such certificates are subsequently permitted to be credited and the taxpayer re‑conoffices their use for deduction, enter a negative figure in this column.
For tax periods on or after July 2021, taxpayers who have previously treated abnormal input VAT credit notes as subject to out-of‑account adjustment shall, upon removal of the abnormal status, first re‑select the relevant invoices for deduction through the Comprehensive VAT Invoice Service Platform. Subsequently, when filing the VAT and additional tax returns for the tax period in which the deduction was originally selected, they shall, in accordance with the instructions in the “Supplementary Information (II) to the VAT and Additional Tax Return,” enter the amount of tax eligible for continued deduction as a negative figure in Column 23a of that supplementary form. For abnormal input VAT credit notes that were already adjusted as out‑of‑account prior to the July 2021 tax period, no further re‑selection is required; instead, after verification by the tax authorities, the amount of tax eligible for continued deduction may be directly entered as a negative figure in Column 23a of the “Supplementary Information (II) to the VAT and Additional Tax Return.”
VI. With the consolidation of tax return forms, what changes have been made to consumption tax filing?
Under the new tax return form, in addition to the consolidated filing of main taxes and ancillary taxes and fees, the consumption tax return has also been streamlined and optimized.
(1) What changes have been made to the consumption tax return form following the adoption of the new filing form?
First, the original eight main forms of the consumption tax return, which were previously organized by tax category, have been consolidated into a single master form. The basic framework remains unchanged, comprising three sections—sales information, tax calculation, and tax payment—and incorporates additional line‑item numbers and cross‑reference relationships within the form. Three items that do not factor into the consumption tax calculation, such as “taxes payable at the beginning of the period,” have been removed, thereby facilitating a smooth transition for taxpayers to the new return format.
Second, the original 22 supplementary schedules to the consumption tax return forms, categorized by tax item, have been consolidated into seven schedules: four are general-purpose schedules, one is a dedicated schedule for taxpayers of refined petroleum product consumption tax, and two are dedicated schedules for cigarette consumption tax taxpayers.
(2) After adopting the new tax return form, are taxpayers subject to consumption tax under different tax categories required to complete all main forms and supplementary schedules?
The new tax return form integrates the original main and supplementary forms of the consumption tax return, which were previously separated by tax category. Based on the taxpayer’s registered information on the consumption tax‑levied items, the system automatically populates the “Name of Taxable Consumer Goods” and “Applicable Tax Rate” fields in the main form, as well as any supplementary schedules that the taxpayer is required to complete, thereby simplifying the filing process. Special supplementary schedules are applicable only to taxpayers of refined oil consumption tax and cigarette consumption tax; other taxpayers are not required to file such schedules, and the system will not display them.
(3) After the withholding agent for consigned processing of taxable consumer goods has withheld the tax, how should it issue the tax payment certificate and file and remit the withheld consumption tax?
After the withholding agent has withheld the consumption tax, it shall issue to the consignor a “People’s Republic of China Tax Payment Certificate (For Withholding and Collection Only)”; the consignor may, on the strength of this certificate, file a return and claim a credit for the consumption tax in accordance with the relevant regulations.
When the withholding agent files and remits the withheld consumption tax with the competent tax authority, it shall no longer complete the “Current Period Withheld and Remitted Tax Calculation Form.” Instead, it shall submit the General “Detailed Report on Withheld and Remitted Taxes” and the supplementary schedule to the “People’s Republic of China Tax Payment Certificate (For Withholding and Collection Only),” and remit the withheld taxes based on the total amount shown in the “Actual Withheld and Remitted Taxes” column of the system‑generated “Detailed Report on Withheld and Remitted Taxes.”
(4) If an enterprise is engaged in the production of lubricating oils, does it still need to complete the “Consumption Tax Return for Refined Petroleum Products” after adopting the new tax return form?
The original “Consumption Tax Return for Refined Petroleum Products” is no longer required. The new return form has been designed to fully accommodate the functions of all previous consumption tax return formats and automatically links to taxpayer registration information. During filing, the system will automatically populate the “Current Period Allowable Deduction Calculation Form (for Refined Petroleum Product Consumption Taxpayers),” and the beginning inventory of refined petroleum products will be entered automatically, enabling taxpayers to continue calculating their deductible tax amounts.
VII. What other issues should be taken into account when filing after the Announcement takes effect?
This Announcement shall take effect as of August 1, 2021. Taxpayers who file and pay value-added tax, consumption tax, and related surcharges on a monthly basis shall apply this Announcement to the filing and payment of such taxes and surcharges for the tax period of July 2021 and thereafter. Taxpayers who file and pay value-added tax, consumption tax, and related surcharges on a quarterly basis shall apply this Announcement to the filing and payment of such taxes and surcharges for the third quarter of 2021 and thereafter. Where taxpayers adjust tax and fee matters pertaining to prior tax periods, they shall do so in accordance with the relevant rules set forth in the tax return forms applicable to those respective periods.
VIII. When will the integrated tax return form be implemented?
Building on the initial pilot programs in Hainan, Shaanxi, Dalian, and Xiamen, the integrated filing of value-added tax, consumption tax, and related surcharges and levies has been rolled out nationwide as of August 1, 2021.

The first tax filing period of the second half of the year has concluded, and comprehensive tax‑type reporting has been further expanded.
According to a report by China National Radio’s “Economic Voice” program, the July tax filing period is the first of the second half of the year and also a major filing season during which monthly and quarterly returns are submitted concurrently. This year, unlike in previous years, some localities have innovatively introduced integrated filing for 11 types of taxes, further slashing the number of filings and helping market entities cut down on tax‑compliance costs.
Sun Jing, head of the Finance Department at the Shanghai Songjiang Wastewater Treatment Plant, noticed while logging into the electronic tax bureau that the tax return forms for corporate income tax, urban land use tax, property tax, stamp tax, environmental protection tax, vehicle and vessel tax, and other levies have all been consolidated into a single comprehensive tax (fee) return form. “The number of forms we need to complete and the number of data items have both been cut in half compared with before, and the information already on file is automatically pre‑filled, making tax filing much more convenient.”
As one of the World Bank’s sample cities for its Doing Business assessment, Shanghai has been steadily advancing its integrated tax‑filing reform under the “delegation, regulation, and service” framework. In July last year, Shanghai took the lead in implementing integrated filing for five taxes: corporate income tax, urban land use tax, property tax, land value‑added tax, and stamp tax. Starting July 1, the city further expanded this integrated filing system to include six additional taxes: vehicle and vessel tax, farmland occupation tax, resource tax, deed tax, environmental protection tax, and tobacco leaf tax.
By streamlining tax‑type filing, businesses can now, when reporting one or more of the aforementioned taxes, achieve “a single entry point, a single return, a single filing, a single payment, and a single receipt,” making the filing process simpler and more efficient.
This round of integrated filing for 11 tax types not only streamlines the process through the consolidation of functional modules and tax return forms, but also leverages digitalization of tax-related data to deliver a more “intelligent” filing experience, thereby mitigating certain tax‑related risks.
Sun Ying, a tax clerk at a hotel in Shanghai, encountered an error message on the declaration interface while completing the stamp‑duty tax source detail form. “Upon verification, it turned out that I had inadvertently entered incorrect start and end dates for the tax period. Failure to correct this mistake promptly would have resulted in a discrepancy between the tax actually declared and paid and the amount due, necessitating a subsequent amended return. The system’s intelligent alerts helped our company promptly avoid such reporting errors and associated tax risks.”
Jin Liang, Deputy Director of the Taxpayer Services Division at the Shanghai Municipal Tax Service Bureau of the State Taxation Administration, stated that the tax authorities are, to a certain extent, also a big-data-driven organization, and a more intelligent filing experience hinges on the robust comparison and computational power of the backend data system. “The backend can pre-fill relevant data, perform cross-referencing and validation, flag abnormal filing information, and automatically calculate tax liabilities. By bringing data to life, we effectively help taxpayers avoid the risks of underreporting or misreporting.”
Tianjin: “Immersive Experiences” Build Bridges, While “Spring Rain Nurtures Seedlings” Works Subtly and Silently
To thoroughly implement the “Spring Rain Nourishes Seedlings” special campaign, the Tianjin Municipal Tax Service of the State Taxation Administration, in conjunction with Party history study and education initiatives such as “Doing Practical Things for the People,” has proactively innovated its approaches. It has worked diligently to reduce taxpayers’ administrative burdens while enhancing the quality of service experiences. The tax authority has invited taxpayers to visit tax service halls as “tax experience officers,” conducting immersive on-site assessments to listen to their feedback and identify bottlenecks and pain points in tax administration.
To fully leverage the value of experiential engagement, the Tianjin Municipal Tax Service Bureau has adopted a coordinated, strategic approach—starting with the recruitment of experience testers, moving on to the design of pilot programs, and culminating in the collection of their feedback. By putting taxpayers’ perspectives first, the bureau has meticulously refined every stage, ensuring that its initiatives are both standardized and uniquely tailored, thereby delivering meaningful, dynamic, and well‑executed experience‑based activities.
The Ninghe District Tax Service Bureau has leveraged platforms such as its WeChat official account, tax‑enterprise WeChat groups, electronic display screens in the tax service hall, and public notice boards to broadly recruit experience officers. It has established a consultation channel for these officers, providing support to those who express interest, and selected representative individuals from various industries to participate in hands-on experience activities, presenting them with appointment letters. At the same time, the bureau has maintained a roster of reserve experience officers and created a dedicated group for prospective participants, enabling them to stay informed about tax administration and encouraging their active involvement and ongoing support for tax‑related work.
According to reports, during the course of the experience‑based activities, tax authorities across the city tailored their approaches to local conditions and specific circumstances. Following brief but essential training, “experience officers” personally engaged in a range of taxpayer services—including tax guidance at service halls, application processing, invoice issuance on behalf of taxpayers, business registration, and tax filing—while receiving accompaniment and guidance from tax officials. Through this hands‑on involvement, they gained a deeper and more nuanced understanding of standardized taxpayer services, as well as of convenient measures such as extended service hours, appointment‑based services, and streamlined procedures that accommodate missing documentation. In the process of practicing tax‑related tasks and addressing taxpayers’ inquiries, they further strengthened their knowledge of tax laws and regulations and deepened their appreciation for and trust in the tax administration.
“Previously, I always entered the service hall as a taxpayer. Today, I stepped inside to experience what it’s like to be a tax official—from the moment I walked in and was guided through tax‑service routing, to the ever‑simpler tax‑filing procedures, and to the growing array of self‑service options now available online. It’s clear that the tax bureau has put a great deal of thought and effort into making things easier for taxpayers,” said Ms. Su, a finance professional at Tianjin Yifangyuan Financial Consulting Services Co., Ltd., during a symposium following her participation in the Jizhou District Tax Bureau’s experience‑sharing event.
To further broaden the scope of experiential learning, the Hedong District Tax Bureau invited 10 student representatives from Xinhua Middle School to visit the tax authority during the summer vacation and participate in a “Little Tax Officer” hands-on program. The young participants personally experienced tax‑filing services at the tax service hall and took on roles such as tax guidance. Through these activities, they deepened their understanding of tax administration, laying a solid foundation for enhancing their tax knowledge and fostering a harmonious relationship between tax authorities and taxpayers.
According to reports, since the launch of the “Spring Rain Nourishes Seedlings” interactive experience initiative, more than 300 “tax experience officers” from tax‑related service providers, small and micro enterprises, individual business households, and other sectors have been recruited across the city. They have put forward over 100 suggestions and recommendations on issues such as enhancing tax services and optimizing the business environment, while identifying bottlenecks, pain points, and challenges in tax filing and payment processes. These efforts provide clear guidance and a solid framework for continuously improving taxpayer satisfaction and sense of gain.
Lan Xinyu, a tax service representative from Tianjin Haobang Business Secretary Co., Ltd. and a “tax experience tester” who participated in the experience‑sharing event hosted by the Sino‑Singapore Eco‑City Tax Bureau, said: “We are very pleased that our suggestions have been taken seriously by the tax authorities. Not only has tax filing become increasingly convenient for us, but it has also made it easier to ‘fulfill our duties’ as taxpayers.”
Going forward, the Tianjin Municipal Tax Service will continue to intensify its efforts, further deepening and solidifying the “Spring Rain Nurtures Seedlings” interactive experience initiative, ensuring that tax services are delivered with the gentle touch of spring rain and the steady nourishment of spring showers, thereby providing taxpayers and payers with even more convenient and efficient tax‑related services.

Ningxia: Precisely Implementing Policies to Accelerate Export Tax Refunds
Since the beginning of this year, the tax authorities in Ningxia have precisely implemented policies to increase the export tax rebate rate, expediting reviews and refunds to accelerate processing. To date, 175 enterprises across the region have benefited from export tax rebates—totaling RMB 434 million, including exemptions and credits—enabling businesses to expand overseas with greater confidence and momentum.
Following the issuance of the State Taxation Administration’s Announcement on Optimizing and Integrating the Export‑Tax Rebate Information System to Better Serve Taxpayers, the Ningxia Regional Tax Service Bureau promptly convened a special meeting to accelerate the development of an implementation plan tailored to Ningxia’s specific circumstances. Gui Shubin of the bureau’s Goods and Services Tax Division told reporters: “The Ningxia Regional Tax Service Bureau has proactively aligned itself with the strategic decisions to advance the Belt and Road Initiative and to expedite the construction of an inland open‑economy pilot zone, serving the broader national agenda. In particular, seizing the favorable opportunity presented by the State Taxation Administration’s push for export‑tax rebate management reform, we have vigorously promoted reforms in the administration and collection of export‑tax rebates, deepened the ‘delegation, regulation, and service’ approach, and ensured the effective implementation of key measures that deliver tangible benefits to the people. By strengthening our tax‑related strengths, we are helping to drive high‑quality, all‑round opening-up, while meticulously putting into practice policies that benefit businesses and the public, thereby bolstering the intrinsic momentum of an outward‑oriented economy.”
As one of the first 11 provinces and autonomous regions nationwide to integrate and launch its system, Ningxia officially and successfully went live with the Golden Tax Phase III Export Rebate Management System on April 30. The new system offers three free filing channels: an offline version, an online version of the Electronic Tax Bureau, and the Golden Tax Phase III export rebate platform integrated into the standard international trade “Single Window.” Enterprises may voluntarily choose any of these channels to file for export tax rebates or exemptions and can track their applications online, promptly monitoring the progress of their rebate claims. The revamped export rebate filing module has significantly streamlined various forms and data fields related to registration, declaration, and certificate processing, reducing the number of forms by approximately one-third and the number of data items to be entered by about one-fifth. At the same time, the tax‑processing procedures have been simplified; in particular, certain certificate‑issuance steps have been streamlined, and the certificate‑cancellation process has been improved, effectively easing the administrative burden on businesses. To ensure that more enterprises benefit from faster processing and quicker refunds, the Ningxia Tax Service Bureau continues to promote paperless filing policies and further expand the scope of eligible taxpayers. Across the region, a total of 243 enterprises have adopted paperless filing, an increase of 43 compared with the same period last year.
“The new system introduced after the reform is exceptionally user-friendly, with significantly improved data quality and a substantial reduction in the workload for businesses—especially when it comes to verifying inter-table relationships. Previously, this had to be done manually, which was very cumbersome; now, the system performs automated checks, quickly identifying any issues. Additionally, the system offers a variety of filing options, providing tremendous convenience for enterprises,” said Song Jianying, Finance Manager at Ningxia Wofu Bairui Goji Berry Industry Co., Ltd.
“Yesterday morning, we filed our return through the electronic tax bureau and were surprised to see the refund credited to our account so quickly. As a paperless enterprise, we can process our tax refunds without even leaving the office—truly convenient,” said the finance director of Ningxia Yipin Biotechnology Co., Ltd., who found the refund process exceptionally smooth. Specializing in the export of feed additives, the company primarily sells its products to the European Union and has already established a solid reputation on the international stage. In the first half of 2021, its sales reached RMB 2.2 billion, with nearly 20% coming from export activities. For a manufacturing office with strong cash‑flow needs, swift and efficient tax‑refund processing is nothing short of a lifeline.
The Ningxia Tax Service Bureau has also vigorously promoted a range of facilitation measures, including “non-contact” processing of export tax refunds, end-to-end electronic refund‑to‑treasury procedures, and round-the-clock review of applications as they are submitted. These initiatives have ensured that the average processing time for routine tax refund cases across the region is well below the deadlines set by the State Taxation Administration, with some Category I exporters achieving completion on the same day. Since the beginning of this year, 136 enterprises in the region have successfully processed paperless export tax refunds totaling RMB 376 million, accounting for 87% of the total amount.
Behind the streamlined tax refund process lies the “high‑speed operation” of tax officials. The Yinchuan Municipal Tax Service Bureau has appointed “tax refund service specialists” at each tax‑refund‑responsible authority, proactively providing end‑to‑end tax‑support services: dedicated personnel for inquiries, specialized consultation desks, and dedicated guidance areas. This ensures swift, uninterrupted reviews and seamless, attentive service. By strengthening coordination between tax and treasury departments and maintaining timely communication with the national treasury, the bureau shares refund information in real time, minimizing processing times at every stage and bridging the “last mile” of tax refunds. These efforts effectively help businesses unlock capital, reduce their burdens, and empower them to thrive.

Litigation & Arbitration
The Regulations on Anti-Doping Management Have Been Released.
According to the website of the General Administration of Sport of China, the Measures for the Administration of Anti-Doping were reviewed and approved at the 12th Director’s Office Meeting of the General Administration of Sport on July 14, 2021. They are hereby promulgated and shall enter into force as of the date of promulgation.
Chapter I General Provisions
Article 1: In order to prevent the use of doping in sports, protect the physical and mental health of sports participants, uphold fair competition in sporting events, safeguard national honor and image, promote the core socialist values and the Chinese sports spirit, and standardize anti-doping efforts, these Measures are formulated in accordance with the Sports Law of the People’s Republic of China, the Regulations on Anti-Doping, and other relevant laws and regulations.
Article 2: For the purposes of these Measures, “doping substances” refer to the prohibited substances and prohibited methods listed in the annual Doping Substances List.
For the purposes of these Measures, doping violations include the following circumstances:
(1) Positive test result;
(2) Use or attempt to use a stimulant;
(3) Evading, refusing, or failing to complete sample collection;
(4) Violation of regulations on the management of whereabouts information;
(5) Tampering with or attempting to tamper with any stage of the anti-doping control process;
(6) Possession of a stimulant;
(7) Engaging in or attempting to engage in the trade of doping substances;
(8) Administering or attempting to administer a prohibited substance or method to an athlete;
(9) Colluding or attempting to collude in doping violations;
(10) Violating provisions prohibiting cooperation;
(11) Preventing whistleblowing or retaliating against whistleblowers;
(12) Other acts that are explicitly defined as anti-doping violations by laws and regulations or by normative documents issued by the General Administration of Sport of China.
Article 3: This Measures shall apply to anti-doping efforts in sports.
Article 4: Anti-doping efforts shall adhere to a zero-tolerance policy, upholding the principles of strict prohibition, rigorous testing, and severe sanctions, and promoting the establishment of a long-term, effective anti-doping governance system that ensures “clean gold medals.”
Anti-doping efforts adhere to the following principles:
(1) Prioritize prevention and adopt a combined approach of punishment and prevention;
(2) Fairness, impartiality, and transparency;
(3) Safeguard the legitimate rights and interests of athletes and support personnel.
Article 5: The General Administration of Sport of the People’s Republic of China shall be responsible for anti-doping efforts nationwide. Local sports administrative departments at all levels shall be responsible for anti-doping work within their respective jurisdictions.
National anti-doping organizations, national sports federations, national governing bodies for sports disciplines, athlete management agencies, and organizers of national multi-sport events shall, within their respective spheres of responsibility, be responsible for carrying out anti-doping activities.
Article 6: Reporting doping violations is encouraged.
Article 7 This Measures sets forth the duties and powers of the sports administrative authorities and other relevant sports entities in anti-doping management.
The technical and operational rules governing anti-doping activities are formulated by the General Administration of Sport of China, which, in accordance with the requirements of the World Anti-Doping Code, has adopted the Anti-Doping Rules.
Chapter 2: Responsibilities for Anti-Doping Activities
Article 8: The General Administration of Sport of the People’s Republic of China shall lead, coordinate, and supervise anti-doping efforts nationwide. Its specific responsibilities include:
(1) Formulate anti-doping management systems and regulations;
(2) Formulate an anti-doping development plan;
(3) Conduct anti-doping publicity and education;
(4) Formulate management regulations for doping control laboratories and implement oversight;
(5) Coordinate and promote cross-sectoral collaboration to implement comprehensive anti-doping measures;
(6) To guide and supervise the implementation of anti-doping activities by provincial sports administrative departments, the National Anti-Doping Agency, national sports social organizations, and national sport-specific governing bodies;
(7) Conduct international exchanges and cooperation on anti-doping among governments.
Article 9: Local sports administrative departments at all levels shall lead, coordinate, and supervise anti-doping efforts within their respective jurisdictions.
Provincial sports administrative departments shall establish special funds and assign dedicated personnel to effectively carry out anti-doping efforts.
Article 10: The specific responsibilities of the National Anti-Doping Agency include:
(1) Establish procedures and standards for education, testing, investigations, results management, hearings, and therapeutic-use exemptions;
(2) Organize and implement doping controls;
(3) Conduct investigations, hearings, outcome management, and oversight with respect to alleged anti-doping violations;
(4) Conduct scientific research, public education, and social services related to anti-doping;
(5) Participate in the comprehensive governance of doping;
(6) Organize and conduct international exchanges on anti-doping;
(7) To guide, coordinate, and supervise the anti-doping efforts of sports organizations at all levels and in all types across provinces, autonomous regions, municipalities directly under the central government, and other administrative divisions.
Article 11: National sports social organizations shall, in accordance with relevant laws and regulations, these Measures, and their articles of association, be responsible for anti-doping efforts within their respective organizations. Their specific duties include:
(1) Formulate the club’s anti-doping regulations and work plan, and clearly define the duties and responsibilities related to anti-doping efforts;
(2) Strengthen anti-doping education, publicity, and management within the national teams, and enhance the awareness and capabilities of management personnel in this area.
(3) Supervise local sports social organizations in fulfilling their anti-doping responsibilities;
(4) Conduct investigations into alleged anti-doping violations involving affiliated athletes and relevant personnel, and impose sanctions for such violations.
Article 12: The national sports governing body shall, in accordance with relevant laws and regulations and these Measures, be responsible for anti-doping efforts in the sports under its jurisdiction. Its specific duties include:
(1) Formulate an anti-doping work plan for the sports disciplines under its jurisdiction, clearly defining the duties and responsibilities related to anti-doping efforts;
(2) Strengthen anti-doping education, publicity, and management within the national teams, and enhance the awareness and capabilities of management personnel in this area.
(3) Supervise local sports governing bodies in fulfilling their anti-doping responsibilities;
(4) Conduct investigations into alleged anti-doping violations involving affiliated athletes and relevant personnel.
Article 13: In accordance with the principle of “whoever forms the team, whoever manages it, and whoever is responsible,” the national sports governing bodies and national-level sports social organizations tasked with preparing for competition shall assume responsibility for anti-doping efforts within the national teams. Provincial-level and lower‑level sports administrative departments shall be responsible for anti-doping work among provincial‑level and lower‑level sports teams, and shall also cooperate in ensuring that athletes selected for the national team comply with anti-doping regulations.
Article 14: The athlete management entities include the athlete’s affiliated organization and any entity authorized to register the athlete.
Athlete management organizations shall conduct anti-doping education and awareness‑raising activities, strengthen the oversight of pharmaceuticals, nutritional supplements, and food, monitor and assist athletes in reporting their whereabouts and other relevant information, proactively investigate alleged doping violations involving their athletes and related personnel, and cooperate with doping controls and investigations.
Article 15: The organizing body of the National Comprehensive Games shall, in accordance with relevant laws and regulations, these Measures, and the Games’ competition rules, be responsible for anti-doping efforts; formulate anti-doping provisions consistent with these Measures and the Anti-Doping Rules; conduct doping tests and carry out anti-doping education and awareness‑raising activities; and, within its administrative jurisdiction, impose sanctions for violations of anti-doping regulations.
Chapter 3: Anti-Doping Public Education and Awareness
Article 16: Sports administrative departments at all levels, the National Anti-Doping Agency, national sports social organizations, national sports governing bodies, athlete management agencies, and organizing bodies of national multi-sport events shall attach great importance to and strengthen anti-doping publicity, actively collaborate with the media, conduct anti-doping awareness campaigns in various forms, comprehensively advance anti-doping education, and jointly establish an anti-doping education and prevention system.
Article 17: Schools of all levels and types, including institutions of higher education in sports, sports schools, and amateur sports schools, shall offer anti-doping education courses or lectures.
Article 18: The General Administration of Sport of the People’s Republic of China is responsible for establishing an anti-doping education examination system. The National Anti-Doping Agency shall formulate detailed rules for such examinations and oversee their implementation. Local sports administrative departments at all levels, national sports social organizations, national sport‑specific governing bodies, and athlete management entities shall implement the anti-doping education examination system and make it a prerequisite for athletes and support personnel to join teams or organizations, register, and participate in competitions.
Chapter 4: Doping Control and Investigations
Article 19: Doping control shall include:
(1) Tests included in the national annual anti-doping testing program;
(2) Commissioned testing approved or authorized by the National Anti-Doping Organization;
(3) Other inspections designated or authorized by the General Administration of Sport of China.
Article 20: The National Anti-Doping Organization is responsible for establishing anti-doping testing procedures and standards, managing anti-doping testing personnel, organizing and conducting anti-doping tests, and providing guidance and oversight for the implementation of commissioned anti-doping testing, among other duties.
Article 21: No organization or individual may conduct doping controls without the prior approval of the General Administration of Sport of the People’s Republic of China, the National Anti-Doping Agency, or their authorized authorities.
Article 22: The General Administration of Sport of the People’s Republic of China, the sports administrative departments of people’s governments at all local levels, the National Anti-Doping Agency, national sports social organizations, national sports governing bodies, and athlete management entities shall, in accordance with laws, regulations, and these Measures, have the authority to conduct investigations into alleged anti-doping violations.
National anti-doping organizations shall collect, assess, and utilize information and intelligence to investigate potential doping violations. For significant and complex doping cases, the General Administration of Sport of China shall convene the national anti-doping organization and relevant authorities to conduct an investigation.
Article 23: When performing their duties related to doping control and investigations, authorized personnel shall have the right, in accordance with the law, to enter sports training facilities, sports competition venues, and the residences of athletes and support staff. Such personnel shall proactively present their identification and authorization documents. Relevant entities and individuals may verify these documents and shall cooperate with the inspection and investigation procedures; they may not refuse or obstruct such activities.
Article 24: National sports governing bodies, national sports social organizations, and athlete management entities shall promptly submit the following relevant information to the General Administration of Sport of the People’s Republic of China and the National Anti-Doping Agency:
(1) Information on doping controls conducted by international sports organizations on their athletes;
(2) Doping violations detected by international sports organizations;
(3) Anti-doping rules and requirements of the relevant international sports organizations;
(4) List of registered inspection bodies of the relevant international sports organizations;
(5) Other relevant information that needs to be submitted.
Chapter 5: Doping Control
Article 25: The General Administration of Sport of the People’s Republic of China shall designate doping control laboratories that meet the international standards and qualifications for doping testing. All samples subject to testing shall be sent to laboratories accredited for doping analysis.
Units and individuals that do not possess the requisite qualifications for doping control shall not conduct any form of doping testing.
Article 26: The National Anti-Doping Organization shall establish standards for the storage of samples subject to testing, and it shall have the authority to conduct further analysis on such samples.
Chapter 6: Results Management
Article 27. Results Management refers to a series of administrative measures—such as review, notification, provisional suspension, and hearings—carried out by the competent authority vested with results-management powers against individuals suspected of doping violations.
Article 28: With respect to the anti-doping tests listed in paragraph 1 of Article 19 of these Measures, the National Anti-Doping Agency shall be responsible for managing the test results; with respect to the anti-doping tests listed in paragraph 2 (excluding international competitions), the National Anti-Doping Agency shall manage the results upon authorization; and with respect to the anti-doping tests listed in paragraph 3, the General Administration of Sport of the People’s Republic of China shall determine the entity responsible for managing the results and formulate the relevant rules for such management.
Article 29: In the event of an anti-doping violation, national sports organizations and other relevant entities shall, in accordance with the Anti-Doping Rules and their respective statutes, impose sanctions such as annulment of competition results and eligibility to compete, suspension, or ban on athletes and support personnel, and issue warnings, suspensions, or disqualification from participation to the athlete’s governing body. For violations detected during commissioned testing, the commissioning party and the relevant authorities shall make the corresponding decisions.
When an athlete commits an anti-doping violation, the directly responsible parties, the supervising coach, and other relevant personnel shall also be held accountable.
Article 30: Decisions on the handling of anti-doping violations shall be implemented upon review and approval by the National Anti-Doping Organization.
National anti-doping organizations regularly compile data on doping violations and the list of prohibited substances and methods, and promptly make this information public.
Decisions on the handling of anti-doping violations shall be copied by national sports organizations, the entities commissioning doping tests, and other relevant authorities to the competent sports administrative departments of the relevant local people’s governments.
Chapter 7: Penalties and Rewards
Article 31: In the event of an anti-doping violation, the competent higher-level sports administrative authority and the athlete’s managing organization shall conduct an investigation to determine the root causes of the violation, the management links involved, and the responsibilities of the relevant personnel. Based on the findings, they shall hold accountable the leaders of the athlete’s managing organization and the responsible supervisory personnel in accordance with disciplinary and regulatory provisions. Where criminal offenses are suspected, the case shall be referred to the supervisory or judicial authorities for prosecution in accordance with the law.
Article 32: Sports administrative departments at all levels shall, in accordance with their respective powers of administration, hold those responsible for anti-doping violations accountable.
The relevant sports administrative authorities shall, within one month from the date of receipt of the decision on disciplinary action for doping violations, hold the persons and entities concerned accountable; the decision on accountability measures shall be filed with the General Administration of Sport of China within 15 days of its issuance. In cases involving complex circumstances, an appropriate extension may be granted upon approval by the General Administration of Sport of China.
Article 33: Athletes and support personnel who have committed an anti-doping violation and been subject to a suspension shall, during the period of suspension, be prohibited by the relevant governing bodies from engaging in athlete‑support or team‑management activities; from using sports venues and facilities owned by or funded by the government for training; from receiving government allowances, subsidies, or other financial assistance related to sport; and from being eligible to apply for or be considered for any awards, honors, titles, or research projects within the sports system.
Athletes and support personnel who have committed anti-doping violations and been subject to a suspension shall, within four years after the expiration of their suspension, be disqualified by the relevant governing bodies from applying for or being considered for any awards, honors, professional titles, or research projects within the sports system.
Athletes and support personnel who commit anti-doping violations while representing the national team at major international events such as the Olympic Games and the Asian Games; support personnel who organize, coerce, deceive, or instigate athletes to use doping substances, or who administer such substances to athletes; and any other individuals found to have committed serious anti-doping violations shall be permanently disqualified from applying for or being considered for any awards, honors, professional titles, or research projects within the sports system. They shall also be strictly prohibited from engaging in activities such as coaching national team athletes or athletes on provincial, regional, or municipal teams, teaching physical education, or working in youth sports. Where criminal offenses are suspected, such cases shall be referred to the supervisory or judicial authorities for investigation and prosecution in accordance with the law.
Athletes and support personnel who have been banned for more than one year (excluding exactly one year) due to doping violations shall not be selected for the national team in any capacity. Those subject to a ban of one year or less shall undergo rigorous review prior to being admitted to the national team.
Article 34: Where any of the following circumstances exists, disciplinary sanctions may be mitigated at the discretion of the authority:
(1) Voluntarily admitting to an anti-doping rule violation in the absence of evidence;
(2) Reporting or exposing another person’s anti-doping rule violation, or providing crucial leads regarding such a violation, provided that the information is verified as true.
Article 35: If a single athlete commits an anti-doping violation and is banned, the governing body shall suspend competition in that event (regardless of gender, the same applies hereinafter) for no less than one year. If athletes from the same governing body and in the same event commit two anti-doping violations and are each banned within the period of a National Games, the governing body shall be disqualified from participating in that event at the current National Games. The suspension period shall commence on the date the decision to impose sanctions for the athlete’s anti-doping violation is rendered.
Article 36: The national multi-sport games cycle shall be defined as the period from the closing of the preceding edition to the opening of the current edition. Any entity found to have committed an anti-doping violation during the national multi-sport games cycle or throughout the event and subsequently subjected to a suspension shall be disqualified from consideration for the Sports Ethics and Fair Play Award and other related honors in the current edition. The relevant circumstances shall be reported to the people’s government of the province, autonomous region, or municipality directly under the central government concerned.
Article 37: In the event of an anti-doping violation occurring while a national team athlete is training with the national team or a national (training) team, or while representing the nation in competition, the head coach shall be deemed the national team’s supervising coach. If there is a directly responsible individual, the athlete’s managing entity shall be determined based on the findings of the investigation; if no directly responsible individual exists, the athlete’s managing entity shall be deemed the national sports governing body.
Doping violations committed by national team athletes during training with the national team or the national (training) squad, or while competing on behalf of the nation, shall not be counted toward the cumulative number of cases attributable to the athlete’s affiliated organization if, upon investigation, such violations are found to be unrelated to that organization.
Doping violations detected during inspections commissioned by provincial, regional, and municipal authorities, national sports associations, schools, and other relevant entities shall not be counted toward the cumulative number of cases attributable to those entities.
Athletes who have not committed any anti-doping violations may, upon review, compete as individuals.
Article 38: For athletes trained by multiple entities, the relevant parties shall clearly delineate their respective anti-doping responsibilities in the training agreement, which shall be filed with the National Anti-Doping Agency and the national sports social organization. In the event of an anti-doping violation, the responsible entity shall be held accountable in accordance with the filed agreement. If the agreement has not been filed, all parties shall be held liable. For athletes jointly trained by military and civilian entities, the managing entity shall be the unit under the PLA’s sports administrative authority.
Article 39: Where a minor athlete commits an anti-doping rule violation, in accordance with the Anti-Doping Rules, the penalty imposed on the athlete may be appropriately mitigated depending on the circumstances, while any responsible support personnel shall face enhanced sanctions. If the conduct constitutes a criminal offense, the case shall be referred to the judicial authorities for prosecution and criminal liability shall be pursued in accordance with the law.
Article 40: If athletes from sports schools at all levels and of all types commit anti-doping violations and are subject to suspension, such schools shall be disqualified from participating in the selection or accreditation process for National High-Level Sports Reserve Talent Bases. For those already designated as National High-Level Sports Reserve Talent Bases, their designation shall be revoked.
Article 41: Where an athlete competes in violation of regulations during a period of suspension, or where a retired athlete competes in violation of regulations, or where any other conduct occurs that fails to comply with the imposed disciplinary decision, the athlete shall be ordered to cease such unlawful conduct. The sports administrative authority shall issue a notice of criticism to the athlete’s governing body and to the national or local sports governing body bearing responsibility, and shall impose disciplinary measures on the public officials found to be responsible.
Article 42: Any violation of the provisions of Article 33 of these Measures shall be subject to an order to cease the unlawful conduct, an order to return any financial support received during the period of suspension, and the revocation of all awards, honors, titles, professional designations, research projects, and other benefits obtained during such period. The competent sports authority shall issue a public reprimand to the relevant entity and impose disciplinary measures on the public officials held accountable.
Article 43: Where anti-doping tests or analyses are conducted in violation of the relevant regulations, the competent authority shall order the suspension of such testing or analysis; the sports administrative department shall issue a public reprimand to the relevant entity, revoke its designation as a key laboratory within the sports system and its eligibility to undertake research projects in the sports sector, and impose disciplinary measures on the public officials held accountable.
Article 44: If any relevant department or entity, in violation of the provisions of Article 23 of these Measures, fails to cooperate, or refuses or obstructs doping controls or investigations, it shall be recommended and urged that the competent authorities impose disciplinary measures on the public officials bearing responsibility in accordance with the relevant national regulations.
Article 45: Where anti-doping personnel, in the course of their anti-doping duties, exceed their statutory authority or procedural requirements, fail to perform their statutory obligations, or cover up or condone the illegal use or supply of doping substances, the responsible public officials shall be subject to disciplinary sanctions in accordance with the law. If the conduct constitutes a criminal offense, the case shall be referred to the judicial authorities for prosecution and criminal liability shall be pursued in accordance with the law.
Article 46: Units and individuals that have made significant contributions and achieved outstanding results in anti-doping efforts shall be included within the scope of recognition and rewards under the sports system.
Article 47: Where leads or evidence of anti-doping violations reported by a whistleblower are verified, the whistleblower shall, in accordance with relevant national regulations and depending on the significance of the lead or evidence, be awarded a reward, and the whistleblower’s safety and privacy shall be protected.
Chapter 8: Management of Pharmaceuticals, Nutritional Products, and Food
Article 48: The athlete’s governing body shall strengthen the management of therapeutic use of medications by athletes and designate a specialized agency or personnel to oversee the handling of pharmaceuticals and medical devices. When an athlete, for medical reasons, must use a medication or employ a prohibited method containing substances listed in the Prohibited List, such use shall be conducted in accordance with the relevant provisions on therapeutic use exemptions.
Article 49: Athlete management entities shall strengthen the oversight of athletes’ nutritional supplements, standardize procurement channels, and ensure that all nutritional products used by athletes are free from any prohibited substances, thereby preventing inadvertent ingestion or misuse that could result in anti-doping violations.
Article 50: Athlete management units and training support units shall strengthen the management of athletes’ food to prevent food‑borne doping incidents.
Chapter IX Supplementary Provisions
Article 51: Anti-doping management in other areas, including para-sports, professional sports, school sports, and community sports, shall be implemented in accordance with these Measures.
Article 52: These Measures shall enter into force on the date of their promulgation, and Order No. 20 of the General Administration of Sport of the People’s Republic of China, “Measures for the Administration of Anti-Doping,” issued on November 21, 2014, shall be repealed concurrently.

Jiangxi’s procuratorial organs have issued 24 guiding opinions to enhance the quality and efficiency of civil prosecution case handling.
Behind every civil prosecution case lies the people’s will and carries political significance. Grassroots civil prosecution work directly engages with the public and addresses societal concerns. To better serve the people, in July this year, the People’s Procuratorate of Jiangxi Province issued 24 guiding opinions, setting forth requirements for grassroots procuratorates across the province to enhance the quality and efficiency of civil prosecution proceedings and to respond to the public’s livelihood needs. These guidelines cover five key areas: deeply recognizing the necessity and urgency of grassroots civil prosecution; comprehensively implementing new concepts and requirements; accurately defining principal tasks; innovating and improving working mechanisms; and strengthening organizational leadership.
To better serve and safeguard the overall interests, the Opinions state that grassroots civil procuratorial work directly supports market entities. Strengthening such work will help protect and stimulate the vitality of market players, encourage and protect innovation and creativity, and further optimize and improve the rule-of-law environment for fair competition among market participants.
To deepen the procuratorial organs’ commitment to serving the people, the Opinions stipulate that they should proactively respond to judicial needs, safeguard the legitimate rights and interests of vulnerable groups—including migrant workers, minors, the elderly, and impoverished populations—in accordance with the law, and protect the people’s livelihoods and interests. They should also effectively tell the stories of grassroots-level procuratorial work, actively publicize the Civil Code and other relevant laws and regulations, as well as the functions of civil prosecution, and strive to foster a rule-of-law environment in which the public handles matters in accordance with the law, seeks legal solutions when encountering issues, resolves problems through lawful means, and relies on the law to defuse conflicts.
To expand sources of cases, the Opinions stipulate that efforts should be strengthened to handle public complaints and accusations. Relying on platforms such as the 12309 Procuratorial Hotline and the procuratorial portal website, authorities shall promptly accept leads concerning civil prosecution cases submitted by the public through letters, in-person visits, online channels, telephone calls, and other means. Furthermore, the screening and sharing of such leads should be enhanced, thereby broadening the avenues for fulfilling duties in identifying case-related information.
With regard to enhancing the quality and efficiency of case handling, the Opinions stipulate that efforts should be made to deepen the integration of the integrated mechanism with the case-handling work of grassroots procuratorates, encouraging them to actively apply this mechanism in handling major, difficult, and complex cases. The aim is to address key shortcomings at the grassroots level, such as insufficient staffing, limited capacity, and a narrow range of case types. The Opinions also call for promptly reporting to Party committees and governments any social governance issues identified during judicial proceedings, thereby providing valuable input for their decision-making.
In early July, the mobile court in Longyuanba Village, Quannan County, Ganzhou City, held a hearing to try a case involving migrant workers seeking unpaid wages. Prosecutors from the Quannan County People’s Procuratorate attended the trial and voiced their support for the prosecution, backing five migrant workers, including Mr. Chen, in their effort to recover more than 20,000 yuan in labor compensation.
Chen and four other migrant workers were hired by Huang and Xu to perform tasks such as vegetable cultivation and pesticide application inside a greenhouse. During the period of employment, Huang and others failed to pay the five workers a total of RMB 28,535 in wages, and despite repeated demands, they continued to refuse to make the payment.
Leveraging the assistance‑mechanism platform of the procuratorial organs, the Quannan County People’s Procuratorate learned of the situation from the Quannan County Legal Aid Center. After review and conofficeation that the case met the acceptance criteria, it promptly filed the case. Prosecutors engaged in face-to-face consultations with the migrant workers and provided legal advice. At the same time, they actively coordinated with labor inspection authorities, the court, and other relevant departments to conduct investigations and gather evidence, guiding the workers to safeguard their legitimate rights and interests in accordance with the law. On July 5, the Quannan County People’s Procuratorate submitted a letter of support for prosecution to the Quannan County People’s Court, thereby advocating on behalf of the migrant workers’ lawful rights and interests. A judgment in this case will be rendered at a later date.
The People’s Procuratorate of Luxi County, Pingxiang City, handled a dispute over a partnership agreement. When the parties came to apply for supervisory review, they were quite agitated. The procuratorate proactively communicated with the court to jointly calm the applicants’ emotions and, in accordance with the law, submitted a recommendation for a retrial to the court. At present, the court has accepted the procuratorial recommendation and issued an order to retry the case.

Eight departments have established a “safety net” to safeguard the rights and interests of workers in new forms of employment.
The Ministry of Human Resources and Social Security, the National Development and Reform Commission, and six other departments have jointly issued the “Guiding Opinions on Safeguarding the Labor Rights and Interests of Workers in New Forms of Employment,” establishing a robust framework to protect the rights and interests of such workers.
“The issuance of these guidelines is of great significance for standardizing the employment practices of platform enterprises, safeguarding the labor rights and benefits of workers in new forms of employment, and promoting the sound, sustainable development of the platform economy,” said Lu Aihong, spokesperson for the Ministry of Human Resources and Social Security.
In recent years, the platform economy has grown rapidly, leading to a substantial increase in the number of workers in new forms of employment—such as online‑delivery riders, ride-hailing drivers, truck drivers, and internet marketers—who rely on digital platforms for their livelihoods. At the same time, safeguarding these workers’ labor rights and social security protections has encountered new circumstances and challenges.
“The opinions address shortcomings in the institutional framework for safeguarding workers’ rights and interests by improving systems related to fair employment, remuneration, rest, occupational safety, and social insurance; strengthening protection against work-related injuries; and refining mechanisms for workers to voice their concerns. They also extend basic public services for labor protection to cover all workers in new forms of employment,” said Lu Aihong.
The opinion clarifies that enterprises shall assume corresponding responsibilities for safeguarding the rights and interests of workers in new forms of employment who do not fully meet the criteria for establishing a labor relationship but are nonetheless subject to the enterprise’s labor management. Where workers’ rights and interests are infringed upon through outsourcing or other cooperative employment arrangements, the platform enterprise shall bear the relevant legal liabilities.
With regard to strengthening occupational injury protection, the guidelines propose focusing on platform enterprises in sectors such as ride-hailing, food delivery, instant delivery, and intra-city freight, and launching pilot programs to provide occupational injury coverage for flexibly employed workers on these platforms; platform enterprises are required to participate in accordance with relevant regulations.
In response to the issue of excessive working hours among some platform workers, the guidelines emphasize that no performance‑evaluation metrics may be established that compromise workers’ safety and health. They call for the industry to set clear standards for staffing levels and work quotas, and to scientifically determine workers’ workload and intensity. Enterprises are also urged to reasonably arrange rest periods in accordance with applicable regulations and to pay appropriate remuneration—higher than regular wages—for work performed during statutory holidays.

JC Master Law Office
Address: 9th Floor, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing City
Postal code: 210036
Phone: 025-84503333
Fax: 025-84505533
Website: www.jcmaster.com
This legal notice is provided solely for informational purposes and does not constitute legal advice or a legal analysis of any specific case. The transmission of this legal notice does not establish an attorney–client relationship between JC Master Law Office and the user or viewer. JC Master Law Office assumes no responsibility for any third-party content accessible via the internet. If you do not wish to receive this legal notice, please notify us by email at jcm@jcmaster.com.
The copyright of this legal information is owned by JC Master Law Office ©. Without written permission, no organization or individual may reproduce, publish, or cite it in any form.