JC Master Legal News Issue 986

Release Date:

2021-09-13 18:51

Key Takeaways for This Issue
SZSE: Striving to Build a High-Quality Innovation Capital Center and a World-Class Exchange

The healthcare IT innovation sector is poised for growth, with industry experts addressing key pain points.

On the 9th, China News Service & Jingwei hosted the third installment of its “Industry’s Major Rally” series, with the theme “New Trends in Healthcare IT Innovation and Data Security.” Industry experts generally agree that, for the healthcare IT innovation sector, data security remains a significant challenge, which can be addressed by establishing a classification‑and‑grading protection framework and deploying appropriate encryption technologies.
Tax incentives are on par with those of the Hainan Free Trade Port, and the Guangdong–Macao Integrated Development Zone enjoys special authorization.
　The highly anticipated “Overall Plan for the Construction of the Hengqin Guangdong–Macao In-Depth Cooperation Zone” (hereinafter referred to as the “Overall Plan”) has been officially released, outlining a promising vision for Hengqin’s development in the new stage. To date, the Guangdong–Hong Kong–Macao Greater Bay Area comprises nine cities in Guangdong Province—Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Zhaoqing, Jiangmen, and Huizhou—as well as the two Special Administrative Regions of Hong Kong and Macao.
The Supreme People’s Court has released the first batch of typical cases on judicial protection of intellectual property in the seed industry, imposing severe penalties on counterfeit‑brand infringement.
Seed industry security is closely linked to the public’s “rice bags” and “vegetable baskets,” and it also bears on national food security. On September 7, the Supreme People’s Court held a press conference to release typical cases of judicial protection of intellectual property rights in the seed industry.

Finance & Capital Markets
SZSE: Striving to Build a High-Quality Innovation Capital Center and a World-Class Exchange

On September 6, at the opening ceremony of the 60th WFE Annual Conference, Wang Jianjun, Secretary of the Party Committee and Chairman of the Shenzhen Stock Exchange, stated that the Exchange is vigorously working to build itself into a “high-quality innovation capital center and a world-class exchange.” Moving forward, it will deepen cooperation with its international counterparts to advance global capital markets toward greater openness, inclusiveness, and efficiency, thereby fostering the recovery and long-term, stable, and healthy development of the world economy.
Over the years, under the unified guidance of the China Securities Regulatory Commission, the Shenzhen Stock Exchange has leveraged its sector-specific, geographical, and technological strengths to engage in multi‑level exchanges and cooperation with domestic and international market participants, steadily and pragmatically advancing the two‑way opening-up of the capital market and achieving phased results.
　Among these efforts, the Shenzhen Stock Exchange has proactively advanced the development of a multi-tiered capital market, spanning equities, funds, fixed-income products, and various derivatives, with the aim of establishing itself as a premier hub for innovative capital and a world-class exchange. It continues to enhance its capacity to serve the real economy and is committed to building one of the most dynamic capital-market platforms globally. As of August 31, 2021, the Shenzhen Stock Exchange hosted 2,497 listed companies, with a total market capitalization of RMB 38.07 trillion; it listed 9,067 bonds (including asset-backed securities), with a total outstanding face value of RMB 2.83 trillion; and it had 502 listed funds, managing assets totaling RMB 284.43 billion. Upholding reform and innovation, the Exchange has progressively developed a diversified product lineup encompassing equities, bonds, funds, and derivatives, and boasts the largest investor base among global exchanges, with over 180 million trading accounts. It ranks among the world’s most actively traded markets, with its 2020 equity turnover and fundraising volumes placing third and fourth globally, respectively.
In leveraging its geopolitical advantages, the Shenzhen Stock Exchange has prioritized the establishment of a multi-tiered cooperation network spanning ASEAN and South Asia, actively exploring commercial, transparent, and sustainable technologies as well as strategic partnerships, and engaging deeply in the development of capital markets along the Belt and Road. In 2017, it participated in a Chinese consortium’s acquisition of a 40% stake in the Pakistan Stock Exchange; in May 2018, it led the same consortium to successfully secure a 25% equity interest in the Dhaka Stock Exchange of Bangladesh. The Exchange has also provided strategic support to both the Pakistan Stock Exchange and the Dhaka Stock Exchange in developing and refining their proprietary technology systems, bolstering local capital market capacity-building efforts, and advancing initiatives to promote comprehensive connectivity and resource-sharing across technology, markets, and infrastructure.
In addition, the Shenzhen Stock Exchange actively participates in the work of international organizations such as the International Organization of Securities Commissions, the World Federation of Exchanges, and the United Nations Network of Asian and Oceanian Stock Exchanges. It has hosted and co-hosted numerous international conferences, played a proactive role in global industry bodies, and joined initiatives including the UN Sustainable Stock Exchanges Initiative, the International Capital Market Association, and the Asian Financial Cooperation Association, while also engaging in their governance and operational activities. To date, the Shenzhen Stock Exchange has signed memoranda of understanding on cooperation with 52 overseas exchanges and financial institutions, fostering in-depth collaboration. The Exchange continues to innovate in cross-border cooperation, sharing “China’s experience” and enhancing the reach and international influence of China’s capital markets through diverse channels such as equity partnerships, technical advisory services, professional training, and the organization of international symposia.
In October 2019, Wang Jianjun, then General Manager of the Shenzhen Stock Exchange, delivered a speech at the WFE Annual Conference as the host of the next session. He pledged to ensure thorough preparations for the 60th WFE Annual Conference, deepen exchanges and cooperation with WFE member exchanges, and strengthen mutual learning and benchmarking against international best practices. He emphasized striving to organize the event to high standards, at a high level, and with high efficiency, while continuing to contribute Chinese wisdom and experience in areas such as SME market development and technological system advancement, thereby further enhancing the ability to serve the real economy.
At present, China’s economy has entered a new era of high-quality development. The latest round of opening-up in China’s capital markets will be closely linked with and mutually reinforce the country’s economic structural transformation and upgrading, jointly contributing to the building of a modernized economic system and bolstering China’s innovation capacity and competitiveness.
The China Banking and Insurance Regulatory Commission has issued the “Notice on Launching a Pilot Program for Pension‑Related Financial Products.”
In accordance with the important directives of the CPC Central Committee and the State Council on standardizing and developing the third pillar of the pension insurance system, the China Banking and Insurance Regulatory Commission (CBIRC) convened its annual work conference, at which it made unified arrangements to deepen reform in the banking and insurance sectors and to steadily and orderly advance the pilot program for pension‑related wealth management products. Pursuant to relevant regulations, including the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions,” the “Supervisory Measures for Wealth Management Business of Commercial Banks,” and the “Administrative Measures for Wealth Management Subsidiaries of Commercial Banks,” the CBIRC has formulated and issued the “Notice on Launching a Pilot Program for Pension‑Related Wealth Management Products” (hereinafter referred to as the “Notice”), which shall take effect as of September 15, 2021.
Launching a pilot program for retirement‑oriented financial products is an important measure for the banking and insurance sectors to uphold a people‑centered development philosophy, deepen supply‑side structural reform in the financial sector, and steadily advance the reform and development of pension‑related finance. The pilot initiative will help broaden the range of third‑pillar pension‑focused financial products, foster among investors the principles of “long‑term investing for long‑term returns, value investing to create value, and prudent investing for reasonable returns,” and meet the diversified retirement needs of the public.
The China Banking and Insurance Regulatory Commission, in conjunction with national pilot zones for pension‑related or financial reforms, has selected “four regions and four institutions” to conduct a pilot program: ICBC Wealth Management in Wuhan and Chengdu, CCB Life Wealth Management and CMB Wealth Management in Shenzhen, and Everbright Wealth Management in Qingdao. The pilot will last one year. During the pilot phase, the total fundraising scale for each participating institution’s pension‑focused wealth management products is capped at RMB 10 billion.
The Notice requires the four pilot institutions to carry out the pilot program in a prudent and orderly manner, ensuring robust product design, risk management, sales oversight, information disclosure, and investor protection, thereby safeguarding the stable operation of pension‑related financial products. At the same time, it emphasizes returning to fundamentals by continuously weeding out financial products that misrepresent themselves as “pension‑oriented,” thus upholding sound order in the pension‑focused financial market.
Going forward, the China Banking and Insurance Regulatory Commission and the local banking and insurance regulatory bureaus in the pilot regions will strengthen oversight and regulation of the pension‑related wealth‑management product pilot program, promptly conduct evaluations and distill lessons learned, thereby creating favorable conditions for wealth‑management offices to more effectively support the development of a multi‑tiered, multi‑pillar pension system and advance common prosperity for all.
The China Banking and Insurance Regulatory Commission is soliciting public comments on the “Administrative Measures for Liquidity Risk of Wealth Management Products of Wealth Management Companies (Draft for Comments).”
In accordance with the Banking Supervision and Administration Law of the People’s Republic of China and other relevant laws and administrative regulations, as well as the Guiding Opinions on Regulating Asset Management Business of Financial Institutions, the Measures for the Supervision and Administration of Wealth Management Business of Commercial Banks, the Measures for the Administration of Wealth Management Subsidiaries of Commercial Banks, and other applicable provisions, the China Banking and Insurance Regulatory Commission has formulated the Measures for the Administration of Liquidity Risk of Wealth Management Products of Wealth Management Companies (Draft for Comments) (hereinafter referred to as the “Measures”), which is now being made public for public comment.
The Measures draw extensively on domestic and international regulatory practices, clearly defining and standardizing the key aspects of liquidity risk management for wealth management products. The document comprises seven chapters and 45 articles, covering general provisions, governance structure and management measures, investment and trading management, subscription and redemption management, management of cooperating institutions, supervisory oversight, and supplementary provisions.
The issuance of these Measures represents a concrete step taken by the China Banking and Insurance Regulatory Commission to implement the requirements set forth in documents such as the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions,” the “Supervisory Measures for Wealth Management Business of Commercial Banks,” and the “Administrative Measures for Wealth Management Subsidiaries of Commercial Banks.” By establishing dedicated regulations on liquidity management for wealth management products, the regulatory framework for wealth management companies has been further refined, helping to encourage these offices to strengthen their liquidity‑management mechanisms, enhance their operational capabilities, and more effectively advance the transition toward net‑value‑based product pricing. At the same time, this approach contributes to maintaining the relative stability of investment strategies for wealth management products, enabling investors to reap the benefits of long‑term and value‑oriented investing, while better safeguarding their legitimate rights and interests and ensuring they are treated fairly.
Going forward, the CBIRC will, based on feedback from all sectors, further revise and refine the measures and issue them for implementation at an appropriate time.
The Beijing Stock Exchange has released its second batch of rules! The validity period for prospectuses and financial reports has been extended to “6+3.”
On September 10, the Beijing Stock Exchange (BSE) released a second batch of business rules for public consultation, covering the rules on public offerings and listings, refinancing by listed companies, and review of major asset restructurings. These three sets of rules draw on the experience gained from the pilot registration-based systems on the STAR Market and the ChiNext Board, while also summarizing the practices implemented during the earlier Select Tier of the New Third Board, thereby establishing a regulatory framework that aligns with the development patterns and specific needs of innovative small and medium-sized enterprises.
　1. Upholding an examination approach centered on information disclosure, we employ various measures, including inquiry-based review, to guide issuers in “clarifying their disclosures,” urge intermediary institutions to “verify the facts thoroughly,” and ensure that investors can “see clearly.”
2. Under the “one‑time filing, one‑time acceptance” regime, after the Beijing Stock Exchange accepts and approves the issuance application documents, it submits them to the China Securities Regulatory Commission for the registration procedure.
3. The financial statements cited in the prospectus are valid for six months, and the period for which an extension may be requested has been adjusted from one month to three months.
4. The total time limit for the issuer and the sponsor to respond to inquiries is set at three months, while the time limit for the Listing Committee to defer deliberation is two months.
5. For distinctive financing mechanisms such as self‑initiated issuance and authorized issuance as prescribed by higher‑level laws, expedited and streamlined procedures for filing and review have been established.
6. Cash purchases of land, buildings, machinery, and equipment related to production and operations are not subject to restructuring management.
7. Establish a M&A and Restructuring Committee to enhance the professionalism, prudence, and authority of restructuring reviews.
8. Diversify M&A payment methods by clarifying that listed companies may issue preferred shares, convertible corporate bonds, or raise accompanying financing to acquire assets.
9. Only assets that meet the net profit or operating revenue criteria for listing eligibility may undergo a restructuring‑based relisting, thereby effectively managing the operational risks of the injected assets and ensuring the steady enhancement of the listed company’s quality.
10. At present, the review and issuance processes for the Select Tier are proceeding as normal. Efforts are being made to ensure seamless coordination between the implementation of the Beijing Stock Exchange’s rules and ongoing operations, so as to keep project reviews on track, maintain an uninterrupted issuance schedule, and facilitate a smooth transition from the Select Tier to the Beijing Stock Exchange.
An examination philosophy centered on information disclosure
The three rules currently open for public comment are the “Beijing Stock Exchange Rules on the Review of Public Offerings and Listings to Unspecified Qualified Investors (Trial)” (hereinafter referred to as the “Issuance and Listing Review Rules”), the “Beijing Stock Exchange Rules on the Review of Securities Issuances and Listings by Listed Companies (Trial)” (hereinafter referred to as the “Refinancing Review Rules”), and the “Beijing Stock Exchange Rules on the Review of Major Asset Restructurings of Listed Companies (Trial)” (hereinafter referred to as the “Restructuring Review Rules”). These rules respectively set forth the review procedures for public offerings and listings, refinancing by listed companies, and major asset restructurings on the Beijing Stock Exchange (hereinafter referred to as the BSE or the Exchange), and primarily address four key areas.
First, we will implement the requirements of the pilot registration-based system. Adhering to an examination approach centered on information disclosure, we will, through review inquiries and other measures, urge issuers, listed companies, and other information-disclosure obligors to enhance the quality of their disclosures, hold sponsoring institutions, independent financial advisors, securities service providers, and relevant personnel accountable, and guide all market participants to fulfill their respective roles and responsibilities.
Second, we will uphold the principle of open and transparent review. Key information at critical stages—such as the review process and outcomes—as well as exchange inquiries and other review opinions will be fully disclosed to the market, ensuring robust public oversight. We have established clear time limits for all review procedures: restructuring and listing reviews shall not exceed three months, while other review matters shall not exceed two months, thereby providing investors with well‑defined expectations.
Third, the specific review procedures have been clearly defined. Detailed arrangements have been made for each stage, including acceptance of applications, issuance of review opinions by the reviewing authorities, submission to the Listing Committee or the M&A and Restructuring Committee for deliberation, issuance of review opinions or decisions by the stock exchange, and filing with the China Securities Regulatory Commission for registration. The respective responsibilities and procedural linkages have been clarified to ensure that the issuance, M&A review, and registration processes operate efficiently and in an orderly manner.
Fourth, strengthen self-regulatory oversight. Further reinforce accountability for violations by issuers, intermediary institutions, and other relevant parties; refine the categories of violations; diversify enforcement measures; and align these provisions with the regulatory frameworks governing violation handling in the CSRC’s issuance and registration departments. The overall requirements are consistent with those applicable to the STAR Market and the ChiNext Board.
The validity period of the financial statements in the prospectus has been extended to “6+3.”
Compared with the self-regulatory review arrangements of the Select Tier, the Beijing Stock Exchange’s pilot registration-based issuance and listing system has introduced several institutional enhancements.
First, the division of responsibilities between the exchange’s review and the CSRC’s registration has been clarified. Under the rules governing the Select Tier, after the National Equities Exchange and Quotations Co., Ltd. accepts the application materials and completes its self-regulatory review, it is required to submit the approval application documents to the China Securities Regulatory Commission on behalf of the issuer, thereby involving a second review stage. Following this adjustment, the Rules on Issuance and Listing Review explicitly define the exchange’s review functions under the registration-based system: once our exchange accepts the application documents and approves them, it may simply forward them to the CSRC for the registration procedure, eliminating the need for the CSRC to conduct a duplicate review.
Second, the validity period of financial reports will be extended. The six-month validity period for financial statements cited in the prospectus remains unchanged; however, under special circumstances, the allowable extension has been increased from one month to three months, thereby extending the overall validity period from “6+1” to “6+3.” Given that issuers are companies listed on the New Third Board and are required to fulfill their statutory information disclosure obligations, the Exchange will subsequently clarify the relevant transitional arrangements.
Third, the overall requirements for review time limits have been refined. Specifically, the total response period for issuers and sponsoring institutions is set at three months, while the suspension period for deliberations by the Listing Committee is two months, thereby signaling a regulatory stance of timely responses and time‑limited reviews and further clarifying expectations for the review process.
Daily operating activities are not subject to restructuring management.
With regard to the ongoing financing of innovative small and medium-sized enterprises, the key provisions of the Refinancing Review Rules are broadly aligned with the relevant institutional arrangements of the STAR Market and the ChiNext Board. Given the Beijing Stock Exchange’s market positioning as a platform primarily serving innovative SMEs, targeted adjustments have been made in two main areas:
First, it aligns with the distinctive mechanisms of higher-level laws. For self‑initiated issuances that meet the relevant criteria set forth in the “Administrative Measures for the Registration of Securities Issuance by Listed Companies on the Beijing Stock Exchange (Trial)” (Draft for Comments), the application requirements and filing procedures have been streamlined. Moreover, for eligible authorized issuances, a fast‑track, user‑friendly simplified review process has been established to support the financing and growth of innovative small and medium-sized enterprises.
Second, the review procedures for all types of securities offerings are standardized. In addition to clearly delineating the review processes for equity offerings—such as those directed to an indefinite pool of qualified investors and those issued to specific investors—the same procedures also apply uniformly to other securities, including convertible bonds and preferred shares, thereby facilitating market comprehension and implementation.
With respect to restructuring review, the “Rules on Restructuring Review” have refined the criteria for determining what constitutes a restructuring. Taking into account the operational and production characteristics of small and medium-sized enterprises, the rules further clarify the specific meaning of “routine business activities,” treating cash purchases of land, factory buildings, machinery, and equipment—provided that such transactions can be adequately justified as reasonable and necessary—as routine business activities and thus excluding them from restructuring oversight.
Meanwhile, the review mechanism for restructuring has been refined. A M&A and Restructuring Committee has been established within the Listing Committee to deliberate on the review reports issued by the reviewing bodies and the application documents submitted by listed companies, thereby further enhancing the professionalism, prudence, and authority of the restructuring review process and strengthening risk management. The criteria for restructuring‑based listings have also been clarified. In light of the unique characteristics of such transactions, a bottom-line approach has been adopted: only assets that meet either the net profit or revenue thresholds stipulated in the listing requirements may be subject to restructuring‑based listing, effectively controlling the operational risks of the injected assets and ensuring the steady improvement of listed company quality. Furthermore, the range of M&A payment methods has been expanded. Drawing on practical experience from the exchange market, it has been specified that when a listed company issues preferred shares or convertible bonds to acquire assets or raise accompanying funds, the relevant review procedures shall be applied by analogy to the “Rules on Restructuring Review,” thus diversifying payment options and facilitating market choice.
Project reviews remain uninterrupted, and the issuance schedule stays on track.
The rules currently under public consultation establish the basic institutional framework for the Beijing Stock Exchange to carry out its responsibilities in reviewing and approving issuances, listings, and financing and M&A transactions. The Exchange stated that it will also focus on three key areas to continuously refine its review mechanisms.
First, supporting business rules will be formulated. In addition to the provisions already clearly set forth in the draft rules currently under public consultation, specific review requirements and procedural workflows for various types of review activities must be further defined through accompanying detailed rules, guidelines, and manuals. The Beijing Stock Exchange will complete the formulation of these rules as soon as possible and issue them at an appropriate time.
Second, the requirements of the review mechanism will be implemented. With respect to the relevant bodies—such as the Listing Committee and the M&A and Restructuring Committee—whose roles have been clearly defined in the consultation rules, the Beijing Stock Exchange will promptly complete their establishment, formulate clear operating procedures and requirements, and ensure the orderly functioning of these bodies once the Exchange opens.
Third, we will coordinate the arrangements for the transition of regulatory frameworks. In accordance with the relevant guidelines of the China Securities Regulatory Commission, review and issuance activities related to the Select Tier are currently proceeding as normal. The Beijing Stock Exchange will ensure seamless alignment between the implementation of its own rules and ongoing operations, thereby maintaining uninterrupted project reviews and a steady issuance pace, and facilitating a smooth transition from the Select Tier to the Beijing Stock Exchange.

The Beijing Stock Exchange will ensure the steady and sustainable development of the capital market.
On the one hand, a portion of capital that has yet to find its footing and lacks sufficient dynamism will be among the first to flow into the Beijing Stock Exchange, seeking high-quality companies with strong growth potential. On the other hand, the incubation and growth of BESE‑listed offices, coupled with robust trading activity, will in turn bolster the main board, the ChiNext, and the STAR Market, making the broader capital market more vibrant and enabling high‑quality listed companies to attract greater investor interest.
The Beijing Stock Exchange is set to launch, much like the ChiNext and STAR Markets before it. It is unlikely to disrupt the existing capital market landscape; rather, it will serve as an important complement, further enhancing China’s multi-tiered capital market. However, unlike the large, diversified main‑board companies, this exchange will welcome a cohort of small, specialized SMEs and micro‑enterprises. Drawing on past experience, these offices are likely to play out a variety of capital‑market narratives—ranging from sharp surges in market capitalization to prolonged sideways trading or steady declines.
The term “Beijing Stock Exchange” has quickly become a staple among financial professionals, and within a short period, its trading rules were put out for public consultation. The official explanations followed just as swiftly, underscoring the high priority the state places on the Beijing Stock Exchange.
Encouraging more small, medium, and micro enterprises to raise capital in the financial markets is both a strategic imperative at the national level—aimed at fostering a vibrant national economy driven by the dynamic participation of countless businesses—and a practical necessity for these enterprises to survive and thrive, enabling them to tap into ample market‑based funding to strengthen their operations and overcome the myriad challenges they face along the path of development.
Maximizing the role of resource allocation is what capital markets expect from both companies and investors. Whether a business starts small, grows from a micro‑enterprise to a medium‑sized or large office, or evolves from a handful of founders into a sprawling organization with tens of thousands of employees, it always hinges on access to resources and sustained growth. Insufficient working capital remains an insurmountable hurdle for virtually every enterprise. As one online anecdote goes: at the turn of the last century, Jack Ma founded Alibaba with 500,000 yuan, Pony Ma launched Tencent with the same amount, and Ding Lei established NetEase with 500,000 yuan. Even these today’s corporate giants faced funding constraints in their early days.
Over the past two decades and more, many enterprises have launched with initial capital of 500,000 yuan or even higher. While numerous new companies with market caps exceeding hundreds of billions have emerged, most others have stumbled along the path of growth—unknown to all at their inception and forgotten by all at their demise. During this same period, a proliferation of investment institutions has given rise to crowdfunding, angel investing, and venture capital, each playing a role in fostering the development of small and micro‑enterprises. Yet, no amount of water can quench a parched land: China has seen the emergence of a large number of high‑potential SMEs and micro‑enterprises, including many “hard‑tech” offices capable of excelling across domains—from exploring the skies to probing the depths of the ocean. Beyond the myriad technical challenges they face, a chronic lack of funding continues to constrain their growth potential.
The New Third Board enjoyed a brief period of popularity, with many media outlets even dubbing it China’s “Nasdaq,” speculating that it would give rise to emerging‑industry companies comparable to Apple or Microsoft. However, issues such as excessively high investment thresholds and sluggish trading activity gradually eroded its financing effectiveness, and the tech giants we had hoped for never materialized on the platform. Even though numerous regions in China have established regional equity trading centers—such as the Qianhai Equity Exchange in Shenzhen—which offer a variety of financing products to help small, medium, and micro enterprises raise capital, these localized exchanges face limited investor pools and insufficient influence, making it far from easy to identify and nurture high‑quality SMEs.
Looking at the historical evolution of capital markets, an expansion in market size typically leads to a temporary downturn due to “capital outflows,” but such a brief lull is unlikely to result in a lasting slump. With the official launch of the Beijing Stock Exchange, it will not only avoid siphoning off share from the main board but also generate a host of positive effects. Although these benefits may not yet be sufficient to lift A‑shares out of their current state of indecision and into a officely established bull market, this move could nonetheless lay the groundwork for a broader, sustained rally in the A‑share market going forward.
Meanwhile, leveraging the national capital market and lowering the investor threshold on the basis of the Select Tier of the New Third Board, more investors will be able to participate in financing “specialized, refined, distinctive, and innovative” enterprises. On the one hand, some capital that has yet to find clear direction or remains relatively inactive will flow into the Beijing Stock Exchange first, seeking high‑quality companies with strong growth potential. On the other hand, the incubation, growth, and robust trading activity of Beijing Stock Exchange‑listed offices will, in turn, bolster the main board, the ChiNext, and the STAR Market, making the broader capital market more dynamic and enabling high‑quality listed companies to attract greater investor interest.
Of course, alongside the promising outlook, market risks must not be overlooked. On the Beijing Stock Exchange, individual stocks are subject to a 30% daily price‑fluctuation limit; buying at the day’s peak could result in nearly a 50% loss—something most retail investors cannot afford. We advise ordinary investors to refrain from participating in the early stages, and if they do choose to invest later, they should thoroughly familiarize themselves with the trading rules and the companies’ fundamentals. Whether it’s the STAR Market, the New Third Board, or the Beijing Stock Exchange, investor‑funds thresholds have been established precisely because these markets carry relatively higher risks than the main board. Such thresholds help effectively screen out investors with limited risk tolerance; after all, during a downturn, their capital can erode far more rapidly than on the main board. For the average investor, it’s best to observe from afar. We strongly discourage attempting to meet the eligibility requirements by borrowing or piecing together funds in hopes of achieving outsized returns.
Ordinary investors’ distant observation does not mean they cannot participate. One can envision that, following the launch of the Beijing Stock Exchange, securities offices, private equity funds, and other institutions will rush to introduce investment products, effectively lowering the entry barrier for retail investors and, in a spirit of letting professionals handle professional tasks, inviting them to take part in investing on the Beijing Stock Exchange.
Precisely because the Beijing Stock Exchange will operate in a more open and market‑oriented manner, instances of IPOs trading below their issue price, sluggish trading volumes, and delistings may become commonplace, with each step carrying significant risks. However, this does not mean the exchange lacks vitality; rather, it reflects the growing sophistication and prudence of capital‑market participants—hallmarks of a mature market. Against the backdrop of further deepening reform and opening up, we have welcomed the establishment of the Beijing Stock Exchange, and as the pace of reform and opening up accelerates, an international board could also emerge quietly in the near future.

Commercial & Corporate
Traditional chemical companies are embracing new energy—Is this a genuine transformation, or just a speculative trend?
When it comes to chemical companies, some investors may associate them with terms like “traditional industry,” “few bright spots,” and “modest gains.” However, since the beginning of this year, that perception appears to be shifting. Surveys reveal that many chemical offices are actively pivoting toward the new‑energy sector: some are planning to transition into new‑energy businesses, while others are launching new projects in this space. On the secondary market, the new‑energy sector has posted impressive gains over the past year, and related chemical subsectors have also delivered strong performance, benefiting from the broader momentum.
Several experts interviewed noted that most basic chemical companies have yet to launch new‑energy products, and there remains uncertainty as to whether the new‑energy projects currently being planned by traditional chemical offices will win market acceptance. Investors should not overlook the risks involved or blindly chase the latest trends.
“New Energy”-themed chemical stocks
Xiao Zhai returned to China from overseas in the second half of last year. A longtime Tesla enthusiast, she had already reaped substantial gains from holding Tesla shares. After coming home, she decided to dip her toes into A‑share trading for some excitement.
Over the past year, A-share stocks related to new energy vehicles—particularly those centered on lithium batteries—have been highly sought after, with CATL’s market capitalization surpassing one trillion yuan. In the last 12 months, the lithium‑mining index has surged 548.74%, the lithium‑battery electrolyte index has risen 327.50%, the lithium‑battery cathode index has gained 173.12%, and the lithium‑iron‑phosphate index has climbed 139.34%.
Xiao Zhai’s father has long been keeping an eye on chemical‑industry stocks. At the end of April this year, after some deliberation, the father and daughter decided to buy into certain chemical stocks tied to the new‑energy sector, with particular exposure to phosphate chemicals and fluorochemicals. Looking back, the “consensus” reached by these two generations of investors indeed hit the mark.
Since May of this year, the upstream basic chemical‑raw‑material sub‑sectors linked to lithium‑ion batteries have posted sharp gains. From May 1 to date, the phosphate chemicals index has risen cumulatively by 144.3%, the fluorochemicals index by 115.8%, the soda ash index by 126.8%, and the organosilicon index by 117.8%. By contrast, other segments within the chemical industry with lower exposure to new energy have shown lackluster performance: the synthetic resins sector is up 18.9%, and the polyurethanes sector has gained 23.2%.
The causes behind the massive fire
Why have so many chemical stocks tied to new energy performed so strongly this year? Industry insiders attribute this to three key factors:
First, there are supply-and-demand factors. According to Yan Yishu, an analyst at UBS Securities specializing in power and new energy, take silicon material as an example: its production cycle is inherently long, and it faces significant technological barriers. Despite robust downstream demand this year, newly added silicon‑material capacity has been virtually nonexistent, leading to a severe supply–demand mismatch that has driven prices sharply higher—from 85 yuan per kilogram at the beginning of the year to 205 yuan per kilogram today. Constrained by the shortage of silicon material, the ramp-up of wafer‑production capacity has been extremely slow, resulting in relatively tight wafer supply and enabling companies to pass on rising costs without difficulty.
Second, there are market factors. As the production and sales of new-energy vehicles scale up, demand for basic chemical raw materials related to new energy is expected to see sustained growth, a rationale that has taken deep root among investors.
Third, many traditional chemical companies are actively expanding into the new‑energy sector. Our review reveals that the phosphate‑chemicals segment has been particularly strong, driven by lithium‑iron‑phosphate batteries. As the installed capacity of these batteries in new‑energy vehicles continues to grow, phosphate‑chemical offices have rushed to enter the lithium‑iron‑phosphate market, seeking to secure a first‑mover advantage.
On the evening of September 9, Chuanheng Co., Ltd. issued an announcement adjusting its previously disclosed June plan for a lithium‑iron‑phosphate project from a two‑phase rollout to a single phase carried out concurrently. In August, Xingfa Group signed a framework agreement with the Shenzhen Institute of Advanced Technology, Chinese Academy of Sciences, for the development of lithium‑iron‑phosphate synthesis technology. Recently, Hubei Fengli New Energy Technology Co., Ltd., a joint venture between Xinyangfeng and Changzhou Liyuan, was officially established, marking the company’s entry into the lithium‑iron‑phosphate sector.
Industry insiders note that, as supply and demand for upstream lithium‑ion batteries tighten, battery manufacturers are expanding capacity, driving a rapid surge in demand for lithium carbonate. Soda ash is also widely used in the extraction and production of lithium carbonate, further boosting its demand. In the new‑energy sector, fluorochemicals are primarily applied to key materials such as PVDF; meanwhile, organosilicon materials are extensively employed in components like battery packs and electronic control systems to provide excellent waterproofing and moisture‑resistance. The expansion of new‑energy vehicle production is rapidly increasing market demand for these two fundamental chemical products.
Profitability remains to be tested by the market.
Are chemical companies rushing into the new‑energy sector driven by genuine transformation needs, or are they merely chasing a speculative “hot trend”?
The most immediate impact of basic chemical companies entering the new‑energy sector is a sharp surge in their stock prices. In the phosphate‑chemicals sector, Chuanheng Shares has seen its share price rise by 298.91% year to date; in the fluorochemicals sector, Yongtai Technology’s shares have gained 486.75% over the same period; and in the organosilicon sector, Hesheng Silicon Industry’s stock has climbed 576.32% year to date.
The surge in stock prices reflects investors’ expectations for the future of companies that have positioned themselves in the new‑energy chemicals sector; however, industry experts have repeatedly warned of potential risks. An analyst at a securities office who asked not to be named told reporters that, for now, the primary revenue of basic chemical‑raw‑material producers still comes from traditional feedstock production. For example, Chuanheng Co., Ltd.’s 2021 interim report shows that, benefiting from rising diammonium phosphate prices, the company’s diammonium phosphate business saw a 25.1% year‑on‑year increase in revenue during the first half of the year. In particular, sales of self‑produced phosphate rock in the first quarter generated RMB 92.35 million, with a gross margin as high as 51.4%, making it a key driver of the company’s performance growth in the first half.
The aforementioned analyst noted that most basic chemical companies have yet to launch any new‑energy products. Consequently, some listed offices with particularly strong share‑price gains have received inquiry letters from the stock exchange, requesting clarification on whether the companies are deliberately capitalizing on market trends or engaging in stock‑price manipulation. Moreover, it remains uncertain whether traditional chemical offices’ new‑energy projects will win market acceptance. In addition, these companies face a range of risks—market‑related, operational, and managerial—and their profitability still needs to be tested by the market, leaving room for uncertainty. Investors should not overlook these risks or blindly chase fleeting market fads.

The healthcare IT innovation sector is poised for growth, with industry experts addressing key pain points.
On the 9th, China News Service & Jingwei hosted the third installment of its “Industry’s Major Rally” series, with the theme “New Trends in Healthcare IT Innovation and Data Security.” Industry experts generally agree that, for the healthcare IT innovation sector, data security remains a significant challenge, which can be addressed by establishing a classification‑and‑grading protection framework and deploying appropriate encryption technologies.
Data security is a major pain point.
In the recently enacted Data Security Law of the People’s Republic of China (hereinafter referred to as the “Data Security Law”), health and wellness is one of the eight key sectors explicitly mentioned. Today, big data in the health and medical fields has also become a critical national strategic resource. At the same time, incidents involving the compromise of medical and health data are occurring with increasing frequency, and the overall landscape of medical data security is growing increasingly precarious.
Public reports indicate that during the pandemic, incidents of personal and patient data breaches at medical institutions occurred with alarming frequency. In April 2020, the World Health Organization issued a statement noting that cyberattacks targeting healthcare organizations had increased fivefold year over year. This July, Reference News cited foreign media reports highlighting a sharp rise in cyberattacks on hospitals worldwide. According to an analysis by the specialized website Hackmaggedon for the first quarter of 2021, the healthcare sector was the most heavily targeted, with attack rates surpassing those affecting individuals, public administration, and the education sector.
At the event, industry experts repeatedly highlighted data security as a pressing challenge. Wang Ke, General Manager of Huawei Technologies Co., Ltd.’s Zhejiang Government & Enterprise Healthcare Business Unit, explained that, in terms of data security, network architectures today increasingly emphasize the separation of internal and external networks. Traditional security devices, such as firewalls, primarily focus on defending against known threats, while protecting against unknown threats remains a significant challenge.
Zheng Sanwei, President of Yiduo Cloud Computing Co., Ltd., also noted that after years of development, healthcare IT has indeed seen the deployment of numerous systems and applications across many domains; however, significant security challenges remain, particularly in areas such as the rigor of data sharing and the governance of data‑use processes.
At present, risks to the security of medical data manifest across multiple domains, including data accessed by healthcare consortia, online medical records, clinical research data, health insurance data, and data generated by health‑related mobile apps. For instance, sensitive health information—such as laboratory reports, diagnostic findings, and past medical histories—may be illegally accessed, stolen, altered, or maliciously uploaded due to vulnerabilities, cyberattacks, or malware infections. Meanwhile, mobile applications that provide a wide array of online health services pose potential risks of exposing personal health records, payment data, healthcare resource information, and public health data.
Establish a classified and graded protection system.
In practice, as smart healthcare becomes more pervasive and new data grows exponentially, medical data has become an increasingly critical asset, making its effective protection and lawful utilization ever more important.
During the event, Zhao Ming, Assistant to the President of China National Health Security Services Group Co., Ltd., stated that tools represent a crucial dimension in addressing data security. He noted that while many traditional approaches do have limitations, emerging technologies—such as federated learning based on multi-party secure computation and homomorphic encryption—can effectively tackle data‑security challenges in scenarios involving medical and health‑insurance data.
In addition, Wang Bin, Technical Director of UCloud’s Healthcare Integrated Business Line, noted that certain rare and hereditary diseases, due to their limited case numbers, can expose patients’ personal privacy very quickly if data is compromised. In practice, medical data can be classified and graded with a focus on clinical research. “Different levels correspond to different types of data,” Wang said. “For example, electronic health records should be assigned to one level, human genetic genomes to another, and pharmaceutical cost management to yet another.” He believes that establishing a tiered classification system for data lays the groundwork for further data sharing and circulation, providing a solid framework for the development of open‑data industries and opening up new opportunities.
In fact, with regard to data security, the Data Security Law stipulates that the state shall establish a system for classifying and grading data protection. Based on the importance of data in economic and social development, as well as the degree of harm that could result—should the data be tampered with, destroyed, leaked, or illegally obtained or used—to national security, public interests, or the legitimate rights and interests of individuals and organizations, data shall be subject to classified and graded protection. The Data Security Law further requires that all regions and departments, in accordance with this classification‑and‑grading system, shall draw up specific catalogs of important data within their respective jurisdictions, departments, and relevant industries and sectors, and provide enhanced protection for data included in these catalogs.
According to Zheng Sanwei, Zhejiang Province has recently issued a data classification and grading guideline that categorizes data into four levels, from L1 to L4, explicitly designating medical data as L4. The “Digital Reform Public Data Classification and Grading Guideline” of Zhejiang Province stipulates that L4‑level public data may not be shared and must remain closed; such data must be transmitted in an encrypted form, with encryption algorithms complying with relevant national cryptographic laws and regulations.
Notably, Zhao Ming pointed out that, in practice, corporate moral hazard also constitutes a particularly salient risk. “After a patient is hospitalized, if selective treatment is administered based on data, the outcomes may be either positive or adverse. When patients choose medications according to their financial means and the capabilities of pharmaceutical suppliers, this too raises the question of whether the enterprise acts for good or ill,” Zhao Ming explained. To mitigate this risk, he added, enterprises must rely on self‑regulation—such as signing data‑security accountability agreements—while government oversight and complementary policies are equally essential.
Promote industry standards for medical information technology innovation.
In addition, industry experts have offered recommendations for the development of the healthcare IT innovation sector. Fu Dedong, Director of Research and Development at Donghua Yiwei Technology Co., Ltd., noted that in recent years, internet-based healthcare, medical digitalization, and medical AI have been booming, emerging as new growth drivers, with capital investors and industry giants alike actively expanding into the broader healthcare and wellness ecosystem.
“In my view, healthcare‑related information technology innovation actually encompasses both the healthcare and IT‑innovation sectors, and each of these areas represents a market worth trillions of yuan,” says Fu Dédōng. He notes that the healthcare industry has already undergone informatization and digitization and is now moving toward intelligentization. The new infrastructure initiatives—such as 5G, big data, cloud computing, the Internet of Things, and artificial intelligence—are poised to unlock tremendous opportunities for the sector.
In the course of advancing healthcare IT innovation, Fu Dedong recommends proactively building a comprehensive IT‑innovation ecosystem, including the development of technology platforms, the enhancement of adaptation capabilities, and the strengthening of system migration expertise. Centered on cloud computing and distributed technologies, he advocates for constructing a next‑generation healthcare IT architecture and technology platform geared toward digital and intelligent transformation. A phased, step‑by‑step modernization approach should be adopted to ensure seamless transitions of business systems. Within a secure and compliant healthcare IT‑innovation environment, a unified management and operations platform should be established, and industry standards for healthcare IT innovation should be promoted.
Having been told by banks to “come back next year,” many cities across the country are facing difficulties in obtaining home loans.
Recently, reports of tighter mortgage policies have been mounting across many regions, with some areas seeing second-hand home loan applications backed up as far as next year.
Among the 30 key cities monitored by CRIC, more than half are experiencing tight mortgage‑lending quotas, with loan‑disbursement cycles continuing to lengthen compared with the first half of the year; in over 70% of these cities, mortgage rates have risen to varying degrees since the first half. On the secondary‑home front, in the 23 cities surveyed, loan‑disbursement periods generally range from three to six months, and in more than 60% of them, lending has effectively come to a standstill.
Zhang Bo, dean of the 58 Anjuke Real Estate Research Institute, told reporters that mortgage lending has tightened in many regions, driven by two factors: the “two red lines” policy for mortgages and the continued surge in housing market transactions. Whether mortgage policies will ease in the future will depend on how market transaction volumes evolve.
Mortgage quotas are tight in many regions, and the loan approval process has been extended.
Over the past few months, it has become an undeniable reality that mortgage quotas are tight and loan disbursements have slowed in many regions. This is especially true in first-tier cities, where housing‑related lending remains severely constrained.
Reporters learned from major commercial banks in Shanghai that, while lending has not been halted, the approval and disbursement process has noticeably lengthened, taking as little as three months and up to six months. Furthermore, effective July 24, the interest rate on first-home mortgages in Shanghai was raised from 4.65% to 5%, while the rate on second-home mortgages was increased from 5.25% to 5.7%.
According to a previous report by CCTV Finance, some homebuyers in Beijing were told during their mortgage applications that “loan quotas are tight” and that the exact disbursement date remains uncertain. Some were even informed by banks to “come back next year.”
According to reports, Guangzhou Commercial Bank has also recently raised mortgage rates. Based on the latest LPR quotes, the prevailing interest rates for first‑ and second‑home mortgages in Guangzhou now stand at 5.85% and above, and 6.05% and above, respectively—significantly higher than in other Tier‑1 cities. Meanwhile, loan disbursement times have lengthened; at some banks in Guangzhou, it now takes roughly three to four months from contract signing to actual loan disbursement.
Mortgage conditions in second- and third-tier cities are also challenging. According to data from the Shell Research Institute, as of June this year, among 72 key cities, the mortgage approval and disbursement cycle has lengthened in 46 of them.
Reporters have noted that recently, cities including Hangzhou, Wuhan, Changchun, Zhengzhou, Kunming, Nanning, Hefei, Chongqing, Dongguan, Huizhou, Foshan, Changsha, and Jinan have all seen instances of mortgage lending being suspended or partially suspended for second-hand homes, while mortgage rates in many of these cities have been raised multiple times.
According to reports, the interest rate for first-time homebuyers in Suzhou has risen to 5.9%–6.0%, while rates on second homes (for which the mortgage remains outstanding) have largely exceeded 6%. Moreover, several banks have imposed extremely stringent credit‑reporting requirements as part of their loan‑approval criteria.
In Nanjing, the interest rate on first-home mortgages has already climbed to 5.95%, nearing the 6% threshold, while second-home mortgage rates have surged as high as 6.15%. Local banks including ICBC, ABC, BOC, and Hua Xia have reportedly suspended lending for first-time homebuyers due to tight credit quotas. “In Nanjing and Hefei, mortgage applications are now backlogged for more than six months, and many banks still cannot even estimate when they’ll be able to disburse loans,” a bank official told reporters.
According to a survey by CRIC of credit conditions in 30 key second- and third-tier cities, most of these cities have yet to feel the impact of easing credit policies, and previously backlog loan applications have not been disbursed in a concentrated manner.
In addition, overall mortgage rates have continued to trend upward. According to data from CRIC, in September this year, the average mortgage rate for first-time homebuyers nationwide stood at 5.46%, up 23 basis points from the end of 2020, while the average rate for second-home loans was 5.83%, an increase of 29 basis points compared with year-end 2020. In cities such as Suzhou, Quzhou, Taicang, Xinyang, Zhumadian, Nanning, and Guilin, first-home mortgage rates have already exceeded 6%, and in more than half of these cities, loan‑approval timelines have lengthened to varying degrees compared with the first half of the year.
Meanwhile, mortgage approvals have become significantly stricter. In cities such as Nanning, Taizhou, and Lishui, homebuyers are subject to rigorous scrutiny of their qualifications, covering aspects like the source of down‑payment funds and their individual repayment capacity, among other factors.
Overall, a loan‑disbursement cycle of three to six months has become the norm; in cities such as Linyi, Jining, and Heze in Shandong Province, it can exceed six months. Meanwhile, in Suzhou, Taizhou, Yancheng, and other areas, credit conditions have tightened across the board, with loan‑disbursement timelines remaining unpredictable.
With housing market transaction volumes declining, could mortgage policies be eased?
The rapid surge in sales of commercial housing is also a major factor behind the tight mortgage‑loan quotas at banks across the country. Zhang Bo told reporters, “Although property‑market transactions declined in July and August, thanks to the concentrated launch of new projects, new‑home sales volume remained exceptionally high in the first half of this year.”
According to data from the National Bureau of Statistics, in the first half of this year, nationwide sales of commercial residential properties totaled 890 million square meters, up 27.7% year on year; sales revenue reached RMB 9.3 trillion, an increase of 38.9% compared with the same period last year. In the second-hand housing market, data from the Shell Research Institute show that transaction volume in the first half rose 12% from the second half of last year, while new-home sales hit their highest level for the same period since 2016.
The People’s Bank of China’s “Financial Statistics Report for the First Half of 2021” shows that RMB loans increased by 12.76 trillion yuan in the first half of the year, up 667.7 billion yuan year on year. Among them, household-sector loans rose by 4.58 trillion yuan. In particular, medium- and long-term household loans—largely attributable to mortgage lending—increased by 3.43 trillion yuan, a 22.5% rise compared with the same period last year.
It is worth noting that in the first half of the year, new medium- and long-term loans to households accounted for approximately 26.9% of total new RMB-denominated loans, up about 3.7 percentage points from the same period in 2020. In other words, this 26.9% share of mortgage lending far exceeds the 17.5% cap on mortgage exposure imposed on smaller banks under the “two red lines” policy, and even significantly surpasses the 20% limit applicable to mid-sized banks.
On September 10, in response to an investor’s inquiry about “the reasons behind the recent tightening of second-hand home loan quotas that has prevented loans from being disbursed,” China Merchants Bank stated that, since the beginning of the year, in order to further implement the policy of ensuring housing is for living, not for speculation, many cities with overheated real estate markets have intensified measures such as purchase and mortgage restrictions. At the same time, influenced by regulatory requirements on the concentration of real estate lending, most banks have appropriately scaled back their real estate loan issuance; however, overall, they remain able to meet the housing‑related credit needs of those with genuine housing demand.
Although recent market reports suggest that “monetary policy will shift toward easing credit conditions in the second half of the year, prompting banks to ramp up lending,” CRIC’s survey findings indicate that, as of now, banks in many regions have yet to increase their loan‑issuance quotas.
“In the second half of the year, transaction volumes in some cities may decline, and lending activity could ease to some extent, with priority given to mortgage loans for new homes and a relatively steady disbursement pace,” said Zhang Bo.

Taxation TAXATATION
The Second Belt and Road Tax Administration Cooperation Forum was held: Strengthening tax administration’s information technology capabilities and ushering in a new future for the Belt and Road tax administration cooperation mechanism.
On the evening of September 7, Beijing time, the Second Belt and Road Tax Administration Cooperation Forum opened. Tax authorities’ heads and representatives from 61 countries and regions—including Kazakhstan, Russia, China, the United Arab Emirates, Singapore, and Sierra Leone—along with leaders of 12 international organizations, attended the forum online. The event focused on the theme of “Building Tax Informationization Capabilities in the Digital Era,” with participants deliberating on strategies for advancing tax cooperation under the Belt and Road Initiative. Wang Jun, Chairman of the Council of the First Belt and Road Tax Administration Cooperation Mechanism and Director of the State Taxation Administration of China, attended the opening ceremony and delivered a keynote address.
In his keynote address, Wang Jun emphasized that, over the past two years since the establishment of the Belt and Road Tax Administration Cooperation Mechanism, concerted efforts by all parties have translated the mechanism’s vision into concrete actions and turned it into a reality. Particularly since 2020, tax authorities along the Belt and Road have stood in solidarity, overcoming challenges together; as a result, the mechanism has not only maintained its momentum but has continued to advance, making significant contributions to global anti‑pandemic cooperation and providing vital impetus for the recovery of the world economy. First, the mechanism’s institutional framework has yielded tangible results: the Secretariat of the Belt and Road Tax Administration Cooperation Mechanism has been established, the Belt and Road Tax Administration Capacity‑Building Alliance has been launched, multiple Belt and Road Tax Academies have been set up, and the official website of the mechanism, along with the English‑language journal “Belt and Road Taxation,” have been successfully inaugurated. Second, the outcomes of cooperation have grown increasingly substantial: the tasks outlined in the Wuzhen Action Plan (2019–2021) have been completed on schedule and to high standards; more than 20 online conferences have been organized; the number of member jurisdictions of the Mechanism’s Governing Council has expanded to 36, while the number of observer entities has risen to 30. Third, exchanges and mutual assistance in tax administration have become ever closer. Leveraging the Belt and Road Tax Academies in Yangzhou, China; Nur‑Sultan, Kazakhstan; Macao, China; and Beijing, China, a total of 26 international training sessions on tax administration have been held, providing capacity‑building to over 1,200 fiscal and tax officials from 71 countries and regions, thereby effectively enhancing the tax administration capabilities of Belt and Road economies.
In line with the forum’s theme, Wang Jun shared with the attendees that, in recent years, China’s tax authorities have earnestly implemented President Xi Jinping’s important instructions on informationization and, in accordance with Premier Li Keqiang’s directives, have pursued exploration and practice in building information‑based capabilities. First, they have fully leveraged technological support by pioneering the application of cutting‑edge information technologies, comprehensively strengthening information‑infrastructure projects, and continuously refining information‑application systems. Since its official launch in 2016, the nationwide unified information‑technology project—Golden Tax Project Phase III—has been steadily optimized and improved, while China has also established the Tax Cloud Platform, the country’s largest e‑government production‑transaction cloud, thereby laying a solid information‑technology foundation for building an optimized, efficient, and unified tax collection and administration system. Second, they have harnessed the empowering potential of data by tapping into the vast “treasure trove” of tax‑related big data, striving to achieve greater data volumes, faster processing speeds, and finer‑grained analytical dimensions. This has played a pivotal role in mitigating tax risks, enhancing tax and fee services, standardizing tax enforcement, and supporting macro‑level decision‑making, thus providing robust support for elevating the capacity and quality of tax services in serving the national economy and social governance. Third, they have emphasized the leading role of business processes, driving a revolutionary transformation in tax filing and payment methods, an intelligent upgrade of tax and fee services, and a more precise approach to tax supervision. As a result, 90% of tax‑related matters and 99% of tax‑filing transactions can now be handled online, via mobile apps, or through digital platforms. At the same time, a nationwide unified tax‑and‑fee knowledge‑tagging system has been established, enabling precise identification of taxpayers and payers eligible for tax and fee concessions and the timely, accurate delivery of relevant policies, benefiting a cumulative total of 456 million taxpayer‑payer instances.
Wang Jun stated that in March this year, China issued the “Opinions on Further Deepening Tax Collection and Administration Reform,” which laid out a comprehensive plan for tax reform and development during the 14th Five-Year Plan period and set forth a clear blueprint for building smart taxation in China. In accordance with the guidelines outlined in these Opinions, China’s tax authorities will take invoice digitalization as a key breakthrough and leverage tax-related big data as a driving force to comprehensively advance the digital transformation and intelligent upgrading of tax collection and administration. By 2025, they aim to essentially establish a smart tax system characterized by high integration, robust security, and strong application effectiveness, thereby comprehensively enhancing their capabilities in precise law enforcement, refined services, targeted regulation, and collaborative governance, and playing an even greater role in modernizing the national governance system and governance capacity.
To further enhance the tax‑informationization capabilities of all member economies and deepen cooperation mechanisms, Wang Jun put forward three initiatives: First, strengthen exchanges on tax‑informationization. By organizing forums on tax informationization and other platforms, we will broaden communication, gain a more comprehensive understanding of each member’s current status in this area, and better share experiences and pool information, thereby continuously improving the capacity of all countries to advance tax‑informationization. Second, scale up training and technical assistance in tax informationization. Leveraging China’s OECD Multilateral Tax Centre in Yangzhou, the Belt and Road Tax Administration Capacity‑Building Alliance, and the Belt and Road Tax Academy, we will intensify training and technical support for countries and regions along the Belt and Road in the field of tax‑informationization. Third, accelerate the development of cooperative mechanisms. We will innovate cooperation models across a wider range of areas, foster closer interactions among member and observer economies, deepen engagement with international organizations and specialized institutions, make effective use of our official website and publications, and develop public knowledge products that reflect the distinctive features of the Belt and Road. In parallel, we will gradually establish a systematic, professional, and high‑standard alliance training curriculum framework and build an internationally oriented, diversified, and multidisciplinary faculty team.
Prior to the opening of the Forum, Wang Daoshu, Secretary-General of the Secretariat of the Cooperation Mechanism and Deputy Director-General of the State Taxation Administration of China, chaired a meeting of the Council of the Belt and Road Tax Administration Cooperation Mechanism. He announced that Ali Alginbayev, Chairman of the State Revenue Committee of the Ministry of Finance of Kazakhstan, would serve as Chair of the Second Forum and Chair of the Council of the Cooperation Mechanism. He also reported on the results of the election of Council Vice-Chairs, the addition of new members and observers to the Council, and the composition of the Expert Advisory Committee. Furthermore, the meeting reviewed and approved the final report of the Working Group on the Wuzhen Action Plan (2019–2021).
At the forum’s opening ceremony, Pascal Saint‑Amans, Director of the OECD’s Directorate for Tax Policy and Administration, outlined the various tax challenges posed by the digital economy and the corresponding policy responses. The working groups under the Belt and Road Initiative Tax Administration Cooperation Mechanism each presented their final reports: Bruno da Silva, Legal Adviser at the Financial Services Bureau of Macao, China, delivered the Final Report on Upholding Tax Governance in Accordance with the Law and Enhancing Tax Certainty; Yanu Asmadi, Deputy Director‑General of the International Division of the Directorate General of Taxes at Indonesia’s Ministry of Finance, presented the Final Report on Accelerating the Resolution of Tax Disputes; Felipe Quintela, Director of the Planning and Research Department at Uruguay’s Tax Administration, released the Final Report on Strengthening Capacity Building in Tax Administration; Sen Chiseath, Director of the Tax Policy and International Cooperation Department at Cambodia’s General Department of Taxation, issued the Final Report on Simplifying Tax Compliance; and Kymbat Akhmetova, Head of the Information Technology Section within the Informationization Department of the State Revenue Committee of Kazakhstan’s Ministry of Finance, unveiled the Final Report on the Digitalization of Tax Administration. Each report detailed the specific achievements of the respective working groups over the past two years in areas such as enhancing tax certainty, expediting the resolution of tax disputes, and bolstering tax administration capacity.
According to reports, in April 2019, the first Belt and Road Tax Administration Cooperation Forum was held in Wuzhen, Zhejiang, marking the official establishment of the Belt and Road Tax Administration Cooperation Mechanism. This also represented the first high-level international tax conference initiated and hosted by China’s tax authorities. The second Belt and Road Tax Administration Cooperation Forum was organized by the State Revenue Committee of the Ministry of Finance of Kazakhstan. Over the course of its three-day agenda, participants engaged in in-depth discussions on topics including the digitalization of tax administration, the digitalization of taxpayer services, the prospects of new technologies in the tax field, and tax‑related data governance. These efforts aim to further strengthen the Belt and Road Tax Administration Cooperation Mechanism, enhance tax administration capabilities, foster a growth‑friendly tax environment, usher in a new era of tax digitalization in the digital economy, and advance the high‑quality development of the Belt and Road Initiative, thereby contributing to global economic recovery.

Tax incentives are on par with those of the Hainan Free Trade Port, and the Guangdong–Macao Integrated Development Zone enjoys special authorization.
　The highly anticipated “Overall Plan for the Construction of the Hengqin Guangdong–Macao In-Depth Cooperation Zone” (hereinafter referred to as the “Overall Plan”) has been officially released, outlining a promising vision for Hengqin’s development in the new stage. To date, the Guangdong–Hong Kong–Macao Greater Bay Area comprises nine cities in Guangdong Province—Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Zhaoqing, Jiangmen, and Huizhou—as well as the two Special Administrative Regions of Hong Kong and Macao.
Driven by a series of favorable policies, the Guangdong–Hong Kong–Macao Greater Bay Area ranks among the world’s leading bay areas in terms of area, population, and the number of publicly disclosed invention patents. According to the recently released Overall Plan, the tax policies of the Hengqin Guangdong–Macao In-Depth Cooperation Zone also deliver substantial benefits, particularly in attracting businesses and talent, with incentives that rival those of the Hainan Free Trade Port.
According to industry insiders, while tax considerations are not the primary driver of talent mobility, tax incentives remain a compelling factor as part of a broader set of incentives. With the release of the Hengqin Guangdong–Macao Cooperation Plan, competition among free trade zones, the Greater Bay Area, and various new development areas for high‑end talent is expected to intensify.
Trends in Tax Competition
In supporting the development of the Bay Area, preferential fiscal and tax policies have increasingly become an essential component of the broader package of supporting measures. According to the Overall Plan, on the fiscal front, prior to 2024, all investment returns generated by the Hengqin Guangdong–Macao In-Depth Cooperation Zone will be allocated to its development and construction. Meanwhile, the central government will provide financial subsidies to the cooperation zone.
In the tax domain, the key measures include levying corporate income tax at a reduced rate of 15% on eligible industrial enterprises within the cooperation zone. Additionally, eligible capital expenditures may be deducted in full from taxable income in the year they are incurred, or subject to accelerated depreciation and amortization. Furthermore, corporate income tax is exempted on income derived from newly established overseas direct investments by enterprises engaged in tourism, modern services, and high‑tech industries within the cooperation zone.
An official from the Guangdong Provincial Tax Service stated that, in recent years, as tax‑reduction and fee‑cutting measures have been implemented more comprehensively, China has introduced preferential corporate income tax policies for high‑tech enterprises. Overall, provided they meet the eligibility criteria, these policies grant a reduced corporate income tax rate of 15% to certain specific industries. Compared with the standard rate of 25%, high‑tech enterprises thus enjoy a significant tax advantage.
“Specifically, the tax policies of the Hengqin Guangdong–Macao In-Depth Cooperation Zone—particularly its low tax rates—are a major advantage. The aim is to ease the financial burden on businesses, enabling them to allocate more resources to R&D, thereby enhancing their core competitiveness and allowing them to operate with greater agility,” the source said.
In addition to offering corporate income tax incentives, the Hengqin Guangdong–Macao In-Depth Cooperation Zone has also introduced preferential measures for high‑end talent. According to the Overall Plan, for both domestic and overseas high‑end and urgently needed professionals working in the Cooperation Zone, the portion of their individual income tax liability exceeding 15% will be exempted. At the same time, a list‑based management system will be implemented for those high‑end and scarce‑talent individuals who qualify for these preferential policies.
In the view of the aforementioned expert, the current tax policies of the Hengqin Guangdong–Macao In-Depth Cooperation Zone closely mirror those of the Hainan Free Trade Port, including a 15% corporate income tax rate and an exemption on the portion of individual income tax exceeding 15%. While these measures will undoubtedly attract businesses to the cooperation zone and influence talent mobility, the more significant trend is that competition in the high‑end talent market will become increasingly fierce.
“Of course, the ultimate factor determining corporate and talent mobility is not necessarily the lowest tax rate. From a corporate perspective, comprehensive supporting measures are equally critical—particularly improvements in the business environment, which may prove more attractive to businesses and talent than tax policies themselves,” the source noted.
In fact, whether it is the Guangdong-Hong Kong-Macao Greater Bay Area or the Hengqin Guangdong–Macao In-Depth Cooperation Zone, when the business environment becomes a key concern for enterprises, it plays a crucial role in boosting their dynamism.
Integrated Development Pattern
“Compared with other provinces, Guangdong Province ranks among the top in terms of economic size and enjoys strong fiscal strength, providing a solid foundation for pioneering new approaches to joint consultation, co‑construction, co‑management, and shared benefits within the Hengqin Guangdong–Macao In-Depth Cooperation Zone,” said Yang Zhiyong, deputy director of the Institute of Financial Strategy at the Chinese Academy of Social Sciences.
According to relevant data, Guangdong Province’s GDP growth slowed in 2020 amid the COVID‑19 pandemic. However, as the epidemic was gradually brought under control and a series of policies aimed at stabilizing growth were implemented, the province’s major economic and social development targets were achieved more favorably than expected.
Economically, Guangdong Province recorded a regional GDP of RMB 5.722631 trillion in the first half of the year, maintaining its position as the nation’s top performer and outpacing the national growth rate of 12.7% for the same period. On the fiscal front, the province’s general public budget revenue reached RMB 759.957 billion in the first half, also ranking first nationwide, up 17.6% year on year.
However, in stark contrast to Guangdong Province’s overall economic size, Macao’s GDP has experienced a severe contraction due to the pandemic.
A report by the Bank of China Research Institute indicates that Macau’s GDP contracted by 56.3% in real terms in 2020, primarily due to an 85% plunge in inbound tourist arrivals, which led to declines of 80.4% and 73.4% in gambling services exports and other tourism services exports, respectively. Following the introduction of multiple national policies to support Macau’s economic development, the region’s nominal GDP grew by 13.9% year-on-year in the first half of this year, signaling a robust recovery.
Against this backdrop, the Overall Plan sets out a three‑step roadmap: First, by 2024, on the occasion of the 25th anniversary of Macao’s return to the motherland, the institutional mechanisms for Guangdong–Macao joint consultation, co‑construction, co‑management, and shared benefits will be operating smoothly; the number of Macao residents living and working in the Cooperation Zone will increase substantially; and a preliminary framework for integrated development between Hengqin and Macao will be in place. Second, by 2029, on the 30th anniversary of Macao’s return, a comprehensive institutional framework ensuring high‑level economic coordination and deep alignment of rules between the Cooperation Zone and Macao will be fully established. Third, by 2035, the institutional mechanisms for integrated development between Hengqin and Macao will be further refined, and the goal of promoting moderate economic diversification in Macao will be essentially achieved.
Yang Zhiyong believes that, in the short term, the “Overall Plan” implements the requirements of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area and supports the coordinated development of Macao, Hengqin, and Guangdong. In the medium to long term, both tax policies and trade‑access thresholds are creating favorable conditions for Macao’s development.
It is understood that in 2009, the State approved the Macao Special Administrative Region’s jurisdiction over the new campus of the University of Macau located on Hengqin Island, and initiated joint Guangdong–Macao development of Hengqin Island, thereby enabling the two regions to complement each other’s institutional strengths and share economic resources.
Since then, Hengqin has officially served as a “window” and a “bridge” connecting the mainland market with other countries. In 2020, the number of newly registered Macao‑affiliated enterprises in Hengqin reached 1,395, representing a year‑on‑year increase of 67%.
The Bank of China report argues that the “Overall Plan” articulates the state’s expectations for Macao’s integration into China’s broader development framework. After delineating four strategic positions, three development goals, and four key emerging industries—namely, scientific and technological research and development, high-end manufacturing, traditional Chinese medicine as a signature sector, and cultural tourism, conventions, and commerce—the central government has also granted the Hengqin Guangdong–Macao In-Depth Cooperation Zone special authorizations in areas such as tax incentives, talent mobility, trade facilitation, and market access. These measures chart a clear path for implementing the new governance model of “joint consultation, joint contribution, joint management, and shared benefits.”

State Taxation Administration: Streamlining Tax Procedures to Shift from “Feasible” to “Convenient” Tax Filing and Payment

In February this year, the State Taxation Administration launched the 2021 “Doing Practical Things for Taxpayers and Payers and the Spring Breeze Action to Facilitate Tax Services,” introducing 100 specific measures across 30 items in 10 categories, tailored to address the concerns of taxpayers and payers.
In the “Doing Practical Things for the People” campaign, the State Taxation Administration has elevated even the smallest issues that affect the efficiency of tax filing and payment to matters of paramount importance in addressing public concerns. By meticulously refining every step of the process, it is ensuring that tax administration and payment services evolve from being merely “feasible” to being truly “convenient.”
In the past, taxpayers had to complete multiple tax return forms for each tax type, resulting in a large number of forms and high professional requirements. Adhering to the principle of “minimum necessity,” the State Taxation Administration has streamlined tax filing by consolidating returns, while still meeting the needs of tax administration.
A review by reporters reveals that, following the simplification of the corporate income tax provisional return form for account-based taxpayers, 98% of taxpayers now need to complete only a single form. The consolidated filing of property and behavioral taxes, along with the integrated submission of value-added tax and consumption tax together with their associated surcharges and levies, has enabled 574,000 taxpayers nationwide to reduce their paperwork by two-thirds in terms of forms and by one-third in data items. Furthermore, the Chongqing Municipal Tax Service’s “Click-and-Report” Phase II can automatically calculate the declaration data for seven types of taxes and fees, allowing small-scale taxpayers to finalize their returns with a simple click of conofficeation.
Meanwhile, the fully networked, nationwide electronic tax refund system has reduced the average processing time for refunds by nearly one-third, enabling faster implementation of policies such as universal tax relief and refunds for small and micro enterprises, carryforward VAT refunds, and individual income tax final settlement refunds. The streamlined and integrated export tax rebate information system has cut reporting forms by about one-third and data items by one-fifth, boosting overall filing efficiency by 30% and significantly accelerating cash flow for exporting companies.
As reforms of the business registration system continue to advance, tax deregistration applications that meet the conditions for instant processing can be completed on the spot. Even if all required documents are not yet available, taxpayers may obtain “acceptance with missing documents” by making a commitment. For standard procedures, the processing time has been streamlined to 5 or 10 working days, depending on the type of transaction.
As we enter the information society, the public’s expectations for government services have evolved from “at most one visit” to “no visits required.”
In the “Doing Practical Things for the People” campaign, the State Taxation Administration has responded to public expectations for reducing unnecessary in-person visits by continuously expanding the scope of “non-contact” tax filing and payment services and steadily enhancing digital and intelligent tax administration. As a result, the “no‑in‑person‑visit” approach now covers the vast majority of scenarios.
According to the State Taxation Administration, the list of “non-contact” tax filing and payment services for businesses has been expanded to 214 items, with 203 of them fully available online. Nearly 90% of tax-related matters and 99% of tax returns can now be filed without requiring taxpayers to visit a tax office in person.
On the individual income tax app, which boasts hundreds of millions of users, completing the annual tax reconciliation via the simplified filing process takes an average of just 1.7 steps and requires only 3 seconds. Since the start of the 2021 tax reconciliation period, more than 99% of taxpayers have submitted their returns through this app. Meanwhile, social security contribution services have been widely integrated into platforms such as WeChat, Alipay, and mobile tax‑filing apps, marking a shift from in‑person processing to convenient “handheld” payments.
In the “Cloud Tax Service Hall,” which integrates tax guidance and tax processing with self-service and assisted service, the user‑friendly navigation ensures even first‑time users can quickly locate the functions they need. In Fujian, when taxpayers encounter difficulties online, they can access step‑by‑step, screen‑sharing support through the “Remote Tax Assistance” platform. In Guangdong, 14,000 bank‑based smart ATMs equipped with tax‑processing capabilities enable residents to handle tax filing and payments conveniently at their local banks. Meanwhile, in Chongqing, 25 tax‑related services can be completed simply by calling the 12366 hotline.

Litigation & Arbitration
The Supreme People’s Court has released the first batch of typical cases on judicial protection of intellectual property in the seed industry, imposing severe penalties on counterfeit‑brand infringement.
Seed industry security is closely linked to the public’s “rice bags” and “vegetable baskets,” and it also bears on national food security. On September 7, the Supreme People’s Court held a press conference to release typical cases of judicial protection of intellectual property rights in the seed industry.
“In recent years, civil cases involving disputes over new plant varieties have had a significant impact and have been increasing rapidly,” said He Zhonglin, Deputy Chief Judge of the Intellectual Property Division of the Supreme People’s Court. With regard to strengthening protection of plant variety rights, from 2016 to 2020, people’s courts at all levels nationwide concluded a total of 781 civil cases involving such disputes, with the annual caseload rising from 66 in 2016 to 252 in 2020. More than 85 percent of these cases concerned infringement of plant variety rights, primarily involving major crops such as maize, wheat, and rice.
He Zhonglin stated that China has currently established a relatively comprehensive legal framework for the protection of intellectual property in the seed industry, with the Seed Law, the Patent Law, and the Regulations on the Protection of New Plant Varieties serving as the core statutes, supplemented by relevant judicial interpretations.
In recent years, the people’s courts have continuously strengthened intellectual property protection in the seed industry by safeguarding property rights in accordance with the law, enhancing judicial guidance, improving judicial capacity, deepening high-level advisory services, and establishing a comprehensive protection framework, thereby providing robust judicial support for independent innovation in the seed sector.
The 10 typical cases released at the meeting comprise seven civil cases, one administrative case, and two criminal cases; the crops involved range from major staple crops such as corn, rice, and wheat to cash crops like chili peppers and pear trees.
The reporter noted that the typical cases released this time exhibit the following four key characteristics:
First, substantially increase the level of compensation for intellectual property infringement in the seed industry and, in accordance with the law, ensure that innovators in this sector receive adequate economic benefits. Enhance the precision of damage‑assessment calculations to fully redress the losses suffered by rights holders; strengthen the application of punitive damages, taking decisive action against serious infringements of plant variety rights and imposing the maximum statutory penalties for such violations.
Second, in accordance with the law, we will strengthen criminal sanctions and impose severe penalties on crimes involving seeds. We will maintain a high-pressure stance and unwavering enforcement against the production and sale of counterfeit agricultural inputs, thereby fostering a rule-of-law environment in which infringers dare not and are unwilling to engage in such unlawful conduct.
Third, upholding a judicial philosophy that favors the protection of rights, we will address the difficulty of establishing infringement in plant variety‑right cases. By making full use of everyday experience and specialized common sense, and by appropriately applying the doctrine of shifting the burden of proof, we will reduce the evidentiary burden faced by plant variety‑right holders in enforcing their rights.
Fourth, standardize the application process for new plant varieties to enhance the quality of variety authorization. Clarifying the criteria for determining “known varieties” in the distinctness assessment of new plant varieties will help regulate application practices and improve the quality of authorizations.
The release of these typical cases reflects the people’s courts’ judicial stance of rigorously cracking down on seed‑related infringement through trademark‑piggybacking, sending a strong signal that judicial protection of intellectual property in the seed industry will be strengthened. The people’s courts will continue to enhance adjudication of IP cases in the seed sector, steadily intensify efforts to safeguard IP rights in this field, and ensure robust protection of such rights, thereby providing strong judicial support for national food security and for fostering independent innovation in the seed industry.
He Zhonglin disclosed that, going forward, the people’s courts will take the implementation of the new judicial interpretation on new plant varieties as an opportunity, focusing on imposing stringent sanctions against infringement through the use of counterfeit labels, continuously elevating the level of judicial protection for intellectual property in the seed industry, fostering high-quality development of the sector, and supporting and ensuring the achievement of self-reliance and self-strengthening in seed‑related science and technology, as well as independent and controllable access to seed resources.
The sword is drawn once again! All 16 central supervision teams have been deployed, and 31 whistleblower mailboxes have been publicly announced for the first time!
The curtain rises, and the sharp sword is drawn once more.
At present, the second nationwide campaign to rectify and strengthen the political and legal teams is in full swing, targeting officers and staff of central and provincial-level political and legal organs. Since the convening of the national mobilization and deployment meeting for the second phase on August 16, all provinces, autonomous regions, municipalities directly under the central government, and the Xinjiang Production and Construction Corps have promptly carried out their own mobilizations and arrangements. On September 10, as the study-and-education phase of the second round of rectification was drawing to a close and the phase of investigation, correction, and improvement was beginning, the National Education Rectification Office held its sixth director’s meeting, together with a meeting of directors from provincial-level education‑rectification offices, calling for the reinforcement of “eight key weaknesses and shortcomings.” The solemn holding of one important meeting after another sends a very strong signal:
The second phase of the education and rectification campaign for political and legal teams must continue to be resolute, tackle tough issues head-on, and be carried out in a thorough and practical manner; under no circumstances should it adopt a “tight at the front, loose at the back” or “tight at the bottom, loose at the top” approach.
Supervisory work is a crucial measure for ensuring that the education and rectification campaign is carried out in depth and with tangible results. In accordance with the unified deployment of the CPC Central Committee, 16 central supervisory teams have once again assembled and set out for various localities, wielding the sword of oversight. Each team is responsible for overseeing two provinces (autonomous regions or municipalities), and all have now been fully deployed. This time, the central supervisory teams will shift their focus from coordinated oversight at the city and county levels to direct supervision of provincial-level political and legal organs, coupled with on-site guidance.
It is worth noting that, during the second phase of the education rectification campaign, the central supervisory teams were tasked with overseeing higher‑level entities, while the channels for receiving leads became more direct. According to information obtained by Chang’an Jun from the National Education Rectification Office, the 16 central supervisory teams have further streamlined reporting channels and broadened sources of information. During their on‑site inspections, they set up dedicated postal mailboxes in all 31 provinces, autonomous regions, and municipalities directly under the central government to handle public complaints. To date, all 16 central supervisory teams have issued official notices announcing the establishment of these complaint mailboxes.
Scope of Acceptance: This covers disciplinary and legal violations committed by political and legal personnel working in provincial-level political and legal organs—such as the Political and Legal Committees of provincial Party committees, higher people’s courts, people’s procuratorates, public security departments, justice departments, and prison administration bureaus—as well as in directly affiliated units, vertically managed units, and dispatched agencies of central political and legal organs operating within the relevant region. It includes reports on such issues as interference with judicial proceedings, meddling in case handling, acting as judicial intermediaries, improperly involving oneself in economic disputes, unlawfully intervening in construction projects, and family members of officers exploiting the officers’ official authority or influence to engage in business activities. At the same time, correspondence that falls outside the scope of acceptance will be forwarded to the appropriate authorities for handling in accordance with regulations.
Application acceptance period: With the exception of Jilin, which closes on November 5; Hunan, Hubei, and Guangdong, which close on November 15; and Guizhou, which closes in mid-November, all other provinces (autonomous regions and municipalities) will accept applications until October 31.
The Ministry of Public Security: “Zero Tolerance” in Cracking Down on Illegal Sand-Extraction Crimes in the Yangtze River
On September 8, the Ministry of Public Security held a press conference in Beijing to announce the interim results of a special campaign launched to severely crack down, in accordance with the law, on illegal sand‑extraction crimes along the Yangtze River.
In January this year, the Ministry of Public Security directed public security organs in 10 provinces and municipalities along the Yangtze River—namely Shanghai, Jiangsu, Anhui, Jiangxi, Hubei, Hunan, Chongqing, Sichuan, Guizhou, and Yunnan—as well as the Yangtze River navigation police, to launch a special campaign to crack down on illegal sand mining. The campaign has adopted a zero-tolerance approach, rigorously prosecuting all crimes related to sand exploitation. Significant progress has been made: to date, 251 criminal cases involving sand-related offenses have been solved, 914 suspects have been apprehended, 88 criminal gangs have been dismantled, and 275 vessels engaged in illegal sand extraction and transportation have been seized, with the total value of the cases reaching RMB 123 million.
According to reports, in recent years, as local authorities along the Yangtze River and relevant departments have stepped up efforts to crack down on illegal sand mining, large-scale illicit sand extraction in the basin has declined markedly. However, the price of natural river sand—already in short supply—has continued to rise. Driven by exorbitant profits, some lawless individuals, despite stringent enforcement, persist in taking risks and committing crimes, while criminal networks are becoming increasingly organized, sophisticated, and clandestine.
The Ministry of Public Security has established a 24-hour “Yangtze River Protection” reporting center, opening up multiple channels to solicit leads from the public. All reports and investigative leads are systematically assigned for verification, with progress closely monitored and promptly followed up. For reported cases involving suspected “protective umbrellas” in the sand‑related sector, the Ministry uniformly deploys off‑site police forces to conduct thorough investigations and crack down rigorously on those pulling the strings behind the scenes. To date, it has guided river‑front public security organs to successfully solve seven cases—such as the Anhui Tongling “12·9” case—targeting organized criminal gangs and their “protective umbrellas,” and has forwarded 14 leads to the relevant local discipline inspection and supervision commissions. Since the launch of this special campaign, all 39 major cases placed under the Ministry’s direct supervision have been solved.
According to reports, the public security authorities will, in the next phase, intensify efforts to solve cases, enhance deterrence, and step up joint patrols and law enforcement, thereby effectively strengthening coordinated efforts to combat and rectify illegal activities.

Bottom of the form
The Supreme People’s Procuratorate has released 13 typical cases from the special supervisory campaign “Public Interest Litigation Safeguarding a Better Life.”
On September 9, the Supreme People’s Procuratorate held a press conference and announced that, since launching a three-year special supervision campaign titled “Public Interest Litigation to Safeguard a Better Life” in July 2020, by the end of June 2021, procuratorial organs nationwide had handled a total of 122,345 public interest litigation cases in the fields of ecological environment and food and drug safety, issued 106,192 pre-litigation prosecutorial recommendations, and filed 8,287 lawsuits.
According to Zhang Xueqiao, Deputy Procurator-General of the Supreme People’s Procuratorate, procuratorial organs nationwide have initiated 14,588 cases concerning the illegal discharge of pollutants into water bodies, urging the cleanup of 308,800 mu of polluted water areas and the remediation of 873,400 mu of contaminated water sources. With respect to the unlawful generation, collection, storage, transportation, utilization, and disposal of solid waste, 22,439 cases were filed, leading to the removal and treatment of 3.8517 million tons of illegally dumped domestic waste covering 42,700 mu, as well as the recovery and cleanup of 6.3866 million tons of industrial solid waste. Regarding the illegal generation and discharge of tailings, local authorities, tailored to their specific conditions, focused on issues such as unauthorized dumping that pollutes the environment, non-compliant tailings storage facilities, and comprehensive environmental remediation of tailings sites, filing 1,096 cases. In addition, concerning the online and offline sale of food agricultural products, foods, and health supplements that fail to meet safety standards—along with false advertising and illegal advertisements—procuratorial organs initiated 13,883 cases, prompting the investigation and prosecution of 330,300 kilograms of counterfeit and substandard food products valued at 5.452 billion yuan. Finally, in addressing violations of wildlife protection, procuratorial organs zeroed in on illegal hunting, transportation, and mailing of wild animals, destruction of wildlife habitats, and the unlawful consumption of wild animals, filing 5,506 cases.
According to statistics, since the launch of the special campaign, procuratorial organs nationwide have handled a total of 168,896 public interest litigation cases, an increase of 34.58% year on year. Among these, 90,811 cases involved ecological environment protection and 31,534 concerned food and drug safety, up 27.44% and 23.16%, respectively, compared with the same period last year. Cases in these two key areas accounted for 48.04% and 49.63% of all cases within their respective statutory domains.
At the meeting, the Supreme People’s Procuratorate also released 13 typical cases from the special supervisory campaign “Public Interest Litigation Safeguarding a Better Life,” involving Guangdong, Sichuan, Liaoning, Gansu, Zhejiang, Fujian, Anhui, Ningxia, Jiangsu, Beijing, Hainan, and other regions. These cases cover illegal activities and public-interest infringements in areas such as water pollution, solid-waste pollution, tailings‑related contamination, violations of wildlife protection laws, food safety concerning agricultural products and health supplements, and the management of farmers’ markets.

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