JC Master Legal News Issue 1020

Key Takeaways for This Issue

The Shanghai Stock Exchange has issued the Guidelines on the Application of the Fifth Set of Listing Standards for Medical Device Companies on the STAR Market.
To further support China’s drive for high-level scientific and technological self-reliance and self-strengthening, and to encourage medical device companies to pursue research and development innovation in critical core technologies, the Shanghai Stock Exchange issued and implemented on June 10 the “Shanghai Stock Exchange STAR Market Issuance and Listing Review Rules Application Guidance No. 7—Application of the Fifth Set of Listing Criteria by Medical Device Enterprises.”
The Shanghai Stock Exchange has strengthened the standardization of its bond review procedures.
To deepen the registration-based system in the bond market, strengthen checks and balances in the review process, and promote transparency in bond‑issuance reviews, the Shanghai Stock Exchange issued on June 2 the “Shanghai Stock Exchange Guidelines on the Application of Rules for the Review of Corporate Bond Issuance and Listing, No. 5—Review Procedures,” with the aim of comprehensively standardizing the review procedures for credit‑type bonds, enhancing review efficiency, and subjecting the process to public oversight.
Five measures taken in tandem—ensuring sound economic development
Adhering to the five-pronged approach of “expediting tax refunds, rigorously cracking down on fraudulent refunds, strictly investigating internal errors, welcoming external oversight, and maintaining ongoing publicity,” we will further ensure the precise and effective implementation of the new package of tax and fee support policies, particularly the large-scale value-added tax credit refund policy, so that tangible funds reach businesses as swiftly as possible, thereby better supporting macroeconomic stability.
The Wuxi and Xuzhou Intellectual Property Courts have been established.
On June 9, the Wuxi Intellectual Property Court was officially inaugurated. Xia Daohu, President of the Provincial Higher People’s Court, and Du Xiaogang, Secretary of the Wuxi Municipal Party Committee, jointly unveiled the plaque marking the court’s establishment. Zhu Aixun, Deputy Secretary of the Wuxi Municipal Party Committee, delivered a speech, while Qian Bin, President of the Wuxi Intermediate People’s Court, presided over the unveiling ceremony.

Finance & Capital Markets
The Shanghai Stock Exchange has issued the Guidelines on the Application of the Fifth Set of Listing Standards for Medical Device Companies on the STAR Market.
To further support China’s drive for high-level scientific and technological self-reliance and self-strengthening, and to encourage medical device companies to pursue research and innovation in key core technologies, the Shanghai Stock Exchange (hereinafter referred to as the SSE) issued and implemented on June 10 the “Shanghai Stock Exchange STAR Market Issuance and Listing Review Rules Application Guidance No. 7—Application of the Fifth Set of Listing Criteria by Medical Device Enterprises” (hereinafter referred to as the “Guidance”).
The fifth set of listing criteria for the STAR Market has enhanced its inclusiveness toward “hard‑tech” enterprises, enabling companies in the R&D phase that have not yet generated significant revenue to go public. Since the market’s launch, a number of innovative pharmaceutical offices have successfully listed on the STAR Market under this framework, giving rise to an emerging cluster effect and serving as a model for other drug‑development companies. Under the guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange has now issued these Guidelines, further clarifying the circumstances and requirements under which medical‑device companies may qualify for the fifth set of listing standards. This move represents another step to refine the STAR Market’s mechanisms for supporting the listing of hard‑tech enterprises in the medical‑device sector, thereby better fulfilling the exchange’s role in advancing the national strategy of innovation‑driven development.
Building on prior review practices and taking into account developments in medical device innovation as well as industry regulatory requirements, the Guidelines set forth detailed provisions for medical device companies seeking to qualify under the fifth listing criterion of the STAR Market. These provisions cover such aspects as the scope of core‑technology products, interim achievements, market potential, technological advantages, going‑concern capability, and information disclosure. Specifically: First, the scope of core‑technology products is refined. The applicant’s core‑technology products must fall within the categories encouraged and supported by the national medical device innovation strategy and relevant industrial policies, including advanced testing, diagnostic, therapeutic, monitoring, life‑support, traditional Chinese medicine diagnosis and treatment, implantable/interventional, and health‑rehabilitation devices, as well as their key components, modules, accessories, and foundational materials. Second, specific requirements for achieving interim results are clarified. The applicant must have at least one core‑technology product that has completed product testing and clinical evaluation in accordance with applicable medical device laws and regulations, with results meeting the requisite standards, or that otherwise satisfies all other conditions for filing a medical device registration application, and must not be subject to any material adverse factors that could impede product registration or market launch. Third, due consideration is given to the justification of market potential. The applicant’s principal business or products must demonstrate substantial market size, and, based on the innovativeness and R&D progress of the core‑technology products, comparisons of strengths and weaknesses relative to competitors, clinical needs, and the overall market landscape, the applicant shall prudently forecast and disclose the specific circumstances under which the eligibility criteria are met. Fourth, clear technological advantages are required. The applicant must possess distinct technological advantages, and, drawing on the correspondence between core technologies and core products, metrics assessing the advancement of those technologies, the background and R&D track record of the team, as well as the company’s technical reserves and ongoing R&D capacity, must disclose whether such advantages are demonstrable. Fifth, requirements for information disclosure and verification are established. The applicant shall objectively and accurately disclose information regarding its core‑technology products and their level of advancement, R&D progress and interim outcomes, approval and registration status, projected market potential, and plans for the commercialization of future production and sales, while fully disclosing associated risks. At the same time, intermediary institutions are expected to conduct thorough verification and oversight of the relevant disclosures.
Going forward, under the leadership of the China Securities Regulatory Commission, the Shanghai Stock Exchange will actively guide eligible medical device companies to apply for listing on the STAR Market in accordance with the fifth set of listing criteria, continue to refine the mechanisms supporting “hard‑tech” enterprises in accessing the STAR Market, and further promote the high‑quality development of the STAR Market.

Advancing “Dual Carbon” Efforts to Support the Fight Against the Pandemic: The Shanghai Stock Exchange Has Revised Its Guidelines on Bonds of Specific Types.
On June 2, the Shanghai Stock Exchange issued the “Guidance No. 2 on the Application of the Rules for the Review and Listing of Corporate Bonds of the Shanghai Stock Exchange—Specific‑Type Corporate Bonds (Revised in 2022)” (hereinafter referred to as the “Specific‑Type Corporate Bonds Guidance”), with the aim of strengthening financing support for epidemic prevention and control and low‑carbon transformation, and further enhancing the role of specific‑type corporate bonds in serving national strategies and the real economy. At the same time, the guidance consolidates certain standalone rules to promote a streamlined, clear, and user‑friendly regulatory framework.
In November 2020 and July 2021, the Shanghai Stock Exchange successively issued and revised the “Guidelines on Corporate Bonds of Specific Types,” thereby establishing a structured framework of such bonds that encompasses short-term corporate bonds, perpetual corporate bonds, and other specialized bond categories, as well as theme‑specific bonds addressing green development, innovation and entrepreneurship, distress relief, and rural revitalization. At the same time, the Exchange has placed great emphasis on implementing the state’s major policy decisions to advance the “dual carbon” goals and to further strengthen financial support for epidemic prevention and control. Over the past year, it has actively explored and launched pilot programs for low‑carbon transition bonds and epidemic‑control bonds, which have yielded positive results and earned broad recognition from market participants. This latest revision of the “Guidelines on Corporate Bonds of Specific Types” introduces new provisions specifically for low‑carbon transition bonds and epidemic‑control bonds, with the aim of enhancing market guidance, bolstering financial support for the green upgrading and transformation of industries, and ensuring that key enterprises are well equipped to combat the pandemic.
This revision of the rules focuses on three key areas: First, new regulatory provisions have been introduced for low‑carbon transition corporate bonds, clarifying the bond’s definition, the intended use of proceeds, special contractual terms, and requirements for project application and disclosure. Drawing on established market practices, the concept of low‑carbon transition‑linked bonds has also been adopted, encouraging enterprises to leverage these instruments in line with their specific circumstances to advance the “dual carbon” goals. Second, in light of the current nationwide epidemic prevention and control efforts being at a critical juncture, additional details regarding pandemic‑response bonds and their implementation requirements have been made public, urging issuers that are shouldering the responsibilities of epidemic‑prevention support and resuming production to make full and effective use of such bonds, thereby harnessing financial resources to bolster the real economy and help businesses prevail in the fight against the pandemic. Third, a comprehensive review and consolidation of previously issued standalone rules and notices has been carried out, merging exchangeable corporate bonds and “Belt and Road” bonds into a unified framework. This has resulted in a single, standardized guide for these specialized corporate bond types, ensuring consistency in format and content and facilitating understanding and application by market participants.
Under the guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange has for many years actively explored innovations in corporate bond products, providing robust bond‑financing support for the implementation of major national strategies—including technological innovation, green development, epidemic prevention and control, rural revitalization, and the Belt and Road Initiative—as well as for the construction and growth of key sectors. Going forward, the Shanghai Stock Exchange will continue to deepen the bond market, proactively address the diverse needs of both investors and issuers, strengthen financial services for the real economy, facilitate industrial transformation, and steadily advance the high‑quality development of the bond market.

The Shanghai Stock Exchange has strengthened the standardization of its bond review procedures.
To deepen the registration-based system in the bond market, strengthen checks and balances in the review process, and promote transparency in bond‑issuance reviews, the Shanghai Stock Exchange issued on June 2 the “Shanghai Stock Exchange Guidelines on the Application of Rules for the Review of Corporate Bond Issuance and Listing, No. 5—Review Procedures,” with the aim of comprehensively standardizing the review procedures for credit‑type bonds, enhancing review efficiency, and subjecting the process to public oversight.
Since the 2015 corporate bond reform, the Shanghai Stock Exchange has formulated and established a system of pre‑review rules and procedures for corporate bonds, which, through continuous refinement, has been operating smoothly overall. Following the implementation of the registration‑based issuance regime, building on its prior experience with the pre‑review system, the Exchange has further optimized and improved the review process for credit‑type bonds, adhering to the principles of end-to-end oversight and openness and transparency.
The newly issued guidelines standardize the entire process of bond‑related projects, from application acceptance to the issuance of review outcomes, introducing three key changes: First, they unify the review procedures for both public and private bonds as well as asset‑backed securities, streamlining each stage and optimizing the structure of review meetings to establish a credit‑bond review framework that is concise, clear, transparent, easy for issuers to understand and engage with, and conducive to consistent implementation. Second, a system of checks and balances is integrated across all review stages, specifying procedures for formulating and issuing feedback, the composition and scope of authority of expert panels, and other arrangements; multi‑tiered review and verification mechanisms are put in place at each stage, with particular emphasis on strengthening the checks and balances provided by feedback sessions and expert meetings, thereby ensuring the quality of the review process and reinforcing integrity safeguards. Third, in line with the “delegation, regulation, and service” reform agenda, review efficiency is enhanced by streamlining certain procedural steps and timelines, proactively publishing detailed workflows and milestone deadlines, and embedding a credit‑bond financing advisory mechanism into the review process. This provides a dedicated channel for consulting on review policies and progress, helping market participants better understand and place greater trust in the review process.
Going forward, the Shanghai Stock Exchange will, in accordance with the requirements set forth by the China Securities Regulatory Commission, fully implement the “three principles of the registration system” in the bond market, continuously refine its review processes, and enhance review efficiency. By adopting transparent review procedures and optimizing review mechanisms, the Exchange will strive to create a more convenient, efficient, and credible financing‑review environment, thereby better fulfilling the bond market’s role in supporting the real economy.

The Insurance Association has issued the “Self-Regulatory Guidelines for the Disclosure of Investment Management Capabilities of Insurance Companies (Trial)”
On June 8, the China Insurance Industry Association officially released the “Self-Regulatory Guidelines for the Disclosure of Investment Management Capabilities of Insurance Companies” (hereinafter referred to as the “Self-Regulatory Guidelines”).
The Self‑Regulatory Guidelines regulate the working mechanisms for self‑regulation, self‑assessment, disclosure content and requirements, personnel management, and self‑disciplinary measures in the disclosure of insurance companies’ investment management capabilities.
With regard to the self-regulatory management mechanism, the Self-Regulatory Guidelines stipulate that the Insurance Association serves as the implementing body for the self-regulatory disclosure of insurance companies’ investment management capabilities. While conducting self-regulatory oversight in a fair and impartial manner, it also strengthens routine communication and exchanges with member institutions and strives to provide high-quality services.
With regard to self-assessment of investment management capabilities, the Self‑Regulatory Guidelines reinforce the principal responsibility of insurance companies, emphasizing that self‑assessment is the prerequisite and foundation for information disclosure, and must be conducted with prudence, objectivity, and a commitment to factual accuracy.
With regard to the disclosure of information on investment management capabilities, the Self‑Regulatory Guidelines set forth clear requirements, specifying the content and types of disclosures. They mandate that insurance companies base their disclosures on objective facts or fact‑based objective assessments, ensuring that they accurately reflect the actual situation.
With regard to the management of practitioners, the scope of eligible personnel is clearly defined, and it is emphasized that practitioners must adhere to the principle of honesty and good faith, ensuring that the information disclosed is true, accurate, and complete.
With respect to self-regulatory measures, the Insurance Association is responsible for conducting self‑regulatory reviews of insurance companies’ reports on the disclosure of their investment management capabilities—including initial disclosures, annual disclosures, and disclosures of material matters. When instances of untimely disclosure, inaccurate content, or incomplete documentation are identified, the Association shall follow the relevant procedures, impose appropriate self‑regulatory measures, and report such findings to the China Banking and Insurance Regulatory Commission. The Insurance Association has established and refined operational mechanisms covering training and guidance, document receipt, review and verification, information feedback, self‑regulatory investigations, and disciplinary actions. It has also put in place a decision‑making and implementation framework for self‑regulatory measures that features clear delineation of powers and responsibilities, as well as standardization and transparency, thereby ensuring that the application of self‑regulatory measures and the outcomes of self‑regulatory oversight are open, fair, and impartial.
 Going forward, the Insurance Association will continue to strengthen member services and industry self-regulation, encouraging insurance companies to steadily enhance their investment management capabilities and reinforce self‑discipline in this area. Through a variety of channels—including training and education, research seminars, and routine exchanges—the Association will guide insurers in conducting robust and prudent self‑assessments of their investment management capabilities and in ensuring transparent information disclosure, while fostering a culture of “disclosing each capability as it matures” and achieving “first‑time compliance.”

Commercial & Corporate

A fund worth tens of billions of yuan has reemerged, signaling a rebound in the fund‑issuance market.
On June 7, the Harvest CSI Interbank Certificate of Deposit AAA Index 7‑Day Holding Period Fund issued an announcement stating that its fundraising would conclude ahead of schedule. Originally set to close on June 10, the fund moved up the deadline to June 7 in order to better safeguard investors’ interests. According to sources consulted that day, the fund’s actual subscription amount has already surpassed its RMB 10 billion cap. If the fund is successfully launched, the number of funds with assets under management exceeding RMB 10 billion will rise to six this year.
In fact, since the beginning of this year, the new‑fund issuance market has remained sluggish amid volatility in the A‑share market. With the recent rebound in equity markets, the net asset values of several star funds have rebounded noticeably, signaling a clear recovery in the fund‑launching sector.
Ten-billion-yuan blockbuster funds: five have already been launched this year.
 According to Wind Information, as of June 7, five funds with assets under management exceeding RMB 10 billion have been launched this year. The new fund with the largest initial offering size is China Merchants Tian’an One-Year Periodic Open-Ended Bond Fund, which raised RMB 15 billion. By month of launch, such “RMB 10-billion-plus” funds were concentrated in May, with two products—Ping An CSI Interbank Certificate of Deposit AAA Index 7-Day Holding Fund and GT CSI Interbank Certificate of Deposit AAA Index 7-Day Holding Fund—each raising RMB 10.002 billion. In addition, one RMB 10-billion-plus fund was launched in both April and June: China Merchants CSI Interbank Certificate of Deposit AAA Index 7-Day Holding Fund and GF CSI Interbank Certificate of Deposit AAA Index 7-Day Holding Fund, with sizes of RMB 10 billion and RMB 10.002 billion, respectively.
 On June 1, Invesco Great Wall Fund announced that its CSI Interbank Certificate of Deposit AAA Index Fund had concluded its subscription period ahead of schedule. The fund began raising capital on May 30, with the original subscription deadline of June 10 moved up to May 31, wrapping up in just two days. According to sources, the fund’s actual proceeds have reportedly exceeded its maximum fundraising cap of RMB 10 billion, prompting the adoption of a final‑day proportional allocation mechanism to effectively manage the offering size. Ultimately, the fund was established at RMB 9.986 billion, making it the largest product subscribed in June.
Although the fund did not reach the RMB 10 billion mark, the market once again began to anticipate the launch of new funds in the RMB 10 billion range—until the arrival of the Harvest CSI Interbank Certificate of Deposit AAA Index 7‑Day Holding Period Fund.
On May 30, the Harvest CSI Interbank Certificate of Deposit AAA Index 7‑Day Holding Period Fund, managed by Chang Xiaoyao at Harvest Fund Management, officially launched its offering. According to the fund’s share‑offering announcement, the fund has set a maximum fundraising cap of RMB 10 billion, reflecting strong investor demand that led to an early closure of the subscription period and the implementation of proportional allocation.
Since the beginning of this year, interbank certificate‑of‑deposit (ICD) index funds have been approved one after another and have enjoyed strong investor demand amid volatile market conditions. Commenting on this trend, a fund manager at a large public‑fund house in Beijing said, “ICD index funds offer distinct advantages: they provide the market with a new cash‑management tool and give low‑risk‑tolerant investors seeking liquidity and enhanced money‑market returns an attractive alternative. From a product‑characteristics perspective, these funds feature clear risk‑return profiles and can deliver relatively high capital gains, bridging the gap between coupon income and short‑term bond funds. Over the long term, within an asset allocation framework centered on ICDs, their expected returns—aligned with their risk profile—are broadly positioned between those of money‑market funds and short‑term bond funds.”
Twenty new funds have been scheduled for launch, with conservative‑oriented products still dominating the market.
Notably, all of the billion-yuan blockbuster funds launched this year have been either bond‑oriented funds or cash‑management products. However, with the recent market recovery, whether public mutual funds will once again ramp up their allocations to equity‑type funds has become a hot topic in the industry.
Based on the lineup of newly scheduled fund launches, at least 20 new funds are set to hit the market in June. Among them, 10 are closed-end investment funds, including three inter‑industry certificate‑of‑deposit index funds under Bank of China, Wan Jia, and Guolian An, as well as several bond funds with holding periods, accounting for 50% of the total. Equity‑oriented funds number four, comprising the China Europe Small‑Cap Growth Hybrid, the Yongying New Energy Smart Selection Hybrid Initiated Fund, the Western Asset Digital Industry Hybrid, and the Yinhua Specialized, Sophisticated, and Novel Quantitative Preferred Stock Initiated Fund. In addition, there are three index funds, two QDII funds, and one pure‑bond fund. Overall, the current June lineup continues to be dominated by low‑risk, conservative‑style funds.
 Since the beginning of this year, amid stock market volatility and sharp short-term declines in the net asset values of equity funds, risk-averse sentiment has been bolstered. At a time when “everyone is buying funds,” the issue of “funds making money, but investors not” has become increasingly pronounced among new retail investors, emerging as a major challenge to the sustainable development of the fund industry.

Current Status of the Real Estate Industry
In recent years, the real estate sector has undergone significant adjustments, with a major shift in regulatory approaches. Over the long term, de‑financialization of the industry has emerged as the central trend, “housing is for living, not for speculation” has become the bottom line, and the high‑turnover business model is no longer sustainable.
Some property developers anticipated policy shifts in advance and made timely adjustments, enabling them to thrive. Others moved a bit too slowly, resorting to drastic measures to survive—and managed to stay afloat—but some companies refused to acknowledge these changes and ultimately collapsed.
In the short term, the real estate sector faces the risk of a hard landing due to its rapid downturn, prompting policy adjustments; some cities have already fully deregulated their housing markets. Nevertheless, the overall market remains in decline. Where will the real estate industry head next? How will property developers survive? And how should individual investors respond?
If one were to name the industry that has undergone the most dramatic transformation in recent years, real estate would undoubtedly take the top spot.
Once upon a time, real estate development in China was widely regarded as the most lucrative industry, attracting eager investors in the capital markets. However, as the traditional real estate development sector has entered a prolonged downturn, real estate stocks have been consigned to the sidelines in the equity market.
“Ducks are the first to know when the spring river warms.” It’s not just the capital markets— even the leading real estate developers themselves are stepping back at an accelerating pace.
Vanke, the real estate giant that was among the first to go public, has openly stated that in ten years it will no longer be a real estate company. Chairman Yu Liang even went so far as to say he would remove the word “real estate” from the names of its regional subsidiaries, adding, “Anyone who still calls Vanke a residential developer can take it up with me.”
In recent years, Wanda Group, once led by China’s richest man Wang Jianlin, has also shifted its strategy, moving from relentless acquisitions to aggressive disposals. It has steadily sold off its real estate assets, embracing a light‑asset business model. As Wang Jianlin put it, “By 2020, Wanda will no longer generate revenue from real estate sales.”
In addition, real estate giants such as Poly, Longfor, and Sino-Ocean have also rebranded, replacing “real estate” with “development” or “group,” with virtually every major player you can think of rushing to de‑real‑estate themselves.
Why are investors across the board suddenly reversing course and “de‑real‑estate‑izing”? The root cause is that making money in the real estate development sector has become increasingly difficult. In an era of “housing is for living, not for speculation,” developers’ traditional business models can no longer sustain themselves.
In the past, real estate developers’ core strategy was simple: borrow heavily from financial institutions, collect hefty down payments from homebuyers, and then use those funds to acquire land and commission construction. With homes selling easily and housing prices on the rise, even highly leveraged operations seemed risk-free—essentially allowing them to sit back and count their money.
However, this highly leveraged business model is now difficult to sustain. Against the backdrop of macroeconomic policies such as “housing is for living, not for speculation” and “preventing and defusing financial risks,” the real estate sector has entered a painful phase of deleveraging.
First, debt‑financing channels have been comprehensively tightened, making deleveraging a prevailing trend among property developers.
Bank credit remains one of the primary sources of financing for the real estate sector, accounting for roughly 14% of total funding. In recent years, as financial regulation has tightened, the volume of new real estate loans has steadily declined. At the same time, oversight of non‑standard financing channels such as real estate trusts has been further strengthened, effectively closing off many previously used off‑balance‑sheet avenues for illicit capital inflows into the sector. Under these circumstances, property developers have been forced to turn overseas to raise funds. An increasing number of Chinese‑owned developers are issuing bonds abroad, but borrowing costs have risen sharply—10% is no longer the upper limit, with Tahoe’s 2019 U.S. dollar bond carrying a coupon rate as high as 15%. The introduction of the “three red lines” policy has imposed an additional debt‑restraint on the industry. Coupled with sizable maturing debts, this has led to frequent debt crises, as seen in cases like Evergrande and Huaxia Happiness.
Second, the pre-sale system is trending toward tighter regulation, and relying on advance payments to leverage financing is no longer viable.
In recent years, a host of issues have emerged—ranging from quality problems and contractual disputes to delayed deliveries, reduced specifications, and even cases of developers absconding with funds and leaving projects unfinished. As a result, regulators have tightened oversight of pre-sale housing funds. If the pre-sale system were abolished, property developers would lose their zero‑cost leverage through upfront payments, so it’s hardly surprising that many are now facing severe liquidity crises. This has little to do with a company’s size; some developers, in fact, have very little net equity, relying almost entirely on debt—and paradoxically, the larger they grow, the more vulnerable they become. So the question arises: what lies ahead for real estate developers? Is there still a way out? In the short term, while China’s real estate sector does face localized overcapacity, it hasn’t yet reached a point where it needs to disappear entirely. After all, China still has 10 to 20 years of urbanization ahead, meaning there will continue to be demand for new housing. However, unlike in the past, the long-term trend is becoming increasingly clear: the overall pie of new‑home development is shrinking, which will inevitably accelerate industry consolidation and concentrate market share among leading players. That said, neither large nor small and medium‑sized developers can buck the broader trend of contraction; all must speed up their transformation. At present, such transformation essentially boils down to a few key directions:
First, we are upgrading our internal quality by focusing on niche, high‑end offerings and delivering premium‑quality homes. For example, we are developing green, boutique‑style, and smart‑home residences, as well as specialized real estate projects tailored to the needs of seniors and young families.
Second, we will pursue vertical industry expansion by extending along the real estate value chain, reaching upstream and downstream segments such as home improvement, property management, leasing, and smart communities. For example, we will develop one-stop home‑improvement services, property management, long‑term rental apartments, and build community‑focused O2O platforms.
Third, horizontal industrial integration—namely, penetrating into sectors such as healthcare, education, technology, cultural tourism, and logistics. For example, Vanke’s Wanwei Logistics, after six years of development, has risen to the forefront of the industry.
Transformation is an exceedingly difficult undertaking. While some real estate companies have achieved success, for many others still in the exploratory phase, drawing appropriate lessons and fostering innovation have become pressing priorities. It is undeniable that, amid the broader deleveraging trend, numerous developers have resorted to layoffs over the past two years; yet at the same time, many offices continue to hire across various departments. After all, with annual sales exceeding 15 trillion yuan, the industry remains substantial. From a sector-wide perspective, the areas currently exhibiting the strongest demand for talent are asset management and property services, followed closely by the technology segment. For instance, developers’ property‑management, commercial‑real‑estate, long‑term rental‑apartment, and buy‑to‑let businesses will sustain their need for skilled professionals. Earlier, Longfor set a new internal target: by 2024, its operating‑income from non‑development businesses would surpass 100 billion yuan, placing it on par with its development arm as a “hundred-billion‑yuan” pillar. Undoubtedly, these business lines all point toward managing existing assets. The golden age of real estate development has long since passed; now, the era of optimizing and operating existing assets has arrived. On May 25, the State Council issued a landmark document titled “Opinions of the General Office of the State Council on Further Revitalizing Existing Assets and Expanding Effective Investment.” Following measures to address non‑performing consumer loans and provide relief to troubled developers, China’s real estate sector is poised to unlock an even larger market—reviving trillions of yuan in idle, underutilized assets. After years of investment and construction, China’s infrastructure stock has grown to exceed 100 trillion yuan, creating vast potential for revitalizing existing assets. At the same time, further unlocking this dormant capital represents a key lever for expanding effective investment. The document calls for targeted efforts, focusing on priority sectors, regions, and enterprises, and employing a range of approaches—including promoting the healthy development of REITs, advancing PPP projects in a standardized and orderly manner, and facilitating transparent property‑rights transactions—to effectively revitalize existing assets. In recent years, the national policy emphasis on real estate transformation—spanning asset management, industrial parks, logistics and warehousing, urban renewal, as well as project‑delivery services, new infrastructure, and rental housing—continues to reveal significant talent shortages across these fields.

China Broadcasting Network joins the battle for 5G subscribers, shifting the three-way rivalry to a four-way contest.
On June 8, Gehua Cable, a listed company under the radio and television sector, announced on its WeChat official account that it would begin accepting reservations for China Broadcasting Network’s 5G services. This signals that China Broadcasting Network is poised to officially enter the race to attract 5G subscribers, potentially escalating the “battle” among telecom operators.
An industry insider who asked not to be named said that the launch of 5G services by radio and television operators, with reservations now open, will gradually disrupt the traditional “big three” telecom‑operator landscape. However, price wars will lose their relevance, and the four major operators will shift their competitive focus to innovation and customer service.
 Scheduled users will have to wait at least another month.
 On June 6 this year, China Broadcasting Network achieved a breakthrough in the rollout of its 192 number range. The flagship service center of China Broadcasting Network’s Gehua Cable at Xiaojieqiao was officially inaugurated; subsequently, branch offices across various cities—including China Broadcasting Network Hebei, Shanghai China Broadcasting Network (Oriental Cable), China Broadcasting Network Shandong, and Guangxi Radio and Television Network—held their own unveiling ceremonies one after another.
On June 8, Gehua Cable publicly announced that China Broadcasting Network’s 5G service has opened for reservations, with the first batch of subscribers expected to be able to select their preferred phone numbers. Following the on-screen instructions to the reservation page, reporters found that users wishing to be among the first to experience CBNC’s 5G service must provide information such as their mobile plan price range, data usage preferences, whether their device supports 5G, factors influencing their choice of operator, preferred number, and personal details.
 In fact, China Broadcasting Network has held its 5G commercial license for three years.
 The recurring COVID‑19 outbreaks are seen as one of the key reasons behind the repeated delays in the commercial launch of radio and television‑based 5G services, while the nationwide network integration and joint testing have further extended the timeline for rolling out these services.
 “Achieving a nationwide unified network will still take time,” said Wang Zhengnan, a veteran industry observer in the telecom sector. “The commercial deployment of a large‑scale numbering scheme entails the construction of the mobile network and the integration testing of its core and support systems, as well as interconnection with other operators. Moreover, the pace at which the integrated broadcasting‑and‑telecommunications operating framework is rolled out will also determine the timeline for service rollout.”
 On June 6, Gehua Cable publicly disclosed that, in accordance with China Broadcasting Network’s requirements for preparing for the commercial launch of its 5G services, it has successfully completed the construction of the core network data center for the Northern Region, deployed the Beijing-based 5G core network, enabled two-way inbound and outbound calls under the 192 number range, launched the 10099 customer service hotline, and established the flagship retail outlet at Xiaojieqiao in Beijing, among other related tasks.
 According to Wang Zhengnan’s forecast, the first batch of users who have reserved China Broadcasting Network’s 5G service will need to wait another one to two months, with this initial cohort likely to become available in the third quarter of this year. “At present, we are in the friendly‑user reservation phase; after categorizing these users, the operator will conduct further testing and interoperability trials. Building a closed-loop system for mobile service experience is a comprehensive, systematic undertaking.”
 The next round of competition may be held at H’s home venue.
 The launch of reservation services for the 192 number range also signals that the traditional three‑major‑operator landscape is undergoing new shifts.
 To date, three years have passed since 5G commercial licenses were issued. Over the past three years, the three major telecom operators have engaged in multiple rounds of intense competition for 5G subscribers. Having missed out on this critical three-year development window, how will China Broadcasting Network’s 5G initiative now win over users?
Price wars are the standard tactic employed by the three major telecom operators to compete for subscribers. At present, China Broadcasting Network’s 5G pre‑registration page is still collecting data on user tariff plans, and the official details of these plans have yet to be released. However, images circulating online already reveal pricing tiers for China Broadcasting Network’s mobile‑only services. According to these photos, the operator’s standalone mobile plans comprise 12 tiers, with price ranges and ancillary charges outside the plan—such as those for value‑added services—largely mirroring those of the other three major carriers.
 Notably, in addition to the pricing information, the aforementioned photo also indicates that, in 2022, all of the previously mentioned tariff plans will be sold at 60% of their original prices.
 In Wang Zhengnan’s view, to attract users, China Broadcasting Network may indeed launch promotional offers in the early stages; however, over the long term, the pricing of plans across the four major operators will inevitably converge. “There may be localized price wars, but not on a broad scale. With the implementation of policies aimed at increasing speeds and reducing costs, operator plan prices have essentially reached their floor.”
 Innovative services may become the battleground for China Broadcasting Network’s 5G rollout. Although China Broadcasting Network launched its 5G services later than expected, reports had already indicated that local broadcasting and television operators were vying for the broadband market by offering low‑priced plans.
 “In the future, China Broadcasting Network is very likely to allocate the 192 number range to users who subscribe to its broadband and cable TV services, thereby retaining existing customers. At the same time, a large number of CNBC employees and their family members will also serve as a key source of 5G subscribers,” Wang Zhengnan believes. He further suggests that, going forward, CNBC’s strategy for expanding its 5G user base will likely focus on the smart‑home sector, where the company already enjoys certain competitive advantages.
 According to reports, amid the ongoing transformation of telecom operators, traditional services are steadily losing share of total revenue, while innovative offerings are attracting increasing attention. China Mobile, China Telecom, and China Unicom all highlighted their smart‑home businesses in their 2021 annual reports.
“China Broadcasting Network’s business priorities will certainly not be consumer‑facing; rather, they will focus on the enterprise segment—the residential broadband market,” Wang Zhengnan emphasized. “China Broadcasting Network’s mobile services are designed to support the ‘smart home’ ecosystem. Compared with the other three major operators, its smart‑home offerings could directly disrupt companies currently active in the smart‑home space.”
At present, it may still be difficult to gauge the exact market share of radio and television‑based 5G; however, one thing is clear: with the launch of 5G services by the broadcasting sector, the longstanding duopoly among telecom operators will be disrupted, and a four‑way competitive landscape is taking shape.
“The current market is a stock‑based one,” said Wang Zhengnan. “For China Mobile, China Unicom, and China Telecom, retaining existing customers is a growing concern, and ‘number portability’ will become the new normal.”

SteadyMed acquires 100% equity of Guilin Latex for RMB 450 million.
 Wanjian Medical has struck again, securing another acquisition! On the evening of June 8, the company announced that it had acquired 100% of the equity in Guilin Zizhu Latex Products Co., Ltd. (hereinafter referred to as “Guilin Latex”) for RMB 450 million, using its own funds.
 It is reported that the original shareholder of Guilin Latex is China Resources Zizhu Pharmaceutical Co., Ltd., whose principal business activities include the manufacture and sale of medical latex surgical gloves, medical examination gloves, and latex condoms.
“This acquisition is highly aligned with Shengwei Medical’s strategy of building a one-stop solution for medical consumables, and it will leverage the strengths of both parties in customers, markets, products, R&D, and manufacturing to generate scale and synergy,” said a spokesperson for Shengwei Medical. As for why the company opted to acquire 100% of the equity, the primary reason is that Guilin Latex was previously a state-owned enterprise. Through this acquisition, Shengwei aims to introduce a more market‑oriented compensation system, employee management practices, and Shengwei’s corporate culture into Guilin Latex; acquiring 100% of the shares will better enable these objectives.
According to the announcement, Guilin Latex reported full-year revenue of RMB 321 million and first-quarter 2022 revenue of RMB 74.99 million, with net profits of RMB 50.85 million and RMB 9.47 million, respectively. The aforementioned official stated: “This acquisition will fill the company’s gap in latex products, particularly in the field of medical latex surgical gloves, helping us become one of the domestic enterprises with the most comprehensive product lines in low-value medical consumables.”
According to statistics, this marks the third M&A deal announced by SteadyMed in the past three months. On April 10, the company issued an announcement stating its intention to acquire a total of 55% equity in Zhejiang Longtai Medical Technology Co., Ltd. using RMB 728 million of its own funds. Just over a month later, on May 18, the company again announced that it would invest RMB 752 million to acquire a 68.70% stake in Hunan Ping’an Medical Device Technology Co., Ltd. following the company’s capital increase and share expansion.
 In response, the aforementioned official explained: “Although it may appear that a relatively large number of M&A deals have been disclosed recently, this is simply because these three projects happened to be completed in the near term.” He added that the company has, in fact, been strategically planning and executing external‑growth acquisitions since its IPO early last year; the three deals announced recently were all first pursued last year, with final agreements only being signed more recently.
 Notably, all three of Shengwei Medical’s M&A deals are in the low-value medical consumables sector. According to research and analysis by IBM and MedTech Hub, China’s low-value consumables market was valued at RMB 97 billion in 2020, up 26.0% year over year, with an average annual compound growth rate of 21.0% over the past six years. The market is projected to reach RMB 220 billion by 2025.
 “Over the past two years, demand for medical consumables has surged—whether for vaccines or nucleic acid testing, both rely heavily on a wide array of medical supplies as their foundation. As a result, there is indeed substantial market demand in this sector. Of course, for Steadmed, these investments are also grounded in its assessment of future trends in the medical consumables market. Through acquisitions, the company can not only expand its market share in this field but also broaden its product portfolio, achieving economies of scale. Moreover, its various business units can leverage shared sales channels,” analyzed Pan Helin, Co-Director and Researcher at the Center for Digital Economy and Financial Innovation of the International Business School at Zhejiang University.
 According to the annual report, in 2021, SteadyMed achieved operating revenue of RMB 8.037 billion, with medical consumables accounting for RMB 3.922 billion, or 48.80% of the total. Addressing investors’ concerns about “business synergy,” a company official stated that all of SteadyMed’s acquisitions are strategic in nature; the company would not pursue purely financial investments lacking operational alignment. Instead, the company aims to leverage acquisitions to fill product gaps or strengthen its portfolio, while capitalizing on its strengths in smart manufacturing, distribution channels, brand building, and R&D, ultimately delivering end-to-end solutions to hospital customers. Furthermore, prior to investing, the company has established a robust post‑investment management and coordination framework, assigning senior executives to systematically align and integrate the businesses of both parties, with the goal of achieving synergies that exceed the sum of their individual contributions.

Taxation TAXATATION
Five Measures in Tandem—Ensuring the Healthy Development of Taxation
This year, amid an increasingly complex, severe, and uncertain international environment, China has implemented a new package of tax and fee support measures—including a large-scale policy to refund outstanding VAT credits—in response to fresh downward pressure on the domestic economy. According to the latest data from the State Taxation Administration, as of June 9, cumulative tax refunds, tax reductions, fee cuts, and deferrals have exceeded RMB 2 trillion.
On June 10, at a press conference convened by the State Taxation Administration titled “Implementing the Refund of Input VAT Credits to Help Stabilize the Overall Economy,” a relevant official from the Administration stated that the national tax system has earnestly implemented the requirements set forth in the State Council’s Notice on Issuing a Package of Policies and Measures to Solidly Stabilize the Economy. With strong support from the Ministry of Finance, the People’s Bank of China, the public security authorities, and other departments, the system has adopted a five-pronged approach—expediting tax refunds, cracking down hard on fraudulent claims, rigorously investigating internal errors, welcoming external oversight, and conducting ongoing publicity—to ensure the precise and effective implementation of the new package of tax and fee support measures, particularly the large-scale refund of outstanding input VAT credits. This effort aims to deliver tangible financial relief to enterprises as swiftly as possible, thereby better supporting the stabilization of the macroeconomy.
Specifically, the tax authorities are intensifying their efforts in the following five areas to ensure the thorough and effective implementation of relevant policies.
First, policies are being refined to ensure swift access to benefits. According to reports, the tax authorities have jointly issued with the Ministry of Finance announcements on measures such as halving the vehicle acquisition tax for certain passenger cars and expanding the scope of value-added tax credit refunds to seven sectors, including wholesale and retail. In addition, supporting administrative notices have been released. At the same time, provincial (regional and municipal) tax authorities, in coordination with human resources and social security departments, have introduced specific implementation guidelines for extending the deferral of social insurance contributions, thereby ensuring that the benefits of tax and fee policies are delivered promptly and directly to eligible entities.
Second, we are upgrading our systems to enhance convenience. The tax authorities have completed the upgrade of the Golden Tax Project Phase III tax administration system and have simultaneously upgraded multiple other platforms, including the Electronic Tax Bureau, providing robust support for the implementation of policies such as the centralized refund of outstanding input VAT credits for large enterprises and the halving of the vehicle acquisition tax. Preparations for system upgrades to facilitate the rollout of other policies are also progressing in an orderly manner. Moving forward, the tax authorities will continue to optimize system functionalities and refine operational processes, further improving the tax‑filing and payment experience for taxpayers and payers.
Third, we are providing precise guidance with broad coverage. The State Taxation Administration has directed tax authorities at all levels to leverage a variety of channels—such as the 12366 taxpayer service hotline, micro‑classes, and cloud‑based live broadcasts—to deliver targeted policy briefings. At the same time, tax authorities will continue to rely on major mainstream media outlets and online platforms to intensify outreach efforts, proactively disseminate authoritative information, and conduct in-depth policy explanations, ensuring that taxpayers and payers are well‑informed about the policies, proficient in their application, and able to benefit promptly.
Fourth, we are harnessing collective wisdom to drive continuous improvement. The tax authorities are leveraging channels such as the 12366 “Tax Refund and Tax Reduction Feedback Hotline,” the Bureau Chief’s Mailbox, and the “Internet Plus Supervision” platform, as well as initiatives like having top leaders personally walk through taxpayer‑friendly procedures and engaging tax‑and‑fee service experience officers in on‑site assessments. Through these efforts, we ensure that opinions and suggestions from all stakeholders are systematically collected, analyzed, addressed, and promptly communicated back to taxpayers and payers, thereby guaranteeing timely and effective responses.
Fifth, we will give equal weight to both domestic and international efforts in risk prevention. On the one hand, we will maintain a office, zero‑tolerance stance abroad, fully leveraging the joint enforcement mechanism of six government departments to crack down on fraudulent claims for additional tax refunds. We will act early and at an early stage, strike with precision and decisiveness, and publicly expose offenders to deter wrongdoing, ensuring that the “tax rebate bonus” does not end up in the pockets of lawbreakers. On the other hand, domestically, we will conduct rigorous internal investigations, holding tax officials accountable for dereliction of duty—such as inaction, sluggish action, or improper action—in implementing policies like the additional tax refund program, particularly for illegal and disciplinary violations involving collusion between insiders and outsiders or concerted fraud. At the same time, we will manage the collection of tax and fee revenues in strict accordance with laws and regulations, officely upholding the principle of refraining from levying excessive taxes and fees, and ensuring that preferential tax and fee policies are implemented accurately and effectively, thereby helping to stabilize the overall economy.

Ningxia’s “Court + Tax Authority” Mechanism Resolves Tax-Related Challenges in Bankruptcy Proceedings
Recently, the Higher People’s Court of the Ningxia Hui Autonomous Region, in conjunction with the Ningxia Hui Autonomous Region Tax Service Bureau of the State Taxation Administration, issued the “Implementation Opinions on Optimizing the Handling of Tax-Related Matters in Corporate Bankruptcy Proceedings.” These measures aim to strengthen coordination between courts and tax authorities at all levels across the region, deepen the mechanism for judicial–tax cooperation in bankruptcy adjudication, further enhance the quality and efficiency of bankruptcy proceedings, standardize tax-related procedures for bankrupt enterprises, and continuously improve the business environment.
　The opinion states that, upon a people’s court’s ruling to accept a bankruptcy application, the court‑appointed administrator may, with the court’s acceptance order and the decision appointing the administrator, handle relevant tax matters in the name of the bankrupt enterprise at the competent tax authority. Following such a ruling, and with the court’s approval or pursuant to a resolution of the creditors’ meeting, any taxes (or fees) that the bankrupt enterprise is required to pay—arising from its continued operation or from the use, auction, or liquidation of its bankruptcy estate—shall be declared and paid by the administrator in the enterprise’s name in accordance with applicable laws. Such taxes (or fees) shall, in accordance with the law, be treated as either joint‑benefit debts or bankruptcy expenses and settled out of the bankruptcy estate as they arise. The competent tax authority is not required to file a separate claim; instead, the administrator shall submit the relevant declarations and make the payments on behalf of the enterprise. Once an enterprise enters bankruptcy proceedings, the tax authorities generally will no longer initiate tax inspection procedures, except where significant indications of illegal conduct are discovered and must be investigated and addressed.
The guidelines clearly stipulate that, through five key areas—optimizing tax collection and administration procedures, supporting corporate bankruptcy and reorganization, implementing tax preferential policies, legally recovering tax claims, and standardizing tax-related matters in bankrupt enterprises—the people’s courts and tax authorities will strengthen their collaborative efforts, establish clear operational standards, and, to the greatest extent possible, address the challenges faced in tax issues arising from corporate bankruptcy. This will help reduce the costs of market entity exit, invigorate all types of market entities, and further support and safeguard high-quality economic development.

Tax authorities in Beijing, Tianjin, and other localities have investigated and prosecuted cases of fraudulently obtaining additional tax refunds in accordance with the law.
The Fourth Inspection Bureau of the Beijing Municipal Tax Service has, in accordance with the law, investigated and prosecuted a case of fraudulently obtaining additional tax credit refunds.
　Recently, the Fourth Inspection Bureau of the Beijing Municipal Tax Service, acting on leads derived from tax‑big data analysis, investigated and prosecuted Beijing Zhonghong Shunfa Trading Co., Ltd. for fraudulently obtaining a value‑added tax credit refund. The investigation revealed that the company had fraudulently claimed a refund of RMB 101,400 by concealing sales revenue, reducing output VAT liabilities, and filing false returns. In accordance with the law, the Fourth Inspection Bureau has recovered the improperly obtained refund and, pursuant to relevant provisions of the Administrative Penalty Law of the People’s Republic of China and the Law of the People’s Republic of China on the Administration of Tax Collection, proposes imposing a penalty equal to the amount of the refund.
The Inspection Bureau of the Tianjin Municipal Tax Service has, in accordance with the law, investigated and prosecuted a case of fraudulently obtaining additional tax credit refunds.
Recently, the Inspection Bureau of the Tianjin Municipal Tax Service, based on leads derived from tax‑big data analysis, investigated and prosecuted a case in which a Tianjin steel pipe trading company fraudulently obtained a value‑added tax credit refund. The investigation revealed that the company had artificially inflated its input VAT by acquiring falsely issued special VAT invoices and submitting false tax returns, thereby illegally obtaining a credit refund of RMB 54,100. In accordance with the law, the Inspection Bureau has recovered the improperly obtained refund and, pursuant to relevant provisions of the Administrative Penalty Law of the People’s Republic of China and the Law of the People’s Republic of China on the Administration of Tax Collection, proposes imposing a penalty equal to the amount of the refund. At present, the tax authorities have referred the lead regarding the fraudulent invoicing to the public security organs.
The tax authorities in Cangzhou City, Hebei Province, have investigated and prosecuted a case of fraudulently obtaining additional tax refunds in accordance with the law.
Recently, the Inspection Bureau of the Cangzhou Municipal Tax Service in Hebei Province, based on leads derived from tax‑related big data analysis, investigated and prosecuted Nanpi County Zhenyu Mechanical and Electrical Co., Ltd. for fraudulently obtaining value‑added tax credit refunds. The investigation revealed that the company had fraudulently claimed RMB 118,000 in credit refunds by failing to transfer input VAT as required and submitting false declarations. In accordance with the law, the Inspection Bureau has recovered the improperly obtained refund and, pursuant to relevant provisions of the Administrative Penalty Law of the People’s Republic of China and the Law of the People’s Republic of China on the Administration of Tax Collection, proposes imposing a penalty equal to the amount of the refund.

Litigation & Arbitration
The Wuxi and Xuzhou Intellectual Property Courts have been established.
On June 9, the Wuxi Intellectual Property Court was officially inaugurated. Xia Daohu, President of the Provincial Higher People’s Court, and Du Xiaogang, Secretary of the Wuxi Municipal Party Committee, jointly unveiled the plaque marking the court’s establishment. Zhu Aixun, Deputy Secretary of the Wuxi Municipal Party Committee, delivered a speech, while Qian Bin, President of the Wuxi Intermediate People’s Court, presided over the unveiling ceremony.
According to reports, since the establishment of the Wuxi Intellectual Property Court, its jurisdiction has been significantly expanded, achieving full coverage of all IP cases—including patents, new plant varieties, integrated circuit layout designs, trade secrets, and computer software. This not only facilitates litigation for parties involved and reduces the costs of protecting their rights but also helps enhance the overall effectiveness of intellectual property protection in the Wuxi region. The court is staffed with two to three specialized adjudicatory teams, each led by a senior judge and focusing on distinct areas of expertise. Notably, the presiding judges each bring an average of more than eight years of judicial experience, having been rigorously selected from among judges with extensive trial experience, outstanding case-handling skills, and a solid legal foundation, thereby ensuring that the Wuxi Intellectual Property Court gets off to a strong start and operates smoothly.
On the morning of June 9, the Xuzhou Intermediate People’s Court held a press conference to announce the establishment of the Xuzhou Intellectual Property Tribunal, in accordance with an approval from the Supreme People’s Court. Liu Jiangong, Secretary of the Party Group and President of the Xuzhou Intermediate People’s Court, presided over the court’s first hearing, publicly trying a dispute involving infringement of design patent rights.
On June 7, the Provincial Higher People’s Court issued a notice stating that, effective June 9, jurisdiction over intellectual property cases at the Xuzhou Intermediate People’s Court will be adjusted. Under the revised arrangement, first-instance civil and administrative intellectual property cases involving disputes over ownership or infringement of invention patents, utility model patents, new plant varieties, integrated circuit layout designs, trade secrets, and computer software—provided such disputes arise within the jurisdictions of Xuzhou, Suqian, and Lianyungang—will fall under the court’s jurisdiction. Additionally, first-instance civil and administrative intellectual property cases concerning ownership or infringement of design patents, as well as those involving the determination of well-known trademarks, will also be heard by the Xuzhou Intermediate People’s Court when such matters occur within Xuzhou’s jurisdiction.
In recent years, the Xuzhou Intermediate People’s Court has accepted more than 8,000 intellectual property cases and concluded a number of landmark and novel‑type cases that have garnered significant national and provincial attention. The court has been repeatedly recognized by the National Copyright Administration as an “outstanding unit in investigating and prosecuting major infringement and piracy cases,” and several of its cases have been selected as exemplary instances—such as China’s Top Ten Classic Cases of Geographical Indication Trademark Protection, the National Copyright Administration’s Ten Typical Cases, and the National Top Ten Entertainment Law Cases.

Hunan Revises Standards for Compensation in Road Traffic Accident Cases and Liability Ratios
Recently, the Higher People’s Court of Hunan Province released information on the revised “Standards for Calculating Items of Compensation for Road Traffic Accident Damages in Hunan Province” and “Proportions of Liability for Damages in Major Types of Road Traffic Accidents in Hunan Province.” These two documents were jointly formulated by the Hunan High People’s Court in collaboration with the Hunan Provincial Public Security Department, the Hunan Provincial Department of Justice, and the Hunan Regulatory Bureau of the China Banking and Insurance Regulatory Commission.
It is reported that the pilot program for “online integrated data processing” of road traffic accident damage compensation disputes in Hunan Province has achieved significant results. Since the trial implementation on March 5, 2021, of the province’s standards for calculating compensation items and determining liability ratios in road traffic accidents, a total of 13,076 such cases have been mediated through the online integrated data‑processing platform, with a pre‑litigation mediation success rate of 65%. This has played an important role in swiftly resolving conflicts, properly handling disputes, and enhancing the quality and efficiency of judicial proceedings.
According to reports, this revision primarily addresses the standards for damage compensation. In terms of structure, the new standards cover 19 items, including medical expenses, treatment costs, and transportation expenses, and are presented in tabular form. For each compensation item, the calculation method, the necessary evidence that parties must provide, and explanations for special circumstances are clearly specified, facilitating swift application and accurate computation by relevant authorities and parties involved in accidents. Compared with the previous standards, the new version has revised the calculation criteria, methods, and evidentiary requirements for eight categories: loss of earnings, nursing expenses, nutritional allowances, inpatient meal subsidies, disability compensation, death compensation, living expenses for dependents, and compensation for mental distress. Specifically, the new standards define the calculation basis for loss of earnings applicable to individuals without a fixed income as “the average wage of employees in the same or similar industry in the jurisdiction of the court hearing the case, based on the preceding year’s figures”; set the cap for compensation for mental distress at “generally no more than RMB 100,000”; and establish the calculation bases for disability and death compensation as “the per capita disposable income of urban residents in Hunan Province for the preceding year, as published by the statistical authorities.” Additionally, the standards for nutritional allowances and inpatient meal subsidies have been increased.

The Anhui Provincial High People’s Court has strengthened pre-litigation mediation for nine categories of civil and commercial disputes.
To further advance the resolution of disputes at their source, the Anhui Provincial Higher People’s Court recently issued the “Plan on Strengthening Pre‑litigation Mediation for Nine Categories of Civil and Commercial Disputes.” The plan focuses on nine types of civil and commercial disputes that frequently arise—namely, private lending, marriage, sales contracts, financial loans, property service contracts, motor vehicle traffic accident liability, labor contracts, subrogation claims, and credit card matters—while reinforcing pre‑litigation mediation in key areas. Tailored to local conditions and employing targeted measures, the initiative seeks to promote province‑wide efforts to address disputes at their root.
The plan stipulates that, based on their respective circumstances, courts across the province shall select two types of disputes from the aforementioned nine categories of civil and commercial disputes as priority areas for intensified pre-litigation mediation this year. In light of the fact that many of these disputes arise in the form of series of cases, the plan emphasizes the promotion of a dispute-resolution model featuring “type‑based exemplary judgments plus mediation,” leveraging the advantages of case‑type adjudication by designating individual cases to set precedents, thereby guiding the non‑litigious resolution of similar disputes through impartial rulings. During the mediation and adjudication of these nine categories of civil and commercial disputes, targeted judicial recommendations will be put forward addressing salient issues in social governance and routine administration, with the aim of encouraging relevant authorities to strengthen source‑level management of conflicts and disputes and fostering a coordinated effort to resolve them. Furthermore, in line with the characteristics of these nine categories of civil and commercial disputes, typical cases will be regularly publicized to the public, clarifying standards for adjudication and enhancing the public’s ability to anticipate dispute resolution outcomes and judicial decisions.

Other other
The Tangshan assault case is being investigated and handled by the Langfang police; the CPC Central Commission for Discipline Inspection website states: Zero tolerance is imperative.
On June 10, a case in which several men harassed and assaulted a young woman at a barbecue restaurant in Tangshan, Hebei Province, drew widespread attention.
On the evening of the 11th, the official Weibo account of the Guangyang Branch of the Langfang Municipal Public Security Bureau in Hebei Province announced that, pursuant to jurisdictional designation by the Provincial Public Security Department, the case involving provoking trouble and violently assaulting others at a barbecue restaurant in Lubei District, Tangshan City, is being investigated and handled by the Guangyang Branch of the Langfang Municipal Public Security Bureau. The bureau stated it will strictly handle the case in accordance with the law and voluntarily accept public oversight.
The CPC Central Commission for Discipline Inspection website commented on the Tangshan assault incident: To safeguard a safe and peaceful environment, we must maintain zero tolerance and remain unwavering in our efforts.
On the evening of June 11, the official WeChat account of the website of the Central Commission for Discipline Inspection and the National Supervisory Commission published a video commentary titled “Commentary on the Tangshan Barbecue Restaurant Assault Incident: Safeguarding a Safe Environment Requires Zero Tolerance and Unrelenting Vigilance.” The commentary stated:
In the early hours of June 10, a heinous incident in a barbecue restaurant in Tangshan—where individuals provoked trouble and violently assaulted others—sparked widespread outrage across the country. In broad daylight and under the public’s watchful eyes, this appalling violence brazenly violated the boundaries of the law and eroded the public’s sense of security. Online, calls for “severe punishment of the perpetrators” have grown louder with each passing moment. As the law is both all‑encompassing and unforgiving, Tangshan police announced this afternoon that all those involved have now been apprehended.
Peace and security are fundamental to the well-being of the people. Such violent acts that endanger public safety must be met with zero tolerance, and perpetrators must be swiftly and severely punished in accordance with the law, so as to provide justice for the victims and ensure a safe living environment for the public. The essence of good governance lies in safeguarding the people’s peace. In recent years, we have launched a vigorous special campaign to eradicate organized crime and evil forces, strengthened comprehensive measures to maintain social order, and made China one of the safest countries in the world. Yet, to preserve this sense of security, we must remain steadfast in our efforts and persevere over the long term.

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