JC Master Legal News Issue 1025

Key Takeaways for This Issue

This year, securities offices’ asset management and public fund self-purchases have exceeded RMB 3.1 billion, with more than 70% of products posting positive returns.
 According to Wind data, as of July 13, 74 public fund management companies and 10 securities‑office asset management subsidiaries have purchased shares in 207 of their own funds, with total investments amounting to RMB 3.163 billion—up 34% year over year.
Jingu Shares Secures Designation for a New-Energy Vehicle Project; Avatar Wheels Pioneers Automotive Lightweighting
On July 15, 2022, JinGu Co., Ltd. (002488.SZ) announced that it had recently received a designated‑supplier notice from Zhejiang Leapmotor Technology Co., Ltd. (hereinafter referred to as “Leapmotor”). The company will serve as a wheel supplier for Leapmotor, developing an Avatar low‑carbon wheel product for the Leapmotor T03 model.
Tax Services Are Highly Effective, Making Tax Refunds and Reductions Even More Powerful
This year’s new package of tax and fee support policies features large-scale tax refunds, substantial tax reductions, widespread tax exemptions, and significant tax payment deferrals. Each of these “large” measures underscores both the importance and the considerable challenges of this undertaking.
Knowing the difficulties yet not speaking of them, facing challenges without fear—this is the spirit. The State Taxation Administration promptly issued detailed plans for implementing the new package of tax and fee support policies. Party Secretary and Director Wang Jun emphasized that, as the primary agency responsible for policy execution, the tax authorities bear a heavy responsibility and a glorious mission. They must officely shoulder their political duty to ensure thorough implementation, proactively step up and take action, and apply a meticulous, persistent approach to delivering results. He also explicitly called for “effective service.” Across the national tax system, efforts have been effectively coordinated along the taxpayer‑service front, with a work style characterized by speed, stability, precision, and practicality, continuously refining service measures. This ensures that the tangible benefits of tax refunds and reductions reach businesses as swiftly as possible, thereby providing stronger support for stabilizing the overall macroeconomic landscape.
The Shanghai Higher People’s Court has issued 23 guidelines to support and safeguard the development of Shanghai as a leading city in intellectual property.
In order to implement the decisions and arrangements of the CPC Central Committee, the Municipal Party Committee, and the Supreme People’s Court, and to meet the demands of the new era, Shanghai has comprehensively strengthened judicial protection of intellectual property rights, providing robust judicial services and safeguards for building the city into a leading hub for IP innovation. On July 13, 2022, the Shanghai Higher People’s Court (hereinafter referred to as “Shanghai High Court”) held a press conference to release the “Opinions on Strengthening Intellectual Property Adjudication in the New Era to Provide Strong Judicial Services and Safeguards for Building Shanghai into an IP Powerhouse” (hereinafter referred to as the “Opinions”).

Finance & Capital Markets
This year, securities offices’ asset management and public fund self-purchases have exceeded RMB 3.1 billion, with more than 70% of products posting positive returns.
Since the beginning of this year, securities offices’ asset management divisions and public fund companies have engaged in large-scale self‑purchases.
According to Wind data, as of July 13, 74 public fund companies and 10 securities‑office asset management offices have purchased shares in 207 of their own funds this year, with total investments amounting to RMB 3.163 billion—up 34% year over year.
Among them, public mutual fund companies remain the primary buyers, with cumulative self‑purchases totaling RMB 2.432 billion so far this year. The funds purchased primarily include hybrid funds, equity funds, bond funds, and FOFs, accounting for RMB 800 million, RMB 636 million, RMB 515 million, and RMB 340 million, respectively. Notably, four public fund offices—Southern Fund, ICBC Credit Suisse Asset Management, GTAM, and Xingzheng Global Fund—each recorded self‑purchase amounts exceeding RMB 100 million.
Securities‑office asset management offices have also been active in self‑purchases, with cumulative investments totaling RMB 742 million. The products purchased include bond funds, hybrid funds, and equity funds, accounting for RMB 460 million, RMB 221 million, and RMB 40 million, respectively.
However, in terms of individual offices’ self‑purchases, Huatai Securities Asset Management currently ranks first among securities‑office asset managers and public fund companies with 330 million yuan, while Changjiang Securities Asset Management holds third place with 200 million yuan, and Guotai Junan Asset Management is sixth with 100 million yuan. From 2019 to 2021, few securities‑office asset managers made such sizable self‑purchases.
In response, Huatai Securities Asset Management stated: “Investing in our own products with proprietary capital is primarily driven by confidence in the company’s upgraded investment and research framework and in the development of China’s capital markets. Upholding a long-term investment philosophy, we seek to share risks, align interests, and pursue common opportunities with our broad base of fund investors.”
“Public‑fund and securities‑office asset management offices’ self‑purchases are primarily driven by the desire to bolster market confidence and their optimistic outlook on the long-term prospects of their products. By purchasing their own funds and committing to hold them over the medium to long term, these institutions align their interests closely with those of investors, which helps to restore market confidence and directly and indirectly support the subsequent performance of their fund products,” said Chen Mengjie, Chief Strategy Analyst at Yuekai Securities Research Institute.
Of course, the proactive self‑purchases by securities offices’ asset management units and public fund companies would not have been possible without the continued support of regulators. Following a special meeting of the State Council’s Financial Stability Committee on March 16, the CPC Committee of the China Securities Regulatory Commission convened an expanded session to convey and study the spirit of the meeting, calling for leveraging the market’s endogenous stabilization mechanisms, vigorously promoting improvements in the quality of listed companies, encouraging them to increase share buybacks and additional purchases, and guiding fund companies to invest in their own funds. In May, the Shanghai Stock Exchange stated that it was exploring measures to facilitate share repurchases and additional holdings by listed companies as market‑stabilizing actions, while continuing to support and encourage asset management institutions and professionals to make self‑purchases and to work in concert with efforts to bring long-term investors into the market.
As can be seen, securities offices’ asset management units and public mutual funds concentrated their self‑purchases in March and April, with total self‑purchase amounts of RMB 568 million and RMB 604 million, respectively. In terms of the performance of the products they purchased, since the beginning of this year, among the funds bought by public fund companies and securities‑office asset managers, approximately 155 have posted positive returns, accounting for 75%.
The strategy team at Huaxi Securities notes that a surge in the scale of self‑purchases by public mutual funds does not necessarily signal a buying opportunity. However, when the market declines by a certain magnitude or persists at lower levels for an extended period, large‑scale self‑purchases by public funds often serve as one of the indicators that the market is forming a bottom.

Several brokerage offices are set to submit their proposals to seek approval for market-making on the STAR Market.
Recently, brokerage offices including CITIC Securities, CITIC Securities Investment, and China Merchants Securities have all approved at the corporate level their respective plans for providing market-making services on the STAR Market. According to reports, these approved proposals will be submitted to the regulators in order to apply for pilot qualification to engage in STAR Market market-making. At present, at least a dozen brokerage offices have already completed these steps, suggesting that the launch of STAR Market market-making services may be just around the corner.
According to interviews conducted by Securities Times reporters, market-making on the STAR Market will bring multiple benefits to securities offices. In addition to generating tangible incremental profits, this business can be integrated with a range of other functions—such as investment banking deal origination, strategic co‑investment, research‑based pricing, and over-the‑counter options structuring—thereby enhancing offices’ operational synergy and comprehensive service capabilities and strengthening their core competitiveness.
Several securities offices have implemented market-making programs.
The official launch of market-making on the STAR Market is drawing ever closer, with numerous securities offices submitting their proposed plans to regulators.
Recently, the Board of Directors of CITIC Securities approved the “Proposal on Conducting Market-Making Trading in STAR Market Stocks.” Under this proposal, the Board has authorized the company to engage in market-making trading of STAR Market stocks and empowered the company’s management to apply for the relevant business qualifications and complete the requisite approval and filing procedures in accordance with regulatory requirements. The Board also agreed that the market-making activities will be conducted within the annual proprietary investment limit approved by the shareholders’ meeting, and delegated to the management team the authority to prudently determine the scale of proprietary funds allocated to such market-making operations, taking into account business development needs, the company’s risk‑bearing capacity, supporting operational plans, and prevailing market conditions.
Meanwhile, the Board of Directors of CITIC Securities recently reviewed and approved the “Proposal on Applying to Conduct Market-Making Trading in STAR Market Stocks,” agreeing to launch market-making activities for STAR Market securities and to submit applications to the regulatory authorities for both a license to engage in listed‑security market‑making and pilot qualification for STAR Market stock market‑making. The Board also authorized the company’s management to, upon obtaining regulatory approval, carry out business under the respective licenses and pilot qualifications in accordance with applicable laws, regulations, and trading rules, and further authorized management to handle all procedures related to applying for these business qualifications.
In addition, it is worth noting that brokerage offices including China Merchants Securities, Tianfeng Securities, Galaxy Securities, Zhejiang Commercial Securities, Zhongtai Securities, and Founder Securities have also approved similar proposals.
In mid-May, the China Securities Regulatory Commission issued the “Pilot Provisions on Market-Making Trading of STAR Market Stocks by Securities Offices” (hereinafter referred to as the “Pilot Provisions”), stipulating that securities offices seeking pilot qualification for market-making trading of STAR Market stocks must submit to the CSRC a resolution from their shareholders’ meeting or board of directors authorizing the commencement of such market-making activities.
Accordingly, numerous securities offices have reviewed and approved the relevant proposal documents at the corporate level and will subsequently submit the requisite materials to the regulators in due course.
Zhejiang Securities stated, “The Pilot Provisions set forth requirements regarding eligibility criteria and admission procedures. As one of the securities offices that meets the stringent eligibility standards, the company intends to apply to the China Securities Regulatory Commission for qualification to conduct market-making trading in STAR Market stocks and to commence related business operations.”
“The company has fully met the basic requirements for conducting this business as stipulated in the Pilot Regulations, and has undertaken a series of preparatory measures across its institutional framework, risk management, personnel organization, and technological systems,” said Founder Securities.
Market-making activities refer to the provision of two-sided quotes for STAR Market stocks or depositary receipts by securities offices. To engage in such activities, offices must meet several requirements, including holding proprietary trading qualifications, maintaining net capital of no less than RMB 10 billion over the most recent 12 months, achieving a regulatory classification rating of A‑class, A‑level or higher over the past three years, and ensuring that their net capital and other risk‑control indicators have continuously complied with prescribed standards over the past 18 months.
Drive the coordinated development of other business lines
“Market-making trading can better serve the company’s clients. By integrating with investment banking project origination, strategic co‑investment, research‑driven pricing, and over-the-counter options structuring, it extends the client service value chain, helping to drive the growth of investment banking, investment management, wealth management, and research functions, while fostering business synergy and enhancing our overall service capabilities, thereby strengthening the company’s core competitiveness,” said Zhejiang Securities.
According to Guoxin Securities, engaging in market-making activities for STAR Market stocks will, on the one hand, help broaden the office’s market-making product lineup and enhance its market-making capabilities; on the other hand, it will foster effective synergy with the office’s investment banking and other business lines, thereby strengthening its market‑brand presence among leading securities offices.
It is understood that, while fulfilling their market-making obligations—such as providing two-sided continuous quotes and responding to quotes for STAR Market stocks—securities offices can generate revenue from the bid-ask spread. Participating in market making on the STAR Market can introduce a new profit model for these offices, helping to enhance the stability of their financial performance.
According to Caitong Securities’ estimates, assuming brokerage offices maintain market‑making positions worth 1% to 4% of their total equity holdings, the overall market‑making scale on the STAR Market could range from RMB 50 billion to RMB 210 billion. Under a neutral scenario—where the introduction of market makers boosts daily trading volume to RMB 55 billion, with a bid‑ask spread of 0.5% and market‑making accounting for 20% of total trading—the annual incremental revenue is projected to be approximately RMB 10 billion to RMB 13 billion. Based on a 90% profit margin, the corresponding incremental profit would amount to roughly RMB 9 billion to RMB 11.7 billion.

The STAR Market is set to mark its third anniversary, with securities offices’ co‑investment positions generating unrealized gains exceeding RMB 10 billion.
The STAR Market co‑investment is one of the tests of a securities office’s investment banking capabilities.
From July 22, 2019, to the present, the STAR Market has been trading for nearly three years. According to Wind data, as of July 11, the shares of 120 STAR‑Market stocks in which securities offices participated through follow‑on investments have become eligible for trading (with a 24‑month lock‑up period). On the date the lock‑ups expired, the alternative investment subsidiaries of 40 securities offices collectively reported unrealized gains totaling RMB 10.05 billion.
Due to the capital‑scale advantages of leading securities offices, their alternative‑investment subsidiaries have become the dominant equity‑investment players in the market. Over the past three years, CITIC Securities Investment, the investment arm of “top-tier” brokerage CITIC Securities, has posted the highest unrealized gains from co‑investments, totaling RMB 1.414 billion. To date, the shares of nine STAR Market stocks in which it has co‑invested have been unlocked, and as of the lock‑up expiration, all have generated positive unrealized returns; among them, Bochu Electronics has delivered the largest gain, at RMB 350 million. CICC Wealth, under CICC, ranks second, with its co‑investments in 15 STAR Market stocks now unlocked and generating RMB 1.18 billion in unrealized gains; Kingsoft Office has contributed the highest return for the office, amounting to RMB 503 million. Zhenyu Investment, a subsidiary of Guotai Junan, rounds out the top three, with its co‑investments in six STAR Market stocks now unlocked and yielding RMB 972 million in unrealized gains, led by Haier Biomedical, which has generated the largest return at RMB 273 million.
Over the past three years, as of the lock-up expiration date, five securities‑office subsidiaries have recorded unrealized gains exceeding RMB 500 million from their strategic investments in STAR Market‑listed companies. These include Huatai Innovation Investment under Huatai Securities, Haitong Innovation under Haitong Securities, Guoxin Capital under Guoxin Securities, GF Qianhe under GF Securities, and CITIC Securities Investment under CITIC Securities. Their respective unrealized gains stand at RMB 894 million, RMB 876 million, RMB 696 million, RMB 674 million, and RMB 508 million.
Four securities offices each have alternative‑investment subsidiaries whose net profits have exceeded RMB 1 billion. In the 2021 “subsidiary‑driven” competition among securities offices, CITIC Securities Investment stood out, becoming the most profitable subsidiary of CITIC Securities.
As a institutional innovation on the STAR Market, the co‑investment regime requires securities offices to deploy their own capital in co‑invested projects. At present, approximately eight securities offices’ alternative investment subsidiaries have co‑invested in projects that remain in a paper‑loss position as of the lock‑up expiration date. Since the beginning of this year, the STAR Market stocks that have already “unlocked” have generated a cumulative paper profit of RMB 3.003 billion for these alternative investment subsidiaries.
As the STAR Market approaches its third anniversary, the lifting of share‑lockup restrictions on certain stocks may exert some influence on trading turnover and other market metrics. From July 12 through the end of the month, another 20 STAR‑Market stocks will see their brokerage‑office co‑investment shares become eligible for trading. According to CICC, July is set to mark this year’s peak in share‑unlock events on the STAR Market, accounting for roughly one quarter of the total unlock volume for the entire year.
On May 13, the China Securities Regulatory Commission issued the “Pilot Provisions on Market-Making Trading of STAR Market Stocks by Securities Offices,” introducing a market-making mechanism. Under this framework, market makers continuously and simultaneously quote both bid and ask prices, which helps enhance market liquidity, dampen market volatility, and boost overall market activity.
To this end, many securities offices that meet the “hard criteria” are actively preparing to secure one of the first‑batch pilot qualifications. As of now, at least 13 brokerage offices—including CITIC Securities, CITIC Securities Investment, and Huatai Securities—have publicly stated their intention to apply for permission to conduct market‑making trading in STAR Market stocks.
Chen Li, Chief Economist and Director of the Research Institute at Chuan Cai Securities, stated: “For securities offices, market-making on the STAR Market represents an incremental source of revenue, but it also places greater demands on their professional pricing and trading capabilities, making it a double-edged sword. Offices with strong research and valuation expertise will stand to benefit significantly from this business.”

Six major foreign institutions forecast the second half of the year: China’s economy continues to recover, and A-shares are expected to remain the global market leader.
Since the beginning of this year, China has rolled out a comprehensive package of policies to stabilize the economy, helping it accelerate its recovery and improve. As a result, the country’s appeal to foreign investors has been steadily growing. On July 14, representatives from six major foreign financial institutions—including Citibank, Standard Chartered, Goldman Sachs, UBS, BlackRock, and AllianceBernstein—generally agreed that China’s economic recovery is highly likely to continue in the second half of the year, with the stock market expected to remain the standout performer, and the trend of increased foreign investment in A‑shares set to persist.
Incremental policies for the second half of the year
Consolidate the recovery momentum
Many foreign-invested institutions generally believe that, as policies to stabilize the economy gradually take effect, China’s economy is showing a recovery and rebound trend unmatched by other economies. “China is on the opposite side of the economic cycle and is steadily recovering,” said Wang Xinjie, Chief Investment Strategist at Standard Chartered.
Zhu Liang, Investment Director at Lianbo Huizhi, stated that, amid persistently high inflation in several overseas economies and a global tightening of liquidity, China’s inflation remains moderate and well-contained, relieving upward pressure on interest rates and allowing for looser monetary conditions. At the same time, this creates greater room to implement an expansionary fiscal policy, fostering a favorable environment for local governments to secure financing and support economic development going forward.
Yu Xiangrong, Chief Economist for China at Citigroup, stated that supply-side challenges in the domestic economy have improved markedly, but demand-side recovery will still take time. Infrastructure investment remains the main driver of growth, while real estate and household consumption will require further support in the second half of the year.
“The government is expected to adopt more proactive policy measures—such as adjusting down payment ratios, lowering mortgage interest rates, and easing home-purchase restrictions—to further restore homebuyers’ confidence,” said Yu Xiangrong. He added that real estate support policies will remain in place until sales and investment return to a healthy trajectory.
On the consumer front, Hu Yifan, Head of Investment and Chief Economist for Asia Pacific at UBS Wealth Management, believes that the key driver of consumption growth in the second half of the year will be the recovery of the service sector. “Based on high-frequency data, the services sector is currently only at 50% to 60% of its 2019 level. As the impact of the pandemic continues to wane, both service‑sector spending and overall consumption are poised for a rebound,” Hu said.
BlackRock’s Chief China Economist, Song Yu, also believes that, from both macro and micro perspectives, policies aimed at stabilizing the economy are beginning to take effect, and the infrastructure sector is rebounding with policy support.
“In the second half of the year, infrastructure investment will continue to be a key lever for stabilizing growth. Looking ahead, infrastructure bottlenecks persist, and industrial upgrading and the energy transition will also require support from new‑type infrastructure. In the short term, infrastructure remains one of the government’s primary tools for swiftly boosting economic activity and underpinning growth,” Yu Xiangrong analyzed. He also forecast that full‑year infrastructure investment growth will rise from last year’s 0.4% to 7.7% this year, before moderating to around 5% in 2023.
Several foreign-invested institutions forecast that, as policies to stabilize the economy continue to be implemented and take effect, new policy tools may be introduced to further consolidate the recovery momentum.
Hu Yifan stated that fiscal policy will continue to exert its force, and we are now seeing the gradual introduction of additional measures, such as subsidies for new-energy vehicles and consumer‑oriented subsidies from local governments.
Yu Xiangrong shares a similar view, arguing that “in the second half of the year, the government may inject at least 1.5 trillion yuan in additional fiscal funds. Potential sources of this funding include advancing the allocation of next year’s special-purpose local government bond quotas, increasing the remittance of state‑owned enterprise profits, and unlocking idle surplus funds; however, the likelihood of issuing special treasury bonds or revising the budget is diminishing.”
A-shares continue to lead the way.
Foreign investment will continue to increase.
With the outlook for China’s economic recovery in the second half of the year becoming clearer, foreign-invested institutions generally believe that the Chinese stock market will continue to outperform other global markets.
Standard Chartered has upgraded its rating on both offshore and onshore Chinese equities in Asia (excluding Japan) to “Overweight.” Meanwhile, Goldman Sachs’ Portfolio Strategy team recently released a research report stating that the Chinese stock market has rebounded from valuation lows and, following a robust three-month recovery and outperformance, is expected to continue leading global markets. “Supported by a range of macroeconomic, policy, cyclical, and positioning factors, the Chinese equity market is likely to remain at the forefront of global markets, and we continue to recommend an overweight allocation to Chinese A‑shares and H‑shares.”
Zhu Liang stated that sentiment in China’s stock market has improved markedly. With steady‑growth policies continuing to exert their force, market liquidity is gradually easing, and downside risks in the Chinese equity market are lower than in other global markets. He remains optimistic about the performance of value‑style (undervalued) stocks and the carbon‑neutrality theme in the second half of the year.
Meng Lei, China equity strategy analyst at UBS Securities, stated that the widespread downward revision of earnings forecasts may be nearing its end by the end of the third quarter, at which point the market could see a more pronounced revaluation.
“Compared with global uncertainties, China’s economic recovery in the second half of the year is relatively certain. As the strength of the recovery becomes clearer, policy easing intensifies, macro liquidity remains ample, and credit growth continues to rebound, market sentiment is expected to improve gradually. Larger-scale off‑market capital is likely to flow into the stock market in September, helping it regain momentum. Consequently, any market pullbacks over the next two months will present attractive investment opportunities,” said Meng Lei.
Foreign-invested institutions generally believe that the share of foreign capital in the A-share market still has considerable room for growth, and they expect the trend of increased foreign investment in A-shares to continue in the second half of the year.
“Typically, a strong U.S. dollar triggers net capital outflows from emerging markets; however, the A-share market is currently experiencing robust net inflows of overseas capital,” notes Zhu Liang. On the one hand, thanks to China’s pro‑economic‑stability policies, market liquidity is gradually easing, and downside risks in the stock market are significantly lower than in other global markets. On the other hand, A‑share valuations remain relatively low compared with those of developed overseas markets, making them highly attractive to international investors. With considerable room for further increases in foreign ownership, the trend of rising foreign investment in A‑shares is expected to persist in the second half of the year.
Meng Lei stated that, historically, during periods of lower geopolitical risk and reduced global market volatility, northbound investors have typically engaged in net buying of A-shares.
Goldman Sachs’ strategy team believes that investor positioning has yet to fully reflect a more bullish sentiment. Active global mutual funds remain underweight Chinese equities by roughly 440 basis points, while emerging-market and Asian mutual funds also lag in their allocations to Hong Kong stocks and the Chinese‑concept equity sector.

Commercial & Corporate
Jingu Shares Secures Designation for a New-Energy Vehicle Project; Avatar Wheels Pioneers Automotive Lightweighting
On July 15, 2022, JinGu Co., Ltd. (002488.SZ) announced that it had recently received a designated‑supplier notice from Zhejiang Leapmotor Technology Co., Ltd. (hereinafter referred to as “Leapmotor”). The company will serve as a wheel supplier for Leapmotor, developing an Avatar low‑carbon wheel product for the Leapmotor T03 model.
Avatar’s low-carbon wheels secure the “first order for a new force in car manufacturing”
Leapmotor’s headquarters is located in the Binjiang High-Tech Development Zone of Hangzhou, and the company was jointly founded through investment by Zhejiang Dahua Technology Co., Ltd. and its principal founders. On July 1, Leapmotor released its June sales figures, revealing that the company delivered 11,259 vehicles in June—marking a new monthly record. In the first half of 2022, cumulative deliveries reached 51,994 units, representing a year-on-year increase of over 265%.
This time, JinGu Shares’ Avatar low-carbon wheels were developed for Leapmotor’s T03 model, which is currently its best-selling vehicle. According to publicly available online data, from January to June 2022, the T03 recorded total sales of 33,058 units, a year-on-year increase of 128.7%. In June 2022 alone, the Leapmotor T03 sold 6,411 units, accounting for 56.94% of Leapmotor’s overall sales.
The company stated that this marks the first time its Avatar low-carbon car wheels have officially secured a project designation from a leading domestic new‑energy vehicle manufacturer, signifying that the Avatar low‑carbon wheel product has been recognized by one of China’s top new‑energy vehicle startups.
Addressing the Pain Points of Lightweighting in New Energy Vehicles
Compared with conventional gasoline-powered vehicles, “range anxiety” has long been a major bottleneck hindering the development of new‑energy vehicles, while reducing the overall vehicle weight can significantly enhance their driving range. Although new‑energy vehicles have eliminated relatively heavy components such as the engine and transmission, they have also incorporated heavier battery packs; consequently, lightweighting remains a persistent challenge for automakers in the new‑energy sector.
According to reports, the Avatar low‑carbon wheel is a lightweight product developed by Jingu Co., Ltd. over a decade and launched at the end of 2020. Through advances in manufacturing processes and technological innovation, it significantly reduces wheel hub weight. Based on the industry’s widely accepted principle that “1 kg less unsprung mass equals 10 kg less sprung mass,” reducing the wheel hub’s weight can effectively lower the vehicle’s overall mass, helping new‑energy vehicles overcome the bottleneck in range development.
In recent discussions with investment institutions, the company stated that Avatar’s low‑carbon passenger‑car wheels boast an attractive design, weigh roughly the same as aluminum alloy wheels, and offer a significant cost advantage over their aluminum counterparts. Moreover, they help automakers reduce carbon emissions and achieve decarbonization goals.
In addition to securing ongoing project awards for Avatar’s low-carbon wheels, the company is actively advancing their transition to mass production. According to publicly available information, the company currently operates one production line for Avatar’s low-carbon wheels, with a capacity of 1 million units. The company plans to ramp up its annual production capacity to approximately 5 million units in 2023 and around 10 million units in 2024.
The collaboration between the Leapmotor T03 and Jingu Shares’ Avatar low‑carbon wheels will undoubtedly help expand market opportunities for the Avatar low‑carbon wheels. At the same time, the door to China’s new‑energy vehicle sector has already opened wide for the company. With the steady ramp-up of mass production for these low‑carbon wheels, Jingu Shares is poised to seize fresh growth prospects in the new‑energy space—particularly within the burgeoning ranks of new‑energy vehicle manufacturers.

In the first half of the year, China Construction’s newly signed orders exceeded RMB 2 trillion, with infrastructure contracts continuing to drive strong growth.
On the evening of July 15, China Construction (601668.SH) released a brief report on its operating performance for the first six months of 2022. The company’s cumulative value of newly signed contracts reached RMB 2.0245 trillion, up 10.8% year over year.
In the first half of 2022, the company’s construction business continued to post double-digit growth, with notable results in stabilizing overall growth. From January to June, new contracts signed in the construction segment totaled RMB 1.8385 trillion, up 14.4% year over year. Specifically, residential construction accounted for RMB 1.3175 trillion, a 9.1% year-on-year increase, with the growth rate accelerating compared to the first five months. Infrastructure projects generated RMB 514.8 billion, up 31.1% year over year, while survey and design services contributed RMB 6.2 billion. By region, domestic operations recorded RMB 1.7828 trillion, a 15.6% year-on-year increase, while overseas operations amounted to RMB 55.6 billion.
In June, China Construction secured new major projects totaling approximately RMB 42.19 billion, including the Guangzhou Fangcun–Baiyun Airport Intercity Railway EPC project in Guangdong, valued at RMB 18.48 billion; the Ziling–Daoxian Expressway EPC project in Hunan, worth RMB 4.5 billion; and the Terminal Area Works Package No. 1 of the Xiamen New Airport project in Fujian, with a contract value of RMB 3.9 billion.
In addition, China Construction recently secured land parcels in Jinan, Shandong, and Chaoyang District, Beijing. Specifically, China Construction Eighth Engineering Bureau acquired seven plots in Jinan’s Lixia District—three for residential use and four for commercial purposes—totaling an investment of RMB 8.216 billion. Meanwhile, China Construction Second Engineering Bureau invested in a real estate development project on Plot 029 in Taiyanggong, Chaoyang District, Beijing, with a total investment of approximately RMB 8.157 billion. In the first half of 2022, the company’s total land reserves amounted to 100.11 million square meters, with 5.57 million square meters of newly acquired land, ensuring ample land holdings.
Regarding cash dividends, China State Construction Engineering Corporation announced on June 22 its 2021 annual equity distribution plan, proposing a cash dividend of RMB 0.25 per share (inclusive of tax), based on a total share capital of 41,940,858,844 shares. The total cash dividend payout is approximately RMB 10.485 billion, reafofficeing the company’s long-standing commitment to actively rewarding shareholders. The company stated: “Over the next three years, the annual dividend payout ratio will be increased to no less than 16%, and the cumulative dividends distributed over the past three years will amount to at least 30% of the average annual distributable profits for that period.”
On July 15, the National Bureau of Statistics released data on the country’s economic performance for the first half of the year, showing that China’s GDP grew by 2.5% year-on-year. Fu Linghui, spokesperson for the National Bureau of Statistics and Director-General of the Department of Comprehensive Statistics on National Economy, stated that the fundamental trend of long-term economic improvement remains unchanged, with the economy demonstrating strong resilience, substantial potential, and ample room for growth. As a series of policies and measures to stabilize growth take effect, the national economy is expected to gradually recover and maintain steady expansion. Amidst a complex domestic and international environment, China Construction continues to expand its operations and sustain a high-quality development trajectory, and is anticipated to continue benefiting as these stabilization measures yield results.

Yifang Bio plans to launch an initial public offering of 115 million shares, focusing on major therapeutic areas such as oncology and metabolic diseases.
On July 14, Yifang Biotechnology (Shanghai) Co., Ltd. (hereinafter referred to as “Yifang Bio”) launched its online subscription. The company is issuing 115 million new shares, representing 20.00% of the total share capital after the offering. Based on the issue price of RMB 18.12 per share, the net proceeds are expected to amount to RMB 1.982 billion, with a price‑earnings ratio of 33.07 times.
 Publicly available information indicates that Yifang Bio is an innovative drug‑development company rooted in China with a global outlook, focusing on major therapeutic areas such as oncology and metabolic diseases. Leveraging its extensive drug‑development expertise and experience, the company has independently developed a portfolio of patented, innovative targeted therapies covering cancers including non‑small cell lung cancer, breast cancer, and colorectal cancer, as well as metabolic disorders like hyperuricemia and gout. With strong R&D capabilities, all products currently in its pipeline are internally developed and protected by global intellectual property rights, and the company has established strategic collaborations with numerous renowned domestic and international pharmaceutical offices, including Betta Pharmaceuticals and Pfizer.
Currently, Yifang Bio has licensed several products. Among them, BPI‑D0316, a third‑generation EGFR inhibitor indicated for the treatment of non‑small cell lung cancer, was licensed following the company’s approval to initiate a Phase II clinical trial and is expected to generate revenue upon regulatory approval and market launch. As of June 23, 2022, the Phase II registration clinical trial of BPI‑D0316 in the second‑line setting has been completed, with marketing approval anticipated in 2022. Additionally, patient enrollment for the Phase II/III registration clinical trial evaluating BPI‑D0316 as first‑line therapy has been finalized, and the trial remains ongoing.
As of the date of signing the prospectus, the company’s product pipeline includes one product in the New Drug Application stage, three products in clinical trials, and five preclinical research projects. The pipeline spans multiple stages, from Phase I to the New Drug Application (NDA), with the development progress of all four core products ranking among the top globally or in China.
Achieving numerous impressive results would not have been possible without the company’s strong emphasis on research and development. According to the prospectus, the company’s R&D expenditures for 2019–2021 were RMB 133 million, RMB 1.008 billion, and RMB 315 million, respectively.
Yifang Bio stated that, going forward, the company will continue to focus on drug targets with large patient populations and unmet therapeutic needs, concentrating on the research and development of innovative targeted therapies for oncology and metabolic diseases. Leveraging its technological strengths in precision target screening, drug molecule design, pharmacology and translational medicine, chemical process and formulation development, as well as clinical protocol design and execution, the company will steadily increase R&D investment, accelerate the clinical development of its existing product pipeline, and promptly bring superior, innovative medicines to patients.
Yanhua Shares forecasts its first-half net profit to more than triple, driven by sharp price increases in potassium chloride and lithium carbonate.
On July 14, Yanhua Co., Ltd. released its performance forecast for the first half of 2022, projecting a net profit of RMB 9.0 billion to RMB 9.4 billion, up 325.63% to 344.55% year over year. The company also expects non‑recurring‑item‑adjusted net profit to range from RMB 8.9 billion to RMB 9.3 billion, representing a year‑on‑year increase of 323.51% to 342.54%.
In the first half of the year, Yanhua Co., Ltd.’s two core businesses—potassium chloride and lithium carbonate—both enjoyed robust market conditions.
During the reporting period, the company’s core business—potassium chloride—exhibited stable production and sales, with output reaching approximately 2.64 million tonnes and sales totaling about 2.96 million tonnes. Lithium carbonate production stood at roughly 15,200 tonnes, while sales amounted to approximately 15,000 tonnes. It is understood that Salt Lake Co., Ltd. currently has a potassium chloride production capacity of 5 million tonnes per year, making it the largest producer of potassium chloride in China and accounting for more than 60% of the country’s total capacity.
During the reporting period, market prices for potassium chloride and lithium carbonate continued to rise, resulting in a substantial year-on-year increase in the company’s performance. According to data from Zhuochuang Information, the ex‑factory prices of Salt Lake Co., Ltd.’s potash fertilizer were RMB 3,500 per ton in April, RMB 3,980 per ton in May, and RMB 4,480 per ton in June.
“Amid tight supply‑demand balance and geopolitical disruptions, potassium chloride prices have entered an upward trajectory,” said Li Yonglei, an analyst at Guohai Securities. In 2022, the global potash fertilizer market posted an actual supply‑demand gap of roughly 8 million tonnes. Thanks to robust technological safeguards and economies of scale, Salt Lake Co., Ltd.’s potash products enjoy a cost advantage and boast the highest gross margin in the industry, positioning it to benefit from the current favorable cycle in potassium chloride pricing.
In addition to being the leading producer of potash fertilizer, Salt Lake Co., Ltd. is currently the largest domestic enterprise engaged in lithium extraction from salt lakes, with an existing lithium carbonate production capacity of 30,000 tons per year.
Amid a supply shortage of lithium carbonate, Salt Lake Co., Ltd. is actively expanding its production capacity. On May 27, the company announced that it plans to invest approximately RMB 7.082 billion to build a new 40,000-ton-per-year integrated basic lithium salt project, with a proposed construction plan to produce 20,000 tons per year of battery-grade lithium carbonate and 20,000 tons per year of lithium chloride.
On June 26, Yanhuhu Co., Ltd. also announced that the lithium‑carbonate precipitation unit of its controlling subsidiary, Lanke Lithium, has completed all commissioning tests for the 20,000‑ton‑per‑year battery‑grade lithium carbonate project, with the product’s main component meeting battery‑grade specifications. Currently, the company’s daily lithium carbonate output remains stable at over 100 tons.
Since last year, lithium carbonate prices have been steadily rising, reaching new record highs this year. According to the latest data from Shanghai Steel Bund, on July 13, the average domestic price of battery-grade lithium carbonate stood at RMB 472,500 per tonne, up RMB 1,000 per tonne from the previous day and a staggering 890% higher than at the beginning of 2021.
The research report indicates that the lithium industry is currently experiencing robust supply and demand, with lithium carbonate prices at historic highs. China boasts abundant lithium resources, predominantly in the form of salt‑lake deposits, and Salt Lake Co., Ltd. is well positioned to fully capitalize on the strategic benefits arising from the large‑scale development of Qinghai’s salt lakes.
“The prices of upstream lithium‑mining resources and lithium‑salt products are likely to remain at elevated levels with only modest fluctuations for the foreseeable future,” said Qi Haishen, President of Beijing Teyi Sunshine New Energy. He added that, as lithium‑mining projects and lithium‑salt processing capacity have gradually come online over the past two years and supply chains have steadily normalized, the supply‑demand balance for lithium‑mining commodities and lithium‑salt products should eventually stabilize. Meanwhile, the competitive landscape of the lithium‑battery sector—led by the new‑energy vehicle industry—has largely taken shape, and barriers to entry in the industry remain relatively high. As a result, leading companies are poised to reap greater benefits from the predictable growth opportunities brought by next‑generation power batteries and emerging energy‑storage systems.
In Qi Haishen’s view, lithium resources are relatively scarce, with robust and inelastic downstream demand and strong willingness among buyers to secure supplies at elevated price levels. Consequently, the likelihood of a substantial and sustained decline in the prices of lithium ore and lithium salts is low.
Qu Yinfei, a lithium analyst with the New Energy Division of Shanghai Steel Union, also noted that lithium carbonate supply will see only limited year‑long growth, constrained by a shortage of spodumene and a slow ramp-up in capacity utilization. If demand picks up as expected in the second half of the year, lithium carbonate prices are likely to remain elevated, and industry sentiment is expected to stay robust.

Taxation
Tax Services Are Highly Effective, Making Tax Refunds and Reductions Even More Powerful
There is no end to optimizing tax services.
This year’s new package of tax and fee support policies features large-scale tax refunds, substantial tax reductions, widespread tax exemptions, and significant tax payment deferrals. Each of these “large” measures underscores both the importance and the considerable challenges of this undertaking.
Knowing the difficulties yet not speaking of them, facing challenges without fear—this is the spirit. The State Taxation Administration promptly issued detailed plans for implementing the new package of tax and fee support policies. Party Secretary and Director Wang Jun emphasized that, as the primary agency responsible for policy execution, the tax authorities bear a heavy responsibility and a glorious mission. They must officely shoulder their political duty to ensure thorough implementation, proactively step up and take action, and apply a meticulous, persistent approach to delivering results. He also explicitly called for “effective service.” Across the national tax system, efforts have been effectively coordinated along the taxpayer‑service front, with a work style characterized by speed, stability, precision, and practicality, continuously refining service measures. This ensures that the tangible benefits of tax refunds and reductions reach businesses as swiftly as possible, thereby providing stronger support for stabilizing the overall macroeconomic landscape.
A recent survey conducted by the State Taxation Administration among 15,000 taxpayers shows that 98.05% are satisfied with the tax authorities’ implementation of the new package of tax and fee support policies; 96.06% find it highly convenient to handle related procedures; and 92.75% report a clear sense of benefit from these policies.
Proactive service—taking the lead.
In March, the state rolled out a new package of tax and fee support policies. Just days later, Cui Yongming, general manager of Jilin Yanbian Jingyu Biomass New Materials Co., Ltd., received policy‑related information from the tax authorities. “We’ve gotten it via both the WeChat group and email,” he said. “The tax department has carefully organized the relevant details, explained everything clearly, and taken a very proactive approach.”
Cui Yongming’s personal experience serves as a vivid illustration of the tax authorities’ proactive efforts to provide support as the new package of tax and fee relief policies is implemented.
According to a responsible official from the Taxpayer Services Department of the State Taxation Administration, to ensure that policies are implemented more effectively and in greater detail, tax authorities at all levels have been proactively and front‑loaded in delivering taxpayer services.
The State Taxation Administration promptly issued a series of documents, including the “Work Plan for Further Implementing the Package of Tax and Fee Support Policies” and the “Work Plan for Further Enhancing Taxpayer Services Related to Value-Added Tax Credit Refunds,” thereby advancing taxpayer services with higher standards and stricter requirements.
In accordance with requirements, tax authorities across the country have proactively integrated the effective implementation of the new package of tax and fee support policies with special initiatives such as the “Doing Practical Things for Taxpayers and Payers” campaign, the “Spring Breeze Action for Convenient Tax Services,” the “Spring Rain Nurtures Seedlings” program, the “SME Service Month,” and the “Tax Publicity Month,” thereby carrying out pragmatic and targeted policy‑promotion activities. Since the beginning of this year, tailored to the specific needs of local taxpayers and payers, tax agencies at all levels have produced and launched nearly 4,000 distinctive promotional materials on tax and fee support measures for small and medium-sized enterprises, conducted more than 30,000 specialized briefings and training sessions, and reached over 9.5 million taxpayer and payer instances. Leveraging the electronic tax bureau, they have also intensified the precision‑targeted dissemination of these new policy packages, reaching a total of 435 million taxpayer and payer instances.
In addition, the tax authorities have established mechanisms and streamlined channels to proactively listen to the concerns of taxpayers and payers and promptly address the challenges they face.
Since April, the State Taxation Administration has established a “3×100” direct‑liaison mechanism for implementing tax and fee support policies, setting up 100 grassroots tax bureau liaison points, 100 taxpayer service hall liaison points, and 100 taxpayer liaison points in each province (autonomous region, municipality) nationwide, to directly solicit feedback from the front lines. To date, a total of 129 issues, suggestions, and opinions requiring focused study and response have been identified and forwarded to relevant business departments and working groups for analysis and improvement; responses and feedback on these liaisons’ views have also been provided based on the progress of handling each case.
On May 31, Wang Jun chaired a video symposium with tax and fee service experience officers and business representatives, bringing together 10 tax and fee service experience officers from five provinces and five enterprise representatives to further solicit their views and gather insights into their needs and suggestions.
Starting June 3, tax authorities nationwide have launched a dedicated hotline—“Tax Refund and Tax Reduction Feedback Line”—on the 12366 taxpayer service hotline to solicit feedback from taxpayers, payers, and all sectors of society on the implementation of the new package of tax and fee support policies.
In accordance with the State Taxation Administration’s unified requirements, tax authorities across the country have actively launched the “Walk the Process, Listen to Suggestions” campaign for VAT credit refunds. Through methods such as “handling it myself,” “accompanying taxpayers,” and “experiencing the process firsthand,” they have promptly identified bottlenecks, difficulties, and pain points in the implementation of the new package of tax and fee support policies. By soliciting constructive ideas and solutions from multiple stakeholders, they have swiftly addressed these issues and effectively alleviated the challenges faced by taxpayers and payers. As of July 7, tax authorities nationwide have invited more than 22,000 representatives—including deputies to people’s congresses at all levels, members of the Chinese People’s Political Consultative Conference, special supervisors, and tax‑and‑fee service experience officers—to participate in activities such as “hands‑on operation,” “accompanying taxpayers in the service hall,” “experiencing the process on the front lines,” and on‑site visits to enterprises. They have listened to and proactively responded to over 5,700 suggestions and opinions.
Implement new requirements with innovative measures.
For tax service agencies, policy publicity and consultation, tax administration services, and credit management constitute their core responsibilities. In light of the new requirements for implementing the package of tax and fee support measures, tax authorities across the country are emphasizing innovation, integrating routine operations with innovative approaches, and continuously enhancing the quality and effectiveness of taxpayer services.
In the area of policy communication and consultation, innovative approaches have been adopted to deliver targeted guidance. The new package of tax and fee support measures—particularly the large-scale value-added tax credit refund policy—requires swift implementation, stringent compliance standards, and coverage of a vast number of taxpayers. To ensure rapid and precise delivery of policy outreach and advisory services, tax service agencies at all levels have emphasized innovation and efficiency, continuously introducing new initiatives.
Tax authorities in Liaoning, Jilin, Heilongjiang, Dalian, and other regions have launched a “Northeast Three Provinces and One Municipality” one-stop tax‑and‑fee service, setting up dedicated counters at local tax service halls to help enterprises unable to return to their place of registration due to the pandemic promptly and efficiently access and benefit from relevant policies. In Guangdong, Guangxi, Sichuan, and other areas, tax authorities have enabled taxpayers and payers to “scan with one tap,” allowing them to submit requests that are routed directly to the tax authorities via QR codes. Meanwhile, the tax authority in Ruili City, Yunnan Province, has established the “Ruicheng Tax Heart” service station, staffed by seasoned professionals across multiple business areas. Leveraging telephone‑based remote assistance, video conferencing, WeChat group notifications, and QQ‑based remote support, the station has created a cloud‑based problem‑resolution mechanism featuring coordinated handling of both processing and inquiries, providing online guidance on complex system operations.
In the area of tax services, refinements have been made to deliver highly precise and attentive support. Exceptional service hinges on attention to detail, and tax administration is no exception. As part of the 2022 “Doing Practical Things for Taxpayers and Payers” initiative—also known as the Spring Breeze Campaign for Convenient Tax Services—the State Taxation Administration, with a focus on implementing the new package of tax and fee support policies, broke down and refined tax‑service procedures and categories. By zeroing in on the pressing concerns and challenges faced by taxpayers and payers, it rolled out 121 specific measures across five major categories and 20 sub‑categories, further advancing smart tax‑administration efforts and making services both more convenient and more finely tailored.
Building on this foundation, tax authorities across the country have introduced a series of tailored service initiatives that reflect local conditions. In Chengdu’s Jinniu District, Sichuan Province, the tax authority has set up a dedicated “Small and Micro Enterprise Refund Window” at its tax service hall, enabling these businesses to complete refund procedures in a one-stop manner. Meanwhile, the Qingdao Qianwan Bonded Port Area Tax Bureau has leveraged big data to create enterprise “feature codes” and customize “preferred‑service packages,” delivering targeted, personalized support based on each company’s characteristics and needs. In Haimen District, Nantong City, Jiangsu Province, the tax authority has established a 20‑member online “cloud customer service” team that promptly addresses taxpayers’ inquiries and resolves issues related to tax refunds and reductions, thereby providing remote assistance for tax‑related matters.
During holidays, the tax authorities in Langfang City, Hebei Province, assign dedicated personnel to maintain on‑call duty, ensuring that tax refund processing is handled “upon application, upon receipt, and upon approval,” thereby maintaining efficient service and preventing backlogs in review and approval procedures.
Point-to-point services for key enterprises
Since the outbreak of the COVID‑19 pandemic, the civil aviation industry has faced unprecedented challenges in its operations and development. In response, the Shunyi District Taxation Bureau of Beijing has tailored “targeted” guidance programs based on enterprises’ concerns and their specific policy‑eligibility needs, delivering precise policy outreach and training. It has also systematically compiled a comprehensive suite of tax‑refund guidelines—covering export tax rebates, input‑VAT credit refunds, and overpaid tax refunds arising from advance payments—helping Air China Limited secure its input‑VAT credit refund smoothly. “For the aviation industry, which is currently enduring a ‘deep winter,’ this is like a powerful, warming current,” said Lü Lingfei, Deputy General Manager of the Finance Department at Air China Limited.
To better support struggling industries and key enterprises, the State Taxation Administration has instructed that, in line with the working approach of “delivering policies,” “assessing the situation,” “inquiring about needs,” and “solving problems,” it provide tailored guidance to each key enterprise to expedite their applications for additional tax credit refunds, thereby helping them fully benefit from policy incentives and alleviate operational pressures.
The Taxpayer Services Department of the State Taxation Administration, in collaboration with the Department of Goods and Services Tax, visited civil aviation authorities to gain insights into the challenges and concerns of enterprises in the sector; meanwhile, local tax authorities have been implementing targeted guidance and support measures as directed by the State Taxation Administration.
In response to the sporadic outbreaks across multiple regions since March this year and the resulting disruptions to production and operations at many enterprises, the Taxpayer Services Department and the Tax Big Data and Risk Management Bureau of the State Taxation Administration collaborated to issue, on May 4, the “Notice on Continuing to Leverage the ‘National Taxpayer Supply Chain Inquiry’ Function to Support Enterprises in Resuming Work and Production.” A special task force was established at the provincial (autonomous region, municipality) tax authorities to utilize this function in supporting enterprises’ resumption of work and production, with all efforts devoted to providing targeted assistance. Between May and June this year, tax authorities nationwide helped nearly 2,000 enterprises facilitate purchase‑sale transactions totaling over RMB 6 billion. Among these, more than 800 projects involving small, medium, and micro enterprises were successfully concluded, with a total value exceeding RMB 1.7 billion.
As “real money” flows directly to businesses, the benefits of tax rebate and tax‑reduction policies are gradually being realized, effectively boosting the rapid recovery of economic activity. Data show that in May, nationwide corporate sales revenue rose 1.9% year on year, an improvement of 9.3 percentage points compared with April’s decline of 7.4%. From June 1 to 25, corporate sales revenue increased by 6.8% year on year, up another 4.9 percentage points from May, signaling a month‑by‑month rebound and sustained improvement.
With favorable winds at our back, now is the perfect time to set sail. A responsible official from the Taxpayer Services Department of the State Taxation Administration stated that, going forward, the taxpayer services sector across the national tax system will continue to focus on precision and practicality—maintaining unwavering commitment to routine tasks while closely monitoring and advancing special initiatives, adopting a customer‑centric approach to enhance quality and efficiency. These efforts will drive continuous improvement in taxpayer services, ensure the effective and timely implementation of new bundled tax and fee support policies such as the carryforward VAT refund, bolster market entity confidence, and further promote economic and social development.
Tax and fee policy support gives the catering industry more vibrancy.
“Hello, please scan the code to have your temperature checked upon entering the store.” On July 5, at a hotpot restaurant on Guang’an Road in Beijing’s Fengtai District, diners streamed in one after another, while servers bustled back and forth. As the COVID‑19 situation improved, Beijing’s catering industry finally resumed dine-in service after two months of being put on hold.
In recent years, the catering industry across the country has been significantly impacted by the pandemic. As epidemic prevention and control conditions have gradually stabilized—particularly with the robust support of a series of national tax and fee policies—catering businesses have gone all out to resume operations, and the city’s once‑vibrant, bustling atmosphere is slowly making a comeback.
Tax and fee reductions bring a “surprise,” helping catering businesses “hold on.”
“Thanks to the state’s tax and fee support policies, we were able to weather this tough period,” said Zhang Zongzheng, owner of a Weierxian beef hotpot restaurant in Shapingba District, Chongqing. He explained that recurring COVID‑19 outbreaks had sharply cut customer traffic and sent revenues plummeting. At the most challenging time, the tax authorities’ proactive implementation of favorable tax and fee measures gave Zhang Zongzheng renewed hope.
In the first quarter of this year, the company benefited from a preferential VAT rate of 1%, resulting in tax reductions and exemptions totaling nearly RMB 10,000. Starting April 1, it also began to enjoy the temporary VAT exemption for small-scale taxpayers, with projected tax relief of nearly RMB 30,000 for the year. “These tax incentives help offset the losses we incurred during the pandemic,” said Zhang Zongzheng.
Like Zhang Zongzheng, Jufu Ge Restaurant, located at Xinyangguang Plaza on Xinqiao Zhengjie in Shapingba District, Chongqing, also weathered its toughest period thanks to a series of tax and fee‑relief policies. “Earlier, the pandemic hit hard, slashing our customer traffic and putting significant strain on our cash flow,” said Ms. Chen, the restaurant’s finance manager. In 2021, the restaurant benefited from an exemption from value‑added tax on revenue from life‑service activities during the epidemic response, resulting in tax reductions totaling RMB 134,000—roughly equivalent to nearly one year’s wages for three employees. In the first quarter of this year, it further took advantage of a reduced VAT rate of 1%, saving over RMB 18,000 in taxes. “That immediately eased a lot of the pressure,” Ms. Chen added.
Yan Qi, president of the Chongqing Catering Association and chairman of the Taoranju Catering Group, stated that the catering industry is largely composed of small and micro enterprises, which have limited resilience to risks and have been significantly impacted by the pandemic. Consequently, support measures—including tax and fee policies—are especially critical for the sector during this extraordinary period.
Over the past two years, in response to these small and micro enterprises, both the national and local governments have successively introduced temporary VAT exemptions for small-scale taxpayers, as well as reductions or exemptions on six taxes and two fees. They have also implemented measures—such as tax and fee relief, refunds of outstanding input VAT credits, and deferrals of pension insurance, unemployment insurance, and work‑injury insurance contributions—targeting a range of severely affected sectors, including the catering industry, with the aim of easing financial pressures, helping businesses regain vitality, and boosting economic dynamism.
According to statistics, since January 1 of this year, accommodation and catering businesses in Chongqing have collectively benefited from tax and fee reductions and exemptions totaling over RMB 15 million under the “six taxes and two fees” policy; in Ningbo, more than 1,400 catering enterprises have received such relief amounting to over RMB 2.4 million; and in the second quarter of this year, a total of 119 small-scale taxpayers in the catering sector in Beijing’s Dongcheng District—those who file and pay taxes on a monthly basis—were granted a temporary VAT exemption, with cumulative tax reductions and exemptions approaching RMB 2 million.
“With the support of tax and fee relief measures and other policies designed to help businesses weather difficulties, the catering industry has held steady. Many catering enterprises have already emerged from the slump of the past two years and achieved a recovery-driven growth,” said Yan Qi. She added that, at present, the revenue performance of the 1,987 member companies of the Chongqing Catering Association has largely returned to pre-pandemic levels.
The carryforward VAT refund is being extended once again.
The catering industry is heating up.
“Today, our restaurant is offering takeout of prepared dishes, semi‑finished products, and boxed meals…” Against the backdrop of routine COVID‑19 prevention and control, an increasing number of foodservice businesses are actively expanding into online delivery, outdoor seating, pre‑made meal sales, and group‑buying through social media groups. By selling boxed meals and setting up pop‑up stalls, they are proactively seeking ways to sustain themselves and tap into new revenue streams.
Ningbo Xibei Jiajia Catering Management Co., Ltd. is one such company. Since the onset of the pandemic, the annual turnover of its Tianyi branch in Ningbo has remained at around RMB 11 million, roughly 75% of its pre-pandemic level. Over the past two years, recurring outbreaks have led to a sharp decline in customer traffic; in the first half of this year, the store’s revenue reached only 43% of its full-year target, while labor costs have risen by approximately 15% compared with previous years.
As a small enterprise, Ningbo Xibei received a VAT credit refund of RMB 550,000 in June, thanks to guidance from the tax authorities. The timely receipt of this refund has effectively eased the company’s financial strain, giving it greater confidence as it pursues innovation and transformation. With these funds, Ningbo Xibei has expanded its operations across multiple time slots and business models, actively developed new menu items, and sought a more promising growth trajectory. “The pandemic has intensified competition; having survived, we now have the courage to thrive even further,” said Huang Haicheng, head of Ningbo Xibei. He added that, as the epidemic situation stabilizes and store operations return to normal, he is confident the future will only get brighter.
According to reports, as of the end of June, more than 80 small and micro-sized catering businesses in Ningbo had benefited from the value-added tax credit refund policy, receiving over RMB 25 million in refunds. In the first half of this year, over 120 catering enterprises in Beijing’s Dongcheng District received more than RMB 44 million in credit refunds.
This summer, the carryforward VAT refund policy has been expanded to cover seven sectors, including the accommodation and catering industries, providing an additional boost to the resumption of operations and production for catering businesses.
Effective July 1, in addition to small and micro enterprises in the catering sector, medium- and large-sized catering businesses will also be eligible for the carryforward VAT credit refund. According to estimates from Beijing’s Dongcheng District, a total of 47 medium- and large-sized catering enterprises across the district are expected to meet the eligibility criteria, with projected refunds exceeding RMB 200 million.
In recent days, Wang Yong, the financial director of Beijing Huajia Yiyuan Catering Co., Ltd., has been reviewing the operational status of its mid-sized outlets. Founded in 1998, Huajia Yiyuan has, over more than two decades of growth, established a strong foothold in Beijing with its innovative cuisine that blends Chinese and Western flavors, and currently operates 17 restaurants across the city.
The recurring waves of the pandemic have made operations particularly challenging for Huajia Yiyuan, which relies heavily on in‑store sales to generate revenue. Following the introduction of this year’s new package of tax and fee support measures, Huajia Yiyuan promptly applied for a refund of its outstanding input VAT credit for eligible outlets.
“Among our 17 stores, 14 are general VAT taxpayers, and nearly half are classified as medium-sized enterprises. Now they can also apply for refunds of outstanding input VAT credits,” said Wang Yong. “We’ve already received over 2.4 million yuan in such refunds. Although our operations still face difficulties and challenges, the warmth of these policies has let us feel the government’s care and strengthened our confidence. We’re determined to overcome these hardships and grow stronger and bigger!”
Heartfelt service continues to be delivered.
Catering businesses “felt the warmth”
“We are deeply grateful to the Beijing tax authorities for their warm assistance, steadfast support, and meticulous taxpayer services, which have truly touched us during these challenging times…” Recently, the Sichuan–Beijing Office Guesthouse in Beijing presented a letter of thanks to the Beijing Municipal Tax Service Bureau, expressing its appreciation for the department’s high‑quality service.
Beijing Chuanjing Office Guesthouse is a long-established restaurant founded in 1983. Before the pandemic, its annual revenue reached as high as 40 million yuan. At the beginning of this year, the guesthouse underwent a renovation and upgrade, only to find itself mired in difficulties amid recurring outbreaks. “At one point, our operations came to a virtual standstill, with virtually no operating income and cash flow at risk of drying up at any moment—we were on the verge of giving up,” said Zhang Na, the guesthouse’s finance director.
Upon learning that the guesthouse was facing cash-flow difficulties, the Dongcheng District Tax Bureau promptly provided Zhang Na with one‑on‑one guidance on the policies related to the carryforward VAT refund, thoroughly explaining the eligibility criteria and application procedures, and assisting her finance staff in completing the refund application form.
“Very soon, the refund of the outstanding tax credit was credited to the guesthouse’s account. This money truly came at just the right time—refunded when we needed it most, it safeguarded our cash flow and bolstered our confidence in future growth,” Zhang Na said with deep emotion.
The state’s tax rebate and tax‑reduction policies provide businesses with tangible financial support, while the meticulous taxpayer services offered by the tax authorities are especially heartwarming.
In Ningbo, to support the development of newly established catering businesses, the Haishu District Tax Bureau has set up a “First-Store Butler” service team. Leveraging tax‑related big data, the team gathers relevant enterprise information and continuously updates its “Basic Information Map.” At the same time, for newly opened outlets, it provides targeted assistance during the initial operating phase by issuing one contact card for new businesses, preparing a customized policy checklist, and conducting one on‑site visit.
In Chongqing, members of the “Xie Lu Studio” at the Tax Service Hall of the Shapingba District Tax Bureau have adopted an integrated “business‑collaboration” service model. They systematically assess the needs of catering and hotel businesses within their jurisdiction, promptly liaise with relevant business divisions and tax administrators to verify taxpayers’ production and operational activities, efficiently handle invoice‑related matters for catering enterprises, and process tax‑related services in real time.
In Beijing, the Dongcheng District Tax Service Bureau, leveraging a dedicated task force for implementing relief measures for small, medium, and micro enterprises, has coordinated the rollout of various tax and fee preferential policies. It has strengthened guidance and communication on matters such as the progress of tax refunds and reductions, as well as the unified allocation and dispatch of funds, thereby forging a robust collaborative effort.
In Liaoning Province, the Chaoyang Municipal Tax Service Bureau leverages tax‑big‑data analytics to create detailed “digital profiles” of urban catering businesses, establishing a dedicated “virtual customer service” hotline for tax refunds and a “Tax‑Integration” service team. Relying on more than 100 tax‑service outlets across the city, it has implemented a grid‑based management system to ensure tailored, precision‑driven support—“one policy for each enterprise.” Meanwhile, the Tiexi District Tax Service Bureau in Anshan City uses tax‑big data to accurately identify companies eligible for the carryforward VAT refund policy, then employs multiple channels—including the taxpayer‑administration interaction platform, WeChat groups for policy guidance, and telephone reminders—to deliver targeted notifications and prompt enterprises to apply for refunds. At the same time, it has set up specialized windows for carryforward VAT refunds to ensure that the benefits of this policy are realized more swiftly.
“The ‘tongue‑tip economy’ is linked on one end to residents’ daily consumption and on the other to economic recovery and growth. Li Xuhong, director of the Institute for Fiscal and Tax Policy and Application at the National Accounting Institute in Beijing, said: ‘Cities need a sense of vibrancy and everyday life. As the policy of refunding outstanding tax credits continues to be implemented, the benefits of this policy will be further unlocked, bringing even more vitality to our cities.’”
Boosting automobile consumption and fostering industrial development: In the first month of the halved vehicle purchase tax, revenue was reduced by 7.1 billion yuan.
The policy of halving the vehicle acquisition tax on certain passenger cars, which took effect on June 1, has been in place for more than a month. According to the latest data from the State Taxation Administration, during the first month of implementation, the nationwide reduction in vehicle acquisition tax totaled RMB 7.1 billion, covering 1.097 million vehicles.
What are the key features of the policy to halve the vehicle acquisition tax? How has it impacted automobile consumption? And what other policies aimed at boosting car sales deserve attention? Our reporter conducted interviews to find out.
Providing consumers with tangible benefits and boosting automakers’ confidence in their growth.
“I had been planning to buy a new car for daily commuting and had already set my sights on several models, but I kept hesitating. With the recent policy of halving the vehicle purchase tax, I feel this is the perfect time to make the purchase.” In Yingkou, Liaoning Province, Mr. Yan recently bought a new car, adding, “Thanks to the tax reduction, I saved nearly 10,000 yuan all at once.”
“This policy has not only benefited consumers but also improved the operating conditions of our dealers, boosting their confidence in future growth.” On a weekend in June, Amway Jie Auto Sales & Service Co., Ltd. in Chengdu, Sichuan, was bustling with activity, as sales manager Zhang Zhujun busily answered customers’ questions. From January to May this year, the company’s average monthly sales hovered around 80 vehicles; in June, it sold more than 140, marking a 75% increase.
For some time now, China’s automobile consumption has been sluggish, weighed down by the pandemic and other factors. In late May, the State Council Executive Meeting further rolled out a comprehensive package of measures to stabilize the economy, announcing a temporary reduction in vehicle purchase tax on certain passenger cars, amounting to 60 billion yuan. On May 31, the Ministry of Finance and the State Taxation Administration issued an announcement clarifying the specific implementation details.
Liu Yunmao, Deputy Director-General of the Department of Goods and Services Tax at the State Taxation Administration, believes that this round of preferential policies on vehicle acquisition tax has three key features: First, the scope of beneficiaries has been further expanded—specifically, the displacement threshold for passenger cars eligible for the reduced tax rate has been raised from 1.6 liters to 2.0 liters. Second, the policy is more timely and targeted, stipulating that all eligible passenger cars purchased between June 1, 2022, and December 31, 2022, will qualify for the tax reduction, thereby helping to swiftly and effectively boost automobile consumption. Third, the policy offers more precise regulatory guidance, setting a cap of RMB 300,000 (excluding VAT) on the price of each vehicle, thus maximizing the effectiveness of tax measures in supporting mass consumption.
To ensure the swift and effective implementation of this policy, tax authorities across the country promptly completed the development, testing, and upgrading of their tax administration information systems and launched comprehensive campaigns to publicize and explain the measures. With the support of this package of policies, the passenger vehicle industry is now emerging from its recent challenges. Data show that from June 1 to 26, retail sales in the passenger vehicle market reached 1.422 million units, up 27% year on year and 37% compared with the same period last month.
Tax revenues are earmarked exclusively for the development of national transportation infrastructure.
The Vehicle Acquisition Tax is a one-time tax levied at the acquisition stage on entities and individuals within China who purchase taxable vehicles. In addition to the general characteristics of taxation, this tax has its own distinctive features: it has a narrow scope of application, with the specific vehicle acquired serving as the tax base; it is imposed at a single stage, with a one‑time levy at the time of purchase; it employs a uniform tax rate, applying a single, standardized rate that simplifies calculation; and it is assessed using a single method—ad valorem taxation based on the vehicle’s taxable value, whereby higher‑priced vehicles are taxed at a higher rate and lower‑priced vehicles at a lower rate.
Li Ping, deputy director of the Tax Research Institute of the State Taxation Administration, explained that the vehicle acquisition tax is earmarked for specific purposes and is exclusively allocated to national transportation infrastructure development. Data show that during the 13th Five-Year Plan period, China invested over RMB 950 billion in vehicle acquisition tax funds in poverty-stricken areas, accounting for 68% of the total vehicle acquisition tax revenue. This substantial investment has strongly advanced the construction of “Four-Good Rural Roads,” supporting the successful battle against poverty and the implementation of the rural revitalization strategy.
“The tax revenue collected from the vehicle acquisition tax supports the development of transportation infrastructure and has played a positive role in advancing China’s transport sector. In recent years, the multiple preferential policies introduced for the vehicle acquisition tax have also been instrumental in boosting consumption and revitalizing the market, while simultaneously fulfilling the dual functions of raising funds for infrastructure projects and regulating economic activity—underscoring that the role of taxation is steadily strengthening,” said Li Ping.
Trade-in programs and subsidy disbursements—multiple measures are being deployed to boost automobile consumption.
At present, in addition to the reduction in the vehicle acquisition tax, local governments have successively introduced a series of policies to boost automobile consumption. For example, Guangdong has allocated an additional 1.13 billion yuan to support big-ticket purchases such as automobiles and home appliances, extended subsidies for trade‑in programs, and introduced new subsidies for the purchase of new‑energy vehicles, providing 8,000 yuan per vehicle for eligible models. Shandong has unveiled several measures to stimulate auto consumption, aiming to invigorate the automotive market, while Shenyang, in Liaoning, has earmarked 100 million yuan to issue car‑purchase subsidies to individual consumers who buy vehicles within the city.
In addition, the Ministry of Industry and Information Technology, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, and the National Energy Administration recently issued a joint notice deciding to launch a new round of initiatives to promote new-energy vehicles in rural areas. From May to December, several dedicated events, touring exhibitions, and corporate activities will be held in third- and fourth-tier cities as well as counties and districts across Shanxi, Jilin, Jiangsu, and other regions. Participating companies in the new‑energy vehicle sector are encouraged to actively engage in various promotional campaigns, employing multiple channels to attract more consumers to make purchases. Compared with previous years, both the number of automakers and the range of models taking part in this initiative have increased this year.
At its executive meeting held on June 22, the State Council unveiled a series of policies aimed at further unlocking the potential of automobile consumption. Notably, the meeting announced that it would study extending the preferential policy on the vehicle purchase tax for new-energy vehicles. This suggests that, following two previous extensions—at the end of 2017 and in early 2020—the subsidy is poised for a third extension.
Li Ping believes that the new‑energy vehicle industry still has substantial room for growth. Extending the preferential policy on the purchase tax for new‑energy vehicles is not only of great practical significance in supporting the sector’s development and boosting automobile consumption at this stage, but will also have a lasting impact on enhancing the global competitiveness of China’s new‑energy vehicle industry and helping Chinese automobiles gain a foothold on the world stage.

Litigation & Arbitration
Ningxia has deployed a special campaign to address prominent issues in administrative litigation.
Recently, the Commission for Comprehensively Promoting Law-Based Governance of the Ningxia Hui Autonomous Region convened a special meeting on addressing prominent issues in administrative litigation across the region, launching a six-month targeted campaign. Sha Wenlin, Party Secretary and President of the Higher People’s Court of the Ningxia Hui Autonomous Region, presented an overview of administrative litigation and adverse judgment cases throughout the region. Wang Gang, Member of the Standing Committee of the Regional Party Committee, Secretary of the Political and Legal Affairs Commission, and Director of the Party Committee’s Office for Law-Based Governance, attended the meeting and delivered a speech.
The meeting emphasized that administrative departments at all levels across the region must fully recognize the profound significance of launching this special rectification campaign and earnestly strengthen their sense of responsibility and mission in carrying it out. During the implementation of this campaign, efforts should be focused on establishing a government governance system characterized by clearly defined functions and law-based administration; systematically addressing the most pressing issues raised by the public—namely, administrative agencies’ tendency to prioritize substance over procedure, efficiency over rights protection, and procedural formalities over substantive safeguards—so as to prevent and reduce unlawful administrative actions at their source, foster a stable, transparent, and predictable business environment, and promptly and effectively resolve administrative disputes.
The meeting called on administrative departments at all levels across the region to, in accordance with the “Implementation Plan for Special Rectification of Prominent Problems in Administrative Litigation” formulated by the Autonomous Region Party Committee’s Office for Law-Based Governance, vigorously advance scientific, democratic, and law-based decision-making and strengthen legal review of major administrative decisions; further promote strict, standardized, impartial, and civilized law enforcement by fully implementing systems for publicizing administrative enforcement, recording the entire process, and conducting legal reviews of major enforcement decisions; deepen efforts to resolve administrative disputes through multiple channels, striving to settle more than one-third of administrative cases via administrative dispute mediation centers; intensify training and application of the law among leading cadres, incorporating their legal literacy and performance in law‑based duties into cadre assessment and evaluation; and encourage heads of administrative agencies to appear in court, working in concert to achieve substantive resolution of administrative disputes. The Autonomous Region has established a special rectification leading group, chaired by the Party Committee’s Political and Legal Affairs Secretary, with the principal heads of the regional public security, procuratorial, judicial, and justice organs serving as deputy chairpersons. Under this group, four working sub‑groups have been set up—covering problem identification and investigation, source‑of‑dispute governance, and other areas—to strengthen overall coordination and oversight of the region‑wide special rectification effort. Systems and mechanisms have been refined, including the establishment of a joint conference system for preventing and resolving administrative disputes, a collaborative mechanism between rule‑of‑law inspection and disciplinary inspection and supervision, as well as regular inspection and reporting procedures and accountability measures. Moreover, the binding force of judicial and procuratorial recommendations has been reinforced to continuously enhance the quality and effectiveness of dispute resolution.

The Shanghai Higher People’s Court has issued 23 guidelines to support and safeguard the development of Shanghai as a leading city in intellectual property.
In order to implement the decisions and arrangements of the CPC Central Committee, the Municipal Party Committee, and the Supreme People’s Court, and to meet the demands of the new era, Shanghai has comprehensively strengthened judicial protection of intellectual property rights, providing robust judicial services and safeguards for building the city into a leading hub for IP innovation. On July 13, 2022, the Shanghai Higher People’s Court (hereinafter referred to as “Shanghai High Court”) held a press conference to release the “Opinions on Strengthening Intellectual Property Adjudication in the New Era to Provide Strong Judicial Services and Safeguards for Building Shanghai into an IP Powerhouse” (hereinafter referred to as the “Opinions”). This press conference was the sixth in the series titled “Shanghai Courts’ Judicial Services and Safeguards for High-Quality Regional Development.”
Zhang Bin, Vice President of the Shanghai Higher People’s Court, and Liu Junhua, Chief Judge of the Intellectual Property Tribunal, attended the press conference and provided relevant briefings. Li Zeli, spokesperson for the Shanghai Higher People’s Court, chaired the event. A number of National People’s Congress deputies, members of the National Committee of the Chinese People’s Political Consultative Conference, municipal People’s Congress deputies, municipal CPPCC members, specially appointed supervisors, and media reporters participated online.
At a press conference, it was announced that, in order to thoroughly implement the Outline for Building a Country Strong in Intellectual Property (2021–2035) and the CPC Central Committee’s decisions and arrangements on strengthening intellectual property protection, and to effectively carry out the Shanghai Outline for Building a City Strong in Intellectual Property (2021–2035), the Shanghai “14th Five-Year Plan” for Intellectual Property Protection and Utilization, and the Supreme People’s Court’s Opinions on Strengthening Intellectual Property Adjudication in the New Era to Provide Robust Judicial Services and Guarantees for Building a Country Strong in Intellectual Property, the Shanghai Higher People’s Court, in June 2022, after conducting an extensive survey of the industrial development trends and intellectual property protection needs within its jurisdiction and soliciting views from relevant departments and expert scholars, and in light of the spirit of the aforementioned documents and the practical realities of Shanghai’s judicial work, drafted and adopted the “Opinions.”
Zhang Bin explained that the Opinions, aligned with Shanghai’s strategic plan to strengthen its “four major functions” and deepen the development of its “five centers,” proactively address the demands of intellectual property judicial protection in the new era and public concerns, and emphasize “one goal, two main threads, three dimensions, and four principles.”
Among these, “one goal” refers to comprehensively strengthening judicial protection of intellectual property rights, thereby providing robust judicial support and safeguards for Shanghai’s development as an international center for intellectual property. This aligns with the development objectives set forth in the Outline for Building Shanghai into a Strong City for Intellectual Property (2021–2035). The “two main threads” represent the two guiding principles underpinning the Shanghai courts’ work on IP judicial protection: first, achieving higher‑quality development of IP adjudication; and second, further enhancing the governance system and capacity for IP justice. The “three dimensions” denote the three key areas of focus outlined in the Opinions: placing impartial justice at the core to support the city’s high‑quality development; leveraging mechanism optimization to elevate the level of IP protection; and grounding efforts in strengthened institutional safeguards to ensure effective implementation of all goals and tasks. The “four principles” are the four guiding tenets articulated in the Opinions: upholding high‑quality leadership, ensuring high‑level protection, harnessing digitalization, and maintaining an international outlook. These principles reflect the shift in IP creation from “quantity” to “quality,” the evolving need for IP protection to move from “strict protection” toward “high‑level protection,” and Shanghai’s strategic objectives of advancing urban digital transformation and establishing itself as a global hub for IP protection.
At the press conference, Liu Junhua provided an in-depth analysis of the four sections and 23 measures outlined in the “Opinions.” The second section comprises nine provisions that, from the perspective of impartial justice, set forth specific measures to strengthen judicial protection of intellectual property rights and to support Shanghai’s development as a “five‑center” city. Articles 4 through 9 address traditional areas—such as scientific and technological innovation outcomes, cultural creations, commercial signs, and trade secrets—as well as emerging IP domains and special fields like market competition, specifying concrete requirements: for instance, rigorously safeguarding innovations to advance Shanghai’s role as a center for science and technology in the new era; bolstering IP protection in emerging sectors to facilitate the city’s digital transformation; and reinforcing antitrust and anti‑unfair competition adjudication to uphold a law‑based business environment characterized by fair competition. Articles 10 through 12 focus on key Shanghai industries—including foreign trade, the internet economy, and the exhibition sector—proposing targeted judicial protection policies: strengthening IP adjudication in the foreign trade sphere to support the construction of the free trade pilot zone; enhancing platform‑related IP litigation to foster the growth of the internet economy; and intensifying IP adjudication related to trade fairs to promote the development of the exhibition industry. The third section contains seven provisions that, from the standpoint of mechanism optimization, propose seven initiatives to reinforce the judicial system and capacity, thereby elevating the level of IP judicial protection. These include fully leveraging the advantages of the “three‑in‑one” IP adjudication mechanism, refining judicial mechanisms conducive to rights protection, promoting integrity in IP litigation, improving diversified dispute‑resolution mechanisms for IP matters, strengthening IP protection cooperation within the Yangtze River Delta region, and bolstering international IP adjudication. Furthermore, the fourth section of the “Opinions,” from the perspective of enhanced safeguards, establishes four organizational and coordination measures: refining the jurisdictional framework for IP cases, building a high‑caliber, specialized judiciary, accelerating the digital transformation of IP adjudication, and intensifying public awareness campaigns on IP protection.
In response to questions from reporters, Zhang Bin provided an explanation regarding the adjustment of jurisdiction. With respect to “improving the jurisdictional framework for intellectual property cases” as set forth in Article 20 of the Opinions, Shanghai previously had only four primary-level people’s courts—Pudong, Xuhui, Yangpu, and Putuo—exercising jurisdiction over such cases. In June of this year, the Shanghai Higher People’s Court issued two new jurisdictional regulations, shifting the centralized jurisdiction over intellectual property cases previously assigned to those primary-level courts to a system of territorial jurisdiction.
Zhang Bin stated that the adjustment of jurisdiction will bring three significant benefits to Shanghai’s judicial protection of intellectual property. First, it will better meet the IP protection needs of each region and encourage district courts, together with relevant entities within their jurisdictions, to establish a comprehensive IP protection framework characterized by “strict protection, broad coverage, swift adjudication, and uniform application.” Second, it will help address key bottlenecks—such as uneven case distribution and an imbalance between caseloads and staffing—that have constrained the development of IP adjudication, thereby enhancing both the quality and efficiency of case handling. Third, it will facilitate smoother and more efficient integrated adjudication of civil, administrative, and criminal IP cases, helping to streamline coordination between courts and procuratorates in criminal IP proceedings and enabling judicial and administrative authorities to leverage synergies in law enforcement, thus providing end-to-end IP protection across the entire value chain.
To address the challenges posed by jurisdictional adjustments to Shanghai’s intellectual property adjudication workforce and to meet the pressing need of newly designated jurisdictional courts to enhance their judicial capabilities, the Shanghai Higher People’s Court has recently strengthened the foundation of its IP adjudication team through measures such as conducting on-site fact-finding missions, organizing online professional training, and recommending reading lists and legal compendia on intellectual property. Moving forward, the Shanghai Higher People’s Court will intensify its guidance, further streamline internal communication channels among the three-tier court system and between the newly designated jurisdictional courts and the previously centralized jurisdictional courts, promptly respond to difficulties in the application of law and judicial practice, and strive to promote uniformity in the application of law to IP cases, thereby ensuring the quality and efficiency of IP adjudication following the jurisdictional realignment.
Zhang Bin stated that the Shanghai courts will earnestly implement the Outline for Building a Country Strong in Intellectual Property (2021–2035) and the CPC Central Committee’s decisions and arrangements on strengthening intellectual property protection. They will remain people-centered, adapt to the requirements of the new era, ground themselves in the new stage of development, apply the new development philosophy, and support the establishment of a new development pattern. In doing so, they will comprehensively elevate the level of judicial protection for intellectual property, thereby providing robust judicial services and safeguards for building Shanghai into a city strong in intellectual property.
A relevant official from the No. 1 Civil Division of the Supreme People’s Court answered questions from reporters regarding the “Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in Handling Cases Involving Personal Safety Protection Orders.”
On July 15, the Supreme People’s Court issued the “Provisions on Several Issues Concerning the Application of Law in Handling Cases Involving Personal Safety Protection Orders” (hereinafter referred to as the “Provisions”). A relevant official from the First Civil Division of the Supreme People’s Court attended the press conference and answered questions from reporters.
Question 1: It is understood that a significant proportion of victims of domestic violence are minors. Could you explain what specific considerations the Regulations give to the protection of minors’ rights and interests?
Answer: Adolescents are the future of the nation and the hope of the people. Preventing and stopping domestic violence against minors and safeguarding their healthy development is an inescapable responsibility of the people’s courts. As victims of domestic violence, minors typically experience it in two forms: either being subjected to it themselves or witnessing it. Both situations expose them to a tense, fear‑filled environment, seriously harming their physical and mental well‑being and even fostering the misguided belief that “violence can resolve everything,” thereby pushing them toward the abyss of crime and delinquency. The Supreme People’s Court attaches great importance to protecting the rights and interests of minors. To prevent and curb domestic violence targeting minors, the Supreme People’s Court has launched a comprehensive set of measures this year. In March, it jointly issued with six other departments—including the All-China Women’s Federation and the Ministry of Public Security—the “Opinions on Strengthening the Implementation of the Personal Safety Protection Order System.” These opinions underscore the principle of acting in the best interests of the child, specifically by refining the mandatory reporting obligations of relevant entities, stipulating that minor witnesses may testify without appearing in court, ensuring that appropriate settings are provided and questioning methods are tailored to the child’s comprehension and acceptance when interviewing minors, and placing particular emphasis on safeguarding their privacy and safety. The Regulations primarily address issues related to the application of law, focusing on two key aspects: first, they expand the list of types of domestic violence, explicitly including deprivation of food and shelter, as well as frequent insults, defamation, threats, stalking, and harassment; second, recognizing the private nature of domestic violence, they include, as admissible evidence, testimony from minor children that is commensurate with their age and cognitive capacity. Such measures help ensure the accurate identification and timely cessation of domestic violence in accordance with the law, thereby fostering a safe and stable family environment conducive to the healthy growth of minors.
Question 2: It is understood that, in practice, a certain proportion of applications for personal safety protection orders are dismissed by the courts due to insufficient evidence. We have noted that the Regulations specifically address the forms of evidence and the standards of proof. Could you explain what practical problems these new provisions are intended to help applicants resolve?
A: Evidence is a critically important issue in the judicial practice of issuing personal safety protection orders. According to our research, the primary reason for rejecting applications for such orders is insufficient evidence, which severely limits their effectiveness. Article 20 of the Anti‑Domestic Violence Law stipulates that, when adjudicating domestic violence cases, people’s courts may establish the facts of domestic violence based on evidence such as police dispatch records, warning letters, and injury assessment reports. However, in practice, a significant number of applicants are denied relief because they cannot produce the aforementioned types of evidence. To address this, drawing on in-depth field research and taking into account the specific characteristics of domestic violence, we have summarized judicial experience and identified ten categories of admissible evidence—among them, statements from both parties, repentance or guarantee letters previously submitted by the respondent, telephone recordings and text messages exchanged between the parties, medical treatment records, and records of complaints or requests for assistance received by women’s federations and other relevant organizations. Victims of domestic violence, when subjected to abuse or facing an imminent risk of harm, can consciously preserve and collect such evidence and submit it to the people’s court when applying for a personal safety protection order. Furthermore, with regard to the standard of proof, the Regulations clarify that the threshold for establishing a personal safety protection order is “a substantial likelihood,” rather than requiring “a high degree of probability,” thereby easing the burden of proof on applicants. The Regulations also reiterate the provision allowing people’s courts to conduct investigations and gather evidence on their own initiative. These measures refine the evidentiary framework governing personal safety protection order cases, further alleviating the difficulties victims face in presenting evidence, and providing stronger institutional safeguards for protecting their legitimate rights and interests, thus ensuring that the public can live more safely and with greater dignity.
Question 3: In some domestic violence protection order cases, the respondent argues that the violence was perpetrated because the other party was at fault first—such as engaging in infidelity—and therefore their conduct is excusable. How does the judicial interpretation address this issue?
A: This question is particularly pertinent. In practice, respondents often offer various justifications for their own acts of domestic violence. It is quite common for them to excuse their behavior by claiming that the other party “was at fault first,” and even to use such claims as an opportunity to exert control over the other party through violence. Here, we must emphasize one fundamental principle: no justification whatsoever can be invoked to legitimize domestic violence. The notion that domestic violence is “excusable under the circumstances” is entirely mistaken. To correct this misconception and strengthen protection for victims of domestic violence, judicial interpretations explicitly stipulate that if the respondent acknowledges the occurrence of domestic violence but argues that the applicant was also at fault, the people’s court shall, in accordance with the law, issue a personal safety protection order. Domestic violence is unlawful and may even constitute a criminal offense; it must be resolutely opposed and punished. Of course, as you have pointed out, if one party has engaged in misconduct such as infidelity, they too must bear the corresponding legal liabilities. For example, pursuant to Article 1087 of the Civil Code, when dividing marital property upon divorce, due consideration must be given to the principle of protecting the interests of the non‑faulting party. Similarly, under Article 1091 of the Civil Code, if one party has committed serious misconduct, such as cohabiting with another person, they shall also be liable for damages. To maximize the prevention and suppression of domestic violence, we must place great emphasis on fostering family civility, cultivating sound family traditions, promoting family virtues, and encouraging mutual respect, care, and assistance—so that the home truly becomes a haven that shelters us from life’s storms, rather than a source of them.

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