JC Master Legal News Issue 1062

Key Takeaways for This Issue
“Bond Connect” officially launched—marking another step forward in the opening-up of China’s bond market.
“Swap Connect” has officially been launched. To standardize the conduct of business related to the mutual access cooperation between the mainland and Hong Kong interest rate swap markets, protect the legitimate rights and interests of investors both within and outside China, and uphold market order in the interest rate swap sector, the People’s Bank of China has formulated the Interim Measures for the Administration of Mutual Access Cooperation between the Mainland and Hong Kong Interest Rate Swap Markets (hereinafter referred to as the “Measures”), which shall take effect as of April 28, 2023.
Three departments have jointly launched the 2023 “100 Events, 10,000 Enterprises” initiative to facilitate collaboration and matchmaking between large, medium, and small enterprises.
The Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission, and the All-China Federation of Industry and Commerce recently jointly issued a notice to launch the 2023 “Hundred Events, Ten Thousand Enterprises” initiative for fostering integrated collaboration between large, medium, and small enterprises. The initiative aims to address information asymmetry between large corporations and SMEs and to broaden and diversify channels for such collaborative matchmaking.
In April, 1.48 million new tax-related business entities were registered nationwide.
According to data from the State Taxation Administration, from April 2023, 1.48 million business entities newly completed tax-related procedures—including tax type registration, invoice acquisition, and tax filing and payment—representing a year-on-year increase of 28.8%.
Defendant in Chongqing siblings’ fatal fall case sentenced to death on appeal.
On the morning of May 11, 2023, the Chongqing Higher People’s Court delivered its second-instance public verdict in the appeal case of intentional homicide involving Zhang Bo and Ye Chengchen.
Finance & Capital Markets
“Bond Connect” officially launched—marking another step forward in the opening-up of China’s bond market.
“Swap Connect” has officially been launched. To standardize the conduct of business related to the mutual access cooperation between the mainland and Hong Kong interest rate swap markets, protect the legitimate rights and interests of investors both within and outside China, and uphold market order in the interest rate swap sector, the People’s Bank of China has formulated the Interim Measures for the Administration of Mutual Access Cooperation between the Mainland and Hong Kong Interest Rate Swap Markets (hereinafter referred to as the “Measures”), which shall take effect as of April 28, 2023.
The so‑called “Swap Connect” refers to a mechanism that enables onshore and offshore investors to access the Hong Kong financial derivatives market and the mainland interbank financial derivatives market through connectivity between Hong Kong’s and the mainland’s infrastructure institutions. According to available information, these Measures apply to the “Northbound Swap Connect,” whereby overseas investors from Hong Kong, China, and other countries and regions (hereinafter referred to as “overseas investors”) participate in the mainland interbank financial derivatives market via a mechanism that ensures interconnectedness among Hong Kong and mainland infrastructure institutions in areas such as trading, clearing, and settlement.
The Measures stipulate that, in the initial phase, the eligible products under the “Northbound Swap Connect” shall be interest rate swaps. The quotation, trading, and settlement currency for these interest rate swaps shall be the Renminbi. Overseas investors may, via connections between overseas electronic trading platforms approved by the People’s Bank of China and domestic electronic trading platforms, submit trade instructions to the latter. Transactions under the “Northbound Swap Connect” shall be executed on the domestic electronic trading platform, and once a transaction is concluded, it shall be deemed fully settled and conofficeed. Transfers of outstanding contracts shall be conducted through the domestic electronic trading platform, unless otherwise specified by the People’s Bank of China.
In recent years, China has steadily intensified the opening-up of its interbank bond market. Since 2017, the successive launch of the Northbound and Southbound legs of Bond Connect has marked a major milestone in the internationalization of China’s financial markets. As the scale of bond holdings by overseas investors expands and trading activity picks up, their demand for using derivatives to manage interest-rate risk has continued to grow. In July 2022, the People’s Bank of China, the Hong Kong Monetary Authority, and the Securities and Futures Commission of Hong Kong jointly announced the implementation of Swap Connect and a standing currency-swap arrangement. On February 17, 2023, the People’s Bank of China released a draft regulation for public consultation.
With the official launch of “Swap Connect,” industry insiders have hailed it as another significant step forward in the opening-up of China’s bond market. From “Bond Connect” to “Swap Connect,” and from over-the-counter bonds to over-the-counter derivatives, the interconnectedness between the mainland and Hong Kong financial markets continues to deepen.
“‘Swap Connect’ marks another significant milestone in China’s financial market opening-up, unlocking the potential for overseas investors to participate in the onshore derivatives market,” said Li Bing, President of Bloomberg Asia-Pacific. He added that Swap Connect is poised to deliver a win-win outcome for both domestic and international investors: by expanding the range of available derivative instruments, it will further boost foreign participation in the Chinese market, while also creating substantial opportunities for onshore market makers.
“After six years of development, Bond Connect has become highly mature. From cash‑bond trading to derivatives trading, the launch of Swap Connect marks another significant step forward in China’s financial opening-up,” said Xu Zhaoting, Global Head of Emerging Markets Trading at Deutsche Bank and Deputy General Manager of Deutsche Bank Shanghai. “The official launch of Swap Connect is a crucial milestone in the liberalization of China’s financial derivatives market, providing overseas investors with an essential hedging tool for accessing the Chinese interbank bond market, thereby reducing interest‑rate risk and serving as an important piece of the puzzle in the internationalization of the renminbi.”
It is worth noting that the Measures explicitly stipulate that domestic investors participating in the “Northbound Swap Connect” must be domestic financial institutions—legal entities—that possess strong pricing, quoting, and risk-management capabilities, enjoy a solid international reputation, and have the requisite business systems and a dedicated team of professionals to support quote‑driven trading under the “Northbound Swap Connect.” Furthermore, prior to engaging in “Northbound Swap Connect” business, such domestic investors are required to enter into a “Swap Connect” quoting‑dealer agreement with a domestic electronic trading platform approved by the People’s Bank of China.
In terms of quota management, to ensure the stable functioning of the market, the Northbound Swap Connect has taken full account of overseas investors’ participation in the interbank bond market. Initially, the aggregate daily net trading limit for the entire market is set at RMB 20 billion, with a clearing limit of RMB 4 billion. Going forward, these quotas may be adjusted as appropriate in light of market developments and will be publicly announced.
The Measures also require that domestic and overseas investors, as well as relevant financial market infrastructures, report “Northbound Swap Connect” transaction‑related data to trade repositories approved by the People’s Bank of China, and maintain appropriate records of all transaction‑related data and communication logs. At the same time, central counterparty clearing houses operating in both jurisdictions shall establish interconnected links; they shall manage risks arising from clearing participants on the domestic and overseas sides in accordance with the principles governing financial market infrastructures and their respective central counterparty risk‑management frameworks, while jointly managing netting‑related risks between them. This includes establishing dedicated risk‑provision resources to cover potential losses under default scenarios involving either the domestic or overseas clearing house, and putting in place corresponding default‑resolution arrangements to contain spillover risks.
“In the future, we will, as market conditions evolve, appropriately expand the range of eligible investment products, adjust trading and clearing limits, and optimize trading and clearing arrangements, thereby providing overseas investors with more convenient and efficient risk-management tools,” said a responsible official from the relevant department of the People’s Bank of China. In addition, the regulatory authorities on both sides will, taking into account various factors and adhering to the principles of controllable risks and mutual benefit, consider, at an appropriate time, extending the initiative to include “Southbound Swap Connect.”

The comprehensive registration-based system marks its first month, as the capital market successfully makes a pivotal leap toward high-quality development.
On May 10, the comprehensive registration-based reform marked its one-month anniversary.
The comprehensive implementation of the stock issuance registration system marks a “critical leap” in China’s securities market’s more than 30-year journey of reforming its stock‑issuance regime. Over the course of a single month, 11 main‑board companies listed on the Shanghai and Shenzhen exchanges set sail, with a combined market capitalization of RMB 161.123 billion and total proceeds raised amounting to RMB 21.731 billion—silent figures that eloquently underscore the dynamism of the reform, as this pivotal step has been smoothly put into practice.
From the Shanghai Stock Exchange’s “three‑step opening” to the Shenzhen Stock Exchange’s “transparent review process,” many of the first batch of main‑board listed companies have reported a profound sense of the numerous changes in the issuance‑review and listing procedures: under the registration‑based system, regulations and guidelines have become more concise and clearer, exchange‑issued inquiries are more streamlined and focused, and the review and registration timelines are now more real‑time and transparent—leaving market participants with a strong sense of satisfaction.
Institutional development is not achieved overnight, and reform and innovation are by no means a one-time fix. The market expects that the capital market, having taken this “critical leap,” will better reflect China’s economic development trends, align more closely with the country’s structural transformation, further leverage its capacity to drive innovation, and enhance its ability to serve the real economy.
The blue-chip characteristics of the broader market are prominently displayed.
On April 10, the listing ceremonies for the first batch of 10 companies under the registration-based system on the main boards of the Shanghai and Shenzhen stock exchanges were held simultaneously in Beijing, Shanghai, and Shenzhen. Yi Huiman, Chairman of the China Securities Regulatory Commission, stated: “The holding of these listing ceremonies marks the full implementation of the reform to introduce a registration-based system for stock issuance, representing another significant milestone in the reform and development of China’s capital market.”
As of May 9, the main boards of the Shanghai and Shenzhen stock exchanges had collectively accepted initial public offering applications from 266 companies. Among them, 11 companies have successfully listed on the capital markets, raising a total of RMB 21.731 billion, while another 5 companies have completed registration and become effective.
A closer look at the 11 main-board companies listed under the registration-based system reveals a diverse mix: China’s leading professional oral-care enterprise, a well‑known provider of innovative electronic-component applications and a comprehensive modern supply-chain service platform, and a large energy company whose core businesses are power generation and coal production. As fresh “blood,” these offices have further accentuated the main board’s hallmark of being dominated by large, blue-chip stocks.
Since the launch of the pilot registration‑based reform, China’s capital market has progressed from an initial phase in the incremental‑issuance segment, through an expansion to the existing‑share market, to a full‑market rollout. Along the way, the market’s foundational institutional framework has been further refined, and its multi‑tiered structure has continued to improve. The main boards of the Shanghai Stock Exchange and the Shenzhen Stock Exchange have been the focal point of the comprehensive registration‑based reform; following the reform, these main boards have placed greater emphasis on large‑cap, blue‑chip stocks and have differentiated their listing requirements and other criteria from those of the STAR Market and the ChiNext Board.
Under the reform framework, the main board under the comprehensive registration-based system will emphasize large-cap blue-chip stocks and prioritize high-quality enterprises with mature business models, stable operating performance, substantial scale, and strong industry representativeness. Accordingly, in this round of reforms, the listing requirements for the main board have been made more inclusive.
Notably, from the perspective of new‑stock issuance, under the registration‑based system, market‑driven pricing has enabled main‑board listed companies to break free from the previous 23‑times price‑to‑earnings ratio cap, significantly increasing pricing flexibility. Among the 11 newly listed main‑board stocks, P/E ratios ranged from 20.21 times to 90.63 times, with CITIC Metal’s offering at the lowest P/E of 20.21 and Shaanxi Energy’s at the highest of 90.63.
With the implementation of the registration-based reform, the trading rules for new shares on the Shanghai and Shenzhen main boards have also changed: during the first five trading days after a new share’s listing, there are no daily price limits; starting from the sixth trading day, the daily price limit remains unchanged at 10%. If a stock’s intraday trading price rises or falls by 30% or more, or by 60% or more, relative to the day’s opening price, the stock will be temporarily suspended for 10 minutes. In addition, new shares can be included as eligible securities for margin trading and short selling on their very first day of listing.
From a market performance perspective, all 11 main-board IPOs under the registration-based system closed higher on their first trading day. Among them, China Electronics Port, Dengkang Oral Care, and Bocheng Shares each surged by more than 100%, posting gains of 221.55%, 173.89%, and 110.63%, respectively.
Fu Lichun, founder of Yuntai Capital, pointed out that the first batch of companies listed under the main board registration-based system are diverse and representative in terms of size, industry, financial performance, and technological sophistication.
Chen Li, Chief Economist and Director of the Research Institute at Chuancai Securities, stated that the first batch of new shares issued under the main board registration-based system comprises companies that, from both a market perspective and an enterprise‑specific standpoint, occupy relatively leading positions in their respective industries. In Chen Li’s view, the pricing of these main board registration‑based IPOs more closely reflects the actual development trajectories of the issuing offices, underscoring how the registration system places pricing authority in the hands of the market.
As the pivotal initiative for comprehensively reshaping the market ecosystem, the full‑scale registration‑based reform not only captures the attention of tens of millions of pre‑IPO companies but will also provide listed offices with more convenient and efficient access to capital.
As of May 9, the Shanghai and Shenzhen main boards have cumulatively accepted refinancing applications from 247 companies, of which 8 have completed registration and become effective, and 19 have submitted their registration filings.
Leave the choice to the market.
“We have personally experienced the efficiency of stock issuance reviews brought about by the registration‑based reform: the inquiry questions are streamlined and focused, and, on the basis of thorough information disclosure, the review cycle has been effectively shortened, significantly boosting review efficiency,” said Ai Lin, General Manager of Haissen Pharmaceutical, when discussing the issuance review process under the comprehensive registration system.
Haisen Pharmaceutical was among the first batch of main-board companies to be transferred to the Shenzhen Stock Exchange for review.
At its core, the registration-based reform empowers the market with decision‑making authority, ensures that the entire review process is open and transparent, subjects it to public oversight, and strengthens both market‑based and rule‑of‑law constraints. At the same time, the “principal reviewing body” under the registration system has shifted from the China Securities Regulatory Commission to the stock exchanges.
Over the past few years, the registration-based system, implemented through a pilot‑first, incremental‑then‑stock reform approach, has taken root and yielded tangible results on the STAR Market and the ChiNext Board, bringing about profound changes to the issuance market. “Openness, transparency, and efficiency” have become the key terms by which the market assesses the effectiveness of the registration system.
From the “three‑door opening” approach to the “Yangguan review,” the Shanghai and Shenzhen stock exchanges have earnestly shouldered their primary responsibility for reviewing IPO applications.
On March 1, the Shanghai Stock Exchange released the “Action Plan for Further Advancing the ‘Open-Door Approach to Review, Supervision, and Service’ Initiative.” The “Three Open Doors” action plan comprises three major areas and a total of 12 measures, aiming to transform work styles through openness, enhance transparency by embracing openness, and improve services through open engagement, thereby continuously building a service-oriented exchange and better supporting high-quality development.
The Shanghai Stock Exchange has been committed to ensuring that power operates in the light of transparency and to vigorously upholding the “shop‑assistant” spirit in serving market entities. The Exchange stated that this latest push to advance the “Three Openings” initiative aims to further transform its work style, enhance service efficiency, strengthen regulatory transparency, optimize the business environment, and continuously boost market participants’ sense of gain and satisfaction.
On March 29, to ensure the smooth implementation of the comprehensive reform to introduce a registration-based system for stock issuance, the Shenzhen Stock Exchange launched a special campaign titled “Three Forms of Transparency and Two Promotions,” aimed at enhancing the quality and efficiency of review processes and fostering a culture of integrity, thereby striving to build a transparent, clean, and high‑quality registration system. The campaign focuses on the review, regulatory, and service stages, encompassing more than 20 specific measures.
Under the “Sunshine Project” for the registration-based system, issuers “explain clearly,” intermediary institutions “verify thoroughly,” and investors can “see clearly.” A responsible official from the Shenzhen Stock Exchange stated that the special campaign “Three Sunshines and Two Promotions” is a key lever for further enhancing transparency in the registration-based system, an important measure to optimize services and improve work style, and a vital initiative to build an integrity‑driven registration system and foster a culture of integrity.
Market entities have a firsthand sense of whether reforms are effective.
Ailin stated, “Throughout the entire listing process, we underwent rigorous review and meticulous guidance from the China Securities Regulatory Commission and the stock exchange. Communication with reviewers became more diverse and equitable, the review and registration procedures grew increasingly timely and transparent, and our collaboration with intermediary institutions became more proactive and efficient. As a result, the predictability of all preparatory work was significantly enhanced, fully reflecting the principles and spirit of the registration-based reform.”
During the review of Haishen Pharmaceutical’s IPO, CITIC Securities, as the sponsor, keenly experienced the standardization, transparency, and predictability of the entire registration‑based issuance review process.
Xu Feng, the sponsor representative for CITIC Securities’ Haisen Pharmaceutical project, stated: “From pre‑filing guidance and rectification, through the approval‑based review process, to the registration‑based review, this journey has been one of continuous internal management and operational standardization for the company—and also a process through which we have gradually clarified the company’s internal development logic and unlocked its market value.”
The market ecosystem is expected to continue improving.
On April 21, *ST Zijing and *ST Zheda each issued announcements stating that they had received the China Securities Regulatory Commission’s “Administrative Penalty Decision” on that day, and that both companies would be subject to mandatory delisting for material violations.
On the same day, the Shanghai Stock Exchange initiated the mandatory delisting procedure for material violations, issued advance notices of its intention to terminate the listing of two companies, and will render a decision to delist within the prescribed timeframe.
These are the first batch of delisted companies on the STAR Market, and the market regards this as a landmark event since the full implementation of the registration-based IPO system.
Xun Yugen, Chief Economist at Haitong Securities, stated that the delisting regime is a crucial supporting mechanism for the implementation of the registration-based system. By further refining a market‑oriented, rule‑of‑law‑driven, diversified delisting framework, improving delisting criteria, and streamlining delisting procedures, this approach will help ensure healthy survival of the fittest within the A‑share market under the registration system and contribute to an overall enhancement in the quality of A‑share listed companies.
According to data from the Shanghai Stock Exchange, since the launch of the delisting reform in 2020, a total of 41 companies have been delisted. In 2021, 14 companies were delisted, and in 2022, that number rose to 24, representing a year-on-year increase of approximately 70%. In 2022, 18 companies were forcibly delisted, a 125% rise compared with 2021, while the delisting rate among companies under delisting risk warnings reached 45%, marking a substantial increase in the proportion of delistings.
On the Shenzhen Stock Exchange, a total of 24 companies were delisted in 2022, nearly matching the combined number of delistings over the previous three years. Of these, two were voluntarily delisted and 22 were forcibly delisted. Since the beginning of 2023, two companies have been forcibly delisted, while an additional 18 have been placed on the brink of delisting.
Professor Han Qian of Lingnan College at Sun Yat-sen University stated that the accelerated turnover in A‑shares is a positive development. It reflects the capital market’s ongoing drive for innovation and its natural process of survival of the fittest, thereby enabling the market to better align with the direction of real‑economy growth.
In fact, from the STAR Market to the ChiNext Board, the Beijing Stock Exchange, and ultimately the entire market—moving from incremental‑market reforms to addressing existing market participants—the registration‑based reform, after more than four years of exploration, has been steadily reshaping the capital market’s ecosystem and structure, encompassing investor composition, the profile of listed companies, and the valuation framework.
At present, the A-share market has seen more than 1,000 high-quality companies complete their IPOs under the registration-based system, raising a total of over one trillion yuan. A number of enterprises engaged in critical “bottleneck” technologies have entered the capital markets, fostering industrial clusters in sectors such as advanced manufacturing, biopharmaceuticals, new energy, and new materials. By the end of 2022, the number of A-share listed companies in strategic emerging industries exceeded 2,500—more than 1,000 higher than at the beginning of 2019—and their combined market capitalization share rose from 25.9% to 41.1%.
The structure of investors in the A-share market has undergone a positive, trend‑driven shift, with the share of holdings and trading accounted for by institutional investors steadily increasing. The proportion of A‑share free‑float market capitalization held by institutional investors—including public mutual funds, social security funds, and insurance institutions—rose from 15.7% at the beginning of 2019 to 19.9% at the end of 2022, while the share of trading volume attributable to individual investors declined to around 60%.
Han Qian stated that the comprehensive registration-based system places information disclosure at its core. With the implementation of this reform, the quality of listed companies’ disclosures has been steadily improving, and information has become more comprehensive and transparent. This enhancement in disclosure quality enables asset prices to more accurately reflect corporate value, thereby further strengthening the price‑signaling function of the capital market.
Moreover, with the advent of the era of full registration-based IPOs, market participants are confronted with both new opportunities and challenges, while the new rule that “filing entails accountability” further strengthens and clarifies the responsibilities of intermediary institutions.
Wang Shuguang, head of investment banking at CICC, stated that sponsoring institutions should proactively elevate their strategic perspective to better support national strategies and capital market reforms; continuously strengthen their internal capabilities to build core competencies suited to the comprehensive registration-based system; and effectively fulfill their role as gatekeepers of the capital market by recommending only truly high-quality companies for listing.
Promote the steady and sustained advancement of registration-based reform.
Starting with incremental pilot programs, expanding the scope of existing pilots, and eventually rolling out the system across the entire market, over the past four-plus years, China’s capital market has adhered to the principle of “respecting the fundamental essence of the registration-based system, drawing on global best practices, and reflecting both Chinese characteristics and the specific features of its stage of development.” Emphasizing the core tenet of registration‑based reform—“empowering the market with choice”—China has coordinated the reform of foundational capital market institutions while simultaneously strengthening regulatory oversight, continuously forging a path of registration‑based reform that integrates universal principles of capital markets with uniquely Chinese insights.
The registration-based reform is the “key” initiative in capital market reform—a transformation that upends the regulatory framework, entails self‑imposed reforms, and reshapes the entire capital market, with far‑reaching implications.
Tian Lihui, Dean of the Institute for Financial Development at Nankai University, stated that the comprehensive registration-based reform has ushered in a new phase of market-oriented development for China’s capital market, providing a high-quality platform for more enterprises to achieve sustainable growth, enhancing the market’s ability to serve the real economy, improving its capacity to optimize resource allocation, and offering investors a broader array of choices—thereby fostering the capital market’s robust expansion and sound, healthy development.
In the view of Liu Lianjie, a member of the Investment Banking Business Management Committee at CITIC Securities, the comprehensive registration-based reform carries three major significances.
First, a capital market issuance‑review system with Chinese characteristics has been established. The registration‑based reform has successfully put in place a registration‑system framework featuring “one core, two stages, and three market‑oriented arrangements,” highlighting the systematic and gradual nature of the reforms while emphasizing the functional positioning of each market segment. This has enabled the multi‑tiered capital market to develop in a differentiated manner, with complementary functions, thereby becoming more robust. Second, the capital market’s role in serving the real economy has been strengthened, and it will play a significant part in building a modern industrial system, supporting self‑reliance and self‑strengthening in science and technology, and fostering a virtuous cycle among industry, capital, and technology. Third, the professional capabilities of intermediary institutions have been enhanced; investment banks must earnestly fulfill their gatekeeper responsibilities, comprehensively improve both their own practice standards and project quality, and shoulder the mission of serving the real economy and national strategies.
“Under the registration-based system, only companies with high‑level management and a commitment to high‑quality development will deliver strong performance, enabling their market capitalization to grow sustainably and enhancing their capacity for long-term growth,” said a spokesperson from Dengkang Oral Care. “This will compel enterprises to continuously standardize and refine their operations, accelerate reform and innovation, and steadily strengthen their product appeal, brand equity, distribution networks, and overall market competitiveness, all in an effort to achieve even better results in both market and operational performance.”
Looking ahead, market participants expect the full implementation of the registration-based IPO system to bring about further positive developments for China’s capital markets, enabling them to serve the high-quality development of the real economy with greater dynamism and resilience in this new historical era.
Li Zhan, Chief Economist at the Research Department of China Merchants Fund, stated that after years of implementation, the registration-based reform has now been fully completed, marking the official transition of China’s financial market to a mature stage and establishing the central role of market mechanisms in allocating financial resources. In the short term, the reform is expected to significantly enhance corporate financing efficiency and bolster investor confidence; in the long term, it will continue to elevate the market‑oriented and rule‑of‑law governance of A‑shares.
Han Qian suggests that, as the comprehensive registration-based reform takes effect, an increasing number of companies from diverse industries and with varying business models will list on the capital market. To further enhance pricing efficiency in the capital markets, it would be advisable to launch more index ETFs and sector-specific ETFs, and, building on these, introduce corresponding risk-management instruments.
Tian Lihui stated that a steady and sustainable registration-based reform must officely focus on high-quality information disclosure as the key leverage, while gradually enhancing corporate governance and fostering a value-investment ecosystem.
“The deepening advancement of the comprehensive registration‑based reform will ultimately achieve the goal of ‘building a capital market that is standardized, transparent, open, dynamic, and resilient,’ thereby driving the development of a modern capital market with Chinese characteristics,” said Liu Lianjie.

Beijing: Enhancing the Efficiency of IPOs and Listings for Innovative, Specialized, Refined, and Novel Enterprises and “Little Giant” Companies
The Beijing Municipal Bureau of Economy and Information Technology has issued the “Several Policy Measures of Beijing to Accelerate the Development of a Leading Hub for the Information Technology Application Innovation Industry,” which stipulates that the efficiency of listing and trading on the Beijing Stock Exchange and other markets will be enhanced for specialized, refined, distinctive, and innovative enterprises as well as “Little Giant” offices in the information technology application innovation sector, thereby expediting the formation of a dedicated IT‑application‑innovation market segment. In addition, enterprises in this sector that list on the Beijing Stock Exchange or other trading platforms will receive subsidies at both the municipal and district levels.
I. Upgrading the Technological Innovation Ecosystem. We will support integrated circuit and foundational software companies in establishing innovation consortia, enhance the application ecosystem, and accelerate technological iteration; relevant key projects will be incorporated into the “Foundation‑Building” initiative. We will expedite the development roadmap for cloud computing and blockchain, leveraging mechanisms such as “listing challenges with appointed leaders” and “race‑to‑the‑top” to drive R&D breakthroughs, and support the construction of a comprehensive technology ecosystem based on domestically developed cloud and blockchain platforms. Additionally, we will encourage enterprises to pursue integrated innovation by combining “domestically developed applications” with artificial intelligence, thereby advancing the intelligent upgrading of domestically developed products.
II. Promote an open-source and open‑access model. Encourage enterprises to actively participate in international open-source projects and contribute to the global open-source community; support the establishment of both international and domestic open-source organizations in Beijing, providing financial assistance for shared open-source platforms they set up in the city; intensify efforts to incubate open-source projects, fostering clusters of open-source enterprises; and support the development of evaluation and incentive mechanisms based on open-source contributions, while facilitating the nomination of outstanding open-source projects and talent for the Beijing Science and Technology Awards.
III. Establish Industry Benchmarks and Demonstration Projects. Support enterprises in collaborating with users from key sectors—including finance, energy, transportation, public security, education, and healthcare—to co‑develop solutions, tackle technical challenges, and conduct validation. For high‑quality solutions that, for the first time, address typical application‑scenario needs in these priority industries and achieve practical deployment, a “First‑Solution” incentive will be granted at a specified percentage of the actual procurement value of the non‑hardware components of the solution, with a maximum cap of RMB 30 million.
IV. Strengthen the development of industry standards. Implement the Indigenous Innovation Standards Development Project, supporting enterprises and institutions in key sectors such as finance, energy, transportation, public security, education, and healthcare to establish benchmark demonstrations based on typical application scenarios within their respective industries. Jointly formulate a set of group and local standards, and promote the establishment of national standards. Furthermore, facilitate the practical implementation of indigenous innovation standards by providing “first‑time standardization” incentives to user enterprises that adopt these standards for the first time, with individual enterprise awards capped at RMB 500,000 and total rewards for a single standard not exceeding RMB 5 million.
V. Deepen Industry-Wide Promotion and Application. In the context of smart city development, promote the use of open-source software and domestically developed information technology products. Provide financial support—up to RMB 10 million—for major construction projects that open up application scenarios in key industries and advance domestic IT standards. For industry‑wide common adaptation platforms established in Beijing, offer funding—up to RMB 5 million—based on the extent of product adaptation and the scale of solution deployment. Select high‑quality industry solutions and recommend them for display and promotion at the National Information Technology Application Innovation Exhibition Center.
VI. Strengthening the Attraction of R&D Centers. We will support internationally renowned institutions and enterprises, as well as China’s top 100 software companies, in establishing software R&D centers in Beijing, and explore implementation mechanisms that use R&D investment intensity and other metrics as evaluation criteria. We will also encourage these R&D centers to participate in the city’s “Foundation‑Building” initiative, focusing on tackling key challenges related to the development of the indigenous information technology innovation (ITI) industrial ecosystem.
VII. Enhancing the Development Level of Industrial Parks. The National Information Technology Innovation Park in the Beijing Economic-Technological Development Area offers five years of rent exemption to newly established national key laboratories, new‑type R&D institutions, and industry‑specific adaptation platforms within the park, provided they meet specified criteria regarding the number and proportion of resident employees. Additionally, the Beijing Economic-Technological Development Area provides incentives for the economic contributions generated by enterprises, institutions, and personnel located in the park, and supports the complementary infrastructure development of the Information Technology Innovation Park.
VIII. Expanding Funding Support Channels. Financial institutions will be encouraged to develop R&D loans for indigenous information technology innovation projects, with interest subsidies provided for major projects for a term not exceeding three years. Enterprises will be urged to actively participate in pilot programs for M&A loans and talent‑focused loans, and efforts will be made to increase the loan‑to‑value ratio for M&A financing. An indigenous information technology innovation ecosystem fund will be established to support the incubation and nurturing of specialized, refined, distinctive, and innovative enterprises, as well as “little giant” offices, across the upstream and downstream segments of the industry chain.
9. Support the listing of indigenous innovation enterprises. Enhance the efficiency of listing and trading for specialized, refined, distinctive, and innovative “Little Giant” enterprises in the Beijing Stock Exchange and other trading markets, thereby accelerating the development of an indigenous innovation sector. Provide subsidies at both the municipal and district levels to indigenous innovation enterprises listed on the Beijing Stock Exchange and other exchanges, with district-level financial subsidies no less than the municipal standard. Promote the participation of financial institutions in the “fund‑loan linkage” pilot program to offer financing support to indigenous innovation enterprises.
X. Building a Talent Pipeline for the Indigenous Innovation (XinChuang) Sector. Support the cultivation of XinChuang–excellence engineers, and develop a tiered XinChuang talent pool in phases. In accordance with relevant policies, strengthen support services in areas such as talent recruitment, housing assistance, school enrollment for children, and medical coverage. Additionally, promote the establishment of industry–education integration training bases, encourage XinChuang enterprises and related public institutions to develop curricula on XinChuang technologies and applications, and advance the training of practice-oriented XinChuang professionals.

The persistently weak demand is the primary contradiction in the current rebar market.
Since mid-March, the domestic steel market has experienced two consecutive months of volatile weakness, with futures prices posting a cumulative decline of nearly RMB 900. Looking ahead, Guangda Futures believes that although steel mills have been successively suspending or cutting production, persistently weak demand remains the primary contradiction in the rebar market. As a result, steel prices are expected to remain under downward pressure in the near term.
Specifically, on May 11, data released by MySteel showed that, as of the week ending May 11, domestic rebar production fell by 49,500 tonnes to 2.6803 million tonnes, down 421,100 tonnes year-on-year; however, the pace of the decline narrowed compared with the previous two weeks. During the same period, rebar inventories continued to drop week-on-week, with mill‑level stocks posting a particularly sharp decline after a modest rebound in the prior week. According to the data, social rebar inventories decreased by 401,500 tonnes week-on-week to 6.7586 million tonnes, down 1.8531 million tonnes year-on-year; mill‑level inventories fell by 257,400 tonnes week-on-week to 2.4373 million tonnes, a year-on-year drop of 1.1734 million tonnes. Overall, apparent rebar consumption rose by 519,000 tonnes week-on-week to 3.3392 million tonnes, up 66,700 tonnes year-on-year.
“Threaded steel production has declined for the fourth consecutive week, while inventories have fallen for the 12th straight week, with the pace of decline widening significantly, and apparent demand has rebounded sharply. Given that this reporting period included one additional working day, this week’s data are broadly neutral,” according to a commentary by the Black Commodities Team at Everbright Futures.
According to Qiu Yuecheng, Director of Black Commodities Research at Everbright Futures, on the supply side, steel mills’ spot profits have rebounded somewhat as raw material prices have continued to decline recently. However, mills still relying on earlier‑purchased raw material inventories remain significantly unprofitable, and in some regions, production is both resuming and being cut back simultaneously, leading to a further modest drop in rebar output. On the demand side, end‑user demand remained subdued this week, with market turnover fluctuating; trading volumes surged at the start of the week before falling sharply again.
According to Mysteel’s monitoring data, from Monday to Wednesday this week, the national daily average trading volume of construction steel stood at 170,800 tonnes, down 1.08% year on year. In the Hangzhou market, the daily average outbound volume of rebar was 28,000 tonnes, a 19.2% week-on-week decline, while rebar inventories in Hangzhou totaled 805,000 tonnes.
“In April, indicators such as new-home sales in 30 cities, automobile production and sales, and cement shipments all declined noticeably compared with March. Persistent weak demand remains the primary contradiction in the market, and overall market sentiment remains subdued,” Qiu Yuecheng added. Consequently, rebar futures prices are likely to trend lower in the near term.

In the first quarter, 88 insurance companies saw their solvency ratios decline quarter-on-quarter, with 27 classified as medium- to high-risk institutions; underlying risks remain a cause for concern.
With the release of first-quarter solvency reports, the capital adequacy and risk‑taking profiles of insurance companies have become key areas of industry attention. According to statistics, as of May 9, a total of 171 insurers had disclosed their Q1 2023 solvency reports on the website of the Insurance Association. These include 74 life insurers, 83 property insurers, and 14 reinsurers.
From the perspective of the solvency adequacy ratio, at the end of the first quarter, all 14 reinsurance companies met the regulatory threshold. Among life insurers, the average comprehensive solvency ratio stood at 172.61%, while for property insurers it was 322.64%—both well above the 100% benchmark. Specifically, in the first quarter, 48 insurers saw their solvency ratios rise quarter-on-quarter, whereas 88 experienced a decline.
According to the latest comprehensive risk ratings, as disclosed in the China Banking and Insurance Regulatory Commission’s recently issued “Notice on the 2022 Insurance Industry Solvency Supervision,” at the end of the fourth quarter of 2022, there were 49 Class A companies with low risk; 104 Class B companies with relatively low risk; 16 Class C companies (i.e., medium-risk); and 11 Class D companies (i.e., high-risk).
Industry insiders note that the solvency adequacy ratio is a dynamically evolving metric that requires continuous monitoring; the greatest risk lies in the hidden, latent exposures lurking beneath the surface. For an insurance company, the residual risks that remain difficult to manage even after deploying a full array of risk‑management tools are precisely the root cause of potential solvency issues and the emergence of insolvency.
Among 74 life insurance companies, 37 saw a quarter-on-quarter decline in solvency, while 16 have not yet disclosed their latest comprehensive risk ratings.
In addition to operating performance, solvency is a key indicator for assessing an insurance company’s capital adequacy and risk‑taking capacity.
According to regulatory requirements, an insurer must meet all three of the following criteria to be deemed solvent: first, the core solvency ratio must be no less than 50%; second, the comprehensive solvency ratio must be no less than 100%; and third, the comprehensive risk rating must be Class B or higher.
As of May 9, a total of 74 life insurance companies had timely disclosed their first-quarter 2023 solvency reports, excluding the five companies under receivership.
In addition, the latest solvency reports of eight insurance companies—Fude Life, Junkang Life, Qianhai Life, Zhujiang Life, Shanghai Life, Hengda Life, Kunlun Health, and Zhongrong Life—have yet to be released for undisclosed reasons.
From the perspective of the solvency adequacy ratio, as of the end of the first quarter, the 74 life insurance companies reported an average core solvency adequacy ratio of 126.71% and a comprehensive solvency adequacy ratio of 172.61%, both well above the regulatory thresholds of 50% and 100%, respectively.
Overall, among the 74 life insurers that disclosed their reports, 26 saw quarter-on-quarter increases in both their core solvency ratio and comprehensive solvency ratio, while 37 reported quarter-on-quarter declines. Furthermore, 46 had core solvency ratios below the industry average of 126.71%.
According to the latest comprehensive risk rating, among the 74 life insurance companies, 18 are classified as Class A. The details are as follows:
Four AAA-rated companies: Taiping Life Insurance, AIA Life, Allianz Life, and Heng’an Standard Life.
Five Class AA companies: Xinhua Life, PICC Health, ICBC-AXA Life, Tongfang Global Life, and National Pension Insurance.
Nine Class-A insurance companies: China Life Insurance (601628), Taiping Life, Sunshine Life, Taikang Pension, Sino‑Hong Kong Life, Bank of Communications Life, Huatai Life, Sino‑US United Life, and Sino‑British Life.
The remaining 45 life insurance companies received a comprehensive risk rating of B. In addition, Hezhong Life, Bai Nian Life, Xingfu Life, Huahui Life, Changsheng Life, Bohai Life, and Three Gorges Life were assigned a comprehensive risk rating of C in their most recent assessment.
One Class D insurer is Peking University Founder Life Insurance. According to its solvency report, as of the end of the first quarter, the company’s core solvency ratio declined from 32.89% at the end of the fourth quarter of 2022 to 27.81%, while its comprehensive solvency ratio fell from 65.78% to 55.62%. In its fourth-quarter 2022 solvency report, Peking University Founder Life Insurance attributed this decline primarily to impairment charges related to trust schemes in which the company had invested in entities formerly affiliated with the Founder Group.
Notably, among the 74 life insurers that released their first-quarter solvency reports, Xintai Life, Guohua Life, and Hongkang Life did not disclose their most recent comprehensive risk ratings.
In the first quarter, property insurance companies generally maintained adequate solvency, with eight institutions rated as medium- to high-risk, falling into Categories C and D.
As of May 9, with the exception of three risk‑resolution institutions—Dajia Property & Casualty Insurance, Tian’an Property & Casualty Insurance, and Yian Property & Casualty Insurance—and Chang’an Liability Insurance, which delayed its disclosure, a total of 83 property and casualty insurers had timely released their first‑quarter 2023 solvency reports.
From the perspective of solvency ratios, with the exception of Anxin Property Insurance, whose core and comprehensive solvency adequacy ratios stand at –906.21%, well below the regulatory threshold, the remaining 82 property insurers generally exhibit robust solvency positions, with an average core solvency adequacy ratio of 308.44% and an average comprehensive solvency adequacy ratio of 322.64%.
As of the end of the first quarter, the core solvency adequacy ratio and the comprehensive solvency adequacy ratio both improved quarter-on-quarter at 26 property insurance companies, while declining quarter-on-quarter at 37.
According to the latest comprehensive risk rating, there are 20 Class A companies. The details are as follows:
Five Class AAA property insurance companies: Anxin Agricultural Insurance, Nippon Kaiji, Zurich (China), Tokio Marine, and COSCO Shipping.
Ten Class-A property insurance companies: Taiping Property Insurance, Sunshine Agricultural Insurance, Samsung Fire & Marine Insurance, Lloyd’s, AIG, Sumitomo Mitsui, American International Assurance, Yingda Property Insurance, Kaiben Property Insurance, and Zhongyuan Agricultural Insurance.
Five Class-A property insurance companies: Taiping Property Insurance, Liberty Insurance, Jintai Property Insurance, AVIC Anbang, and Rongtong Property Insurance.
In addition, there are 55 Class B companies. Among those that fail to meet solvency requirements, Hu’an Property & Casualty Insurance, Anhua Agricultural Insurance, Bohai Property & Casualty Insurance, Fude Property & Casualty Insurance, Qianhai Property & Casualty Insurance, and Zhufeng Property & Casualty Insurance have all received a comprehensive risk rating of C in their most recent assessment. Reportedly, Anhua Agricultural Insurance was downgraded from Class BB to Class C in the third quarter of 2022, primarily due to governance-related risks; the company stated that it is currently actively advancing corrective measures.
There are two companies rated as Risk Category D, namely Dubang Property & Casualty Insurance and Anxin Property & Casualty Insurance.
According to reports, in 2022, the insurance sector raised an additional RMB 54.047 billion in capital through market-based mechanisms, including RMB 41.267 billion from equity injections by shareholders of 20 insurance companies and RMB 12.78 billion raised via the issuance of capital‑supplementing bonds by 10 insurance companies.
Compared with 2021, the overall scale of capital replenishment in the insurance sector declined by 25% year on year in 2022, while the amount of equity capital raised through shareholder contributions increased by 136%, and the issuance of capital‑supplementing bonds fell by 76%.
Industry insiders reveal that, among the 171 insurers that have disclosed their first-quarter solvency reports, while the sector as a whole maintains an adequate level of solvency, certain companies face internal issues far more serious than they appear on the surface. “For insurers, whether through capital increases, bond issuances, or financial reinsurance, these measures address only the symptoms. The only sustainable solution lies in reducing costs and boosting efficiency, continuously strengthening profitability, enhancing capital adequacy, and thereby improving overall solvency.”

Commercial & Corporate
Beijing Consumer Association: Operators may not compel consumers to “scan a code to order” or “scan a code to pay.”
Currently, practices such as “you must follow the official account to obtain an invoice,” “you must use the mini‑program to place an order,” and “you must scan a code to make a payment” are far from uncommon in everyday life. Requiring consumers to follow an official account or use a mobile app or mini‑program as a precondition for exercising their rights or accessing services constitutes an unfair and unreasonable restriction, potentially infringing on consumers’ right to free choice. Moreover, collecting consumers’ personal information unrelated to the service through scanning codes to follow an account or use a mini‑program may violate relevant laws and regulations on personal data protection.
In response, on May 9, the Beijing Consumer Association publicly urged relevant business operators to: issue invoices as a statutory obligation; refrain from delaying or refusing consumers’ requests for invoices, and avoid imposing any arbitrary barriers; provide a variety of service options to safeguard consumers’ rights and legitimate interests, including their right to choose; and not compel consumers to follow official WeChat accounts or use mobile apps or mini-programs for self-service ordering, shopping, or payment. Business operators must also avoid excessively collecting consumers’ personal information through official WeChat accounts, mobile apps, or mini-programs. When collecting and using consumers’ personal information, operators shall adhere to the principles of legality, fairness, necessity, and good faith, clearly disclose the purposes, methods, and scope of such collection and use, and obtain consumers’ prior consent.

Fourteen departments have jointly issued a document to rectify malpractices in the pharmaceutical procurement and sales sector.
On May 10, fourteen departments, including the National Health Commission, the Ministry of Industry and Information Technology, the Ministry of Commerce, and the Ministry of Finance, jointly issued the “Notice on Issuing the Key Work Points for Rectifying Improper Practices in the Pharmaceutical Procurement and Sales Sector and in Medical Services in 2023.”
The Notice clarifies that efforts will be intensified to address misconduct in key sectors, including issues arising in industry administration, industry organizations, and the sales and procurement of pharmaceutical products. In addition, it calls for strengthened standardized management and use of medical insurance funds, as well as continued advancement of credit‑based evaluation systems for drug pricing and procurement. Focusing on priority areas such as medical aesthetics, dentistry, and assisted reproductive technologies, the Notice mandates strict enforcement, in accordance with laws and regulations, against false advertising, unlicensed medical practice, and the illegal production, operation, or use of related drugs and medical devices. It also directs the crackdown on illegal advertising and unauthorized provision of diagnostic and treatment services, while ensuring rigorous standardization of fee‑charging practices.

Three departments have jointly launched the 2023 “100 Events, 10,000 Enterprises” initiative to facilitate collaboration and matchmaking between large, medium, and small enterprises.
The Ministry of Industry and Information Technology, the State-owned Assets Supervision and Administration Commission, and the All-China Federation of Industry and Commerce recently jointly issued a notice to launch the 2023 “100 Events, 10,000 Enterprises” initiative for fostering integrated collaboration between large, medium, and small enterprises. The initiative aims to address information asymmetry between large corporations and SMEs and to broaden and diversify channels for such collaborative matchmaking.
A relevant official from the Ministry of Industry and Information Technology stated that the ministry’s industry‑specific departments will, leveraging leading enterprises in their respective sectors, organize supply‑chain matchmaking events for new‑energy vehicles, large aircraft, nuclear energy, next‑generation displays, and other industries. In addition, the ministry will collaborate with the State-owned Assets Supervision and Administration Commission to host a series of matchmaking initiatives between central state‑owned enterprises and small and medium‑sized enterprises.
Meanwhile, local departments in charge of small and medium-sized enterprises, state-owned asset supervision and administration commissions, and federations of industry and commerce will, in light of their respective regional industrial foundations and development realities, organize province‑wide matchmaking events tailored to different levels and sectors. They will invite relevant universities, research institutes, financial institutions, and other stakeholders to participate broadly, thereby fostering a robust and well‑structured ecosystem for integrated innovation among large, medium, and small enterprises.
According to reports, the initiative was launched in May this year and will run through the end of the year. It will establish platforms for exchange, showcasing, matchmaking, and service provision, fostering deeper collaboration among large, medium, and small enterprises in areas such as technological innovation, product integration, and market development. The program aims to help SMEs integrate into the industrial and supply chains of larger offices, thereby contributing to the building of a modern industrial system.

New-generation home appliances are driving consumption upgrades.
At present, China’s home‑appliance market is experiencing a wave of emerging consumption trends: on the one hand, it is characterized by a large existing stock; on the other, new‑generation appliances are rapidly gaining favor. Actively expanding market demand, aligning with the trend of consumption upgrading, and helping consumers build harmonious, high‑quality “homes of the future” have become the core drivers behind the industry’s transformation and its transition to high‑quality development. Recently, the 2023 China Household Electrical Appliances & Consumer Electronics Expo was held in Shanghai. As one of the world’s three major home‑appliance and consumer‑electronics exhibitions, this event was themed “Smart Technology, Creating the Future,” attracting more than a thousand domestic and international companies that showcased cutting‑edge innovations across the global home‑appliance and consumer‑electronics sectors.
Jiang Feng, Executive Chairman of the China Household Electrical Appliances Association, stated that the successful hosting of this exhibition underscores China’s pivotal role as the primary engine driving growth in the global home appliance and consumer electronics sectors.
Product upgrades and replacements are accelerating.
For the home appliance and consumer electronics industries, 2023 was a pivotal year for expanding market scale and accelerating structural adjustments. Leading companies, backed by robust capabilities and innovative initiatives, demonstrated the confidence and strength needed to steer the sector out of its downturn and usher in a new phase of growth.
Major TV brands are vying to lead in cutting-edge technologies such as OLED, Mini LED, and laser display. TCL’s Mini LED TVs have achieved a peak brightness exceeding 5,000 nits, while Hisense has unveiled the world’s first 8K laser TV.
To meet users’ demand for immersive big‑screen viewing, Hisense pioneered laser TVs nine years ago, offering distinctive advantages such as a stunning large screen, eye‑care technology, and energy efficiency. In 2022, Hisense captured a 53.5% share of global laser TV shipments. The 8K laser TV LX showcased this time can vividly render 33 million details on a massive 4‑square‑meter screen. “On the path of product innovation, we will never stop,” said Liu Xianrong, General Manager and Chief Scientist of Hisense Laser Display Co., Ltd.
Changhong has been proactively expanding its presence in the 5G+8K market, leading China’s 8K TV segment in 2022. As 5G network speeds continue to accelerate, high refresh rates have emerged as one of the dominant trends shaping the future of display technology. Changhong has launched the country’s first ultra‑high‑refresh‑rate TV series, supporting a full‑range 288 Hz display, offering users performance‑enhanced, scenario‑based solutions.
Many home appliance manufacturers are focusing on the demands of a high-quality lifestyle, enhancing product features such as fresh-air ventilation, wash-and-dry functions, sterilization, and age‑friendly designs to deliver new experiences for consumers. The premium German brand Miele showcased over 100 products across its lines of garment care, dishwashers, and built‑in kitchen appliances.
Yingbao Chun’s air‑environment system series builds on the single‑function capabilities of traditional air conditioners, delivering an iterative upgrade that integrates air conditioning, fresh‑air ventilation, disinfection, purification, humidity control, and environmental monitoring into a single unit. The company’s cutting‑edge technologies enable multi‑dimensional regulation of indoor air quality—covering temperature, humidity, oxygen levels, and cleanliness—thereby better meeting consumers’ demands for a healthy living environment.
Home appliance and home furnishing integration
Against the backdrop of rapidly advancing emerging digital technologies, home appliance and consumer electronics manufacturers are seamlessly integrating living spaces—such as the living room, kitchen, bedroom, and bathroom—and leveraging artificial intelligence to deliver a proactive, continuously evolving smart‑home experience.
Haier has built a full‑scene smart model home featuring “four major scenario boxes,” leveraging its Smart Home Brain to create a variety of personalized experiences, including entertainment, bathing, and sleep. Deng Qiuwei, Vice President of Haier Smart Home and General Manager of Whole‑Home Intelligence, stated that the convergence of data and intelligence has elevated the user experience of home appliances. Haier has developed a specialized household knowledge graph, which is integrated into the Smart Home Brain. Powered by self‑sensing and self‑learning algorithms, the Smart Home Brain can deeply understand users’ and families’ needs, enabling the creation of a smarter, more convenient, whole‑home digital adaptive ecosystem.
“Changes in consumer demand are driving a closer convergence between home appliances and home furnishings, blurring the boundaries between the two,” said the head of JD.com’s Home Appliances and Home Furnishings Division. This year, JD.com will center on the home‑living scenario to build a new ecosystem for appliance and home‑furnishing consumption, offering customers scenario‑based, bundled product solutions. At the same time, by integrating online and offline resources, the company will further streamline its supply chain, revamp the layout of brick‑and‑mortar stores, unlock the potential of lower‑tier markets, and accelerate the growth of emerging categories and new products.
Amid the growing trend toward integrated home appliances and interior design, the degree of compatibility between products and living spaces is receiving increasing attention from the appliance industry. In developing new models, refrigerator brands are not only leveraging cutting-edge technologies to meet the demands of smart, health-conscious lifestyles but also placing great emphasis on blending aesthetics with practicality. Hisense’s Vacuum Brilliant 503 refrigerator, featuring an ultra‑slim body, keeps food in a low‑pressure, low‑oxygen vacuum‑preservation environment, while its externalized vacuum technology offers users even greater convenience for preserving their ingredients.
Embedded appliances are increasingly becoming the latest trend. The newly launched Rongsheng Borderless Series refrigerator features a bottom-mounted cooling system, eliminating the need for gaps between the fridge’s sides and the cabinets, thus enabling a seamless, fully integrated look.
The brand is moving upmarket.
On the industry side, the China Household Electrical Appliances & Consumer Electronics Expo has long served as a leading indicator of the sector’s future direction. At the summit forum held during this year’s event, industry experts engaged in in-depth discussions on topics such as the deep integration of digital and intelligent technologies and strategies for driving high-quality industry development.
As a leading brand in China’s home appliance industry, Haier Group has been cultivating the sector for 39 years, pioneering distinctive approaches to innovation rooted in practical application. Li Huagang, Senior Vice President of Haier Group and Chairman and President of Haier Smart Home Co., Ltd., stated that Haier’s pursuit of high-quality development lies at the heart of its pragmatic, real‑world‑oriented innovation, encompassing two key dimensions: externally, Haier adheres to a three‑tier brand‑innovation strategy, spanning from premium brands to scenario‑based brands and ultimately to ecosystem‑level brands; internally, it undertakes deep digital transformation to enhance both user experience and operational efficiency.
Building high-end brands is a major strategic challenge for China’s home appliance industry. Haier began its journey in cultivating a premium brand in 2006, with the launch of the “Appliances to the Countryside” program. While most competitors sought to capture market share by offering the lowest prices, Haier launched the Casarte premium brand and spent a decade refining its approach to building a high‑end presence. “Establishing a high‑end brand isn’t just about choosing a lofty name; it requires solid R&D, cutting‑edge manufacturing processes, and a cohesive, collaboratively aligned team—especially a dedicated marketing force. For a premium brand, it’s not enough to deliver superior product quality; you must also communicate a compelling brand philosophy and promote an elevated lifestyle,” said Li Huagang, citing data: in 2022, Casarte’s revenue surpassed RMB 20 billion.
Internationalization is the indispensable path for China’s home‑appliance giants to reach world‑class status. Zhang Shaoyong, Group Vice President of TCL Industry Holdings Co., Ltd. and CEO of TCL Electronics, distilled the secret to TCL’s global success into two key concepts: the “Lighthouse Model” and the “Iron Triangle Model.” In his view, these approaches not only bolster the brand’s strategic resilience in a globalized landscape but also enable it to efficiently and sustainably open up new markets. The “Lighthouse Model” entails selecting one priority country in each region to cultivate a deep, well‑established market; once that market is officely secured, the company expands into other countries based on that foundation. Meanwhile, the “Iron Triangle Model” calls for first securing robust distribution channels, then setting up local manufacturing facilities, and finally building a localized supply chain. “To date,” Zhang Shaoyong said proudly, “this ‘Iron Triangle Model’ has been replicated across more than 160 countries and regions.”
The advancement of intelligent technologies has established a new foundation for product innovation, scenario discovery, and business model restructuring in the home‑appliance industry. Color‑TV manufacturers are accelerating their transformation and upgrading, embracing the emerging “screen‑centric world.” According to Jia Shaoqian, Chairman and President of Hisense Group, in the past, Hisense was primarily associated with its display products; however, at this year’s exhibition, the unveiling of nine major lifestyle‑scenario spaces has become the company’s flagship showcase, reflecting a new strategic direction within Hisense’s internal business architecture. With scenarios at its core, Hisense aims to help users “fully enjoy a high‑quality life.” Guided by this vision, the company leverages its longstanding expertise in display technology, using screens as a medium to forge new growth drivers that seamlessly connect consumers to their everyday lives.
In recent years, Robam Appliances has embarked on digital research into kitchen scenarios. The company has identified that what users truly need in their future kitchen lives is an “AI cooking assistant,” and based on this insight, it has launched the Robam Kitchen Smart System—a groundbreaking digital kitchen appliance solution. “Our smart kitchen appliances complement and enhance human experience,” said Ren Fujia, President of Robam Appliances. He added that digital kitchen appliances serve as a key to unlocking new possibilities for the kitchen appliance industry, helping companies reshape the relationships between users and products, users and the company, and even users with one another. While presenting fresh challenges for businesses, this approach also opens up new opportunities for revenue growth.

Taxation
Focusing on key priorities and targeting efforts, the trillions in tax and fee benefits are being accelerated.
Since the beginning of this year, tax and fee reductions have continued to deliver tangible results, with policy benefits being unlocked at an accelerated pace. According to insights from fiscal authorities and enterprises in Shandong, Hubei, Sichuan, and other regions, these measures have been targeted at key sectors such as small, medium, and micro‑enterprises and the manufacturing industry. Local governments have ensured meticulous implementation of relevant policies, alleviating the burden on small and micro‑businesses and boosting their capacity for technological innovation.
According to reports, in 2023, the measures are expected to ease the burden on market entities by approximately RMB 1.2 trillion. Looking ahead, relevant authorities will further enhance the precision of their policies, focusing on high-quality development in the manufacturing sector and the accelerated implementation of an innovation-driven development strategy, while intensifying efforts to strengthen policy support so that the benefits of these measures can better reach and benefit businesses.
It is estimated that the total tax and fee reductions for the year will amount to 1.2 trillion yuan.
Since the beginning of this year, a series of measures have been implemented, including refining VAT preferential policies for small-scale taxpayers and extending and optimizing certain temporary tax and fee relief policies, with the aim of alleviating operational and production challenges faced by small and micro enterprises and individual business households, while further strengthening support for technological innovation. According to a responsible official at the Ministry of Finance, as these initiatives take effect, they are expected to reduce the burden on market entities by approximately RMB 1.2 trillion over the course of the year.
It has been learned that local authorities are actively ensuring the thorough and meticulous implementation of policies, working to translate policy benefits into tangible results as quickly as possible. At the same time, many regions, in light of their specific circumstances and within the scope of their statutory powers, have proactively formulated and introduced region-specific tax and fee measures to support the high-quality development of market entities.
On May 4, the Press Office of the Shandong Provincial Government held a press conference to unveil the “Implementation Opinions on Promoting High-Quality Development of the Real Economy and the 2023 Policy List for ‘Stability with Progress and Quality Improvement’ (Third Batch)” (“the Implementation Opinions”). The document outlines 25 specific measures and 36 policies, with an estimated additional tax and fee reductions totaling RMB 35 billion, involving provincial-level and above fiscal expenditures of RMB 1.63 billion.
“With the foundation for economic recovery still fragile and the real economy continuing to face certain challenges, the ‘multiplier effect’ of tax and fee reductions has become even more pronounced, playing a positive role in stabilizing economic performance,” said Yuan Peiquan, Deputy Director of the Shandong Provincial Department of Finance. In 2022, Shandong Province implemented new tax and fee cuts, refunds, and deferrals totaling 297.6 billion yuan, effectively easing financial pressures on businesses and boosting their vitality. This year, the province will continue to fully and meticulously implement all tax and fee reduction policies and measures, further consolidating and expanding the gains from these initiatives, and ensuring that policy benefits are maximized as drivers of enterprise development.
“Tax and fee reductions are among the fairest, most direct, and most effective measures for helping businesses overcome difficulties,” said Xia Shenglin, Director of the Regulations and Tax Policy Division of the Hubei Provincial Department of Finance. In 2023, Hubei Province will continue to implement and refine policies and measures to streamline tax refunds, cut taxes, and reduce fees, tailoring support to the specific needs of market entities and bolstering market confidence.
Building on the effective implementation of central policies, local governments have also leveraged their fiscal autonomy to create synergies and amplify the cumulative impact of tax and fee reductions. “For policies that the central government has delegated to local authorities, Sichuan Province has promptly assumed those powers and implemented them at the maximum allowable level, demonstrating both the swiftest response and the strongest possible support,” said Cen Yong, Director of the Tax Policy Division of the Sichuan Provincial Department of Finance. “At the same time, within the scope of local authority, we have proactively conducted policy research tailored to the needs of businesses—such as continuing to exempt small and medium-sized enterprises facing difficulties from property tax and urban land use tax, and reducing certain rates of vehicle and vessel tax in our province—to help alleviate the challenges faced by relevant market entities.”
In 2022, Sichuan Province fully realized the effects of its tax and fee reduction policies, unlocking benefits exceeding RMB 170 billion. As of the end of March this year, the province had implemented tax refunds, reductions, and fee cuts totaling RMB 7.45 billion. According to data from the State Taxation Administration, nationwide tax and fee reductions, refunds, and deferrals in the first quarter of this year reached RMB 367.98 billion.
Targeted structural tax cuts are being implemented with precision.
During the survey, many enterprises reported that the tax and fee reduction measures implemented since last year have eased their financial burdens and bolstered their confidence in pursuing growth.
HuaXi Bio is a high-tech enterprise listed on the STAR Market, with hyaluronic acid microbial fermentation technology at its core. In the third quarter of 2022, HuaXi Bio benefited ahead of schedule from an additional R&D expense deduction of RMB 195 million and tax reductions totaling RMB 29.2511 million. For the annual tax reconciliation, the additional deduction amounted to RMB 229 million, and the tax reductions reached RMB 34.4345 million.
“Manufacturing companies have been receiving a series of policy incentives, with the additional deduction rate raised from 75% to 100%, effectively boosting corporate liquidity and instilling confidence in our efforts to ramp up R&D investment and sustain technological innovation,” said Luan Yizheng, Deputy General Manager and CFO of Huaxi Biologics.
“In addition to the pre‑tax additional deduction for R&D expenses, small, medium and micro enterprises can also deduct, on a pro‑rata basis, the cost of newly acquired equipment and instruments with a unit value exceeding RMB 5 million. Moreover, within a specified tax‑exempt threshold, small and micro enterprises are eligible for reduced rates on six taxes and two fees,” said an official from Shandong Huayun 3D Technology Co., Ltd. “The successive introduction of these tax and fee preferential policies has effectively eased companies’ financial pressures, lightened their burdens, and bolstered their confidence and momentum for innovative development. In 2022, the company invested RMB 22.67 million in product R&D, and the number of R&D personnel increased by 113%.”
“The package of tax and fee support policies is targeted at key sectors such as small and micro enterprises and the manufacturing industry,” Yuan Peiquan explained. Data show that in 2022, Shandong Province registered 2.209 million new market entities, bringing the total number of active market entities to 14.045 million by year-end—a 5.8% increase. Among them, private-sector market entities grew by 5.8%.
Gui Wenzhi, Deputy Director of the Policy and Regulations Division of the Hubei Provincial Tax Service Bureau, stated that with the successive implementation of preferential policies—such as increasing the additional deduction rate for R&D expenses incurred by manufacturing offices and technology-based SMEs, and expanding the pre-tax deduction for equipment and instruments purchased by small, medium, and micro enterprises—businesses’ enthusiasm for independent R&D has been effectively boosted.
Continuously enhance the precision of policies.
Several industry insiders interviewed recommended that, going forward, efforts should be sustained to enhance the precision and coordination of tax and fee preferential policies, ensuring that the benefits of these measures more effectively reach business entities.
Zhang Hongliang, Chief of the Regulations and Tax Policy Division of the Yantai Municipal Finance Bureau in Shandong Province, stated that in 2023, Yantai will continue to deepen its outreach and research efforts with enterprises, leverage the power of tax and fee-related big data, conduct multi-dimensional impact analyses across various industries and enterprise types, and continually refine its service measures to enhance the precision and effectiveness of policy implementation.
Wei Yan, Deputy Director-General of the Tax Policy Department of the Ministry of Finance, previously stated that, going forward, the government will ensure the effective implementation of all policies already introduced, rigorously and fully delivering the expected reductions in taxes and fees to enable businesses and market entities to benefit more fully from policy dividends. At the same time, in line with the requirement that proactive fiscal policy should be strengthened and made more efficient, and taking into account both the need for economic structural adjustment and measures to support enterprises and alleviate their difficulties, the authorities will focus on key tasks related to Chinese-style modernization, further enhancing the precision of policy measures. Emphasis will be placed on high-quality development of the manufacturing sector and the accelerated implementation of an innovation-driven development strategy, with efforts underway to refine and strengthen policy provisions to promote high-quality economic growth.
Li Xuhong, Director of the Institute of Fiscal and Taxation Policy and Application at the National Accounting Institute in Beijing, stated that a series of well‑designed, systematic, and targeted tax and fee reduction measures have been rolled out, with these policies being continuously strengthened and expanded in scope. In addition, local governments, tailored to their own circumstances, have proactively formulated and implemented further business‑support policies, providing even greater assistance to enterprises. The effective implementation of these tax and fee reduction measures helps invigorate market entities, safeguard employment and stabilize people’s livelihoods, and inject sustained momentum into the economy’s steady and long‑term development.
Li Xuhong believes that enhancing the “precision” of policy measures is key. On the one hand, this involves strengthening research and surveys on small and micro enterprises and individual business households, and refining the implementation of policies—such as reduced VAT rates for small-scale taxpayers—to help these entities alleviate difficulties and foster development. On the other hand, it calls for bolstering support for key sectors like manufacturing, helping them upgrade toward high-end and digitalization. For example, by fully implementing and improving tax incentives for high-tech enterprises and accelerating depreciation for newly acquired fixed assets in priority manufacturing industries, we can drive the sector’s high‑end transformation. At the same time, leveraging policies such as the additional deduction for R&D expenses and tax breaks on technology transfers will accelerate the digital transformation of manufacturing, fostering deep integration between digital technologies and production and operations, and continuously elevating the level of intelligentization.

In April, 1.48 million new tax-related business entities were registered nationwide.
According to data from the State Taxation Administration, from April 2023 to the present, 1.48 million business entities—hereinafter referred to as “newly established tax‑related business entities”—have completed tax‑related procedures with the tax authorities, including tax type registration, invoice acquisition, and tax filing and payment, representing a year-on-year increase of 28.8%.
By type, enterprises and individual business households registered 710,000 and 759,000 new entities, up 25.6% and 33.6% year on year, respectively, while other newly established tax‑related business entities numbered 11,000, down 31.8% year on year. By sector, the number of newly registered tax‑related business entities in the primary, secondary, and tertiary industries stood at 46,000, 174,000, and 1.26 million, respectively, representing year‑on‑year increases of 39.3%, 12.1%, and 31.1%. By industry, among the 20 industrial categories, 17 recorded year‑on‑year growth in the number of newly registered tax‑related business entities; notably, the transportation sector, the leasing and business services sector, and the accommodation and catering sectors posted robust expansion, with year‑on‑year increases of 124.2%, 58.4%, and 45.9%, respectively, while manufacturing grew by 4.6%. By economic sector, the private sector accounted for 1.464 million newly registered tax‑related business entities, up 28.7% year on year; the foreign‑invested sector registered 6,000 such entities, a rise of 87.9%; and the state‑owned and collective sectors together added 10,000 new entities, up 17.5%. By region, the eastern, central, and western regions recorded 703,000, 353,000, and 424,000 newly registered tax‑related business entities, respectively, reflecting year‑on‑year growth rates of 32.8%, 25.4%, and 25.2%.
As of the end of April 2023, the total number of tax‑related business entities nationwide stood at 86.155 million, up 7.4% year on year. Among them, 60.459 million were active tax‑related entities that had obtained invoices and filed income returns during the first four months, an increase of 4.6% compared with the same period last year, accounting for 70.2% of all tax‑related business entities and indicating a tax‑related activity rate exceeding 70%.
Officials from relevant departments and bureaus of the State Taxation Administration stated that the tax authorities will continue to earnestly carry out thematic education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, using strengthened theoretical study to guide practical development and deepened research and investigation to address key challenges in development. They will fully and faithfully implement all tax and fee preferential policies that have been extended or refined, ensure the effective implementation of the three batches of 62 service measures under the “Spring Breeze Action” to facilitate tax compliance, continuously optimize the tax-related business environment, invigorate all types of market entities, and promote high-quality economic and social development.

Jiangsu: Enhancing Tax and Fee Services to Optimize the Tax-Related Business Environment
The province has issued the “40 Measures for Improving the Tax‑Related Business Environment,” launched the “30 Measures for Suzhou‑Style Business Services,” and achieved top‑tier national rankings in taxpayer and payer satisfaction. Its approach of providing “fast‑track, assistance‑based, and guidance‑oriented” services for tax‑related matters has been highlighted in a special briefing by the State Council. In recent years, Jiangsu’s tax authorities have implemented the unified directives of the State Taxation Administration, focused on their core responsibilities, served countless market entities, continuously optimized the tax‑related business environment, and contributed to the province’s high‑quality development.
Winning high-quality development through the “substantiality” of tax and fee reductions.
Across Jiangsu Province, from north to south, one vivid scene of production after another unfolds: the powerful momentum of “port engines,” the lush greenery of agricultural industrial parks, and the thunderous hum of machinery in factory workshops…
From 2019 to 2022, Jiangsu Province cumulatively implemented tax and fee reductions, refunds, deferrals, and exemptions totaling RMB 1.19 trillion. “The tax authorities have proactively provided front‑line services, offered meticulous guidance, and ensured the precise implementation of policy benefits, tailoring measures to taxpayers and payers across various sectors. This has effectively helped business entities reduce costs and bolstered their confidence and resilience in facing challenges,” said Professor Wu Bin of the School of Economics and Management at Southeast University.
What’s being cut are taxes and fees, while what’s being boosted is momentum. The Jiangsu tax authorities have continuously refined the mechanisms for implementing tax and fee preferential policies, making full use of the preferential policy tagging system and the “whitelist” regime, and introducing measures such as “automatic enjoyment without application” and “direct, rapid access,” ensuring that taxpayers and payers reap tangible benefits at the fastest possible pace.
“For example, our newly introduced tax ‘whitelist’ system automatically notifies eligible enterprises of applicable preferential policies, seamlessly delivers the relevant application forms, and calculates the corresponding tax reductions—thereby reducing the administrative burden on both tax authorities and taxpayers and transforming ‘prompt access to benefits’ into ‘intelligent, comprehensive benefit realization,’” said a spokesperson from the Jiangsu Provincial Tax Service Bureau.
In 2022, Jiangsu Province implemented cumulative tax and fee reductions, refunds, deferrals, and exemptions totaling RMB 450.81 billion, including VAT credit refunds of RMB 252.35 billion, placing the province among the top nationwide in scale. “Last year, we received over RMB 200 million in VAT credit refunds, and this year we will continue to benefit from additional tax incentives; a significant portion of these funds has been reinvested in expanding production, substantially accelerating the progress of our entire project,” said Chen Hanqing, CFO of Wuxi Shenghe Jingwei Semiconductor (Jiangyin) Co., Ltd.
Leveraging “high efficiency” in tax administration and payment to unlock “new momentum” for development.
Whether tax and fee-related services are convenient and easy to access directly affects the public’s interests and businesses’ confidence. The Jiangsu tax authorities have continued to deepen the “delegation, regulation, and service” reform, streamlining procedures, reducing steps and documentation, and enabling an increasing number of matters to be handled with “zero in-person visits online and one‑stop processing offline.”
195 tax-related matters now require “zero in-person visits,” and over 97% of services are handled online. Efforts to streamline procedures and expedite processing have led to the optimization of 283 tax and fee‑related service items, with more than 95% of tax incentives now available without the need for filing. Intelligent guidance has been strengthened, with automated identification, smart analysis, and proactive forecasting of taxpayers’ needs, enabling seamless online guidance and on‑the‑spot completion of offline transactions. To address complex issues, a consultative mechanism called “Let’s Talk It Over” has been established, and a dedicated channel has been set up for reporting cases that cannot be resolved, providing a more user‑friendly platform for voicing tax‑related concerns.
From “window‑side” to “screen‑based,” the online tax filing and payment service network continues to expand. The launch of a series of cross‑jurisdictional services has broken down barriers of time and space, with all information converging in the cloud, making it much easier for taxpayers and payers to handle tax‑related matters across regions. Shanghai Tangcheng Construction Engineering Co., Ltd. undertook a construction project in Taicang City, Suzhou. Under the relevant regulations, it was required to file a registration for inspection and make an advance payment of value‑added tax; however, with its headquarters in Shanghai, traveling back and forth was both time‑consuming and costly. Upon receiving the company’s inquiry by phone, tax officials promptly initiated a video call, guiding the enterprise through the Yangtze River Delta Integrated Tax Service Platform to complete the cross‑district inspection registration online and successfully file and remit the advance VAT payment along with associated surcharges. “Now I can file and pay taxes owed to another province without leaving home—tax processing and payments are becoming increasingly convenient,” said Li Mingjie, the company’s finance officer.
Boosting Development “Acceleration” Through Business Entity “Satisfaction”
A high-quality business environment is not only a hallmark of Jiangsu but also a catalyst for further unleashing the province’s development momentum. With the support of “tax power,” an increasing number of Jiangsu-based enterprises have embarked on the fast track of high‑quality growth.
Major projects serve as accelerators for economic development. The Jiangsu tax authorities have launched an in-depth “top‑leader process‑walk” initiative, precisely aligning with business needs and streamlining services to support the construction of key projects. They have also established a team of policy experts, engaging with more than 1,100 major projects across provincial, city, and county levels to provide robust support for enterprises’ digital transformation and intelligent upgrading. “The tax authorities, officely guided by the municipal Party committee and government’s principle of ‘projects are paramount, environment is gold,’ are serving the city’s major industrial‑project initiatives, helping enterprises grow stronger and larger, and contributing the power of taxation to the region’s high‑quality, leapfrog economic and social development,” said Gu Kun, Member of the Standing Committee of the Huai’an Municipal Party Committee and Executive Vice Mayor, in his endorsement.
Accelerating the achievement of a high level of scientific and technological self-reliance and strength is an indispensable path for promoting high-quality development. “Along the way, the meticulous services provided by Jiangsu’s tax authorities have fostered a favorable business environment for enterprise growth,” said Leng Jun, a member of the National Committee of the Chinese People’s Political Consultative Conference and Chairman of NARI Group. With the support of tax and fee preferential policies, the Group will step up its efforts to continue contributing to and enhancing Jiangsu’s high-quality development.
As tax‑benefit policies continue to move from paper to the bottom line, Jiangsu‑based enterprises are increasingly adopting a “fast‑track” approach to entering international markets. National People’s Congress deputy and Chairman of Nanjing TICA Environmental Technology Co., Ltd., Jiang Li, stated: “The tax authorities have assigned dedicated liaison officers to us, enabling seamless communication between the tax authorities and our company. This has helped us promptly access tax incentives, effectively address potential risks and concerns, and remove obstacles as we expand overseas.”
The business environment is always improving, with no limit to excellence. Tang Zhishui, Secretary of the Party Committee and Director of the Jiangsu Provincial Tax Service Bureau, stated that the bureau will earnestly carry out thematic education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, continuously refine its work style and enhance service quality. With the utmost sincerity, it will fulfill its duties as a dedicated service provider, an effective communicator, and a trusted partner, ensuring that taxpayers and payers receive every penny of tax refunds and reductions in the shortest possible time. By delivering the highest‑quality services, the bureau will proactively address the concerns and needs of taxpayers and payers, and, with a first‑rate spirit, advance the development of a favorable tax‑related business environment across the province, thereby making an even greater tax‑related contribution to Jiangsu’s efforts to shoulder major responsibilities and lead the way.

Litigation & Arbitration
Defendant in Chongqing siblings’ fatal fall case sentenced to death on appeal.
On the morning of May 11, 2023, the Chongqing Higher People’s Court delivered its second-instance public verdict in the appeal case of intentional homicide involving Zhang Bo and Ye Chengchen.
The Chongqing No. 5 Intermediate People’s Court found in the first instance that, during the subsistence of his marriage, Zhang Bo engaged in an improper romantic relationship with Ye Chengchen. In February 2020, Zhang Bo divorced Chen Moumou; despite knowing that Zhang Bo’s children, Zhang Moujia and Zhang Mouyi, would be placed under the custody of Chen Moumou, Ye Chengchen nonetheless regarded them as an obstacle to her marriage with Zhang Bo. Zhang Bo and Ye Chengchen conspired to murder Zhang Moujia and Zhang Mouyi by staging a fatal fall from a height. Thereafter, Ye Chengchen repeatedly urged and coerced Zhang Bo to carry out the crime, setting a strict deadline for its execution. At approximately 3:30 p.m. on November 2, 2020, Zhang Bo seized both Zhang Moujia and Zhang Mouyi, who were playing on the windowsill of the secondary bedroom’s bay window, embraced them together, and threw them from the bay window to the ground below, resulting in their deaths. The Chongqing No. 5 Intermediate People’s Court sentenced Zhang Bo and Ye Chengchen to death for intentional homicide, with deprivation of political rights for life.
Following the pronouncement of the verdict, Zhang Bo and Ye Chengchen filed appeals. On April 6, 2023, the Chongqing Higher People’s Court held a public trial. The facts ascertained during the proceedings were consistent with those found in the first instance. The Chongqing Higher People’s Court determined that the conduct of both Zhang Bo and Ye Chengchen constituted the crime of intentional homicide. Zhang Bo directly carried out the act of killing, while Ye Chengchen played an even more active and decisive role—deciding to murder the two children, devising and executing the scheme by staging an accidental fall, urging and coercing Zhang Bo to commit the crime, and actively seeking the deaths of the victims. In this joint offense, the two defendants occupied equivalent positions and performed comparable functions, each serving as a principal offender. Zhang Bo and Ye Chengchen disregarded national law, natural justice, and basic human decency; they gravely challenged the legal and ethical boundaries and trampled on societal conscience. Their motives were exceptionally vile, their methods particularly brutal, the circumstances of the crime extremely heinous, and the consequences exceedingly grave. Their subjective malice was profound, and their social impact was extremely negative, warranting the strictest punishment under the law. The arguments advanced by Zhang Bo and Ye Chengchen, as well as their defense counsel—that Zhang Bo did not personally carry out the killing, that Ye Chengchen did not coerce or urge Zhang Bo to commit the crime, and that the original sentence was excessively severe—are inconsistent with the facts established on appeal and are therefore rejected in accordance with the law. The findings of fact in the first-instance judgment are clear, the evidence is solid and sufficient, the conviction is accurate, the sentencing is appropriate, and the trial procedures were lawful. Accordingly, the court dismissed the appeals and upheld the original judgment. The death sentences imposed on Zhang Bo and Ye Chengchen have been duly submitted to the Supreme People’s Court for approval.
During the second-instance trial, the court duly safeguarded all procedural rights of the appellants Zhang Bo and Ye Chengchen, as well as their defense counsel. The defense counsel attended the courtroom to witness the pronouncement of the judgment. Relatives of the victims, relatives of the defendants, media reporters, deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, and representatives of the general public were present to observe the sentencing.

The second-instance trial has commenced in the nation’s first “single woman egg‑freezing case.”
At 2:00 p.m. on May 9, the second-instance trial of China’s first case involving a single woman freezing her eggs commenced at the Third Intermediate People’s Court of Beijing.
According to the plaintiff, Xu Zaozao, the trial lasted more than two hours, and no verdict was delivered in court.
This case has been ongoing for more than four years since Xu Zaozao filed the lawsuit. Prior to today’s hearing, Xu Zaozao stated that she had undergone a medical examination, and the results were generally favorable. “The doctor said my ovarian condition is very good, with an adequate number of follicles. Even if I don’t conceive now, waiting a few more years will still leave me with plenty of opportunities to have children.”
“Even after waiting four years, my egg quality remains excellent, and I’m still ready to freeze my eggs at any moment—hopefully, I’ll get that chance,” said Xu Zaozao.
Xu Zaozao filed a lawsuit against the Beijing Obstetrics and Gynecology Hospital, affiliated with Capital Medical University in Beijing, on the grounds that the hospital refused to provide her with egg‑freezing services. The case has been dubbed the nation’s first general personality‑rights dispute arising from “egg freezing.” On December 23, 2019, the first-instance trial was held at the Chaoyang District People’s Court in Beijing.
On July 22, 2022, the Chaoyang District People’s Court of Beijing issued a first-instance judgment, holding that Beijing Maternity and Child Health Hospital’s refusal to provide egg‑freezing services to Xu Zaozao did not constitute an unlawful act and did not infringe upon her general personality rights.
In its first-instance ruling, the court held that China’s laws and administrative regulations have not yet provided explicit provisions governing the specific application of human assisted reproductive technologies. Article 3 of the Administrative Measures on Human Assisted Reproductive Technologies, which is an administrative regulation, stipulates: “The application of human assisted reproductive technologies shall be conducted within medical institutions, for medical purposes, and in compliance with the state’s family planning policies, ethical principles, and relevant legal provisions.”
In addition, the former Ministry of Health (now the National Health Commission) issued the “Notice on Revising the Technical Specifications, Basic Standards, and Ethical Principles Related to Human Assisted Reproductive Technologies and Human Sperm Banks.” Annex 1 to this notice, the “Technical Specifications for Human Assisted Reproductive Technologies,” stipulates: “It is prohibited to provide human assisted reproductive technologies to couples or single women who do not comply with the state’s population and family planning laws and regulations.”
Among the aforementioned departmental regulations and technical standards, it is explicitly stipulated that the application of human assisted reproductive technologies must be for medical purposes, and such technologies are expressly prohibited from being provided to couples or single women who do not comply with the state’s population and family planning laws and regulations. In this case, Beijing Maternity and Child Health Hospital, as a non‑profit medical institution, is required to conduct its medical services strictly in accordance with the approved scope of clinical specialties registered with the competent authorities, and must adhere to all relevant Chinese laws, regulations, departmental rules, and medical technical standards.
The Chaoyang District People’s Court held that, as a single woman in good health, Xu Zaozao’s request for oocyte cryopreservation services from the Beijing Maternity and Child Health Hospital was not made for medical purposes and was inconsistent with the state’s family planning policies. Moreover, her request, motivated by the intention to delay childbearing, did not comply with the relevant departmental regulations and technical standards. Accordingly, the Beijing Maternity and Child Health Hospital’s refusal to provide such services did not violate the requirements of the competent health administrative authorities or the applicable technical norms.
In summary, the Chaoyang District People’s Court finds that Xu Zaozao’s request that Beijing Maternity and Child Health Hospital cease infringing upon her general personality rights is not supported. Furthermore, the court rejects all of Xu Zaozao’s claims in this case, which are based on the assertion that Beijing Maternity and Child Health Hospital has committed an infringement of her general personality rights.
On August 5, 2022, Xu Zaozao, dissatisfied with the first-instance judgment, formally filed an appeal.

The Intermediate People’s Court of Wuxi, Jiangsu Province, has released the Ten Typical Cases of Bankruptcy Adjudication for 2022.
On May 9, the official WeChat account of the Wuxi Intermediate People’s Court in Jiangsu Province released the Top Ten Typical Bankruptcy Cases of Wuxi Courts for 2022.
This batch of typical cases involves various bankruptcy procedures and scenarios, including bankruptcy reconciliation, consolidated reorganization, conversion of pre-reorganization into reorganization, conversion of reorganization into liquidation, compulsory liquidation, centralized debt clearance for individuals, and bankruptcy avoidance. In Case No. 10, the court held that, during the critical period preceding bankruptcy, if a debtor enterprise, acting as a guarantor, provided security for another party’s debt without reducing the bankruptcy estate, and absent evidence of malicious collusion with the other party, such conduct should generally not be deemed an act of gratuitous transfer of property under the Bankruptcy Law and is therefore not subject to the bankruptcy avoidance regime.

Court: Employers Have No Right to Illegally Interfere with Employees’ Posting on Social Media Platforms
Recently, the Chongqing Higher People’s Court disclosed a labor dispute case in which an employee was fined RMB 10,000 and dismissed for refusing to forward her employer’s advertisements to her WeChat Moments. The court ruled that content posted on WeChat Moments should be subject to the individual’s autonomous decision-making and ordered the employer to compensate the employee for her losses.
On November 16, 2013, employee Chen commenced employment as a driver at a certain maternity and child health hospital. In June 2017, the hospital launched an internal campaign encouraging staff to promote content on their WeChat Moments, requiring all employees to share designated information daily and subjecting them to performance evaluations based on the number of shares. Employees who failed to meet the target had their salaries reduced by RMB 200 per person. Between July 2017 and August 2021, due to Chen’s failure to comply with the sharing requirement, the hospital deducted a total of RMB 10,000 from Chen’s wages. On August 30, 2021, the hospital served Chen with a notice of termination of the labor contract, citing his failure to forward the relevant links on WeChat Moments, non-compliance with company policies, and failure to complete assigned tasks. Dissatisfied, Chen filed for arbitration, and the arbitration commission ruled that the hospital must pay Chen compensation for unlawful termination and make up for underpaid wages. Both parties, dissatisfied with this decision, brought the case before the court. The first-instance court held that the hospital should retroactively pay Chen RMB 10,000 in wages and award RMB 50,809.6 in compensation for unlawful termination. The hospital appealed. The Chongqing Intermediate People’s Court, Third Branch, found that the hospital’s WeChat‑link promotion scheme, given its implications for employees’ remuneration and their personal lives on WeChat Moments, constituted a policy directly affecting workers’ interests and thus required deliberation and approval by the职工代表大会 (workers’ congress). Consequently, the hospital’s practice of deducting wages and terminating contracts on this basis lacked legal validity. The court accordingly dismissed the appeal and upheld the original judgment.

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