JC Master Legal News Issue 1191

Key Takeaways for This Issue

The Shanghai Stock Exchange has issued “Bond Ongoing‑Term Business Guidelines No. 4” to standardize the handling of ongoing‑term business for corporate bonds.
On December 22, the Shanghai Stock Exchange issued the “Notice on the Release of the Shanghai Stock Exchange Bond Ongoing‑Term Business Guidelines No. 4—Ongoing‑Term Business Procedures for Corporate Bonds,” which comprehensively revises and renames the original “Guidelines for the Management of Ongoing‑Term Corporate Bond Business,” effective from the date of issuance.
The National Administration of Financial Regulation has issued the Measures for the Administration of Information Disclosure on Asset Management Products by Banking and Insurance Institutions.
On December 22, the National Administration of Financial Regulation issued the Measures for the Administration of Information Disclosure of Asset Management Products by Banking and Insurance Institutions, which will take effect on September 1, 2026.
The “Catalogue of Industries Encouraged for Foreign Investment (2025 Edition)” has been officially released.
Recently, with the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce released the “Catalogue of Industries Encouraged for Foreign Investment (2025 Edition).”
The 19th Meeting of the Standing Committee of the 14th National People’s Congress deliberated on a number of important draft laws.
On December 22, the Standing Committee of the National People’s Congress convened its 19th session in Beijing to deliberate on a number of draft laws, including the draft Ecological and Environmental Protection Code, the draft Law on Promoting Ethnic Unity and Progress, and the draft National Development Planning Law.

Finance & Capital Markets

The Shanghai Stock Exchange has issued “Bond Ongoing‑Term Business Guidelines No. 4” to standardize the handling of ongoing‑term business for corporate bonds.
On December 22, the Shanghai Stock Exchange issued the “Notice on the Release of the Shanghai Stock Exchange Bond Ongoing‑Term Business Guidelines No. 4—Ongoing‑Term Business Procedures for Corporate Bonds,” which comprehensively revises and renames the original “Guidelines for the Management of Ongoing‑Term Corporate Bond Business,” effective from the date of issuance.
The Guidelines clearly set forth the basic requirements for ongoing corporate bond‑related operations, including information disclosure, interest payments, maturity redemption, installment repayments, coupon‑rate adjustments, put and resale transactions, early delisting, suspension and resumption of trading, exchangeable bonds, credit ratings, and pledge‑based repurchase agreements. Key provisions cover: the distinction between “direct‑access” and “non‑direct‑access” information disclosure; time limits for the disclosure of periodic reports; procedural workflows and announcement templates for interest payments, redemptions, installment repayments, coupon‑rate adjustments, puts, resales, and early delisting; the duties of trustees and rating agencies; operational requirements for the relevant business systems; and procedures for changes to access permissions.
The National Administration of Financial Regulation has issued the Measures for the Administration of Information Disclosure on Asset Management Products by Banking and Insurance Institutions.
On December 22, the National Administration of Financial Regulation issued the Measures for the Administration of Information Disclosure of Asset Management Products by Banking and Insurance Institutions, which will take effect on September 1, 2026.
The Measures standardize the information disclosure practices of asset management trust products, wealth management products, and insurance asset management products issued by banking and insurance institutions, clearly defining the scope of disclosure obligors, disclosure channels, content, and time limits. Information on public‑offering products must be disclosed through industry‑wide unified channels and mainstream media, while private‑placement products are disclosed in accordance with contractual provisions. The Measures set forth requirements for product prospectuses, contracts, performance benchmarks, periodic reports, net asset values, and disclosures of material matters, and prohibit false records, misleading statements, and unauthorized promises of returns. Disclosure documents must be retained for fifteen years after the termination of the product.

Commercial & Corporate

The State Administration for Market Regulation is seeking public comments on the Measures for the Administration of Commodity Barcodes.
Recently, the State Administration for Market Regulation has drafted the “Administrative Measures on Commodity Barcodes (Draft for Public Comment)” (hereinafter referred to as the “Draft”), and is now soliciting public feedback. The deadline for submitting comments is January 24, 2026.
The Draft for Public Comment defines commodity barcodes as including barcodes and QR codes used to identify products, thereby bringing QR codes within the scope of commodity barcodes. To further enhance service efficiency, the initial review period for registration of members in the commodity barcode system has been shortened from five working days to three, and the subsequent review procedure following a passing initial review has been reduced from five working days to two. At the same time, the Draft eliminates the requirement that printing enterprises obtain printing qualifications when engaging in the printing of commodity barcodes. In addition, it adds the provision that “for products manufactured on behalf of another party, the manufacturer identification code and corresponding commodity barcode registered by the commissioning party must be used, and the relationship of commissioning must be clearly indicated.”
The “Catalogue of Industries Encouraged for Foreign Investment (2025 Edition)” has been officially released.
Recently, with the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce released the “Catalogue of Industries Encouraged for Foreign Investment (2025 Edition).”
The 2025 Edition of the Catalogue of Industries for Encouragement comprises 1,679 items, a net increase of 205 compared with the 2022 edition, and includes 303 revisions. The national catalogue adds nucleic acid‑based drugs, intelligent testing equipment, and virtual power plant operations, while the services sector introduces pet hospitals, sports tourism, and Internet‑plus healthcare services. The regional catalogue expands to include cruise tourism, ice‑and‑snow equipment, foundational computing hardware and software, and wind‑farm operations. Foreign investors in encouraged sectors are eligible for policies such as duty‑free import of capital goods, priority land allocation at preferential rates, a 15% corporate income tax rate for enterprises in western regions and Hainan, and tax credits for reinvested profits.

Taxation

The State Council Executive Meeting reviewed and approved the Draft Implementation Regulations of the Value-Added Tax Law of the People’s Republic of China.
Recently, Premier Li Qiang of the State Council presided over an executive meeting of the State Council, making arrangements for implementing the decisions and deployments of the Central Economic Work Conference, and deliberating and approving the Draft Regulations on the Implementation of the Value-Added Tax Law of the People’s Republic of China and the Draft Regulations on Commercial Mediation.
The draft Regulations for the Implementation of the Value-Added Tax Law was made public in August this year to solicit public comments. The draft elaborates on provisions related to VAT rates, taxable amounts, tax incentives, and collection and administration, thereby ensuring the smooth implementation of the tax law.
Hong Kong Special Administrative Region Government Inland Revenue Department: Tax relief measures for those affected by the fire at Hung Fuk Court in Tai Po.
To alleviate the financial burden on residents of Hong Kong’s Hung Fuk Court in Tai Po and the families of those who lost their lives in the fire, the Government of the Hong Kong Special Administrative Region will waive the outstanding tax liabilities for the 2024/25 tax year and the provisional tax for the 2025/26 tax year for all owners of Hung Fuk Court—including those who do not reside in the estate—and for all residents, including tenants, as well as for the victims of the fire, including firefighters and workers who died in the line of duty. The applicable taxes include salaries tax, property tax on wholly owned properties, profits tax on sole proprietorships, and personal income tax.
The aforementioned tax relief requires no application. Eligible taxpayers are not required to pay the tax assessments for the 2024/25 tax year previously issued by the Inland Revenue Department.

LITIGATION & ARBITRATION

The Supreme People’s Court and the Supreme People’s Procuratorate jointly released the third batch of typical cases of administrative public interest litigation.
Recently, the Supreme People’s Court and the Supreme People’s Procuratorate jointly issued the “Typical Cases of Administrative Public Interest Litigation (Third Batch),” which comprises seven cases covering such areas as the protection of land resources, the safety of pesticide use, the regulation of prescription‑drug sales, the management of public rental housing, the development of barrier‑free environments, women’s rights to equal employment, and the preservation of cultural relics.
This batch of cases focuses on instances where administrative agencies have failed to fulfill their duties in areas such as the protection of land resources, the regulation of pesticide safety, the oversight of prescription‑drug sales, the management of public rental housing, the development of barrier‑free urban environments, the safeguarding of women’s equal employment rights, and the preservation of cultural relics. Through prosecutorial recommendations and administrative public interest litigation, the procuratorial organs have urged administrative agencies to perform their statutory functions; courts have issued judgments ordering corrective measures or declaring unlawful acts, thereby promoting the standardization and institutionalization of regulatory practices in these fields and strengthening both public‑interest protection and the保障 of people’s livelihoods.
The 19th Meeting of the Standing Committee of the 14th National People’s Congress deliberated on a number of important draft laws.
On December 22, the Standing Committee of the National People’s Congress convened its 19th session in Beijing to deliberate on a number of draft laws, including the draft Ecological and Environmental Protection Code, the draft Law on Promoting Ethnic Unity and Progress, and the draft National Development Planning Law.
The meeting focused on reviewing the third‑reading draft of the Ecological and Environmental Code, refining its section‑specific provisions and recommending its submission to the National People’s Congress for deliberation; the second‑reading draft of the Law on Promoting Ethnic Unity and Progress, which strengthens provisions on law‑based governance of ethnic affairs and incorporates requirements related to national security; the third‑reading draft of the National Development Planning Law, which improves the planning framework and clarifies top‑level design principles; the third‑reading draft of the revised Fisheries Law, which streamlines procedures for environmental impact assessments; the third‑reading draft of the Law on the Safety of Hazardous Chemicals, which reinforces safety training and controls over individual use; the third‑reading draft of the revised Civil Aviation Law, which introduces airworthiness certification for unmanned aircraft and enhances protections for passenger rights; the second‑reading draft of the revised Law on the Standard Spoken and Written Language, which specifies regulations governing the use of language and characters in education; the second‑reading draft of the revised Foreign Trade Law, which supports trade‑facilitation platforms, cross‑border financial services, and the digitalization of trade; in addition, the meeting reviewed drafts of the State‑Owned Assets Law, the Childcare Services Law, the Law on Antarctic Activities and Environmental Protection, the Banking Supervision and Administration Law, the Trademark Law, and others.
The Supreme People’s Court and the Supreme People’s Procuratorate jointly released the third batch of typical cases involving administrative public interest litigation.
On December 22, the Supreme People’s Court and the Supreme People’s Procuratorate jointly released a third batch of typical cases involving administrative public interest litigation, covering areas such as the protection of agricultural land, the safety of agricultural product quality, the safe use of prescription drugs, the management of public rental housing, the development of barrier-free environments, the safeguarding of women’s equal employment rights, and the preservation of cultural relics related to the War of Resistance Against Japanese Aggression.
This batch of typical cases comprises seven matters, primarily focusing on issues such as administrative agencies’ dereliction of duty and unlawful exercise of authority. The cases include: illegal occupation of agricultural land and rectification of administrative penalties; safety risks to agricultural product quality arising from the improper use of pesticides; inadequate oversight of the unauthorized sale of prescription drugs in retail pharmacies; chaotic management of public rental housing and the resulting loss of state-owned assets; failure by urban management authorities to remove illegally installed bollards that impede barrier-free access; lack of regulation of gender discrimination on online recruitment platforms; and the imminent loss of wartime cultural relics due to insufficient supervision. In each case, through prosecutorial recommendations, administrative public-interest litigation, court judgments, and other measures, the relevant administrative agencies were urged to perform their duties in accordance with the law, thereby strengthening public-interest protection and promoting industry standardization and social governance.
The Standing Committee of the National People’s Congress has addressed public concerns regarding the sealing of records of administrative violations.
On December 24, the Legislative Affairs Commission of the Standing Committee of the National People’s Congress issued a clarification regarding Article 136 of the Law on Administrative Penalties for Public Security. The law will come into effect on January 1, 2026.
The regulations clearly stipulate that the system for sealing records of public security violations applies to minors and to public security offenses such as drug use. Such sealed records may not be arbitrarily accessed, disclosed, or made public, except in cases where they are requested by state organs for case‑handling purposes or by entities authorized by law to make lawful inquiries. Drug use constitutes a public security violation rather than a criminal offense; accordingly, related information is subject to legal confidentiality and may not be disclosed. The scope of application between the Law on Public Security Administration Penalties and the Criminal Law is clearly delineated: acts that constitute crimes are prosecuted under the Criminal Law, while those that do not constitute crimes are dealt with under the Law on Public Security Administration Penalties. Measures for the management and control of information pertaining to individuals undergoing drug rehabilitation or who have used drugs have not undergone any substantial changes as a result of the new legislation.

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