JC Master Legal News Issue 1175

Key Takeaways for This Issue

CSRC Chairman: Continuously consolidate the momentum of the capital market’s stabilization and improvement.
Recently, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, convened a special symposium in Beijing. Wu emphasized that, going forward, the CSRC will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, and meticulously plan and carry out work to ensure the high-quality implementation of the 15th Five-Year Plan for the capital market.
The National Development and Reform Commission plans to issue the Measures for the Administration of Enterprise Technology Centers.
On August 28, the National Development and Reform Commission issued an announcement soliciting public comments on the “Administrative Measures for Enterprise Technology Centers (Draft for Comments),” with a deadline for submissions set for September 27, 2025.
The Supreme People’s Court and the Supreme People’s Procuratorate have jointly issued a new judicial interpretation concerning the concealment and cover-up of proceeds from crime.
On August 25, the Supreme People’s Court and the Supreme People’s Procuratorate issued the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Concealment or Cover-up of Proceeds from Crime and Proceeds Derived Therefrom,” which shall take effect as of August 26, 2025.

Finance & Capital Markets

CSRC Chairman: Continuously consolidate the momentum of the capital market’s stabilization and improvement.
Recently, Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, convened a special symposium in Beijing. Wu emphasized that, going forward, the CSRC will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, and meticulously plan and carry out work to ensure the high-quality implementation of the 15th Five-Year Plan for the capital market.
We will continue to consolidate the momentum of stability and improvement in the capital market, taking the deepening of comprehensive investment‑and‑financing reform as our guiding principle. We will accelerate the launch of a new round of capital market reforms and opening-up, steadily enhancing the market’s attractiveness and inclusiveness, and actively promote the principles of long-term investing, value investing, and rational investing. As key research forces in the capital market field, experts, scholars, and members of the association are encouraged to fully leverage their professional strengths, make effective use of the platform provided by the China Capital Market Society, and strengthen research on major, strategic, cutting-edge, and foundational issues in the capital market.
State Council Executive Meeting: Pilot reforms to promote market-based allocation of production factors will be implemented in selected regions.
Recently, the State Council Executive Meeting emphasized that deepening market‑based reforms of production factors is a key measure for building a high‑standard socialist market economy and an essential component of advancing the development of a unified national market. It called for sustained efforts to push forward these reforms, ensuring that the market plays a decisive role in resource allocation and fostering factor prices determined by the market, autonomous and orderly mobility, and efficient, equitable allocation.
It is necessary to stimulate innovation in technological factors, promote the intensive and efficient allocation of land resources, guide the rational flow of human capital, accelerate the development and improvement of the data‑based market, enhance the ability of capital to serve the real economy, and strengthen the institutional framework for resource and environmental markets. Focusing on key areas and critical links, we must advance pilot reforms, encourage pilot regions to innovate boldly in light of local conditions, pursue differentiated reform experiments, and expedite the removal of institutional and systemic barriers.

Commercial & Corporate

The National Development and Reform Commission plans to issue the Measures for the Administration of Enterprise Technology Centers.
On August 28, the National Development and Reform Commission issued an announcement soliciting public comments on the “Administrative Measures for Enterprise Technology Centers (Draft for Comments),” with a deadline for submissions set for September 27, 2025.
The “Administrative Measures (Draft for Comments)” clearly defines the criteria for recognizing enterprise technology centers, their management requirements, and the evaluation mechanism, stipulating that enterprises must possess strong technological innovation capabilities and a well‑established R&D system and management framework. The Measures introduce dynamic management of technology centers, strengthen performance assessments, and promote the deep integration of corporate technological innovation with industrial innovation. Enterprise technology centers are required to submit regular reports on their innovation outcomes and operational status and to undergo supervision and inspection by the relevant authorities.
Twenty-six departments have jointly launched the 2025 National “Quality Month” campaign.
Recently, the State Administration for Market Regulation, in conjunction with the Publicity Department of the CPC Central Committee and 25 other departments, issued the “Notice on Launching the 2025 National ‘Quality Month’ Campaign,” which will take place in September 2025.
The notice specifies that the theme of the event is “Strengthening Comprehensive Quality Management and Promoting the Building of a Country Strong in Quality,” with a focus on advancing the implementation of the Outline for Building a Country Strong in Quality. It calls for driving enterprises to innovate in quality‑related technologies, upgrade their quality management systems, build strong quality brands, enhance quality and safety oversight, protect consumer rights, and foster collaborative governance involving all sectors of society. Enterprises are required to strengthen quality management, improve the quality of their products, projects, and services, reinforce quality‑and‑safety traceability and online product supervision, crack down rigorously on infringement and counterfeiting, and carry out quality‑award exchanges, innovative quality‑management practices, and regional brand‑building initiatives. Local authorities are mandated to roll out targeted quality‑innovation measures, publicize achievements in quality development, and strictly prohibit levying fees on enterprises under the guise of the event.

Taxation TAXATATION

Shanghai: Mortgage rates no longer differentiate between first- and second-home loans.
On August 25, the Shanghai Head Office of the People’s Bank of China issued the “Shanghai Measures for Optimizing and Adjusting the Pricing Mechanism of Commercial Individual Housing Loan Interest Rates.”
In accordance with the People’s Bank of China’s regulations on commercial personal housing loan interest rate policies and the Shanghai Municipal Government’s regulatory requirements, the pricing mechanism for commercial personal housing loans in Shanghai is hereby adjusted. Under the new arrangement, Shanghai’s commercial personal housing loan interest rates will no longer differentiate between first‑home and second‑home properties.

LITIGATION & ARBITRATION

The Supreme People’s Court and the Supreme People’s Procuratorate have jointly issued a new judicial interpretation concerning the concealment and cover-up of proceeds from crime.
On August 25, the Supreme People’s Court and the Supreme People’s Procuratorate issued the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Concealment or Cover-up of Proceeds from Crime and Proceeds Derived Therefrom,” which shall take effect as of August 26, 2025.
The new interpretation comprises twelve articles, clarifying the definition of “proceeds of crime” and their associated gains, refining the standard for “knowing,” and mandating that convictions and penalties be determined by comprehensively considering the circumstances of each case. For offenses involving illegal mining, a threshold of RMB 5 million applies; for other offenses, the threshold is RMB 500,000, with additional aggravating circumstances permitting enhanced punishment. Leniency is granted to those who plead guilty, accept punishment, and actively assist in recovering illicit proceeds and mitigating losses; corporate crimes are subject to statutory fines, and responsible individuals are held accountable. Meanwhile, the Supreme People’s Court and the Supreme People’s Procuratorate have simultaneously repealed the original judicial interpretations issued in 2015 and 2021.
The Supreme People’s Court has released typical cases related to concealing or disguising proceeds of crime.
On August 25, the Supreme People’s Court held a press conference to release the “Interpretation of the Supreme People’s Court and the Supreme People’s Procuratorate on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Concealment or Cover-up of Proceeds from Crime and Proceeds Derived Therefrom,” along with six typical cases.
This batch of typical cases covers offenses involving the concealment and disguise of criminal proceeds through such means as virtual currencies, large‑value gold transactions, scrap‑material recycling, illegal sand mining, and bank‑card–based money laundering. It clarifies that “other methods” include virtual currencies, financial instruments, and cross‑border transfers, while emphasizing the criteria for establishing knowledge, the distinction in sentencing between principal and accomplice offenders, and the fact that the absence of a prior conviction for the underlying offense does not preclude conviction. Furthermore, it sets compliance requirements for industries such as precious‑metal trading and scrap‑material recycling, and strengthens efforts to crack down on every link in the criminal chain, including telecom and online fraud.
The Supreme People’s Procuratorate has launched the 2025 inter-provincial cross‑regional巡回 inspections.
On August 25, the Supreme People’s Procuratorate convened a mobilization and deployment meeting in Tianjin, officially launching the 2025 inter-provincial cross‑regional巡回 inspections. For the first time, these inspections will be conducted simultaneously at prisons, juvenile correctional facilities, and detention centers, covering relevant correctional institutions in ten regions, including Hubei and Fujian. In principle, each inspection team will spend no less than 20 days on-site conducting its review.
This inter-provincial, cross‑regional巡回 inspection is being conducted by ten巡回 inspection teams composed of prosecutors and law enforcement officers from Shaanxi, Liaoning, and other regions. Teams 1 through 6 focus primarily on prisons and juvenile correctional facilities, while Teams 7 through 10 concentrate on detention centers. Each team is required to establish a clear task list, timeline, roadmap, and designated person in charge, with an emphasis on addressing deep‑seated issues related to supervisory law enforcement and the execution of criminal penalties, and, as needed, extending its scope to the field of community corrections. The inspections will place particular emphasis on assessing the performance of prosecutorial duties, and on overseeing and supporting supervisory institutions in enhancing the quality and effectiveness of their work.
The Supreme People’s Procuratorate successfully filed a protest in two private lending disputes involving listed companies, resulting in Jin Dun Shares being awarded compensation of 140 million yuan.
Recently, the Supreme People’s Procuratorate successfully filed a protest in two private‑loan dispute cases involving Zhejiang Jindun Fan Co., Ltd. The Zhejiang Provincial Higher People’s Court ultimately granted the plaintiffs’ applications to withdraw their lawsuits and overturned the judgment holding Jindun Shares liable for compensation due to mismanagement.
The case involves two loan transactions between Jindun Co., Ltd. and China Merchants Investment Co., Ltd. and Zhang She. The original judgment held that Jindun Co., Ltd. was liable for compensation of RMB 140 million due to mismanagement. Upon review, the Supreme People’s Procuratorate determined that the company seal had been forged, that the relevant personnel lacked authority to act as agents, and that the lender failed to exercise reasonable due diligence. Consequently, the original judgment erred in its application of the law. Ultimately, Jindun Co., Ltd. was relieved of its liability for compensation, its credit standing was restored, and its production and operations returned to normal. This case clarifies the legal rules governing agency authority when the purported agent is not the legal representative, thereby contributing positively to the protection of the legitimate rights and interests of listed companies.
The Supreme People’s Procuratorate has released typical cases in ecological and environmental protection, promoting systemic governance and coordinated law enforcement and judicial efforts.
On August 27, the Supreme People’s Procuratorate released typical cases of ecological and environmental prosecution at the National Conference on Advancing Ecological and Environmental Prosecution Work.
This batch comprises 10 cases, covering administrative public interest litigation, criminal public prosecution, civil protest, and procuratorial supervision over non-litigious administrative enforcement. In these cases, the procuratorial organs have leveraged big-data legal‑supervision models to identify systemic pollution issues on a large scale and urged administrative agencies to fulfill their duties and implement corrective measures; in response to enterprises’ malicious deregistration to evade administrative penalties, they have promoted a multi‑agency joint‑signing mechanism to close regulatory loopholes; and for cross‑provincial hazardous waste discharge, illegal mining, and unauthorized encroachment on forest land by wind‑power projects, they have pursued full‑chain liability in accordance with the law, thereby advancing ecological restoration and a green transition. Furthermore, they have strengthened litigation oversight to ensure the proper application of rules governing the mitigation or exemption of environmental tort liability.
The Supreme People’s Court has released the first batch of guiding cases on judicial protection of data rights.
On August 28, the Supreme People’s Court released the 47th batch of guiding cases (Cases No. 262–267), which for the first time focuses on judicial protection of data rights. This batch of cases covers areas such as unfair competition, tort liability, personal information protection, and the transfer of online platform accounts.
The key points of the six cases are as follows: 1) Operators of online platforms may seek judicial protection when their business interests derived from data collections are infringed; unauthorized scraping and transfer of data constitute unfair competition. 2) Where a platform, with user authorization, provides linked‑account services, data transfers within a reasonable scope do not amount to unfair competition. 3) Data processors who lawfully collect and reasonably use enterprise data, without harming the enterprises’ rights and interests, bear no liability for infringement. 4) An app that collects non‑essential personal information without providing an opt‑out mechanism infringes upon individuals’ personal information rights. 5) “Buy now, pay later” credit services that collect only the necessary personal information do not constitute an infringement. 6) When delivering online platform accounts, real‑name authentication information should be updated concurrently to ensure proper attribution of rights.

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