JC Master Legal News Issue 1165

Key Takeaways for This Issue

The China Securities Regulatory Commission has permitted qualified foreign investors to participate in ETF options trading.
On June 17, 2025, the China Securities Regulatory Commission issued the “Announcement on the Participation of Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors in Stock Option Trading,” which will take effect on October 9, 2025.
CSRC: Resumes and expands the fifth set of listing criteria for the STAR Market, and launches a pilot program for pre‑review of IPOs by high‑quality technology offices.
On June 18, the China Securities Regulatory Commission issued the “Opinions on Establishing a Science and Technology Innovation Growth Tier on the STAR Market to Enhance the System’s Inclusiveness and Adaptability,” reviving the application of the STAR Market’s fifth set of listing criteria for unprofitable companies and introducing six reform measures.
Shanghai’s development as an international financial center has benefited from a series of favorable policies.
On June 18, the National Administration of Financial Regulation, in conjunction with the Shanghai Municipal Government, jointly issued the “Action Plan for Supporting the Development of Shanghai as an International Financial Center,” which comprises five key areas and a total of 27 specific measures.
The Supreme People’s Court has released typical civil cases involving online consumption.
On June 16, the Supreme People’s Court released five typical civil cases involving online consumption, with a focus on sanctioning acts that infringe upon consumers’ rights, promoting honest business practices, and addressing emerging areas of online consumption.

Finance & Capital Markets
The China Securities Regulatory Commission has permitted qualified foreign investors to participate in ETF options trading.
On June 17, 2025, the China Securities Regulatory Commission issued the “Announcement on the Participation of Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors in Stock Option Trading,” which will take effect on October 9, 2025.
The announcement permits qualified foreign investors to participate in ETF options listed and traded on exchanges approved by the State Council or the China Securities Regulatory Commission, with trading limited to hedging purposes. This measure is one of the concrete steps taken to implement the decision adopted at the Third Plenary Session of the 20th CPC Central Committee to “optimize the qualified foreign investor regime,” aiming to broaden the investment scope for qualified foreign investors, enhance the stability of foreign institutional investment behavior, and encourage their long-term investment in A‑shares.
CSRC: Resumes and expands the fifth set of listing criteria for the STAR Market, and launches a pilot program for pre‑review of IPOs by high‑quality technology offices.
On June 18, the China Securities Regulatory Commission issued the “Opinions on Establishing a Science and Technology Innovation Growth Tier on the STAR Market to Enhance the System’s Inclusiveness and Adaptability,” reviving the application of the STAR Market’s fifth set of listing criteria for unprofitable companies and introducing six reform measures.
The key measures include: first, piloting the introduction of a system for seasoned professional institutional investors for companies that meet the fifth set of listing criteria on the STAR Market; second, establishing a pilot pre‑review mechanism for IPOs of high‑quality technology offices to further enhance the quality and efficiency of the stock exchange’s pre‑communication services; third, expanding the scope of application of the fifth set of criteria to enable more enterprises in cutting‑edge technological fields—such as artificial intelligence, commercial aerospace, and the low‑altitude economy—to qualify; fourth, allowing technology companies currently under review that are not yet profitable to conduct capital increases and share expansions targeting existing shareholders; fifth, improving the institutional framework to support the development of STAR Market‑listed companies; and sixth, strengthening the market functions that ensure coordination between investment and financing on the STAR Market.
Shanghai’s development as an international financial center has benefited from a series of favorable policies.
On June 18, the National Administration of Financial Regulation, in conjunction with the Shanghai Municipal Government, jointly issued the “Action Plan for Supporting the Development of Shanghai as an International Financial Center,” which comprises five key areas and a total of 27 specific measures.
First, we will encourage banking and insurance institutions to further concentrate in Shanghai, and urge commercial bank headquarters to strengthen their support for the development of Shanghai as an international financial center by establishing dedicated units and granting greater authority to their Shanghai‑based entities. Second, we will encourage financial institutions operating in Shanghai to prudently and orderly engage in carbon‑finance‑related activities, while vigorously advancing inclusive finance, pension finance, and digital finance. Third, we will continue to optimize cross‑border financial services and vigorously promote the development of the Shanghai International Reinsurance Center and the shipping insurance sector. Fourth, we will support the implementation of financial innovation pilot programs focused on key areas such as serving the real economy and opening up to the outside world, and introduce a due‑diligence exemption mechanism for these pilots. Fifth, we will refine and improve supporting policies.
In addition, the Central Financial Commission issued the “Opinions on Supporting the Accelerated Development of Shanghai as an International Financial Center,” outlining key measures to deepen financial market development, enhance the capabilities of financial institutions, improve financial infrastructure, expand high-level two-way financial opening-up, elevate the quality and effectiveness of services to the real economy, and effectively safeguard financial security in an open environment.
The State Administration of Foreign Exchange plans to introduce nine reform measures for foreign exchange management of cross-border investment and financing.
On June 18, the State Administration of Foreign Exchange issued a draft notice titled “Notice of the State Administration of Foreign Exchange on Matters Related to Deepening Reform of Foreign Exchange Management for Cross-Border Investment and Financing” for public consultation, with the deadline for submitting feedback set for July 18, 2025.
The Notice comprises nine specific policies across three key areas:
First, there are four investment‑related policies: abolishing the mandatory registration of basic information on pre‑investment expenses for domestic direct investment; eliminating the registration requirement for domestic reinvestment by foreign‑invested enterprises and extending the pilot policy—originally applied in select provinces and municipalities—of exempting such reinvestments from registration nationwide; and permitting the domestic reinvestment of foreign‑exchange profits under the foreign direct investment regime. Second, there are two financing‑related policies: raising the facilitation quota for foreign‑currency borrowing by high‑tech enterprises, “specialized, refined, distinctive, and innovative” offices, and technology‑oriented small and medium‑sized enterprises to a maximum equivalent of US$10 million; and streamlining the registration and administration of cross‑border financing facilitation transactions. Third, there are three payment‑facilitation measures: narrowing the negative list governing the use of capital‑account income; optimizing procedures for facilitating the payment of foreign‑exchange earnings from capital accounts; and simplifying the settlement and remittance processes for overseas individuals purchasing property within China.

Commercial & Corporate
Shenzhen plans to revise its implementation measures to further strengthen efforts to attract and utilize foreign investment.
On June 16, 2025, the Shenzhen Municipal Bureau of Investment Promotion issued a notice soliciting public comments on the “Measures for Further Strengthening the Attraction and Utilization of Foreign Investment in Shenzhen (Revised Edition)” (Draft for Comments), with the deadline for submitting comments set for July 16, 2025.
The Measures introduce a range of initiatives to attract foreign investment, including accelerating the internationalization of advanced manufacturing, supporting foreign investment in the biopharmaceutical sector, broadening channels for attracting foreign capital, optimizing the business environment, and facilitating cross-border trade and investment. Manufacturing enterprises that achieve annual increases in actual foreign investment of US$50 million or more will be eligible for incentives, and foreign‑invested R&D centers will receive support and rewards upon establishment.
The State Administration for Market Regulation has launched initiatives to enhance the quality and competence of small and medium-sized enterprises.
Recently, the State Administration for Market Regulation issued the “Notice on Launching Activities to Enhance the Quality and Competence of Small and Medium-Sized Enterprises.”
The Notice emphasizes that, by promoting advanced quality‑management tools, small and medium‑sized enterprises can reduce costs, improve quality, and boost efficiency. Local market‑regulation authorities will, focusing on key industrial chains, implement a new model characterized by “government‑led coordination, technical institutions providing guidance and organization, and broad participation by enterprises along the chain,” thereby developing tailored quality‑management solutions. In particular, they will explore the deep integration of big data and artificial intelligence with quality management, helping SMEs expand into new application scenarios in digitalization and intelligent technologies. The State Administration for Market Regulation will strengthen policy guidance, address quality‑related bottlenecks, and enhance the quality‑management capabilities of the “Hundred Chains, Ten Thousand Enterprises” initiative.

Taxation TAXATATION
Hangzhou is expanding its network of “buy-and-refund” tax‑free outlets for departing travelers and plans to offer financial incentives to four categories of entities.
On June 16, the Hangzhou Municipal Bureau of Commerce released the “Detailed Implementation Rules for Building an International Consumer City through ‘Premium Enjoyment, Instant Purchase and Refund’” (Draft for Public Comment), with a deadline for feedback set for July 15, 2025.
The Detailed Rules set forth four categories of support policies: First, to encourage the establishment of new outlets, enterprises that open “buy-and-refund immediately” tax‑refund points by 2025 will receive equipment‑purchase subsidies of up to RMB 5,000 per outlet. Second, to promote scale expansion, enterprises with 2025 outbound‑tax‑refund sales exceeding RMB 1 million will be awarded a 1.5% incentive on incremental outbound‑tax‑refund sales (excluding “buy-and-refund immediately”) and a 2% incentive on incremental “buy-and-refund immediately” sales. Third, to reduce international‑shipping costs, enterprises shipping international parcels in 2025 will receive subsidies covering up to 50% of the international postage for each parcel, with a maximum subsidy of RMB 300 per parcel. Fourth, to boost inbound consumption, travel agencies organizing group tours to tax‑refund stores will receive an on‑site incentive of RMB 25 per traveler, as well as an additional consumption‑based reward of RMB 25 per person (per transaction).
Two departments have released the latest list of non‑commercial special-purpose vehicles exempt from vehicle acquisition tax.
The State Taxation Administration and the Ministry of Industry and Information Technology jointly issued Announcement No. 14 of 2025, publishing the 18th batch of the “Catalogue of Non-Transport Special-Purpose Vehicles with Fixed Installations Exempt from Vehicle Acquisition Tax.”
The eighteenth batch of the “Catalogue” is divided into two parts: the first part lists newly added vehicle models, encompassing 548 models from 193 enterprises that have been reviewed and approved; the second part comprises withdrawn models, including 63 vacuum‑pressure vehicles. The reason for withdrawal is that, in accordance with the requirements of the standard “Classification, Nomenclature, and Model Coding for Special‑Purpose Vehicles and Special‑Purpose Trailers” (GB/T 17350‑2024), issued on December 31, 2024, vacuum‑pressure vehicles are now explicitly classified as transport‑type special‑purpose vehicles, no longer falling under the category of non‑transport special‑purpose operational vehicles.

Litigation & Arbitration
The Supreme People’s Court has released typical civil cases involving online consumption.
On June 16, the Supreme People’s Court released five typical civil cases involving online consumption, with a focus on sanctioning acts that infringe upon consumers’ rights, promoting honest business practices, and addressing emerging areas of online consumption.
In Case 4, the people’s court fully recognized the distinctive nature of concert tickets compared with ordinary consumer goods. By carefully balancing the operator’s interests with those of consumers and appropriately applying the legal rules for interpreting standard-form clauses, it construed the ticket‑refund provision in a manner favorable to consumers, thereby encouraging operators in similar industries to take consumer rights seriously and strike an appropriate balance between consumer interests and business considerations. In Case 5, the people’s court held that when an online service provider automatically pre‑selects users’ consent to a privacy policy and collects personal information unrelated to the services provided, it should bear tort liability. This ruling serves as a warning to online service providers to ensure that their collection and use of consumers’ personal information are both reasonable and necessary, thus avoiding excessive data collection that could impose secondary, adverse effects on consumers.
The Supreme People’s Procuratorate has released the 2024 White Paper on Procuratorial Work Involving Minors.
On June 16, the Supreme People’s Procuratorate released the “White Paper on Procuratorial Work Involving Minors (2024).”
The white paper summarizes seven key areas of juvenile prosecution work in 2024, including the implementation of the “Four Major Prosecutorial Functions,” crime prevention and governance targeting minors, stringent punishment for offenses against minors, protection of minors’ rights and interests, and prosecutorial business management. In 2024, procuratorial organs nationwide reviewed and approved the arrest of 65,198 juvenile suspects, a decrease of 1.1% year on year, while approving the arrest of 34,329 individuals, an increase of 27.8% compared with the previous year. Among cases involving crimes against minors, five categories—such as rape and indecent assault of children—accounted for 67%. Additionally, procuratorial organs handled 12,062 public interest litigation cases related to the protection of minors, thereby advancing comprehensive judicial protection for this vulnerable group.
The Supreme People’s Procuratorate has issued the “Guidelines for Handling Public Interest Litigation Cases in the Field of Cultural Heritage Protection.”
Recently, the Public Interest Litigation Department of the Supreme People’s Procuratorate issued the “Guidelines for Handling Public Interest Litigation Cases in the Field of Cultural Heritage Protection (Trial),” providing operational guidance for public interest litigation in this area.
The “Case‑Handling Guidelines” comprise 21 articles, organized into four sections—general provisions, administrative public interest litigation, civil public interest litigation, and supplementary provisions—and set forth clear criteria for selecting case types, establishing filing standards, and prioritizing investigative and evidentiary efforts. With respect to administrative violations, the Guidelines enumerate seven specific scenarios in which administrative agencies fail to fulfill their duties to protect cultural relics. They also introduce exploratory provisions on “serious damage” and its associated risks, taking into account factors such as the relic’s classification and the extent of the damage. The Guidelines further refine the content of damage assessments, emphasizing that harm must be established through expert appraisals or professional opinions. For cases involving cultural‑relic protection measures that require lengthy approval procedures, review may be suspended while ongoing oversight is maintained.
The Supreme People’s Procuratorate has issued the “Guidelines for Handling Public Interest Litigation Cases in the Field of Cultural Heritage Protection.”
Recently, the Public Interest Litigation Department of the Supreme People’s Procuratorate issued the “Guidelines for Handling Public Interest Litigation Cases in the Field of Cultural Heritage Protection (Trial),” providing operational guidance for public interest litigation in this area.
The “Case‑Handling Guidelines” comprise 21 articles, organized into four sections—general provisions, administrative public interest litigation, civil public interest litigation, and supplementary provisions—and set forth clear criteria for selecting case types, establishing filing standards, and prioritizing investigative and evidentiary efforts. With respect to administrative violations, the Guidelines enumerate seven specific scenarios in which administrative agencies fail to fulfill their duties to protect cultural relics. They also introduce exploratory provisions on “serious damage” and its associated risks, taking into account factors such as the relic’s classification and the extent of the damage. The Guidelines further refine the content of damage assessments, emphasizing that harm must be established through expert appraisals or professional opinions. For cases involving cultural‑relic protection measures that require lengthy approval procedures, review may be suspended while ongoing oversight is maintained.

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