JC Master Legal News Issue 1155

Key Takeaways for This Issue

The three major stock exchanges have issued detailed regulations on the supervision of algorithmic trading, specifying four categories of abnormal trading behaviors.
Recently, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Beijing Stock Exchange have each issued the “Detailed Rules for the Administration of Algorithmic Trading,” all of which will take effect on July 7, 2025. In addition, the Shanghai and Shenzhen Stock Exchanges are seeking public input on accompanying business rules, with a deadline for feedback set for April 17, 2025.
Increased to 125%! China adjusts the additional tariff rates on U.S. goods.
On the afternoon of April 11, the Customs Tariff Commission of the State Council issued the “Announcement on Adjusting Additional Tariff Measures on Imported Goods Originating in the United States” (Tariff Commission Announcement No. 6 of 2025), clarifying the relevant matters.
The Supreme People’s Procuratorate has released typical cases of procuratorial hearings for 2025.
On April 9, the Supreme People’s Procuratorate released a selection of exemplary cases involving procuratorial hearings for 2025, aiming to improve the mechanisms for restraining and supervising the exercise of procuratorial power.

Finance & Capital Markets
The China Securities Regulatory Commission plans to revise the Regulations on the Supervision of Fund Custody Business.
Recently, the China Securities Regulatory Commission (CSRC) has launched a public consultation on the “Administrative Measures for Fund Custody Business (Draft Amendment for Public Comment),” with the deadline for submitting feedback set for May 3, 2025.
This revision covers the following five areas:
First, we will refine the entry threshold by encouraging entities with strong potential in the custody sector and robust compliance and risk‑control capabilities to apply for this qualification. Second, we will strengthen regulatory requirements for substantive business operations and risk isolation, mandating that applicants commit at the application stage to focusing on their core business. Third, we will reinforce the responsibilities of custodians by requiring them to take appropriate measures to verify and validate the information and documentation provided by fund managers, and by tightening client and product admission criteria. Fourth, we will improve the exit mechanism by adding or refining three scenarios for revoking a license: failure to engage in substantive business activities, failure to continuously meet eligibility requirements, and voluntary cancellation. Fifth, we will permit high‑quality custodian institutions to establish wholly owned subsidiaries dedicated exclusively to custody services.

The three major stock exchanges have issued detailed regulations on the supervision of algorithmic trading, specifying four categories of abnormal trading behaviors.
Recently, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, and the Beijing Stock Exchange have each issued the “Detailed Rules for the Administration of Algorithmic Trading,” all of which will take effect on July 7, 2025. In addition, the Shanghai and Shenzhen Stock Exchanges are seeking public input on accompanying business rules, with a deadline for feedback set for April 17, 2025.
The Implementing Rules set forth detailed provisions on the reporting and management of algorithmic trading, the regulation of trading activities, information system management, high-frequency trading oversight, Stock Connect trading, and supervisory inspections. With respect to the four categories of abnormal algorithmic trading behaviors stipulated in the CSRC’s Regulations on the Administration of Algorithmic Trading in the Securities Market (Trial), the Implementing Rules further refine these categories by clearly defining the constituent elements of four types of abnormal trading practices: abnormally rapid order submission rates, frequent instantaneous order cancellations, repeated price‑pumping and price‑squeezing, and large‑volume trades executed within a short time frame.

Commercial & Corporate
The China Securities Regulatory Commission convened a symposium on deepening the comprehensive reform of capital market investment and financing for private technology enterprises.
Recently, the China Securities Regulatory Commission convened a special symposium, engaging in in-depth discussions with representatives from private technology enterprises across diverse sectors—including integrated circuits, new-energy vehicles, intelligent manufacturing, new materials, commercial aerospace, and the digital economy—while thoroughly soliciting their views and suggestions.
Participants put forward specific recommendations aimed at deepening the comprehensive reform of capital market financing and investment, further advancing capital market reform and development. These include: reforming and optimizing systems related to equity issuance and listing, refinancing, and mergers and acquisitions, thereby enhancing the inclusiveness and adaptability of these frameworks and improving the convenience and efficiency of investment and financing; further refining mechanisms for identifying, nurturing, screening, and supporting the IPOs of technology offices, increasing tolerance for unprofitable tech companies seeking to go public, and improving relevant information‑disclosure rules; supporting the return of overseas‑listed technology companies, optimizing the structure of listed offices, and expanding the pool of high‑quality investment targets; and intensifying efforts to channel medium- and long-term capital into the market, fostering and strengthening long-term investment capacity, among other measures.

The National Administration of Financial Regulation has issued a document to regulate the investment of insurance funds in equity of unlisted enterprises.
Recently, the website of the National Administration of Financial Regulation published the “Notice on Matters Relating to Major Equity Investments by Insurance Funds in Unlisted Enterprises.”
The Notice comprises sixteen articles, defining direct equity investments by insurance institutions and their affiliates that result in control or joint control over unlisted enterprises as “major equity investments.” It seeks to encourage insurance companies to focus on their core businesses by revising the scope of eligible investment sectors, adding “technology” and “big data industries” closely related to insurance operations, and guiding insurance funds to increase equity investments in the nation’s strategic emerging industries. The Notice also requires insurance institutions to establish sound decision-making processes and authorization‑management mechanisms for equity investments, refine their equity‑investment management systems, and strengthen post‑investment oversight and risk isolation. Furthermore, it stipulates that new investments shall be governed by the provisions of this Notice, while urging insurance institutions to develop remediation plans for existing investments that fail to meet the relevant requirements, specifying clear timelines and reporting these plans to regulators before implementation.

China and Mongolia’s customs authorities plan to implement mutual recognition of Authorized Economic Operators (AEO).
On April 9, the General Administration of Customs issued the “Notice on Soliciting Public Comments on the ‘Announcement of the General Administration of Customs on the Implementation of Mutual Recognition of the China–Mongolia Authorized Economic Operator (AEO) Scheme,’” with the deadline for submitting feedback set for April 15.
The announcement seeks to clarify the scope of AEO‑recognized enterprises and the facilitation measures between China and Mongolia: applying lower document‑review rates; applying lower import inspection rates; granting priority inspection for goods requiring physical examination; designating customs liaison officers to address and resolve issues encountered by project participants during customs clearance; and ensuring prioritized, expedited clearance following disruptions or resumptions in international trade.

Taxation
Increased to 125%! China adjusts the additional tariff rates on U.S. goods.
On the afternoon of April 11, the Customs Tariff Commission of the State Council issued the “Announcement on Adjusting Additional Tariff Measures on Imported Goods Originating in the United States” (Tariff Commission Announcement No. 6 of 2025), clarifying the relevant matters.
The Notice clarifies that on April 10, 2025, the U.S. government announced a further increase in the “reciprocal tariff” rate imposed on Chinese exports to the United States, raising it to 125%. Effective April 12, 2025, China will adjust its additional tariffs on imports originating in the United States, increasing the additional tariff rate stipulated in the “Notice of the Customs Tariff Commission of the State Council on Adjusting Additional Tariffs on Imports Originating in the United States” (Tariff Commission Notice No. 5 of 2025) from 84% to 125%. Given that, at the current tariff levels, U.S. goods exported to China are no longer commercially viable, should the U.S. side continue to impose additional tariffs on Chinese exports to the United States, China will not respond. Other matters shall be implemented in accordance with the “Notice of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Imports Originating in the United States” (Tariff Commission Notice No. 4 of 2025).

The “buy-and-refund” tax refund service for departing travelers is being rolled out nationwide.
The State Taxation Administration’s Announcement on Promoting the “Buy-and-Refund” Service for Outbound Travelers’ Tax Refunds Upon Departure was publicly released on April 8 and will take effect on April 4, 2025.
The Notice clearly sets out the key provisions, processing procedures, and implementation timeline for the “buy-and-refund” scheme under the departure‑tax‑refund policy. As a convenient service initiative, this measure represents an upgrade and optimization of the departure‑tax‑refund policy; in its initial phase, it was piloted in Shanghai, Beijing, Guangdong, Sichuan, Zhejiang, Shenzhen, and other localities.
The Announcement states that overseas travelers who purchase tax‑refunded items at “buy-and‑refund” stores may, upon completing a credit‑card pre‑authorization, collect an equivalent amount of tax refund on the spot. Upon departure, customs will verify the traveler’s identity and the tax‑refunded goods. Once the tax‑refund agency conoffices that the shopping‑related refund information is accurate, it will immediately release the credit‑card pre‑authorization guarantee and finalize the departure‑tax‑refund procedure. The Announcement further clarifies that any tax‑refund store wishing to offer the “buy-and‑refund” service may become an authorized “buy-and‑refund” store after reaching agreement with the local tax‑refund agency.

Litigation & Arbitration
The Supreme People’s Procuratorate has released typical cases of procuratorial hearings for 2025.
On April 9, the Supreme People’s Procuratorate released a selection of exemplary cases involving procuratorial hearings for 2025, aiming to improve the mechanisms for restraining and supervising the exercise of procuratorial power.
A total of six typical cases were examined, covering areas such as mandatory metrological verification of medical devices, criminal appeals, non-litigious enforcement supervision of environmental companies, community correction oversight, cross‑regional disputes over gas supply contracts for enterprises, and the protection of groundwater resources. In many of these cases, emphasis was placed on extending the impact of prosecutorial hearings; for example, in the administrative public interest litigation case overseen by the Rong County People’s Procuratorate in Sichuan Province concerning the protection of groundwater resources, after incorporating the opinions of hearing participants and issuing prosecutorial recommendations, the procuratorial organ promptly conducted follow-up “look‑back” supervision, conofficeing that all 15 unlicensed water‑extracting enterprises identified in the initial phase had been duly investigated and dealt with in accordance with the law.

The Supreme People’s Court has issued the “Business Standards for Case Information of the People’s Courts (2025).”
Recently, the Supreme People’s Court issued the newly revised “Business Standards for Case Information of the People’s Courts (2025).”
Compared with the 2015 edition of the People’s Courts Case Information Business Standard, the new Standard further enriches and refines information on trial‑process management, case‑quality management, specialized information pertaining to specific judicial business lines, and information relevant to national and social governance, while also optimizing the classification criteria for cases handled by the people’s courts.

Focusing on Addressing Difficulties in Enforcement, the Supreme People’s Court Releases the 45th Batch of Guiding Cases.
On April 7, the Supreme People’s Court issued the “Notice on the Release of the 45th Batch of Guiding Cases.” This marks the first time the Supreme People’s Court has released a set of guiding cases specifically focused on enforcement and implementation.
This batch comprises six cases, primarily addressing issues such as the application of cross‑jurisdictional and hierarchical enforcement, the coordination between centralized enforcement and bankruptcy proceedings, the harmonization of out‑of‑jurisdiction enforcement, the optimization of property preservation and garnishment measures, the issuance of legal risk warnings for refusal to comply, and the refinement of schemes for disposing of parking spaces. Notably, in Guiding Case No. 252, the Supreme People’s Court clarified that when a single judgment debtor is subject to multiple enforcement proceedings initiated by different people’s courts, unified enforcement by a single court—where such unification facilitates the timely and effective implementation of enforcement in accordance with the law—may be ordered by a higher‑level people’s court. Furthermore, during the enforcement process, if the judgment debtor enters pre‑reorganization proceedings, the case may be assigned to a people’s court with jurisdiction over bankruptcy matters for unified enforcement, thereby advancing the seamless integration of enforcement and bankruptcy procedures.

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