JC Master Legal News Issue 1144

Key Takeaways for This Issue

Li Qiang signed a State Council order promulgating the “Regulations of the State Council on Regulating the Provision of Services by Intermediary Institutions for Companies’ Public Offerings of Shares.”
Premier Li Qiang recently signed a State Council decree promulgating the “Regulations of the State Council on Standardizing the Services Provided by Intermediary Institutions for Companies’ Public Offerings of Shares,” which will take effect on February 15, 2025.
The China Securities Regulatory Commission has issued the “Basic Rules on Discretion in Administrative Penalties of the China Securities Regulatory Commission.”
On January 17, 2025, the China Securities Regulatory Commission issued the “Basic Rules on Discretion in Administrative Penalties of the China Securities Regulatory Commission” (hereinafter referred to as the “Discretionary Rules”), which will take effect on March 1, 2025.
The China Securities Regulatory Commission is soliciting public comments on the “Rules for the Supervision of Funds Raised by Listed Companies (Draft for Public Comment).”
The China Securities Regulatory Commission has systematically reviewed its regulatory practices over recent years, conducted extensive research and solicited opinions and suggestions from various stakeholders, and, building on “Regulatory Guidance No. 2 for Listed Companies—Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies,” has drafted the “Regulations on the Supervision of Funds Raised by Listed Companies (Draft for Public Comment).”
The Supreme People’s Court and the Supreme People’s Procuratorate have issued a judicial interpretation clarifying several issues concerning the application of law in handling criminal cases involving attacks on police officers.
On January 16, the Supreme People’s Procuratorate website published the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Attacks on Police Officers,” which will take effect on January 18, 2025.
Finance & Capital Markets
Li Qiang signed a State Council order promulgating the “Regulations of the State Council on Regulating the Provision of Services by Intermediary Institutions for Companies’ Public Offerings of Shares.”
Premier Li Qiang of the State Council recently signed a State Council decree promulgating the “Regulations of the State Council on Standardizing the Provision of Services by Intermediary Institutions for Companies’ Public Offerings of Shares” (hereinafter referred to as the “Regulations”), which shall enter into force on February 15, 2025.

The Regulations aim to standardize the conduct of intermediary institutions providing services for companies’ public offerings of shares, enhance the quality of listed companies, safeguard the legitimate rights and interests of investors, and promote the sound and stable development of the capital market. The Regulations comprise 19 articles and primarily cover the following provisions.

First, the professional standards for intermediary institutions are clearly defined. It is stipulated that such institutions shall adhere to the principles of honesty and good faith, due diligence, and independence and objectivity, and shall not engage in any illegal or non-compliant conduct, including assisting companies in committing financial fraud, fraudulent issuance, or improper disclosure of information. Furthermore, the documents they prepare and issue must be free from false records, misleading statements, or material omissions.

Second, the principles governing fees charged by intermediary institutions are clarified. It is stipulated that such institutions shall adhere to market‑based principles and reasonably determine their fee schedules based on factors including the scope of work and the resources required. For securities offices’ sponsorship services and accounting offices’ audit services, the outcome of a stock’s public offering and listing may not be used as a condition for setting fees. Furthermore, law offices shall charge in accordance with the relevant regulations on attorney‑service fees issued by the State Council’s judicial administration authorities and other competent departments.

Third, regulatory measures are clearly defined. The provisions stipulate that the securities regulatory authority, the finance department, the judicial administration, and other relevant agencies shall strengthen information sharing and coordination, and, in accordance with their respective responsibilities, intensify oversight of the professional conduct of intermediary institutions. Where necessary, they may implement joint on-site inspections and other measures to investigate and prosecute violations of laws and regulations. Administrative penalties, such as warnings, fines, or suspension from engaging in related activities, may be imposed on intermediary institutions and their practitioners found to have violated applicable rules; likewise, issuers and their controlling shareholders or actual controllers who breach the regulations may be subject to administrative sanctions, including warnings and fines.

Officials from the Ministry of Justice, the Ministry of Finance, and the China Securities Regulatory Commission answered questions from reporters regarding the “State Council Regulations on Standardizing the Provision of Services by Intermediary Institutions for Companies’ Public Offerings of Shares.”
On January 10, 2025, Premier Li Qiang of the State Council signed State Council Order No. 798, promulgating the “Regulations of the State Council on Regulating the Provision of Services by Intermediary Institutions for Companies’ Public Offerings of Shares” (hereinafter referred to as the “Regulations”), which shall enter into force on February 15, 2025. Recently, officials from the Ministry of Justice, the Ministry of Finance, and the China Securities Regulatory Commission answered questions from reporters regarding the Regulations.
Q: What is the background and significance of the issuance of the Regulations?
Answer: The CPC Central Committee and the State Council attach great importance to the sound development of the capital market. At the Central Financial Work Conference, it was emphasized that efforts must be focused on standardizing market order and fostering independent, objective, impartial, and compliant intermediary institutions. Enhancing the quality of listed companies is an intrinsic requirement for promoting the healthy development of the capital market and directly affects the vital interests of a broad base of investors. Securities offices, accounting offices, law offices, and other such entities—hereinafter collectively referred to as intermediary institutions—have played a crucial “gatekeeper” role in facilitating corporate listings and financing. However, some intermediary institutions, in providing services for companies’ public offerings of shares, have engaged in practices such as linking their fees to the outcomes of the issuance and listing, thereby giving rise to issues like financial fraud. China’s current Accounting Law, Securities Law, and other relevant statutes prescribe regulatory measures and legal liabilities for intermediary institutions that prepare false financial reports or collude in financial fraud; yet, specific regulations governing fee‑setting practices remain inadequate.
The issuance of the Regulations further strengthens oversight of intermediary institutions’ fee‑setting and related practices, prevents improper alignment of interests between intermediaries and issuers, and helps enhance the quality of listed companies, safeguard investors’ legitimate rights and interests, and promote the sound and stable development of the capital market.
Q: Could you please describe the drafting process of the Regulations?
Answer: During the drafting of the Regulations, the drafting authorities strictly adhered to the principles of scientific, democratic, and law-based legislation, and followed established procedures to solicit extensive input from all stakeholders. In the course of drafting, the Ministry of Justice, the Ministry of Finance, and the China Securities Regulatory Commission conducted on-site visits and convened symposiums, thereby gathering views from stock exchanges, securities offices, accounting offices, law offices, listed companies, prospective issuers, as well as relevant local regulatory bodies and industry associations. They also issued four rounds of written requests for comments to central government departments and local people’s governments, while simultaneously making the draft publicly available for public consultation. On this basis, they carefully examined each suggestion and opinion submitted by all parties, fully incorporated reasonable proposals, and repeatedly revised and refined the draft until it was finalized. The draft was then submitted to the State Council Executive Meeting for deliberation in accordance with legislative procedures and subsequently promulgated and put into effect. It can thus be said that the Regulations have broadly built legislative consensus, representing a concerted effort to advance whole-process people’s democracy.
Q: What is the scope of application and the overall guiding principle of the Regulations?
Answer: The Regulations apply to activities such as the fees charged by intermediary institutions for providing services in connection with a company’s public offering of shares within the territory of the People’s Republic of China. The formulation of these Regulations follows the following guiding principles: First, a problem‑oriented approach, focusing on regulating the fee‑charging practices of intermediary institutions in the course of serving companies’ public offerings and enhancing their independence. Second, a differentiated policy approach, which, while establishing uniform standards for all intermediary institutions, sets forth specific regulatory requirements tailored to the characteristics of different sectors. Third, strict regulatory oversight, aimed at standardizing fee‑related practices of intermediary institutions, intensifying penalties for relevant violations, and fostering the healthy and stable development of the capital market.
Q: What requirements does the Regulation impose on intermediary institutions providing services for a company’s public offering of shares?
Answer: In light of capital market practices and in alignment with the Securities Law and other relevant laws, the Regulations stipulate the following regarding intermediary institutions providing services for a company’s public offering of shares: First, they shall adhere to the principles of honesty and good faith, due diligence, and independence and objectivity. Second, they must assign practitioners who possess the requisite professional competence and qualifications, and establish effective risk‑control mechanisms, including procedures for reviewing conflicts of interest. Third, they may not collude with the company to engage in financial fraud, fraudulent issuance, or unlawful disclosure of information, nor may they assist companies that fail to meet statutory conditions and requirements in conducting a public offering through such means. Fourth, any documents they prepare or issue must be free from false records, misleading statements, or material omissions.
Q: What provisions does the Regulation make regarding the fees charged by intermediary agencies?
Answer: The Regulations clarify the fee‑setting principles for intermediary institutions providing services in a company’s public offering of shares, stipulating that such institutions shall adhere to market‑based principles and reasonably determine their fee schedules based on factors including workload and resource requirements. Specific requirements are also set forth for each type of intermediary institution: First, securities offices engaging in sponsorship activities may collect service fees in stages according to the progress of the work, but they may not make the collection of fees conditional upon the outcome of the public offering and listing; furthermore, when undertaking underwriting, they must comply with the regulations of the State Council’s securities regulatory authority, assess project costs and other relevant factors in determining fees, and may not adopt a tiered fee structure that increases with the size of the offering. Second, accounting offices performing audit engagements may collect service fees in stages according to the progress of the work, but they may not condition fee collection on the audit results or on the outcome of the public offering and listing. Third, law offices providing services for a company’s public offering of shares shall adopt a unified fee‑charging mechanism and comply with the relevant provisions on attorney‑service fees issued by the State Council’s judicial administration authorities and other competent departments.
Q: Has the issuance of the Regulations had any impact on the fees charged by intermediary agencies?
Answer: The Regulations are designed to standardize the fee‑charging practices of intermediary institutions in the course of underwriting and issuing shares, promote greater openness, fairness, and transparency in industry pricing, and enhance the independence of these institutions, without impeding their normal fee‑collection activities. The specific requirements set forth in the Regulations further regulate intermediary fee‑charging behavior, with the aim of preventing such practices from compromising their objective and impartial professional conduct, thereby fostering a fair and well‑regulated market order. In practice, the vast majority of intermediary institutions adhere to proper fee‑charging standards; however, for the small number of instances that fail to comply with the Regulations, both the intermediaries and the issuers are required to make timely corrections, or they will be subject to corresponding legal liabilities.
Question: Why is it stipulated that local people’s governments may not grant awards to issuers or intermediary institutions?
A: In practice, some local governments have sought to increase the likelihood of local enterprises successfully going public by offering incentives to issuers or intermediary institutions, hoping to generate a demonstration effect that boosts regional economic development. However, this approach has gradually revealed several drawbacks: first, it may spark unhealthy competition among regions, place an undue burden on public finances, and distort perceptions of policy performance; second, it may encourage intermediaries to prioritize short-term gains, thereby straying from their role as gatekeepers. Accordingly, it is necessary to further regulate local governments’ incentive‑granting practices, foster a market‑oriented and law‑based business environment, and steer corporate listings back to their original purpose of supporting the real economy.
The Regulations stipulate that, effective from the date of their entry into force, any local people’s governments at all levels that have, in violation of these Regulations, granted awards to issuers or intermediary institutions shall recover such awards. However, in accordance with relevant laws and regulations, awards already granted by the government prior to the entry into force of these Regulations shall not be subject to recovery.
Q: How will the implementation of the Regulations be advanced?
A: The China Securities Regulatory Commission, the Ministry of Finance, the Ministry of Justice, and other relevant departments will strengthen information sharing and coordination, and, in accordance with their respective responsibilities, intensify regulatory oversight of intermediary institutions’ professional practices to ensure the effective implementation of the Regulations. First, we will enhance publicity and guidance. We will organize training sessions for staff at all levels of securities regulatory, fiscal, and judicial administration authorities to ensure that the Regulations are accurately understood and strictly enforced. At the same time, we will guide intermediary institutions to standardize their service practices and promote the sound development of the industry. Second, we will rigorously enforce the Regulations. In routine supervisory activities, we will use inspections to drive improvements and urge intermediary institutions to comply with fee‑setting standards. We will also step up enforcement inspections of fee‑related practices; any violations of the Regulations will be investigated and dealt with seriously in accordance with applicable laws and regulations. Third, we will strengthen communication and cooperation. Securities regulatory, fiscal, and judicial administration authorities at all levels will refine and improve their working mechanisms, maintain close coordination, and pool their efforts to effectively implement the Regulations, thereby enhancing the quality of listed companies, safeguarding investors’ legitimate rights and interests, and fostering the healthy and stable development of the capital market.

The China Securities Regulatory Commission has issued the “Basic Rules on Discretion in Administrative Penalties of the China Securities Regulatory Commission.”
On January 17, 2025, the China Securities Regulatory Commission issued the “Basic Rules on Discretion in Administrative Penalties of the China Securities Regulatory Commission” (hereinafter referred to as the “Discretionary Rules”), which will take effect on March 1, 2025.
Standardizing administrative discretion is a crucial component of advancing the building of a law-based government. Refining and quantifying the principled provisions, as well as the flexible enforcement powers and discretionary ranges stipulated in laws, administrative regulations, and rules, directly affects the uniformity of enforcement standards and the authority of regulatory oversight, and plays a vital role in promoting fair enforcement and stabilizing market expectations. In recent years, the Securities Law and the Futures and Derivatives Law have been revised and promulgated one after another, with the upper limits of both fixed‑amount penalties and multiple‑of‑base penalties raised. Under the new circumstances, how to fully and effectively exercise the administrative penalty powers conferred by law has become an urgent issue. Accordingly, it is necessary to formulate and implement dedicated rules on the standards for exercising administrative discretion, clearly delineate tiers of administrative penalties, harmonize the discretionary standards across all enforcement agencies, and provide institutional safeguards for the fair conduct of administrative law enforcement.
From June 7 to July 7, 2024, the China Securities Regulatory Commission (CSRC) publicly solicited comments on the “Discretionary Rules” and gathered input from relevant stakeholders through symposiums and written consultations. The broader public generally endorsed the content of the “Discretionary Rules,” and the CSRC carefully reviewed each of the proposed amendments and refinements, incorporating all reasonable suggestions.
The “Discretionary Rules” comprise twenty-five articles and primarily cover the following: First, they clearly define discretionary tiers and relevant circumstances. Six tiers are established—“no penalty, exemption from penalty, mitigation of penalty, leniency in penalty, standard penalty, and aggravated penalty”—with specific provisions delineating the applicable scenarios for each tier. Second, they set forth pertinent penalty‑imposing rules. For joint violations, a discretionary framework is adopted that first determines overall liability and then apportions penalties accordingly. With respect to individuals directly responsible within an entity, their degree of responsibility and the extent of the imposed penalty are assessed comprehensively, taking into account their role in the violation, their position and performance of duties, their level of awareness, and any actions taken after becoming aware. For repeated violations, the basic principle of “cumulative penalties for multiple independent violations” is specified. Third, a system is instituted requiring approval by the principal officer or deliberation by a collective body. Where administrative penalties are imposed for complex cases or serious violations, such decisions must be made through collective deliberation by the responsible authorities. If the application of the “Discretionary Rules” results in manifest impropriety, substantial unfairness, or if objective circumstances change necessitating adjustments, such modifications shall be approved by the CSRC’s principal officer or decided upon through collective deliberation. Fourth, the principles of “multi‑dimensional accountability” and “coordination between administrative and criminal proceedings” are implemented. Administrative penalties for securities and futures law violations are aligned with criminal liability, civil liability, as well as administrative regulatory measures and self‑regulatory actions. Three categories of procedures for handling “administrative–criminal coordination” are prescribed. Fifth, oversight and guidance by the CSRC are strengthened. It is explicitly stipulated that the CSRC shall supervise and guide the exercise of penalty‑imposing powers by its dispatched agencies, thereby ensuring uniform application of penalty standards.
Going forward, the China Securities Regulatory Commission will rigorously implement the CPC Central Committee and the State Council’s series of decisions and arrangements on law-based administration, further standardize and unify the criteria for exercising administrative penalty discretion, ensure fair and transparent enforcement, and fully enforce the provisions of the Securities Law, the Administrative Penalty Law, and the Discretionary Rules. The Commission will promptly establish an administrative penalty discretion system that is clearly oriented, logically sound, scientifically comprehensive, and effectively operational, thereby further stabilizing market expectations, upholding fairness and justice, and providing a more robust legal framework to support the development of a capital market that is secure, well-regulated, transparent, open, dynamic, and resilient.

The China Securities Regulatory Commission is soliciting public comments on the “Provisions on the Administration of Algorithmic Trading in the Futures Market (Trial) (Draft for Comments).”
To implement the requirements of the Futures and Derivatives Law and the Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Futures Market (Document No. 47 [2024] issued by the General Office of the State Council), and to enhance oversight of algorithmic trading in the futures market, standardize such trading practices, and safeguard trading order and market fairness, the China Securities Regulatory Commission has drafted the Provisional Regulations on the Administration of Algorithmic Trading in the Futures Market (Draft for Public Comment) (hereinafter referred to as the “Administrative Regulations”) and is now soliciting public comments.
The “Administrative Provisions” are officely centered on the overarching objectives of strengthening regulation, preventing risks, and promoting high-quality development, while reinforcing end-to-end oversight of algorithmic trading in the futures market. Specifically: first, they define algorithmic trading and set out its general requirements; second, they specify reporting obligations for such trading; third, they tighten management of system access; fourth, they enhance the supervision of server hosting and seat allocation; fifth, they delineate requirements for trade monitoring and risk management; sixth, they establish arrangements for regulatory oversight; and seventh, they clarify the applicable provisions for relevant market participants.

The China Securities Regulatory Commission is soliciting public comments on the “Rules for the Supervision of Funds Raised by Listed Companies (Draft for Public Comment).”
To thoroughly implement the spirit of the Central Financial Work Conference, further enhance the quality of listed companies, and strengthen the oversight of raised funds, the China Securities Regulatory Commission has systematically reviewed its regulatory practices over recent years, conducted extensive surveys, and solicited opinions and suggestions. Building on “Regulatory Guidance No. 2 for Listed Companies—Regulatory Requirements for the Management and Use of Funds Raised by Listed Companies,” it has drafted the “Regulations on the Supervision of Funds Raised by Listed Companies (Draft for Public Comment)” (hereinafter referred to as the “Regulations”). The Regulations aim to improve the security and standardized use of funds raised by listed companies, further enhance the efficiency of such fund utilization, and are now being made public for public comment.
The Rules comprise 23 articles, emphasizing that proceeds from fundraising must be used exclusively for designated purposes and in alignment with the company’s core business. They specify the circumstances under which the intended use of raised funds may be altered and set out the procedural requirements for deferring implementation. The Rules further regulate the temporary cash management of idle raised funds to enhance liquidity, as well as the utilization of excess proceeds. In addition, the Rules uphold a stringent regulatory approach, delineating accountability provisions and ensuring consistency with higher‑level laws such as the Securities Law, the Measures for the Administration of Sponsorship Business in Securities Issuance and Listing, and the Measures for the Administration of Information Disclosure by Listed Companies. By strengthening ongoing and post‑event supervision, the Rules aim to promote standardized management and responsible use of raised funds by listed companies and to encourage intermediary institutions to exercise due diligence and fulfill their obligations.

Putting the “Three Investments” philosophy into practice to promote high-quality development: The Shanghai Stock Exchange hosted the first institutional investor service event of 2025.
The Shanghai Stock Exchange, in collaboration with the Jiangsu Securities Regulatory Bureau and the Financial Office of the CPC Jiangsu Provincial Committee, hosted the first installment of its 2025 Institutional Investor Services Series for the Yangtze River Delta region in Nanjing. Through specialized briefings, peer‑to‑peer knowledge sharing, and guided visits to listed companies, the initiative vigorously advances reforms on the investment side, encourages the entry of medium- and long-term capital into the market, and guides institutional investors to embrace the principles of rational investing, value investing, and long-term investing, thereby fostering high‑quality development of the capital market.
Yuan Duoran, a member of the Party Committee of the Shanghai Stock Exchange, stated at the outreach event that the Exchange plans to spend approximately five years establishing an institutional investor service system characterized by comprehensive organization, systematic delivery, and branded content. It aims to cultivate a cohort of institutional investors who consciously embrace the principles of rational investing, value investing, and long-term investment, thereby leveraging the high‑quality development of this investor base to better serve the broader community of small and medium‑sized investors and foster a market environment conducive to accelerating the building of a world‑class exchange. Recently, the Shanghai Stock Exchange signed a strategic cooperation agreement with the People’s Government of Jiangsu Province, committing to jointly support the high‑quality development of the real economy and strengthen collaboration on the investment and financing fronts. The inaugural institutional investor outreach event held in 2025 is a concrete step to implement the underlying commitments of this strategic partnership. Looking ahead, the Shanghai Stock Exchange will further enhance and refine its services for institutional investors, working hand in hand with them to promote the high‑quality development of the capital market, support the sustained recovery and high‑quality growth of the economy, and contribute to a strong start to the 15th Five-Year Plan period.
Tu Chubin, a member of the Party Committee and Deputy Director of the Jiangsu Securities Regulatory Bureau, stated that guiding investors to embrace the “three‑investment” philosophy is an essential requirement for bolstering the capital market and achieving sustainable, high‑quality development. Institutional investors should seize current market and policy opportunities, emphasize their functional role, and proactively align themselves with the broader goals of economic and social development through their professional expertise, thereby better serving the real economy and advancing China’s drive toward technological self‑reliance and strength. He noted that Jiangsu has made significant progress in fostering high‑quality development of its capital market: the province leads the nation in both the number of companies listing via initial public offerings and the scale of direct financing; it has delivered notable results in supporting technological innovation; listed companies have focused on major project construction, enhancing their investment appeal; industry institutions have played their intended roles; and private equity fund activity remains robust. At the same time, Jiangsu has vigorously encouraged listed companies to strengthen industrial consolidation, promoted mergers and reorganizations among them, and facilitated the integration of Guolian and Minsheng securities offices. By reinforcing top‑level design, leveraging the functions of regional equity markets, and enhancing inter‑departmental coordination, the province has diversified investment channels.
During the series of events, the Shanghai Stock Exchange delivered thematic presentations on topics including index‑based investing and the development of ETF‑related derivatives, China’s distinctive ESG investment framework, as well as the positive practices and cautionary lessons drawn from the six measures on mergers and acquisitions. The Exchange also organized peer‑to‑peer knowledge sharing among industry participants on AI‑driven investment research and analysis, and led a delegation of more than 40 institutional investors to Nanwei Medical, a listed company, for a fact‑finding mission focused on high‑quality development.
Going forward, the Shanghai Stock Exchange will thoroughly implement the guiding principles set forth at the Third Plenary Session of the 20th CPC Central Committee and the Central Financial Work Conference—namely, to improve the capital market’s ability to balance investment and financing, support the entry of medium- and long-term funds into the market, accelerate reforms on the investment side, and uphold the “Three Investments” philosophy. The Exchange will focus on fostering world-class investment banks and institutions, and will work to ensure that securities offices and fund management companies return to their core functions, enhance their capabilities, and grow stronger. In line with these objectives, the Exchange will continue to roll out institutional investor services nationwide, organizing specialized training sessions and public outreach events.
The Shanghai Asset Management Association, Huatai Securities, Nanjing Securities, Dongwu Securities, Donghai Securities, and Guolian Securities co‑hosted this event. The Jiangsu Provincial Securities Industry Association, the Jiangsu Provincial Listed Companies Association, and the Jiangsu Provincial Fund Industry Association participated as supporting organizations. Nearly 300 institutional investors from banks, securities offices, fund management companies, insurance providers, trust institutions, and asset management offices in Jiangsu attended a series of activities, including thematic briefings, peer‑to‑peer knowledge sharing, and site visits to listed companies.

The Shanghai Stock Exchange has released the “Guidelines for Preparing Sustainability Reports” to help listed companies disclose high-quality sustainability (ESG) reports.
Recently, under the unified guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange officially released the “Shanghai Stock Exchange Self-Regulatory Supervision Guideline No. 4 for Listed Companies: Preparation of Sustainability Reports” and the “Shanghai Stock Exchange STAR Market Listed Companies’ Self-Regulatory Supervision Guideline No. 13: Preparation of Sustainability Reports” (hereinafter collectively referred to as the “Guidelines”). The issuance of these Guidelines aims to help listed companies better understand and apply the previously issued “Shanghai Stock Exchange Self-Regulatory Supervision Guideline No. 14 for Listed Companies: Sustainability Reporting (Trial)” (hereinafter referred to as “Guideline No. 14”), thereby continuously enhancing the quality of sustainability (ESG) information disclosure.
In recent years, the Shanghai Stock Exchange has actively implemented the new development philosophy, meticulously planned and executed five major financial initiatives, and accelerated the comprehensive green transformation of economic and social development. It has formulated and released the Three-Year Action Plan (2024–2026) to Enhance the Quality of ESG Information Disclosure by Listed Companies on the Shanghai Market, adopting a series of measures to improve the quality of sustainability (ESG) disclosures by listed companies. In terms of disclosure, throughout 2024, a total of 1,193 listed companies on the Shanghai market published their 2023 ESG reports, sustainability reports, or corporate social responsibility reports, with a disclosure rate exceeding 52%—up 6 percentage points year over year. Both the number of disclosures and the disclosure rate reached record highs. Regarding ratings, as of the end of 2024, 342 listed companies on the Shanghai market had been included in the MSCI ESG Ratings; among them, 100 companies saw their ratings upgraded in the latest assessment, and eight achieved an AAA rating, placing them at the global forefront. From an investment perspective, by the end of 2024, CSI Indexes had cumulatively launched 147 ESG and other sustainability indices. The suite of broad-based ESG indices, including those tracking the SSE 50, SSE 180, and CSI 300, continues to expand. The number of products tracking ESG and other sustainability indices, as well as green ETFs, has reached 89 and 45, respectively, with total assets under management exceeding RMB 130 billion.
The release of the Guidelines marks the initial establishment of a sustainable development (ESG) information disclosure framework at the SSE, with the Stock Listing Rules and Guidance No. 14 serving as the regulatory benchmarks, and the Guidelines providing detailed guidance. This first batch introduces two specific annexes—the First Guideline on Overall Requirements and Disclosure Framework, and the Second Guideline on Addressing Climate Change—aimed at helping listed companies build sound governance structures and management processes for sustainable development, while offering a comprehensive toolkit and resource guide for preparing high‑quality ESG reports. First, the Guidelines provide model templates: by outlining concrete methodologies, key disclosure points, and illustrative texts, they assist listed companies in clarifying how to establish governance and management systems aligned with sustainable development goals, as well as how to identify material issues and carry out targeted disclosure efforts. For example, the Second Guideline on Addressing Climate Change not only sets out carbon‑emission accounting methods and scenario‑analysis procedures but also distills 22 specific disclosure points, enabling companies to focus on the critical aspects of addressing climate‑related challenges. Second, the Guidelines enrich the interpretation of standards: recognizing the broad scope and technical complexity of ESG reporting, they further deepen listed companies’ understanding of relevant rules through clear explanations of specialized concepts, standards, and requirements. Detailed descriptions are provided, for instance, on climate‑related physical and transition risks, climate‑related financial impacts and transition plans, and the delineation of greenhouse gas emission scopes. Third, the Guidelines adhere to a voluntary approach: while offering guidance, they do not impose additional mandatory disclosure requirements, allowing listed companies to decide independently whether to adopt or apply them. The SSE encourages listed companies to refer to the Guidelines when preparing their reports, utilize the accompanying sample texts, and incorporate the relevant disclosure points.
Going forward, under the overall coordination of the China Securities Regulatory Commission, the Shanghai Stock Exchange will, in response to market needs, advance the development of guidelines on other key issues. It will also continue to distill best practices from listed companies, strengthen ongoing assessments, and steadily enhance the adaptability, effectiveness, and operability of its rules, thereby supporting listed companies in disclosing high‑quality sustainability (ESG) reports.

Commercial & Corporate
The State Council has issued the “List of Key Tasks for the First Batch in 2025 to ‘Efficiently Get One Thing Done’.”
On January 16, the Chinese Government Website published the “Notice of the General Office of the State Council on Issuing the First Batch of Key Task Lists for ‘Efficiently Completing One Matter’ in 2025.”
The “List” covers a total of twelve categories of priority matters. Among these, on the enterprise side, it primarily addresses the handling of six types of procedures: “conversion of individual business households into enterprises,” “approval for qualified foreign investor status and account opening,” “commercialization of scientific and technological achievements,” “approval of fixed‑asset investment projects,” “registration of new vehicles,” and “commencement of construction projects.”

Eight departments launch the 2025 Spring Breeze Campaign.
On January 16, the Ministry of Human Resources and Social Security published the “Notice on Launching the 2025 Spring Breeze Action.”
The Notice clarifies that eight departments will launch a special “Spring Breeze” service campaign nationwide around the 2025 Spring Festival, running from mid-January to mid-March 2025. The campaign’s theme is “Spring Breeze Brings Job Opportunities to Boost Employment; Precise Services Warm People’s Hearts.” It calls for concentrating on key sectors where migrant workers are employed, compiling a pool of traditional jobs in construction, maintenance, domestic services, logistics, and other fields. At the same time, it seeks to expand opportunities in emerging areas such as high‑tech industries and advanced manufacturing, tailored to the skill levels of rural workers. Focusing on stimulating and expanding consumption of services, the initiative will identify positions in catering and accommodation, cultural tourism and sports, elderly care, childcare, and other service‑oriented sectors. In tandem with advancing new‑type urbanization and the comprehensive revitalization of rural areas, it will also map out local and nearby employment opportunities, including work‑relief programs, job‑assistance workshops, grassroots governance in urban and rural communities, and public services.

The Ministry of Industry and Information Technology has launched a special initiative to provide overseas support for small and medium-sized enterprises.
On January 15, the website of the Ministry of Industry and Information Technology released the “Notice on Launching a Special Campaign to Provide Overseas Services for Small and Medium-sized Enterprises.”
The Notice outlines the following key areas of work: (1) Policy‑to‑Enterprise Services. Strengthen efforts to collect, organize, analyze, and disseminate domestic and international policy information, providing insights into the political environment, legal and regulatory frameworks, policy access requirements, industrial development, and market analysis for target countries and regions. (2) Market Development Services. (3) International Talent Services. (4) Management Enhancement Services. Focusing on areas such as internationalization strategy planning, cross‑border operations, carbon footprint management, brand promotion, local human resource management, and environmental, social, and governance (ESG) considerations, these services offer tailored management consulting and comprehensive solutions. (5) Cross‑Border Financial Services.

The Ministry of Industry and Information Technology has launched the “Challenge‑Based Recruitment” initiative for 2025’s future‑industry innovation projects.
On January 17, the website of the Ministry of Industry and Information Technology released the “Notice on Organizing the Implementation of the 2025 Future Industries Innovation Task ‘Challenge-Based Recruitment’ Initiative.”
The Notice clarifies that the challenge‑based initiative will target three emerging industries—quantum technology, atomic‑scale manufacturing, and clean hydrogen—by launching a series of innovation projects covering core foundational technologies, key products, public‑support infrastructure, and demonstration applications. It aims to identify and nurture leading entities that master critical core technologies and possess strong innovative capabilities, achieve breakthroughs in a number of landmark technological products, and accelerate the deployment and application of new technologies and products.

Domestic developments in the chip industry: U.S. companies are exporting mature‑process chips to China at low prices, undermining the domestic market.
Recently, the Ministry of Commerce conofficeed that it has received requests from domestic industries producing mature‑process chips to initiate anti-dumping and countervailing investigations into U.S.-origin imports.
The Ministry of Commerce stated that domestic stakeholders in the chip industry have reported that, over a period of time, the Biden administration has provided substantial subsidies to the chip sector, giving U.S. companies an unfair competitive advantage and enabling them to export related mature‑process chip products to China at low prices, thereby undermining the legitimate rights and interests of China’s domestic industries. It is entirely normal for China’s domestic industries to express such concerns, and they are entitled to file applications for trade remedy investigations. With respect to these applications and claims, the investigating authorities will conduct reviews in accordance with China’s relevant laws and regulations and in compliance with WTO rules, and will initiate investigations as prescribed by law.

The Ministry of Commerce plans to issue three industry standards in the field of resource recycling.
On January 14, the Ministry of Commerce’s website published a public call for comments on the draft industry standards titled “Green Recycling Standards for Renewable Resources,” “Management Standards for ‘Internet Plus’ Recycling Services,” and “Guidelines for Waste Plastic Recycling.” The deadline for submitting feedback is February 13.
The Standard specifies the general requirements, collection requirements, transportation requirements, storage requirements, sorting requirements, packaging requirements, management requirements, and information‑management requirements for the green recycling of secondary resources. It also outlines the corresponding verification methods and is applicable to guiding the recycling of secondary resources originating from both household and industrial sources—such as scrap steel, waste paper, waste plastics, waste non‑ferrous metals, waste tires, waste glass, used textiles, and waste wood—within the territory of the People’s Republic of China; other categories may be implemented by reference.

The Ministry of Natural Resources has issued a document to strengthen the management of geological data.
On January 16, the website of the Ministry of Natural Resources published the “Notice on Strengthening the Management of Geological Data.”
The Notice comprises four sections and fifteen provisions, mandating the strengthening of geological data submission management, the enhancement of geological data preservation standards, the proactive provision of geological data services, and the reinforcement of oversight and administration of geological data. It specifies that geological data submitted by holders of exploration and mining rights shall be protected throughout the validity period of their respective exploration and mining licenses; moreover, if such licenses are approved for renewal or extension, the protection period shall automatically be extended accordingly.

The National Bureau of Statistics has released the 2024 national economic data.
On January 17, the National Bureau of Statistics released China’s 2024 national economic data. According to preliminary calculations, the country’s GDP for the year totaled RMB 134.9084 trillion, up 5.0% year on year in constant prices.
Data show that, for the year, the consumer price index (CPI) rose 0.2% compared with the previous year; the average surveyed urban unemployment rate nationwide was 5.1%; and per capita disposable income of all residents reached 41,314 yuan, up 5.3% in nominal terms and 5.1% after adjusting for price changes. Throughout the year, value added by industrial enterprises above designated size increased by 5.8% year on year. By economic sector, state‑controlled enterprises recorded a 4.2% rise, joint‑stock enterprises grew by 6.1%, foreign‑invested and Hong Kong, Macao, and Taiwan‑invested enterprises expanded by 4.0%, and private enterprises posted a 5.3% increase. By product category, output of new‑energy vehicles, integrated circuits, and industrial robots rose by 38.7%, 22.2%, and 14.2%, respectively.

Beijing plans to release an action plan to accelerate the use of artificial intelligence in scientific research.
On January 16, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Beijing Action Plan for Accelerating High-Quality Development of Scientific Research Empowered by Artificial Intelligence (2025–2027) (Draft for Comments),’” with a deadline for submitting feedback set for January 22.
The Action Plan, centered on three key pillars—strengthening infrastructure, accelerating sectoral applications, and fostering an industrial ecosystem—outlines 13 priority tasks. Under the “fostering an industrial ecosystem” pillar, the Plan identifies five major initiatives: establishing a common‑technology service innovation platform, vigorously attracting and cultivating innovative talent, building a multi‑channel investment and financing service system, developing clusters of science‑and‑intelligence‑driven industries, and organizing academic conferences and competitive events.

The State Council has forwarded the Ministry of Ecology and Environment’s “Opinions on Establishing Pilot Zones for Building a Beautiful China.”
On January 15, the Chinese Government Website published the “Notice from the General Office of the State Council on Forwarding the Ministry of Ecology and Environment’s ‘Implementation Opinions on Building Pilot Zones for a Beautiful China.’”
The “Implementation Opinions” comprise fifteen measures, calling for accelerated development of a demonstration zone for synergistic pollution reduction and carbon mitigation, as well as ecological restoration, in the Beijing–Tianjin–Hebei region. They support the three regions in refining institutional mechanisms for coordinated environmental protection, deepening collaborative environmental legislation, and strengthening joint prevention and control of air pollution. The document also emphasizes rigorous implementation of total coal consumption controls and the swift establishment of interprovincial zero-emission freight corridors; ongoing efforts to build a high‑level model area in the Yangtze River Delta that promotes high‑quality development through robust environmental protection; joint initiatives to create a beautiful Bay Area in the Guangdong–Hong Kong–Macao Greater Bay Area characterized by integrated innovation; and the advancement of a green, low‑carbon development demonstration belt along the Yangtze River Basin. Furthermore, it calls for the full implementation of the pollutant discharge permit system to achieve “one‑permit” management. With a focus on synergistic pollution and carbon reduction, improved environmental quality, ecological conservation and restoration, and the modernization of ecological infrastructure, the plan outlines major projects for the construction of pilot zones, which will be systematically incorporated—subject to regulatory requirements—into the reserve pools for fiscal funding and financial support. In addition, a sound policy framework for green finance to support pilot‑zone development will be established, with explorations underway in the Yangtze and Yellow River basins to set up investment and financing mechanisms that integrate ecological governance with the promotion of green, low‑carbon industries, thereby enriching green finance and transition‑finance products and services.

The National Medical Products Administration plans to revise the “Good Manufacturing Practice for Medical Devices.”
On January 15, the National Medical Products Administration published the “Medical Device Production Quality Management Regulations (Draft for Public Comment)” on its website, with a deadline for submitting feedback set for February 14.
Following the revision, the Standard comprises fifteen chapters and one hundred thirty-one articles, clearly stipulating that enterprises shall assume primary responsibility for the quality and safety of medical devices, establish quality objectives that comply with medical device quality management requirements, and systematically integrate all requirements ensuring the safety, effectiveness, and controllable quality of medical device products into every stage of the product lifecycle—design and development, manufacturing, quality control, product release, storage and transportation, and use—thereby ensuring that these quality objectives are both understood and achieved.

The National Medical Products Administration has issued a notice requiring the effective implementation and dissemination of experiences gained from relevant reform pilot programs.
On January 16, the website of the National Medical Products Administration published the “Notice on Effectively Implementing and Promoting the Pilot Reform Experiences.”
The Notice clarifies that, effective January 20, 2025, the following three approval items will be abolished: “Approval for the establishment of pharmaceutical wholesale enterprises,” “Approval for the establishment of pharmaceutical retail enterprises,” and “License for medical institutions to use radioactive pharmaceuticals (Classes I and II).” In addition, “Approval for Internet information services related to drugs and medical devices” will be replaced by a filing‑based management system. The drug regulatory authorities will no longer exercise approval oversight over these administrative licensing matters, and any applications already accepted will have their approval procedures terminated in accordance with the law. For entities that had obtained an “Internet Drug Information Service Qualification Certificate” prior to the abolition of the approval requirement, they may continue to provide Internet information services related to drugs and medical devices upon expiration of the certificate’s validity period, subject to filing as prescribed.

Four departments have issued a document calling for the effective implementation of the 2025 home appliance trade-in program.
On January 13, the Ministry of Commerce website published the “Notice on Effectively Carrying Out the 2025 Home Appliance Trade-In Program.”
The Notice specifies that individual consumers who purchase appliances meeting Level 2 or higher energy‑efficiency or water‑efficiency standards—namely refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, range hoods, water purifiers, dishwashers, rice cookers, and microwave ovens—will receive subsidies. The subsidy rate is 15% of the final retail price of these products; for purchases of products meeting Level 1 or higher energy‑efficiency or water‑efficiency standards, an additional subsidy of 5% of the final retail price will be provided. Each consumer may receive a subsidy for one unit per product category (with a maximum of three units for air conditioners), and the subsidy for each unit shall not exceed RMB 2,000.

The Ministry of Finance has issued the Measures for the Administration of Designated Meeting Venues for Party and Government Organs.
On January 16, the Ministry of Finance’s website published the “Notice on Issuing the Measures for the Administration of Designated Meeting Venues for Party and Government Organs.”
The Measures consist of five chapters and twenty-seven articles, stipulating that the maximum government procurement price ceiling for designated conference venues shall not exceed the expenditure standards set forth in the local regulations governing conference expenses. If a designated conference venue is found, upon investigation, to have unreasonably refused to host meetings of Party and government organs, charged fees exceeding the prices specified in the procurement agreement, or reduced service quality by cutting back on service items, its designation as a conference venue shall be revoked.

Beijing plans to issue a document to accelerate the innovative development of “Artificial Intelligence + New Materials.”
On January 14, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the ‘Beijing Action Plan for Accelerating Innovative Development of ‘Artificial Intelligence + New Materials’ (2025–2027) (Draft for Comments),” with the deadline for submitting feedback set for January 20.
The Plan has distilled 18 specific tasks across five key areas: tackling critical technologies, building materials‑data infrastructure, constructing intelligent laboratories, fostering new business models, and enhancing the innovation ecosystem. These are as follows: first, implementing a project to drive breakthroughs in integrated innovation at the source; second, launching an initiative to establish materials‑data infrastructure; third, advancing the construction of intelligent laboratories for new materials; fourth, rolling out a program to cultivate emerging business models; and fifth, executing an effort to upgrade the innovation ecosystem.

Guangdong has released a draft of the Measures for the Development and Management of Public Welfare Positions for public consultation.
On January 16, the Guangdong Provincial Department of Human Resources and Social Security published the “Administrative Measures for the Development of Public‑Interest Positions in Guangdong Province (Draft for Comments)” on its website.
The Measures, formulated in accordance with relevant national regulations, clearly define the concept of public-interest positions, specify the eligible beneficiaries, outline the procedures for job creation, personnel recruitment, remuneration and safeguards, as well as mechanisms for position management and oversight, and set forth provisions governing exit from such positions.
Specific measures include appropriately determining the scale of job creation, conducting open recruitment to the public, ensuring that remuneration for these positions is no less than the local minimum wage, and providing social insurance and other benefits to incumbent employees. In addition, the Measures stipulate the duration of employment in these positions, clarify the conditions for re‑placement of individuals facing particular difficulties, and delineate the management responsibilities of employers and public employment service agencies.

2024 Financial Statistics: The combined impact of finance and fiscal policy is significant, with government bond financing reaching an all-time high.
On January 14, the People’s Bank of China released its “2024 Financial Statistics Report,” which showed that at the end of 2024, the outstanding balance of China’s total social financing stood at RMB 408.34 trillion, up 8% year on year. The annual increase in total social financing totaled RMB 32.26 trillion, remaining at a historically high level.
From a structural perspective, the incremental growth in total social financing exhibits the following key features: First, financial institutions have maintained reasonable growth in lending to the real economy. Throughout the year, RMB loans extended by financial institutions to the real economy increased by 17.05 trillion yuan. Second, the financial system has coordinated with fiscal policy to sustain robust support, resulting in a substantial year-on-year increase in government bond financing—the highest level on record. In 2024, net government bond financing reached 11.3 trillion yuan, the highest for the same period in history, up 1.69 trillion yuan from the previous year. Third, corporate bond financing exceeded the level of the same period last year. In 2024, net corporate bond financing totaled 1.91 trillion yuan, an increase of 283.9 billion yuan year over year. Fourth, trust loans within off‑balance-sheet financing registered a year-on-year rise. In 2024, trust loans increased by 397.6 billion yuan, up 240 billion yuan compared with the previous year.

Two departments have issued a policy document to support the pioneering and pilot efforts in standardizing the construction of comprehensive pilot demonstration provinces and cities for expanding opening-up in the service sector.
On January 14, the website of the Ministry of Commerce published the “Notice” issued jointly by the Ministry of Commerce and the State Administration for Market Regulation, which includes the “Opinions on Several Measures to Support the Standardization Efforts of Pilot Provinces and Cities in the National Comprehensive Pilot Program for Expanding Opening-Up in the Service Sector and to Promote Institutional Openness,” as well as the “List of Tasks Related to the Formulation and Revision of Standards and Other Relevant Work for the First Batch of Pilot Provinces and Cities in the National Comprehensive Pilot Program for Expanding Opening-Up in the Service Sector.”
Among these, the “Opinions” set forth the overarching requirements and related organizational safeguards for piloting and demonstrating standardized development in selected pilot provinces and municipalities, while outlining 17 key tasks across four priority areas. First, align with national strategies and the broader economic and social agenda: revise and develop standards for major consumer goods such as home appliances, furniture, and consumer electronics, as well as for the recycling and utilization of renewable resources, thereby supporting equipment upgrades and trade‑in programs for consumer products. Also, revise and formulate standards in lifestyle service sectors—including accommodation, catering, elderly care, and childcare—to enhance the quality and expand the scale of service consumption. Furthermore, refine the standardization frameworks for emerging industries such as next‑generation information technology, artificial intelligence, commercial spaceflight, and the low‑altitude economy, accelerating the application of scientific and technological innovations. Explore the development of standards for environmental, social, and governance (ESG) assessments. Second, advance high‑level, open-standardization practices. Third, strengthen the foundational infrastructure for industrial development. Fourth, establish an efficient and coordinated standardization system.

The Ministry of Industry and Information Technology has issued a document to strengthen the protection of customer data security in Internet data centers.
On January 14, the website of the Ministry of Industry and Information Technology published the “Notice on Strengthening the Protection of Customer Data Security in Internet Data Centers.”
The Notice comprises five key areas and sixteen specific measures, accompanied by the attached “Implementation Guidelines for Customer Data Security Protection in Internet Data Centers.” It mandates strengthening safeguards in server hosting scenarios and data storage and computing scenarios; implementing protective measures such as data encryption, interface authentication, and security auditing; enhancing data security risk monitoring and early warning capabilities, including the ability to detect, alert on, and respond to risks like abnormal data traffic and unauthorized data exports; and assisting customers in securing data transmission links and interfaces. For entities offering AI training dataset management functions, they must ensure the security of customers’ proprietary training datasets, preventing leakage or contamination. For those providing computing power scheduling and related services, they are required to rigorously manage the security of scheduling policies, equip themselves with monitoring, early warning, and emergency response mechanisms for abnormal computing‑power usage, and otherwise safeguard the security of computing‑power scheduling.

Taxation
Six chapters, 152 articles! The first standard on the independence of certified public accountants has been released.
The Ministry of Finance has issued “China Auditing Standard on Independence No. 1—Requirements for Independence in Financial Statement Audit and Review Engagements” (Caihui [2024] No. 29), which shall take effect as of July 1, 2025.
Standard No. 1 comprises sixteen chapters and a total of 152 provisions, covering general principles, definitions, fundamental requirements for independence, fees, the disclosure of fee information related to audit clients of public-interest entities, economic interests, loans and guarantees, business relationships, family and personal relationships, and communications with audit clients. Among these, Article 43 explicitly stipulates that accounting offices may not provide audit services on a contingent-fee basis, whether such fees are direct or indirect.

The State Taxation Administration has reviewed and repealed 39 tax-related normative documents, primarily those pertaining to invoice regulations.
The State Taxation Administration has issued the “Announcement on the Publication of the Catalogues of Certain Tax Normative Documents That Have Been Amended, Declared Invalid, or Abolished,” publishing the “Catalogue of Amended Tax Normative Documents” (Attachment 1) and the “Catalogue of Tax Normative Documents That Have Been Declared Invalid or Abolished” (Attachment 2).
The Notice undertook a review of a total of 39 tax‑related normative documents, amending the content of 26 of them, wholly repealing 12, and partially repealing 1. Among the documents subject to partial amendment, the changes were primarily aligned with revisions to the Measures for the Administration of Invoices and its implementing rules, ensuring that these tax‑related normative documents are consistent with and effectively coordinated with current laws and departmental regulations. As for the documents announced as repealed, this was mainly because the corresponding provisions had been deleted from the Measures for the Administration of Invoices and its implementing rules, or because the relevant provisions no longer reflect the realities of current tax collection and administration.

During the review investigation, China continued to impose anti-dumping duties on imported solar-grade polysilicon originating in the United States and South Korea.
The Ministry of Commerce has issued the “Announcement on Initiating a Final Review Investigation into the Anti-Dumping Measures Applicable to Imports of Solar-Grade Polysilicon Originating in the United States and the Republic of Korea” (Ministry of Commerce Announcement No. 7 of 2025), thereby clarifying the relevant matters.
According to the announcement, the Ministry of Commerce has decided to initiate a sunset review investigation, effective January 14, 2025, into the anti-dumping measures applicable to imported solar-grade polysilicon originating in the United States and the Republic of Korea.
Pursuant to the recommendation of the Ministry of Commerce, the Customs Tariff Commission of the State Council has decided that, during the period of the sunset review investigation of the anti-dumping measures, anti-dumping duties shall continue to be imposed on imported solar-grade polysilicon originating in the United States and the Republic of Korea, at the product scope and duty rates specified in the Ministry of Commerce’s Announcements No. 5 of 2014, No. 78 of 2017, No. 1 of 2020, and No. 21 of 2020.

Litigation & Arbitration
The Supreme People’s Court and the Supreme People’s Procuratorate have issued a judicial interpretation clarifying several issues concerning the application of law in handling criminal cases involving attacks on police officers.
On January 16, the Supreme People’s Procuratorate website published the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Attacks on Police Officers,” which will take effect on January 18, 2025.
The Interpretation consists of thirteen articles, clarifying that: (1) minor physical confrontations with people’s police officers, or ordinary acts of resistance—such as shaking off a grasp, breaking free, or kicking—in order to escape arrest or restraint, where the harm caused is negligible; or verbal attacks such as insults or sarcasm, do not constitute “violent assault” as defined in Article 277, Paragraph 5 of the Criminal Law. (2) Where serious negligence occurs in the course of law enforcement by people’s police officers, the perpetrator generally will not be prosecuted for a crime. (3) If the law‑enforcement error is substantial but the violence of the assault is relatively mild and the harm minimal, the conduct may likewise be treated without criminal liability. (4) An act of obstructing people’s police officers in the lawful performance of their duties, provided no violent assault is committed, does not amount to the crime of assaulting a police officer. (5) A violent assault against auxiliary police personnel who are lawfully assisting people’s police officers in performing their duties likewise does not constitute the crime of assaulting a police officer.

The Supreme People’s Court has issued the Second Judicial Interpretation of the Marriage and Family Chapter of the Civil Code.
On January 15, the Supreme People’s Court held a press conference to release the “Interpretation (II) of the Supreme People’s Court on the Application of the Marriage and Family Chapter of the Civil Code of the People’s Republic of China,” along with several typical cases.
Interpretation (II) comprises 23 articles, focusing on resolving difficult issues in judicial practice, such as the transfer of real estate between spouses, parents’ contributions toward their children’s home purchases after marriage, the gift of marital joint property to third parties in violation of the duty of marital fidelity, and the seizure or concealment of minor children. At the same time, it further clarifies rules governing the division of property in cohabitation disputes, the determination and dissolution of step-parent–step-child relationships, economic compensation upon divorce, and economic assistance in divorce cases. Interpretation (II) provides that if a creditor of one spouse can prove that the property‑division provisions in a divorce agreement impair the realization of its claims and seeks to have those provisions set aside, the people’s court shall, taking into account factors such as the overall division and performance of the marital property, the burden of child support, and fault in the divorce, grant such relief in accordance with the law. Furthermore, if one spouse transfers equity in a limited liability company—invested with marital joint property but registered solely in that spouse’s name—and the other spouse challenges the validity of the equity‑transfer contract on the ground that it was executed without the latter’s consent and thereby infringed upon the interests of the marital community, the people’s court will not uphold such a claim, unless there is evidence demonstrating that the transferor and transferee colluded maliciously to harm the other spouse’s lawful rights and interests.

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