JC Master Legal News Issue 1136

Key Takeaways for This Issue

The China Securities Regulatory Commission has issued “Regulatory Guidance No. 10 for Listed Companies: Market Capitalization Management.”
To implement the State Council’s “Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market” (Document No. 10 [2024]), and to further encourage listed companies to focus on their intrinsic investment value and effectively enhance investor returns, the China Securities Regulatory Commission has formulated the “Regulatory Guidance for Listed Companies No. 10—Market Capitalization Management” (hereinafter referred to as the “Guidance”), which shall take effect from the date of its promulgation.
The pilot launch meeting for the national standard “Data Security Technology: Compliance Audit Requirements for Personal Information Protection” was held.
The Secretariat of the National Information Security Standardization Technical Committee convened a pilot launch meeting in Beijing for the national standard “Data Security Technology: Compliance Audit Requirements for Personal Information Protection.”
The State Taxation Administration has released the “Compilation of Q&A on the Series of Tax and Fee Support Policies Since 2019.”
Recently, the State Taxation Administration released the “Compilation of Q&A on a Series of Tax and Fee Support Policies Since 2019” (hereinafter referred to as the “Compilation”), which comprehensively collates the responses to inquiries on tax and fee support policies issued by the Administration from January 2019 to July 2024, incorporating 294 currently valid response guidelines.
The Supreme People’s Court has issued guiding opinions to further standardize online judicial auction procedures.
Recently, the Supreme People’s Court issued the “Guiding Opinions on Further Standardizing Online Judicial Auctions,” setting forth provisions to further regulate online judicial auction practices, enhance the efficiency of property disposal in enforcement proceedings, and safeguard the legitimate rights and interests of the parties involved.
Finance & Capital Markets
The 10th Anniversary Summit on Interconnectivity was held in Hong Kong.
The 10th Anniversary Summit on Financial Market Interconnectivity was held in Hong Kong, bringing together senior officials from the securities regulators of both regions and the Shanghai, Shenzhen, and Hong Kong stock exchanges. China Securities Regulatory Commission Chairman Wu Qing delivered a video address, while Vice Chairman Li Ming attended and addressed the event. Qiu Yong, Chairman of the Shanghai Stock Exchange, extended his congratulations via video, and Cai Jianchun, General Manager of the Shanghai Stock Exchange, attended and delivered a keynote speech, engaging with participants in a discussion on the trends and prospects of financial market interconnectivity.
2024 marks the tenth anniversary of the launch of the Shanghai–Hong Kong Stock Connect, a mechanism that facilitates cross‑border stock trading between the two markets. Since its inception, under the coordinated guidance of the China Securities Regulatory Commission, the mainland and Hong Kong have jointly pioneered a new model for cross‑border securities investment and charted a fresh course for high‑level financial opening-up. Over the past decade, the Shanghai Stock Exchange has faithfully implemented the Party’s strategic plan for the two‑way opening of the capital market, staying true to its original commitment to opening up and deepening reform across the board. By continuously upgrading its rules, regulations, governance frameworks, and standards in step with evolving circumstances, the Exchange has provided valuable innovative experience for advancing high‑level, institution‑based opening-up.
Since the launch of the Shanghai–Hong Kong Stock Connect, cumulative trading volume by foreign investors via the Shanghai Stock Connect has reached RMB 70 trillion, with average daily turnover rising sharply from RMB 4.7 billion in the first month of its inception in 2014 to RMB 128.3 billion today. On the southbound side, mainland investors have recorded cumulative trading of RMB 27 trillion through the Hong Kong Stock Connect, while average daily turnover under the Shanghai‑Hong Kong Stock Connect has grown from HK$800 million in the first month of its launch in 2014 to HK$50.9 billion currently. The average daily turnover of the Shanghai and Hong Kong Stock Connects now accounts for 5.8% of the Shanghai A‑share market and 18.4% of the Hong Kong stock market, respectively. To date, the Shanghai Stock Connect covers 1,349 stocks and 143 ETFs, with coverage of the total market capitalization of eligible stocks reaching 88.4%. Meanwhile, the Hong Kong Stock Connect includes 545 stocks and 17 ETFs, with coverage of eligible stock market capitalization standing at 87.8%. Furthermore, 293 STAR Market stocks have been incorporated into the scope of the Shanghai–Hong Kong Stock Connect, bolstering China’s international appeal in the innovation sector.
Looking back over the past decade, under the unified guidance of the China Securities Regulatory Commission, the Shanghai–Hong Kong Stock Connect mechanism has been continuously refined: the number of eligible securities has steadily increased, the range of tradable instruments has grown, and the trading framework has become increasingly sophisticated. In 2016, aggregate quota limits were lifted; in 2018, the daily quotas were expanded to four times their previous levels on both sides; in 2019, shares of companies with different voting rights were added to the eligible list; in 2020, Hong Kong‑listed biotech offices were included in the Stock Connect program; in 2021, STAR Market stocks were brought within the scope of Shanghai–Hong Kong Stock Connect; in 2022, ETFs were admitted as eligible securities; and in 2023, the trading calendar was extended in both directions, the eligible universe was significantly broadened, and foreign‑listed companies were permitted to participate in the Hong Kong Stock Connect. In 2024, as part of the five measures unveiled by the China Securities Regulatory Commission to strengthen capital market cooperation between the two regions, it was announced that the cross‑border connectivity mechanisms would be further expanded and optimized.
Openness is a defining hallmark of Chinese modernization. Chinese modernization has been steadily advanced through reform and opening-up, and it will undoubtedly continue to forge broad prospects in this same process. Over the next decade, the Shanghai Stock Exchange will remain committed to pursuing development through reform, enhancing quality and efficiency via reform, and promoting openness through reform. Working hand-in-hand with the Hong Kong and Shenzhen stock exchanges, and under the guidance of the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong, we will further refine the mutual market access mechanisms, deepen financial cooperation and opening-up between the two regions, and actively serve domestic and international investors—ensuring that capital flows in willingly, stays put, and thrives. In doing so, we will contribute anew to fostering mutually beneficial and win-win outcomes for the capital markets of both regions, supporting the high-quality development of the capital market, and serving the broader process of Chinese modernization. Together with investors at home and abroad, we will build an open, inclusive, and efficient market ecosystem, sharing in the fruits of China’s high-quality economic growth.

The China Securities Regulatory Commission has issued “Regulatory Guidance No. 10 for Listed Companies: Market Capitalization Management.”
To implement the State Council’s “Several Opinions on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market” (Document No. 10 [2024]), and to further encourage listed companies to focus on their intrinsic investment value and effectively enhance investor returns, the China Securities Regulatory Commission has formulated the “Regulatory Guidance for Listed Companies No. 10—Market Capitalization Management” (hereinafter referred to as the “Guidance”), which shall take effect from the date of its promulgation.

The Guidelines require listed companies to enhance corporate quality as a foundation, improve operational efficiency and profitability, and, in light of their specific circumstances, lawfully and compliantly employ tools such as mergers and acquisitions, equity incentives, employee stock ownership plans, cash dividends, investor relations management, information disclosure, and share repurchases, thereby ensuring that the investment value of listed companies accurately reflects their underlying quality. The Guidelines delineate the responsibilities of relevant parties, including the board of directors, directors, and senior management, and set forth specific requirements for constituent companies of major indices to establish market capitalization management systems, as well as for companies trading below net asset value over an extended period to disclose plans aimed at improving their valuation. At the same time, the Guidelines explicitly prohibit listed companies from engaging in illegal or non-compliant conduct under the guise of market capitalization management.

Earlier, the China Securities Regulatory Commission (CSRC) publicly sought comments on the Guidelines. Based on the feedback received, stakeholders generally endorsed the Guidelines and, drawing on practical experience, put forward valuable suggestions and recommendations covering such issues as the duties of directors and senior executives, the scope of constituent companies for major indices, disclosure requirements under the market-capitalization management regime, and the implementation of valuation‑enhancement plans. Following a clause-by-clause review, the key comments relevant to the text of the Guidelines have been incorporated. Moving forward, the CSRC will further strengthen policy communication and ensure the effective implementation of the Guidelines.

CICC: ESG Responsible Management Helps the Asset Management Industry Unlock Long-Term Investment Value
CICC recently released a research report that delves into the evolution of ESG (Environmental, Social, and Governance) responsible investment management within the asset management industry and its impact on long-term investment value.
The report analyzes that ESG stewardship originates in the field of corporate governance, aiming to support business activities aligned with a company’s strategic objectives through the diligent conduct of professional managers, thereby achieving a win-win outcome for fiduciary responsibilities and stakeholders. The report elaborates on the pivotal role of stewardship strategies in advancing sustainable investment. These strategies encourage institutional investors to exert influence in order to maximize overall long-term value, encompassing economic, social, and environmental assets.

Commercial & Corporate
Ministry of Finance Seeks Public Comments: IASB Proposes Amendments to International Accounting Standard No. 37
On November 20, the Ministry of Finance issued a letter soliciting public comments on the International Accounting Standards Board’s “Provisions—Targeted Improvements (Exposure Draft),” with a deadline for submissions set for December 20, 2024.
On November 12, 2024, the International Accounting Standards Board (IASB) issued “Provisions—Targeted Improvements (Exposure Draft),” proposing amendments to International Accounting Standard No. 37—Provisions, Contingent Liabilities and Contingent Assets.
The IASB’s exposure draft comprises three key areas of revision: the recognition criteria for current obligations, the costs to be included in the measurement of provisions, and the discount rate requirements. With respect to the discount rate, the IASB proposes to explicitly require entities to discount provisions using a risk-free rate—i.e., a rate that excludes default risk. The IASB also intends to mandate that entities disclose the discount rates they employ, along with the methods used to determine those rates.

Suzhou Industrial Park Receives Positive News: The Ministry of Commerce Has Issued Several Measures to Support Open Innovation.
According to a notice posted on the Ministry of Commerce’s website on November 21, the ministry recently issued the “Several Measures to Support Suzhou Industrial Park in Deepening Its Comprehensive Pilot Program for Openness and Innovation,” outlining fourteen specific measures across five key areas.
The “Several Measures” propose building a modern industrial hub with global competitiveness. First, it calls for fostering strategic emerging industry clusters, with biopharmaceuticals as a flagship sector, and supporting the Suzhou Industrial Park in launching pilot programs for open innovation across the entire biopharmaceutical value chain. Second, it seeks to advance the next-generation information technology and equipment manufacturing sectors toward high-end, intelligent, and green development, while encouraging enterprises to conduct environmental, social, and governance (ESG) assessments based on legally disclosed environmental information. Third, it aims to promote the integrated development of advanced manufacturing and modern services, supporting the Suzhou Industrial Park in driving productive service industries to expand into specialized areas and move up the value chain.
The “Several Measures” propose to enhance financial support for scientific and technological innovation. They encourage the development of venture capital, and support and guide private capital to participate—on a market‑based basis—in establishing private equity and venture capital funds that are aligned with the life cycles of science‑and‑technology‑driven enterprises and tailored to their financing needs. Financial institutions are encouraged to refine credit products that cater to the characteristics of technology‑focused offices, thereby fostering corporate innovation. Efforts will be made to explore the use of digital technologies to optimize credit‑approval models. Insurance institutions will be guided to conduct, in compliance with laws and regulations, explorations in areas such as technology‑insurance products, business models, and services.

The General Administration of Customs will conduct random inspections and tests on imported electronic products.
Recently, the General Administration of Customs published on its website the “Announcement on Conducting Random Inspection and Testing of Import and Export Goods Outside the Catalogue of Statutorily Inspected Items.”
The Announcement clarifies that, effective from the date of its issuance, the General Administration of Customs has decided to conduct random inspections on certain imported and exported goods that are not listed in the Catalogue of Goods Subject to Mandatory Inspection, in accordance with the law. Specifically, imported goods primarily include school stationery, infant and child products, and electronic products, while exported goods mainly comprise children’s toys. Customs General Administration Announcements No. 132 of 2019, No. 95 of 2020, No. 60 of 2021, and No. 60 of 2022 are hereby repealed.

The Artificial Intelligence Professional Committee of the World Internet Conference Has Been Established
On November 20, the inaugural meeting of the Artificial Intelligence Professional Committee of the World Internet Conference was held in Wuzhen, Zhejiang.
The Artificial Intelligence Specialized Committee is the first specialized, permanently‑operating subsidiary body established by the World Internet Conference. The inaugural committee comprises more than 170 members and has set up three working programs: a Standards Promotion Program, a Security and Governance Promotion Program, and an Industry Promotion Program. At its founding meeting, the committee adopted its rules of procedure and approved the list of the Chief Chair, Chairs, Vice Chairs, Advisors, program leaders, and members. Guided by the principles of building an international platform for exchange and cooperation, advancing coordinated development and governance, and fostering the global sharing of AI‑related achievements, the committee will organize thematic seminars, share research findings, issue policy initiatives, and other activities to continuously build international consensus and promote the inclusive, equitable, and sustainable development of artificial intelligence.

The Ministry of Industry and Information Technology has revised the Standardized Conditions for the Photovoltaic Manufacturing Industry and the Interim Measures for Announcement Management.
On November 20, the website of the Ministry of Industry and Information Technology published Announcement No. 33 of 2024, issuing the revised “Standardized Conditions for the Photovoltaic Manufacturing Industry” and the “Interim Measures for the Administration of Standardized Announcements in the Photovoltaic Manufacturing Industry.”
Among these, the “Standardized Conditions” serve as a guiding document to encourage and steer technological advancement and standardized development within the industry. They do not carry the pre‑approval or mandatory nature of administrative licensing, but instead set forth requirements covering production layout and project establishment, process technologies, comprehensive resource utilization and energy consumption, intelligent manufacturing and green manufacturing, environmental protection, quality management and intellectual property, as well as workplace safety and social responsibility.

The Ministry of Industry and Information Technology is soliciting digital transformation needs and exemplary cases for key scenarios in the civil explosives industry.
On November 20, the website of the Ministry of Industry and Information Technology issued the “Notice on Soliciting Digital Transformation Needs and Typical Cases for Key Scenarios in the Civilian Explosives Industry.”
The Notice clarifies that this initiative will focus on key scenarios across the upstream and downstream segments of the civil explosives industry, addressing critical challenges encountered during digital transformation. It will solicit transformation needs and exemplary cases, guide the enhancement of digital‑technology‑based solution offerings for specific use cases, and select a set of replicable, scalable digital‑transformation case studies. Furthermore, it will compile demand lists, solution catalogs, and vendor directories for digital‑transformation scenarios in emulsion explosives and electronic detonators, thereby strengthening precise supply‑demand matching and advancing the civil explosives sector’s digital transformation in a substantive and impactful manner.

The 2024 China 5G+ Industrial Internet Conference Opens
On November 19, the 2024 China 5G+ Industrial Internet Conference opened under the theme “Real-World Integration, Pioneering Intelligent Manufacturing.”
At the opening ceremony, the Ministry of Industry and Information Technology officially announced the list of pilot cities for 2024’s “5G + Industrial Internet” integrated applications. Nanjing, Wuhan, Qingdao, Shenzhen, Suzhou, Shanghai, Ningbo, Guangzhou, Shenyang, and Chengdu were named among the first batch of the “Top 10 Pilot Cities.” In addition, the National (Wuhan) New‑Generation Internet Exchange Center pilot approval was granted to the Hubei Provincial Communications Administration and the city of Wuhan. The “2024 5G Factory Directory” was also released, identifying 400 high‑level 5G‑enabled factories.

The Insurance Association has released service standards for auto insurance and life insurance claims.
On November 19, the China Insurance Industry Association officially released two standards in Beijing: the “Motor Vehicle Insurance Claims Service Standard” and the “Life Insurance Claims Service Standard.”
Among these, the “Standard for Motor Vehicle Insurance Claims Service” is based on the characteristics of motor vehicle insurance claims services and the needs of their development, and it standardizes the basic requirements, service processes, service scenarios, and complaint handling procedures. The “Standard for Life Insurance Claims Service” is the insurance industry’s first nationwide self-regulatory standard in the field of life insurance claims. It focuses on key service touchpoints for policyholders, detailing procedures for reporting claims, filing claims, reviewing claims, closing cases and making payments, conducting loss adjusting, handling major emergencies, and resolving claims disputes through diversified approaches, and it establishes, for the first time, an evaluation and management system for life insurance claims services.

Three departments in Beijing have launched the 2024 reporting process on the management of automotive data security and related matters.
On November 20, the Beijing Cyberspace Administration, in collaboration with the Beijing Municipal Bureau of Economy and Information Technology and the Beijing Communications Administration, issued the “Notice on Conducting the Submission of Reports on the 2024 Annual Status of Automotive Data Security Management.”
The Notice clarifies that the reporting entities are automotive data processors registered in Beijing and engaged in significant data processing activities, including automobile manufacturers, component and software suppliers, dealerships, repair shops, and mobility service providers. The required submissions comprise the 2024 Annual Report on Automotive Data Security Management, a Risk Assessment Report, and a Form detailing the status of automotive data processors undertaking significant data processing activities.

The National Development and Reform Commission has issued 10 recommended logistics industry standards, including the “Statistical Classification of National Logistics Hubs.”
On November 21, the website of the National Development and Reform Commission published the “Announcement on the Release of Ten Recommended Logistics Industry Standards, Including the ‘Statistical Classification of National Logistics Hubs.’”
The 10 industry standards released this time primarily include: “Statistical Classification of National Logistics Hubs,” “Logistics Service Quality Evaluation Indicators for End-of-Life Power Batteries of New Energy Vehicles,” “Data Classification and Interface Requirements for Digital Warehouses,” “In-Hospital Logistics Service Specifications,” “General Technical and Usage Configuration Requirements for Containerized Mobile Cold Storage Units,” “Vaccine Storage and Transportation Service Specifications,” “Basic Requirements for Cold-Chain Collection and Distribution Centers at Agricultural Product Origins,” “Online Retail Pharmaceutical Delivery Service Specifications,” “Management Requirements for Automated Sorting Equipment,” and “Catering Logistics Service Specifications.”

The Ministry of Transport has issued 14 transportation industry standards, including the “Guidelines for Cruise Transportation Services.”
On November 21, the website of the Ministry of Transport published the “Announcement on the Release of 14 Transportation Industry Standards, Including the ‘Guideline for Cruise Shipping Services.’”
The industry standards released in this announcement primarily include: “Guidelines for Cruise Transportation Services,” “Classification and Protection Requirements for Transport Data Security,” “Technical Requirements for Customized Passenger Transport Network Platforms,” “Technical Requirements and Test Methods for Panoramic Surround‑View Systems on Commercial Vehicles,” “Methods for Determining Standard Repair Labor Hours for Automobiles,” “Seat Back Adjustment Devices for Passenger Vehicles,” “Wheel Alignment Instruments,” “Local Controllers for Highway Tunnels,” “Pavement‑Heating Sealant,” and “Saddle and Clamp Assemblies for Suspension Bridges.”

The Government of the Hong Kong Special Administrative Region has announced the “Development Blueprint for the Hong Kong Park of the Hetao Shenzhen-Hong Kong Innovation and Technology Co-operation Zone.”
On November 20, the Hong Kong Special Administrative Region Government unveiled the “Development Blueprint for the Hong Kong Park of the Hetao Shenzhen–Hong Kong Innovation and Technology Co-operation Zone,” outlining the key development directions, strategies, and objectives for the Hong Kong Park in the Hetao area, as well as ten facilitative measures to promote the flow of personnel, goods, capital, and data between the Hong Kong and Shenzhen parks, thereby setting a clear development roadmap for the Hong Kong Park.
In August last year, the State Council issued the “Development Plan for the Shenzhen Park of the Hetao Shenzhen–Hong Kong Science and Technology Innovation Cooperation Zone,” which clearly defined the zone’s three core roles: a pioneering hub for open cooperation in science and technology between Shenzhen and Hong Kong; a pilot zone for international cutting-edge scientific and technological innovation rules; and a cluster for pilot-scale testing and technology transfer within the Guangdong–Hong Kong–Macao Greater Bay Area.

The World Internet Conference has unveiled 13 “Exemplary Cases of Jointly Building a Community with a Shared Future in Cyberspace.”
On the afternoon of November 19, the 2024 “Jointly Building a Community with a Shared Future in Cyberspace: Showcase of Exemplary Cases” event was held.
The projects selected as “Exemplary Cases for Jointly Building a Community with a Shared Future in Cyberspace” in 2024 include: 1. KaiOS Empowering Global Internet Access and Bridging the Digital Divide. 2. Slow Eating—Savoring Chinese Cuisine, History, and Culture. 3. A Single Platform to Explore Global Education: Building a Global Educational Research System Based on a Database Platform. 4. Strengthening Global Space-Based Disaster Reduction Cooperation to Help Close the Digital Divide. 5. The Southern School of Internet Governance (SSIG)—Pioneering a New Chapter in Internet Governance for Developing Countries. 6. Technology-Driven Connectivity: New Practices of Big Data and Artificial Intelligence in Anti-Fraud Governance. 7. The 2Africa International Submarine Cable Project—Constructing an Information Superhighway Around Africa and Embracing Africa’s Smart Digital Future. 8. Establishing an International Platform for Cultural and Artistic Exchange and Mutual Learning Among Arab Nations. 9. Maternal and Child Health Support Project—The Red Umbrella Initiative. 10. An Oral History Project on the Internet. 11. Collaborating with Law Enforcement Agencies to Combat Crime and Safeguard Cyberspace Security. 12. Ant Group’s Development of World-Leading Risk-Control Technologies to Support High-Quality Cross-Border Growth of Small and Micro Enterprises. 13. IBM’s Enterprise‑Level Digital Transformation Solutions—Accelerating Manufacturing Companies onto a Sustainable Growth Path of Cost Reduction, Efficiency Gains, Quality Improvement, and Revenue Expansion.

The pilot launch meeting for the national standard “Data Security Technology: Compliance Audit Requirements for Personal Information Protection” was held.
The Secretariat of the National Information Security Standardization Technical Committee convened a pilot launch meeting in Beijing for the national standard “Data Security Technology: Compliance Audit Requirements for Personal Information Protection.”
This pilot program aims to validate the standards’ scientific soundness, reasonableness, operability, and applicability; to develop model cases and practical experience in personal information protection compliance audits; to accumulate insights for the wider promotion and implementation of the standards; and to provide standardized support for compliance‑audit work on personal information protection. For this pilot, 36 organizations from key sectors—including the internet, finance, transportation, healthcare, and telecommunications—have been selected as the first batch of pilot entities. More than 70 participants, including pilot experts, pilot organizations, and technical support units, attended the pilot launch meeting.

The 2024 China Pharmaceutical Industry Development Conference opened in Shanghai.
The 2024 China Pharmaceutical Industry Development Conference and the Shanghai International Biopharmaceutical Industry Week have opened.
Jin Zhuanglong, Party Secretary and Minister of the Ministry of Industry and Information Technology (MIIT), stated clearly that the MIIT will intensify efforts to advance scientific and technological innovation in the pharmaceutical industry. It will refine the collaborative R&D framework among industry, academia, research institutions, and medical facilities, coordinate supply-chain strengthening and supplementation, and accelerate the industrialization of major innovative products. The ministry will consolidate and enhance competitive advantages, promote the translation of cutting-edge technologies into practical applications, and actively foster new‑type productive forces, thereby driving the transformation and upgrading of the pharmaceutical sector. Adhering to a development path characterized by high-end, intelligent, and green practices, the MIIT will nurture world‑class pharmaceutical enterprises and build clusters of high‑end pharmaceutical industries. It will also bolster the capacity for pharmaceutical production and supply, improve the national pharmaceutical reserve system, and strengthen the research, development, and manufacturing of clinically scarce drugs, pediatric medicines, and treatments for rare diseases, thus effectively meeting public health emergencies and the medication needs of the population. Furthermore, the MIIT will expand openness and cooperation in the pharmaceutical sector, creating a first‑rate business environment that is market‑oriented, rule‑of‑law based, and internationally aligned, to attract global innovation resources. Upholding the principle of giving equal importance to both traditional Chinese medicine and Western medicine, the ministry will promote the inheritance, innovation, and high‑quality international outreach of TCM.

The Ministry of Industry and Information Technology is seeking public comments on eight mandatory national standards, including the “Safety Technical Requirements for Architectural Decorative Stone.”
The website of the Ministry of Industry and Information Technology has published a notice soliciting public comments on eight draft mandatory national standards, including “Safety Technical Requirements for Architectural Decorative Stone.” The deadline for submitting feedback is January 18, 2025.
This batch of mandatory national standards open for public comment primarily includes: “Safety Technical Requirements for Architectural Decorative Stone,” “Limit Values for Leachable Harmful Metal Elements in Wall Materials,” “Limitation Requirements for Harmful Elements in Graphite and Fluorite,” “Tractor Noise Limits,” “Welding and Cutting Safety,” “Harvesting Machinery Noise Limits,” “Maximum Permissible Levels of Heavy Metals in Inks,” and “Requirements for the Restriction of Hazardous Substances in Electrical and Electronic Products.”

The Ministry of Housing and Urban–Rural Development has issued a document to strengthen the dynamic verification of construction enterprise qualifications.
On November 20, the website of the Ministry of Housing and Urban–Rural Development published the “Notice on Strengthening Dynamic Verification of Construction Enterprise Qualifications.”
The Notice clarifies that enterprises marked as having “abnormal qualifications” or involved in engineering quality and safety incidents, as well as those found to have engaged in wage arrears to migrant workers, subcontracting, illegal sub‑contracting, permitting other entities or individuals to undertake projects in the enterprise’s name, or committing fraud in qualification applications—among other unlawful or non‑compliant practices—shall be subject to enhanced regulatory oversight. The housing and urban–rural development authorities shall strengthen routine supervision and inspection of projects undertaken by such enterprises, increase the frequency of inspections, and promptly address any violations discovered. Enterprises designated as having “abnormal qualifications” shall be prohibited from applying for construction‑enterprise qualification permits during the period of such designation.

The 7th China Enterprise Forum was held in Beijing.
The 7th China Enterprise Forum, jointly guided by the State-owned Assets Supervision and Administration Commission of the State Council, the All-China Federation of Industry and Commerce, and Xinhua News Agency, was held in Beijing.
The China Enterprise Forum comprises thematic forums, closed-door roundtable discussions, and parallel sessions. During the event, a series of research findings were released, including: “Fundamental Theoretical Research on the State‑Owned Economy Guided by Marxist Political Economy and Xi Jinping Thought on Economics”; “Report on the High‑Quality Development of Central Enterprises (2024)”; “Report on the Overseas Development of Central Enterprises (2024)”; “Blue Book on Environmental, Social, and Governance (ESG) Practices of Listed Central Enterprises (2024)”; “Blue Book on Corporate Social Responsibility of State‑Owned Enterprises (2024)”; “Entrepreneurial Perception Monitoring System for Private‑Sector Policies: Second‑Quarter 2024 Data”; “Strategic Study on Fostering Disruptive Technologies in Core Industrial Sectors”; “Analysis of China’s Energy Development Strategy and Major Policies, and Their Strategic Implications for Large Energy Enterprises”; and “Media Ecosystem Transformation Driven by Technology: Impact Analysis, Future Trends, and Development Strategies.”

The National Conference on Ecological and Environmental Resource Adjudication of the Courts Was Held.
The National Conference on Environmental and Resource Adjudication of the People’s Courts was held in Huzhou, Zhejiang Province—the birthplace of the “Two Mountains” philosophy.
Zhang Jun, Secretary of the Party Group and President of the Supreme People’s Court, attended the meeting and delivered a speech. He emphasized the need to earnestly implement the principle of “viewing matters from a political perspective and handling them in accordance with the rule of law,” fully leveraging the adjudicatory functions related to environmental and resource cases, deepening reform and innovation, and making concerted efforts to achieve scientific management of judicial institutions, promote the relative centralization of case acceptance, and advance the integration of the three levels of trial into a single procedure. He also called for the continued refinement of the rules governing environmental and resource adjudication, the precise and effective enhancement of the supply of judicial norms, full support for and cooperation with the legislative process of the Environmental Protection Code, active participation in the development of international standards for environmental and ecological justice, and the thorough implementation and improvement of the judicial accountability system, including the rigorous fulfillment of the supervisory and managerial responsibilities of court presidents and division heads.

The Cyberspace Administration of China has released the “Global Initiative on Cross-Border Data Flows.”
On November 20, China Internet Information Office released the bilingual version of the “Global Initiative on Cross-Border Data Flows.”
The Initiative calls for respect of the differences among countries and regions in their regimes governing cross‑border data flows. It supports the free flow of data that does not involve national security, public interests, or personal privacy. It permits regulatory measures on cross‑border data flows to achieve legitimate public policy objectives, provided that such measures do not constitute arbitrary or unreasonable discrimination or amount to disguised restrictions on trade, and remain within the limits necessary to achieve their stated goals. The Initiative opposes the over‑generalized securitization of data issues and rejects the adoption of discriminatory policies—such as imposing restrictive measures, bans, or other similar actions—targeting specific countries or enterprises without factual evidence.

Shanghai Releases Version 2.0 of the List of Recognized Overseas Professional Qualifications
The Shanghai Municipal Human Resources and Social Security Bureau has published the “Notice on Issuing the List of Recognized Overseas Professional Qualification Certificates in Shanghai (Version 2.0).”
Version 2.0 of the Recognition List has further expanded the scope of recognized professional fields, increasing the number of eligible certifications from 48 to 111 and covering sectors such as sports, finance, and information technology. For certificate holders, Shanghai offers six facilitative services, including streamlined entry‑exit procedures, work permits, residence permits, and additional points under the residence permit system. In addition, 33 new certifications have been added to the Professional Title Equivalence List (Category C), enabling eligible holders to obtain corresponding professional titles through application review and oral defense.
In addition, Shanghai has, for the first time, introduced a supplementary list (Category D) to facilitate mutual recognition between overseas professional qualifications and domestic professional qualifications, certifications, or technical titles. This measure helps establish a talent‑evaluation system aligned with international standards, promotes the orderly mobility of international talent, and injects new momentum into Shanghai’s economic development.

The Ministry of Civil Affairs plans to issue regulations clarifying the annual disbursements and administrative expenses of charitable trusts.
The Ministry of Civil Affairs has published on its website the “Notice on Public Solicitation of Comments on the ‘Regulations on Annual Expenditures and Administrative Expenses of Charitable Trusts (Draft for Comments)’,” with the deadline for submitting feedback set for November 20.
The Regulations comprise 17 articles, primarily defining the concept of charitable trust expenditures and setting annual expenditure standards for different types of charitable trusts. They also establish the definition and standards for charitable trust management fees and clarify the requirements applicable when annual expenditures or management fees fall short of the prescribed levels under specific circumstances. Specifically, for charitable trusts whose trust assets at year-end consist entirely of non‑monetary assets such as equity (stocks) and real estate, the annual expenditure shall not be less than 70 percent of the prior year’s total monetary income. Where the trust assets at year-end include both monetary and non‑monetary components, separate accounting records must be maintained for each category.

The National Energy Administration has issued the “Measures for Handling Complaints Received via the 12398 Energy Regulatory Hotline.”
Recently, the website of the National Energy Administration published the “Notice on Issuing the Measures for Handling Complaints Received through the 12398 Energy Regulatory Hotline.”
The Measures comprise six chapters and twenty-nine articles, stipulating that the National Energy Administration and its dispatched agencies shall establish and improve mechanisms for supervising and expediting the handling of complaints, conducting performance evaluations, issuing public notifications, assigning accountability, addressing appeals, and referring cases; they shall also regularly disclose to the public information on complaint‑handling progress and on typical issues. The dispatched agencies of the National Energy Administration shall exercise full‑process oversight over how energy enterprises within their jurisdictions handle complaints, keep track of the enterprises’ processing and response procedures, and conduct random inspections of their complaint‑handling practices. When such agencies identify improper handling of complaints by energy enterprises, they shall initiate supervisory follow‑up; and if they discover violations of relevant energy laws, regulations, or rules, they shall investigate and impose penalties in accordance with the law and applicable provisions.

Taxation
The State Taxation Administration has released the “Compilation of Q&A on the Series of Tax and Fee Support Policies Since 2019.”
Recently, the State Taxation Administration released the “Compilation of Q&A on a Series of Tax and Fee Support Policies Issued Since 2019” (hereinafter referred to as the “Compilation”), which comprehensively collates the responses to inquiries on tax and fee support policies issued by the Administration from January 2019 to July 2024. The Compilation includes 294 currently valid response guidelines, enabling taxpayers, payers, and grassroots tax authorities to quickly retrieve and accurately grasp the implementation standards for relevant policies, thereby further enhancing the certainty of policy enforcement and ensuring the precise implementation of various tax and fee measures.
According to reports, since 2019, in order to effectively implement and refine the series of tax and fee preferential policies issued by the CPC Central Committee and the State Council, the tax authorities have established a rapid-response mechanism for addressing implementation issues. This mechanism focuses on clarifying policy interpretations, streamlining tax administration procedures, and enhancing taxpayer services—areas where taxpayers, payers, and grassroots tax agencies encounter challenges during policy implementation. The authorities promptly conduct research and provide answers or propose targeted measures, issuing multiple batches of “Q&A” materials through channels such as the SAT’s official website and the 12366 taxpayer service hotline. These efforts have timely addressed the concerns of taxpayers, payers, and frontline tax officials, thereby ensuring the precise delivery of policy benefits.
According to a responsible official from the Policy Implementation Office of the State Taxation Administration, since 2019, China’s tax and fee support policies have gone through six distinct phases: “larger-scale tax and fee reduction policies,” “tax and fee preferential policies in response to the COVID‑19 pandemic,” “policies combining tax and fee reductions with tax refunds and deferrals,” “comprehensive package‑style tax and fee support policies,” “continuation, optimization, and refinement of tax and fee preferential policies,” and “structural tax and fee reduction policies.” The newly released Compilation, drawing on the thematic focus of tax and fee reduction efforts each year since 2019, is organized into eight categories: “Policies Related to VAT Reform,” “Policies Related to Individual Income Tax Reform,” “Tax and Fee Preferential Policies Supporting Small and Micro Business Entities,” “Tax and Fee Preferential Policies Supporting Scientific and Technological Innovation,” “Tax and Fee Preferential Policies Supporting Entrepreneurship and Employment among Key Groups,” “Tax and Fee Preferential Policies Supporting Housing Demand,” “Tax and Fee Preferential Policies Supporting Financing for Specific Entities,” and “Other Tax and Fee Preferential Policies.” These categories are arranged in the order of goods and services tax, income tax, property and behavioral taxes, and non‑tax social security contributions, facilitating easy access and use by tax officials as well as taxpayers and payers.
It is reported that the Compilation has now been published on the State Taxation Administration’s portal website, in the “Tax and Fee Preferential Policies” section. Meanwhile, the tax authorities have simultaneously refined and updated the response guidelines for the 12366 taxpayer service hotline, ensuring that taxpayers and payers are promptly informed of and can accurately benefit from tax and fee preferential policies.
An official from the Policy Implementation Office of the State Taxation Administration stated that, going forward, the tax authorities will thoroughly implement the spirit of the Third Plenary Session of the 20th CPC Central Committee, continue to standardize tax and fee preferential policies, steadily enhance policy clarity and uniformity in enforcement, and strive to foster a fair and transparent tax environment, thereby better supporting high-quality economic development.

Litigation & Arbitration
The Eleventh Batch of Selected Q&A from Fada Network Has Been Published.
On November 21, the Supreme People’s Court published on its official website a selection of Q&A from the “Legal Answers” platform (Batch No. 11), addressing issues such as whether the exercise of a real estate mortgage extends to rental income, whether height‑restriction measures are lifted upon entry into bankruptcy proceedings, whether a lessee may bring an administrative lawsuit against a housing expropriation decision, and how the agency obligated to provide compensation is determined in cases of state compensation.
In Question 2, the Supreme People’s Court held that, once the judgment‑debtor enterprise enters bankruptcy proceedings, the executing court shall lift any consumption‑restriction measures imposed on the debtor. The primary purpose of such measures is to prevent the debtor from improperly diminishing its assets and undermining its ability to repay debts through high‑end consumption or expenditures unrelated to daily living or business needs. Under the relevant provisions of the Enterprise Bankruptcy Law, upon a debtor’s entry into bankruptcy, the administrator takes over the enterprise and conducts asset liquidation; when disposing of the debtor’s assets or property rights, the administrator is required to promptly report to the creditors’ committee or the people’s court, thereby generally precluding any improper depletion of the debtor’s assets. Accordingly, once the judgment‑debtor enterprise has entered bankruptcy proceedings, there is no longer any need to maintain the consumption‑restriction measures against it.

The Supreme People’s Court convened a symposium to solicit opinions on the “Sixth Five-Year Reform Plan of the People’s Courts.”
The Supreme People’s Court convened a symposium to solicit opinions on the “Sixth Five-Year Reform Plan of the People’s Courts (2024–2028).”
The meeting put forward suggestions and recommendations for deepening the reform of the judicial system, proposing that, in tandem with the amendment of the Criminal Procedure Law, efforts should be further intensified to advance litigation‑system reform centered on adjudication. It also recommended strengthening judicial safeguards for people’s livelihoods in the next phase of reform and refining the rules governing judicial adjudication in contract‑related cases. Moreover, it urged greater determination in promoting the professionalization of intellectual‑property adjudication and in improving the judicial mechanisms that support the development of new‑type productive forces. Finally, the meeting called for further coordinated advancement of domestic rule of law and foreign‑related rule of law.

The National Conference on Ecological and Environmental Resource Adjudication of the Courts Was Held.
The National Conference on Environmental and Resource Adjudication of the People’s Courts was held in Huzhou, Zhejiang Province—the birthplace of the “Two Mountains” philosophy.
Zhang Jun, Secretary of the Party Group and President of the Supreme People’s Court, attended the meeting and delivered a speech. He emphasized the need to earnestly implement the principle of “viewing matters from a political perspective and handling them in accordance with the rule of law,” fully leveraging the adjudicatory functions related to environmental and resource cases, deepening reform and innovation, and making concerted efforts to achieve scientific management of judicial institutions, promote the relative centralization of case acceptance, and advance the integration of the three levels of trial into a single procedure. He also called for the continued refinement of the rules governing environmental and resource adjudication, the precise and effective enhancement of the supply of judicial norms, full support for and cooperation with the legislative process of the Environmental Protection Code, active participation in the development of international standards for environmental and ecological justice, and the thorough implementation and improvement of the judicial accountability system, including the rigorous fulfillment of the supervisory and managerial responsibilities of court presidents and division heads.

The Ministry of Justice has released the first batch of typical cases on administrative law enforcement supervision.
To further strengthen the corrective and error‑rectifying functions of administrative law enforcement oversight and to elevate the standardization and rule-of-law orientation of such oversight, the Ministry of Justice recently released eight case studies.
The cases released this time reflect, from various perspectives, the content, methods, and specific practices of administrative law enforcement oversight, highlighting the functional mandates and distinctive features of this supervisory role. In particular, they focus on issues that directly affect the public in their daily lives and routine matters, emphasize oversight of law enforcement activities involving enterprises, and strive to address problems such as non‑standardized inspections and excessive scrutiny. These cases thus serve as a valuable model for guiding administrative law enforcement oversight bodies and institutions at all levels across the country in carrying out their supervisory duties in accordance with the law.

The Supreme People’s Court has issued guiding opinions to further standardize online judicial auction procedures.
Recently, the Supreme People’s Court issued the “Guiding Opinions on Further Standardizing Online Judicial Auctions,” setting forth provisions to further regulate online judicial auction practices, enhance the efficiency of property disposal in enforcement proceedings, and safeguard the legitimate rights and interests of the parties involved.
The “Guiding Opinions on Online Judicial Auctions” comprise 12 provisions. Following the procedural flow of online judicial auctions, they primarily address three key areas: pre‑auction property investigation and valuation; price‑adjustment and disposal during the auction; and administrative oversight and supervision of the auction process. The document further clarifies and details the procedures for disposing of assets in criminal‑related enforcement cases, responds to the widely debated issue of setting a starting price of RMB 1 in such cases, and ensures seamless coordination among different regulatory frameworks while addressing existing gaps. Where the judgment debtor is permitted to dispose of assets independently, the guidelines specify the rules, time limits, and legal effects governing such self‑directed disposal. Moreover, it mandates the establishment of a list of powers for handling significant matters in online judicial auctions and imposes strict requirements for collegial deliberation and approval procedures. Finally, it explicitly calls for lawful measures to curb conduct that disrupts the orderly operation of online judicial auctions.

The Supreme People’s Court and the Supreme People’s Procuratorate have jointly issued a judicial interpretation concerning the crime of refusing to enforce judgments and rulings.
Recently, the Supreme People’s Court and the Supreme People’s Procuratorate jointly issued the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Refusal to Execute Judgments and Rulings,” which will take effect on December 1.
The Interpretation consists of sixteen articles, clearly defining circumstances where “a person has the ability to enforce a judgment or order but refuses to do so, and the circumstances are serious”; stipulating five scenarios in which a person obligated to enforce a judgment or order, despite having the capacity to do so, refuses to comply and the circumstances are “particularly serious”; clarifying that concealing or transferring property prior to the entry into force of a judgment or ruling may constitute the crime of refusing to enforce a judgment or ruling; specifying that third parties who assist in concealing or transferring property may be held criminally liable as co‑offenders; and delineating aggravating and mitigating factors, as well as procedures for recovering stolen assets and minimizing losses.

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