JC Master Legal News Issue 1129

Key Takeaways for This Issue

The China Securities Regulatory Commission is soliciting public comments on “Regulatory Guidance No. 10 for Listed Companies—Market Capitalization Management (Draft for Comments).”
The China Securities Regulatory Commission has drafted “Regulatory Guidance No. 10 for Listed Companies—Market Capitalization Management (Exposure Draft)” and is now soliciting public comments.
The China Securities Regulatory Commission has issued the “Opinions on Deepening Market Reform of Mergers and Acquisitions and Restructuring of Listed Companies.”
To further invigorate the M&A and restructuring market, the China Securities Regulatory Commission, based on extensive research, has formulated the “Opinions on Deepening Market Reform of Listed Company Mergers and Acquisitions and Restructuring,” upholding a market-oriented approach and enhancing the capital market’s role as the primary channel for corporate M&A and restructuring.
The pilot program for equity investments by financial asset investment companies has been expanded, with policy guidelines moderately relaxed.
On September 24, the National Administration of Financial Regulation issued the “Notice on Expanding the Scope of the Equity Investment Pilot Program for Financial Asset Investment Companies” and the “Notice on Effectively Implementing the Expanded Equity Investment Pilot Program for Financial Asset Investment Companies,” outlining the relevant work arrangements.
The Supreme People’s Court has issued the Judicial Interpretation on the Tort Liability Section of the Civil Code.
The Interpretation of the Supreme People’s Court on the Application of the Tort Liability Section of the Civil Code of the People’s Republic of China (I) was promulgated on September 26, 2024, and entered into force as of September 27, 2024.
Finance & Capital Markets
The China Securities Regulatory Commission is soliciting public comments on “Regulatory Guidance No. 10 for Listed Companies—Market Capitalization Management (Draft for Comments).”
To implement the “Several Opinions of the State Council on Strengthening Regulation, Preventing Risks, and Promoting High-Quality Development of the Capital Market” (Guofa [2024] No. 10), and to further encourage listed companies to focus on their intrinsic investment value and effectively enhance investor returns, the China Securities Regulatory Commission has drafted the “Regulatory Guidance for Listed Companies No. 10—Market Capitalization Management (Draft for Comments)” (hereinafter referred to as the “Guidance”) and is now soliciting public comments.

The Guidelines require listed companies to enhance their operational efficiency and profitability on the basis of improving corporate quality, and, in light of their specific circumstances, to employ, in compliance with applicable laws and regulations, tools such as mergers and acquisitions, equity incentives, cash dividends, investor relations management, information disclosure, and share repurchases, so as to bolster their investment value. The Guidelines delineate the responsibilities of the board of directors, directors, senior management, controlling shareholders, and other relevant parties, and set forth specific requirements, including that constituent companies of major indices disclose market-capitalization management systems, and that companies whose stock prices have remained below net asset value for an extended period disclose plans to improve their valuations. 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.

The China Securities Regulatory Commission has issued the “Opinions on Deepening Market Reform of Mergers and Acquisitions and Restructuring of Listed Companies.”
Mergers and acquisitions (M&A) and corporate restructuring are vital market instruments for supporting economic transformation and upgrading and achieving high-quality development. The new “National Nine Measures” have laid out key initiatives to invigorate the M&A and restructuring market. To further stimulate market dynamism, the China Securities Regulatory Commission, based on extensive research, has formulated the “Opinions on Deepening Reform of the Listed Company M&A and Restructuring Market,” which adheres to a market-oriented approach and seeks to better leverage the capital market’s role as the primary channel for corporate M&A and restructuring. The main contents are as follows:

First, we will support listed companies in transforming and upgrading toward new‑type productive forces. The CSRC will actively encourage listed offices to pursue mergers and reorganizations centered on strategic emerging industries and future‑oriented sectors, including cross‑industry M&A aimed at transformation and upgrading, acquisitions of non‑profitable assets that help strengthen industrial chains and enhance critical technological capabilities, and support for companies in the “two‑innovation” sector to acquire upstream and downstream assets within their value chains. These measures will guide more resources and factors of production to converge on the development of new‑type productive forces.

Second, we will encourage listed companies to strengthen industrial consolidation. While supporting the development of emerging industries, the capital market will continue to help traditional sectors enhance industry concentration and improve resource allocation efficiency through restructuring. To address the integration needs of listed companies, we will provide support by refining lock-up period regulations and substantially streamlining review procedures. At the same time, through mechanisms such as “reverse linkage” arrangements during lock-up periods, we will incentivize private equity funds to actively participate in mergers and acquisitions and corporate restructurings.

Third, we will further enhance regulatory flexibility. While upholding established rules, the CSRC will also respect market dynamics, economic principles, and the logic of innovation, thereby increasing its tolerance for issues such as restructuring valuations, performance commitments, intra‑industry competition, and related-party transactions, so as to better leverage the market’s role in optimizing resource allocation.

Fourth, enhance the efficiency of restructuring transactions. The CSRC will support listed companies in issuing shares and convertible bonds, among other payment instruments, in tranches; paying transaction consideration in installments; and raising accompanying financing in stages, thereby improving transaction flexibility and capital‑use efficiency. At the same time, a streamlined review procedure for restructurings will be established, significantly simplifying the review process, shortening review timelines, and boosting restructuring efficiency for eligible listed‑company restructurings.

Fifth, enhance the service standards of intermediary institutions. The vitality of the M&A and restructuring market hinges on the effective functioning of these intermediaries. The China Securities Regulatory Commission will guide securities offices and other institutions to strengthen their service capabilities, fully leveraging their roles in transaction matchmaking and professional advisory services to support listed companies in carrying out high‑quality M&A and restructuring activities.

Sixth, strengthen regulatory oversight in accordance with the law. The China Securities Regulatory Commission will guide all parties to the transaction to conduct mergers and acquisitions and restructuring activities in a standardized manner, ensure strict compliance with statutory obligations such as information disclosure, crack down on all types of illegal and non-compliant practices, effectively uphold market order in the restructuring sector, and robustly safeguard the legitimate rights and interests of small and medium-sized investors.

To implement the “Opinions on Deepening Market Reform of Mergers and Acquisitions and Restructuring of Listed Companies,” the China Securities Regulatory Commission and the stock exchanges have revised the Measures for the Administration of Major Asset Restructuring of Listed Companies and other relevant rules, while simultaneously soliciting public comments.

The Shanghai Stock Exchange has introduced a real-name authentication system to verify shareholder identities, facilitating investors’ participation in online shareholder voting.
Recently, the Shanghai Stock Exchange has streamlined the identity‑verification process for individual investors participating in online shareholder voting. Building on the existing method of authentication via trading terminals, it has introduced two new options: “three‑factor operator verification plus facial recognition” and “four‑factor UnionPay verification plus facial recognition,” thereby enhancing the convenience of investor participation in online shareholder meetings.
With the addition of a new authentication method, investors can activate their shareholder card numbers without being subject to trading‑time restrictions, bypassing the need to authenticate through a brokerage’s trading client; the change takes effect immediately, enabling more efficient participation in online shareholder voting and the exercise of shareholder rights. Investors may register and log in to the SSE e‑Voting platform for securities holders’ meetings using their SSE Pass account, and after completing the binding and activation of their shareholder card number, they can participate in the relevant online shareholder votes.
Going forward, the Shanghai Stock Exchange will earnestly implement the spirit of the Central Financial Work Conference and the new “Nine Measures for National Financial Development,” thoroughly study and grasp the guiding principles of the Third Plenary Session of the 20th CPC Central Committee, and, under the unified deployment of the China Securities Regulatory Commission, remain committed to a people-centered approach, officely uphold the interests of the people, continuously enhance the quality of its services, and ensure that capital market services truly serve the public, thereby providing investors with even more high‑quality offerings.

China Securities Regulatory Commission: Strictly regulate “deceptive” restructurings and impose severe penalties for financial fraud and other illegal activities in mergers and acquisitions.
The “Opinions of the China Securities Regulatory Commission on Deepening Market Reform of Mergers and Acquisitions and Restructuring of Listed Companies” were officially issued on September 24. Concurrently, the CSRC launched a public consultation on the “Decision to Amend the Measures for the Administration of Major Asset Restructuring of Listed Companies (Draft for Comments),” with the deadline for submitting feedback set for October 24.
The Opinions comprise six key areas: enhancing regulatory tolerance, improving the service standards of intermediary institutions, and strengthening oversight in accordance with the law. The document calls for urging financial advisors, accounting offices, and other intermediaries to fulfill their duties and uphold professional standards, thereby elevating the quality of their services; it also mandates strict supervision of “deceptive” restructuring activities and imposes severe penalties for illegal practices such as fraudulent issuance, financial fraud, and insider trading in mergers and acquisitions and corporate restructurings.
The draft for public comment specifies that a new streamlined review procedure for restructurings will be established. Under this simplified process, restructuring transactions are exempt from review by the Securities Exchange’s M&A and Restructuring Committee and must complete registration within five business days. Furthermore, private equity funds are encouraged to participate in the mergers and restructurings of listed companies, with a “reverse linkage” mechanism applied between the investment horizon of such funds and the lock-up period for shares acquired through the restructuring.

The Shanghai and Shenzhen stock exchanges plan to revise their restructuring review rules, adding a dedicated section on simplified review procedures.
To implement the “Opinions of the China Securities Regulatory Commission on Deepening Market Reform of Mergers and Acquisitions and Restructuring of Listed Companies,” the Shanghai Stock Exchange and the Shenzhen Stock Exchange plan to revise relevant provisions of the review rules governing major asset restructurings of listed companies. The deadline for submitting feedback is October 9, 2024.

The revised “Rules on Review of Restructuring” issued by the Shanghai and Shenzhen Stock Exchanges each comprise nine chapters and eighty-eight articles. Chapter V introduces a dedicated section that sets forth special provisions for the simplified review procedure: first, it clarifies the two circumstances under which the simplified procedure applies; second, it establishes a negative list for the simplified procedure; third, it outlines the mechanisms governing the simplified procedure; and fourth, it strengthens the responsibilities of all parties involved. In addition, the Rules have been adapted to make minor adjustments to certain other provisions.

The pilot program for equity investments by financial asset investment companies has been expanded, with policy guidelines moderately relaxed.
On September 24, the National Administration of Financial Regulation issued the “Notice on Expanding the Scope of the Equity Investment Pilot Program for Financial Asset Investment Companies” and the “Notice on Effectively Implementing the Expanded Equity Investment Pilot Program for Financial Asset Investment Companies,” outlining the relevant work arrangements.
The document specifies that the pilot scope for equity investments by financial asset investment companies will be expanded from Shanghai to include 18 additional cities: Beijing, Tianjin, Shanghai, Chongqing, Nanjing, Hangzhou, Hefei, Jinan, Wuhan, Changsha, Guangzhou, Chengdu, Xi’an, Ningbo, Xiamen, Qingdao, Shenzhen, and Suzhou.
Compared with the Shanghai pilot, this round of pilots introduces two key adjustments: first, it moderately relaxes restrictions on the amount and proportion of equity investments—raising the cap on the share of a financial‑asset investment company’s on‑balance‑sheet funds allocated to equity investments from 4% to 10% of the company’s total assets as of the end of the previous quarter, and increasing the maximum allowable investment in a single private‑equity fund from 20% to 30% of that fund’s offering size. Second, it further refines the due‑diligence exemption and performance‑evaluation framework.

Central Bank: Reduces Interest Rates on Existing Mortgages; Lowers the Minimum Down Payment for Second Homes to 15%
On September 24, the State Council Information Office held a press conference, at which senior officials from the People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission provided an update on financial measures to support high-quality economic development. The central bank announced that it would lower the reserve requirement ratio, reduce interest rates on existing mortgage loans, and standardize the minimum down-payment ratio for home purchases.
At the press conference, the People’s Bank of China announced that it will soon cut the reserve requirement ratio by 0.5 percentage points, injecting approximately RMB 1 trillion in long-term liquidity into the financial market; it will also lower the central bank’s policy rates, reducing the 7-day reverse repo rate by 0.2 percentage points, from the current 1.7% to 1.5%. With regard to existing mortgage rates, the central bank stated that it will guide commercial banks to bring these rates down to levels close to those of newly issued mortgages, with an expected average reduction of around 0.5 percentage points. In addition, the minimum down payment ratio for second-home mortgages nationwide will be lowered from 25% to 15%, aligning the minimum down payment requirements for first- and second-home purchases.

The China Securities Regulatory Commission will issue a landmark document to encourage medium- and long-term capital to enter the market and invigorate the M&A and restructuring sector.
On September 24, Wu Qing, Chairman of the China Securities Regulatory Commission, stated at a press conference held by the State Council Information Office that the CSRC will issue guidelines to encourage medium- and long-term capital to enter the market, along with six measures to promote mergers and acquisitions and restructuring.
Wu Qing stated that the China Securities Regulatory Commission and other relevant authorities have formulated the “Guiding Opinions on Promoting the Entry of Medium- and Long-Term Funds into the Market,” which will be issued in the near future. These guiding opinions set out measures to vigorously develop equity‑type public mutual funds, improve the institutional framework for “long-term capital investing over the long term,” and continuously enhance the overall health of the capital market.
Meanwhile, the China Securities Regulatory Commission has also formulated and promulgated the “Six Measures on Mergers and Acquisitions,” namely the “Opinions on Deepening Market Reform of M&A and Restructuring by Listed Companies,” to vigorously support listed companies in transforming and upgrading toward new‑type productive forces, actively encourage them to strengthen industrial consolidation, further enhance regulatory flexibility, and make concerted efforts to improve the efficiency of restructuring transactions.

The China Securities Regulatory Commission has refined the risk control indicator system for securities companies.
The China Securities Regulatory Commission has issued the revised Regulations on the Calculation Standards for Risk Control Indicators of Securities Companies, which will take effect on January 1, 2025.
Compared with the current risk‑control indicator system, the Regulations: first, refine the calculation standards for risk‑control indicators applicable to securities offices’ equity investment, market‑making, and other business lines; second, adjust the classification‑adjustment coefficients for risk‑control indicators in light of offices’ risk‑management capabilities, thereby enabling compliant, sound, and high‑quality securities offices to moderately enhance their capital‑use efficiency; third, bring all business activities of securities offices within the scope of risk‑control‑indicator constraints and clarify the calculation standards for risk‑control indicators related to new initiatives such as public REITs; and fourth, impose stricter calculation standards for innovative and higher‑risk businesses, thereby strengthening regulatory oversight.

Commercial & Corporate
China has initiated an investigation into the U.S.-based PVH Group under the Unreliable Entities List.
On September 24, the Ministry of Commerce website published the “Announcement by the Working Mechanism of the Unreliable Entities List on Initiating an Investigation into the U.S.-based PVH Group.”
The Notice clarifies that the Working Mechanism for the Unreliable Entities List has decided to launch an investigation into the U.S.-based PVH Group, concerning allegations that its products linked to Xinjiang have allegedly violated normal market‑transaction principles by disrupting routine trade with Chinese enterprises, other organizations, or individuals and by imposing discriminatory measures. The U.S. PVH Group is required, within 30 days from the date of this Notice, to submit to the Office of the Working Mechanism for the Unreliable Entities List written documentation and supporting evidence demonstrating whether it has, over the past three years, engaged in discriminatory practices with respect to Xinjiang‑related products, as well as any other materials requested by the investigating authorities.

The National Intellectual Property Administration plans to issue the “Model Text for Patent Agency Engagement Contracts.”
On September 24, the website of the National Intellectual Property Administration published the “Notice on Soliciting Public Comments on the Model Text for Patent Agency Entrustment Contracts (Draft for Comments),” with a deadline for submitting feedback set for October 11.
The Model Text comprises 12 articles, organized into the following sections: Preamble; Scope of Entrustment; Rights and Obligations of Party A; Rights and Obligations of Party B; Confidentiality Obligations; Term of Work; Fees; Mutual Agreements; Liability for Breach of Contract; Other Provisions; Dispute Resolution; and Term, Termination, and Amendment of the Contract. In addition, the National Intellectual Property Administration has issued accompanying Guidelines for the Execution of the Model Contract, providing supplementary explanations on the objectives and requirements of signing the Model Contract, the rationale behind the relevant provisions, and matters that should be carefully observed in their application.

The CPC Central Committee and the State Council have strengthened farmland protection, improved farmland quality, and refined the balance between occupation and compensation.
On September 24, the Chinese Government Website published the “Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Strengthening Farmland Protection, Enhancing Farmland Quality, and Improving the Balance Between Occupation and Replenishment.”
The “Opinions” comprise seven sections and 21 articles, stipulating that the nation’s total arable land shall not fall below 1.865 billion mu, and the area of permanently protected basic farmland shall not be less than 1.546 billion mu. They require the full and rigorous implementation of responsibilities for arable land protection, with the state conducting annual assessments of provincial Party committees and governments on their fulfillment of the accountability system for arable land protection and food security. Major issues such as breaching the red line for arable land protection will be subject to a “one‑vote veto,” accompanied by strict accountability and lifelong追责. Efforts must be made to comprehensively enhance arable land quality, including the issuance of a national implementation plan to gradually develop permanent basic farmland into high‑standard farmland. Furthermore, the system of balancing occupation and replenishment of arable land is to be reformed and improved, and various non‑traditional arable land resources are to be actively developed.

The National Energy Administration has issued the “Basic Rules for Power Market Registration.”
The website of the National Energy Administration has published the “Notice on Issuing the Basic Rules for Power Market Registration.”
The Regulations comprise eight chapters and fifty-one articles, focusing on provisions related to basic registration requirements, registration applications, information amendments, market deregistration, dispute resolution, and supervisory management. Their primary objectives are to promote nationwide uniformity and standardization of market registration procedures, advance the “register in one location, share information” model, support the rapid growth and market entry needs of new types of business entities, and establish clear end-to-end standards for market registration processes while delineating responsibilities for the supervision and administration of such activities.

The Ministry of Industry and Information Technology plans to revise the “Regulations on Safety Production Management for Telecommunications Construction Projects.”
On September 24, the website of the Ministry of Industry and Information Technology published the “Public Notice Soliciting Comments on the ‘Regulations on Safety Production Management for Telecommunications Construction Projects (Draft for Comments)’,” with a deadline for submitting feedback set for October 24.
The Regulations comprise six chapters and twenty-eight articles, covering general provisions, responsibilities for work safety, work‑safety expenses, reporting and investigation of production safety accidents, supervision and administration, and supplementary provisions. They primarily strengthen the principal responsibility of participating construction entities for work safety, improve the mechanisms and systems for safety oversight and accountability, introduce enhanced requirements for the management of key personnel in engineering projects, mandate extended management by construction contractors over their subcontractors, further clarify the work‑safety responsibilities of general contractors and subcontractors, and refine the requirements for emergency response plans and emergency drills.

The Ministry of Industry and Information Technology has launched a review and re-assessment of industrial product quality control and technical evaluation laboratories.
On September 24, the website of the Ministry of Industry and Information Technology published the “Notice on Organizing the Evaluation and Re‑verification of Industrial Product Quality Control and Technical Evaluation Laboratories.”
The Notice clarifies that the assessment and review process should focus on key areas and clearly define functional positioning. By concentrating on national strategic needs and priority industries, it aims to transform laboratories into comprehensive service institutions and specialized technical platforms that conduct industrial product quality control and technical evaluation across the entire product lifecycle and the full industrial chain. Laboratories are encouraged and supported to intensify research on strategic, critical, and forward-looking quality‑related technologies, strengthen capabilities in quality diagnostics, standards development, standard validation, pilot‑scale verification, inspection and testing, and quality improvement, carry out high‑level quality‑related scientific research, cultivate top‑tier quality professionals, and foster high‑quality industrial development.

Three departments jointly released the “2023 Statistical Bulletin on China’s Outward Direct Investment.”
On September 24, the Ministry of Commerce, the National Bureau of Statistics, and the State Administration of Foreign Exchange jointly released the “2023 Statistical Bulletin on China’s Outward Direct Investment.”
The Bulletin is divided into six sections—An Overview of China’s Outward Foreign Direct Investment, Flows and Stock of China’s Outward FDI, China’s Direct Investment in Major World Economies, the Composition of Outward FDI Investors, the Composition of Outward FDI Enterprises, and Appendices—providing a comprehensive overview of China’s outward foreign direct investment in 2023.

The Ministry of Ecology and Environment plans to issue the 2024 edition of the “List of Excluded Hazardous Wastes.”
On September 25, the website of the Ministry of Ecology and Environment published the “Letter on Public Solicitation of Comments on the ‘List of Excluded Hazardous Wastes (2024 Edition)’ (Draft for Comments),” with a deadline for submitting feedback set for October 13.
The List comprises a total of 12 categories of hazardous waste originating from specific sources and their corresponding descriptions. Compared with the 2021 edition, one entry has been revised and six new entries have been added, covering five major industries—oil and natural gas extraction, paint manufacturing, nickel‑cobalt smelting, basic chemical raw material production, and environmental remediation—as well as non‑specific sectors, encompassing seven categories of solid waste.

The pilot program for equity investments by financial asset investment companies has been expanded, with policy guidelines moderately relaxed.
On September 24, the National Administration of Financial Regulation issued the “Notice on Expanding the Scope of the Equity Investment Pilot Program for Financial Asset Investment Companies” and the “Notice on Effectively Implementing the Expanded Equity Investment Pilot Program for Financial Asset Investment Companies,” outlining the relevant work arrangements.
The document specifies that the pilot scope for equity investments by financial asset investment companies will be expanded from Shanghai to include 18 additional cities: Beijing, Tianjin, Shanghai, Chongqing, Nanjing, Hangzhou, Hefei, Jinan, Wuhan, Changsha, Guangzhou, Chengdu, Xi’an, Ningbo, Xiamen, Qingdao, Shenzhen, and Suzhou.
Compared with the Shanghai pilot, this round of pilots introduces two key adjustments: first, it moderately relaxes restrictions on the amount and proportion of equity investments—raising the cap on the share of a financial‑asset investment company’s on‑balance‑sheet funds allocated to equity investments from 4% to 10% of the company’s total assets as of the end of the previous quarter, and increasing the maximum allowable investment in a single private‑equity fund from 20% to 30% of that fund’s offering size. Second, it further refines the due‑diligence exemption and performance‑evaluation framework.

Beijing plans to introduce the Regulations on the Establishment of the Beijing International Commercial Arbitration Center.
On September 23, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the Draft Regulations on the Establishment of the Beijing International Commercial Arbitration Center,” with the deadline for submitting feedback set for October 22.
The Regulations, which consist of 34 articles without separate chapters, propose establishing and improving a corporate governance structure, refining the arbitration fee system and the arbitrator remuneration regime; supporting and guiding arbitration institutions to innovate and enhance their roster of arbitrators, arbitration rules, and internal management systems, thereby elevating service quality and international competitiveness; encouraging Beijing-based arbitration institutions to strengthen professionalization and brand‑building, advance smart‑arbitration initiatives, and pursue multi‑level, multifaceted efforts to develop world‑class arbitration bodies; and introducing exploratory provisions on innovations in arbitration mechanisms, such as “three‑specific” arbitration, interim measures in arbitration, and the appointment of arbitrators not listed on the roster, among others.

Ministry of Human Resources and Social Security: Expedite the formulation and refinement of supporting policies and measures for the Decision on Implementing a Gradual Increase in the Statutory Retirement Age.
On September 24, the State Council Information Office held a series of thematic press conferences on “Promoting High-Quality Development.” At the event, Li Zhong, Vice Minister of Human Resources and Social Security, stated that measures would be taken on three fronts to ensure the smooth implementation of the phased reform to gradually raise the statutory retirement age.
First, we will accelerate the formulation and refinement of supporting policies and measures, including those aimed at promoting employment, safeguarding workers’ rights and interests, and establishing retirement provisions for employees working in high-altitude areas. Second, we will strengthen communication and interpretation of reform policies by providing policy guidance through social security service windows, the 12333 hotline, and other channels, thereby ensuring policy transparency. Finally, we will streamline administrative procedures, simplify processes, and enhance interdepartmental information sharing to improve operational efficiency.
This series of measures is designed to ensure the smooth implementation of the phased retirement-age reform while safeguarding the rights and interests of the vast majority of workers.

Central Bank: Reduces Interest Rates on Existing Mortgages; Lowers the Minimum Down Payment for Second Homes to 15%
On September 24, the State Council Information Office held a press conference, at which senior officials from the People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission provided an update on financial measures to support high-quality economic development. The central bank announced that it would lower the reserve requirement ratio, reduce interest rates on existing mortgage loans, and standardize the minimum down-payment ratio for home purchases.
At the press conference, the People’s Bank of China announced that it will soon cut the reserve requirement ratio by 0.5 percentage points, injecting approximately RMB 1 trillion in long-term liquidity into the financial market; it will also lower the central bank’s policy rates, reducing the 7-day reverse repo rate by 0.2 percentage points, from the current 1.7% to 1.5%. With regard to existing mortgage rates, the central bank stated that it will guide commercial banks to bring these rates down to levels close to those of newly issued mortgages, with an expected average reduction of around 0.5 percentage points. In addition, the minimum down payment ratio for second-home mortgages nationwide will be lowered from 25% to 15%, aligning the minimum down payment requirements for first- and second-home purchases.

The State Administration for Market Regulation plans to issue the “Guidelines on Preventing Food Waste in Takeout Catering and Regulating Marketing Practices.”
On September 23, the website of the State Administration for Market Regulation published an announcement soliciting public comments on the “Guidance on Regulating Marketing Practices to Prevent Food Waste in Takeout Catering (Draft for Public Comment).” The deadline for submitting feedback is September 30.
The Guidelines comprise 25 articles, stipulating that food delivery merchants shall not produce, publish, or disseminate live streams or audio‑video content that promotes excessive eating, binge eating, or other forms of food waste. They also call on platforms to further refine their rules and agreements, improve the “spend‑X‑get‑Y‑off” and group‑buying mechanisms, optimize the presentation of menu information, strengthen monitoring and screening of advertising content posted by merchants on the platform, and establish a sound evaluation and assessment system for food waste in the delivery sector. Moreover, the Guidelines encourage food delivery merchants to incorporate grain conservation and anti‑waste principles into the professional training of their staff, conducting anti‑food‑waste training upon hiring and at regular intervals thereafter.

The Ministry of Industry and Information Technology plans to revise the Measures for the Administration of National Salt Reserves.
On September 23, the Ministry of Industry and Information Technology published on its website the “Administrative Measures for National Salt Reserve Management,” with a deadline for public comments set for October 25.
The Measures stipulate that, in principle, the salt administration authorities of provincial (autonomous region or municipal) people’s governments shall determine the enterprises entrusted with government salt reserves in their respective regions through open tendering and publicly disclose the tender results. Enterprises entrusted with government salt reserves must be designated salt producers or designated salt wholesalers, capable of conducting normal salt production and business operations, equipped with storage facilities and capabilities that meet relevant requirements, possessing stable salt distribution and reserve‑rotation capacities, and satisfying any other conditions set forth by the salt administration authorities of the provincial (autonomous region or municipal) people’s government. Such entrusted enterprises shall establish a reserve management system, strengthen reserve management, promptly and fully fulfill their reserve obligations, rigorously ensure the quality and safety of reserved salt, and use fiscal subsidy funds in accordance with prescribed procedures.

The People’s Bank of China will, in conjunction with the National Administration of Financial Regulation, introduce five new policies on real estate finance.
On September 24, the State Council Information Office held a press conference, at which senior officials from the People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission provided an overview of financial measures to support high-quality economic development. PBOC Governor Pan Gongsheng stated that, in this round, the PBOC, together with the National Administration of Financial Regulation, has introduced five new policies on real estate finance.
The first policy is to guide banks in lowering interest rates on existing mortgage loans. The second policy is to standardize the minimum down payment ratio for mortgages at 15%. The third policy extends the validity of two real estate‑related financial measures—maturity extensions for developers’ outstanding financing and loans for commercial properties—until December 31, 2026. The fourth policy optimizes the policy‑based housing‑loan refinancing scheme by increasing the People’s Bank of China’s share of funding from the original 60% to 100%. The fifth policy supports the acquisition of developers’ existing land holdings, exploring the possibility of allowing policy banks and commercial banks to provide loans to eligible enterprises for market‑oriented land purchases, thereby revitalizing idle land; when necessary, the People’s Bank may also offer refinancing support. In addition, regarding the urban real estate financing coordination mechanism’s “whitelist,” Li Yunze stated that, as of now, commercial banks have approved more than 5,700 projects on the list, with total approved financing reaching RMB 1.43 trillion, helping ensure the timely delivery of over four million housing units and reversing the downward trend in developer‑related lending.

The Ministry of Industry and Information Technology has issued a notice to accelerate the planning and construction of pilot-scale platforms for manufacturing.
The Ministry of Industry and Information Technology has issued the “Notice on Accelerating the Planning and Construction of Pilot-Scale Platforms for Manufacturing.”
The Notice sets forth the following development objectives: focusing on critical areas urgently needed for national strategies and industrial development, it calls for guiding eligible entities to adopt tailored construction models, development strategies, and measures suited to local conditions, thereby advancing the establishment of pilot‑scale testing platforms on a “one‑category, one‑policy” basis. By 2027, the plan is to foster and establish a number of provincial- and ministerial‑level manufacturing pilot‑scale testing platforms in regions where conditions permit, and to select and designate several national manufacturing pilot‑scale testing platforms that boast broad outreach, strong technology‑transfer capabilities, sound development mechanisms, and internationally advanced standards. These efforts will facilitate engineering breakthroughs and industrial application of technological achievements across traditional, emerging, and future industries, effectively enhancing the technical value and quality of innovation outcomes, accelerating the resolution of challenges in translating research results into practical applications, and significantly elevating manufacturing innovation capacity and the modernization of industrial chains.

The State-owned Assets Supervision and Administration Commission of the State Council convened a meeting to advance the development of boards of directors in central enterprises.
The State-owned Assets Supervision and Administration Commission of the State Council convened a meeting to advance the development of boards of directors in central enterprises, focusing on summarizing progress, sharing best practices, and formulating plans for key tasks.
The meeting called for solid progress in advancing the establishment and strengthening of boards of directors at both the group level and among subsidiaries of central enterprises, achieving significant, substantive results. This includes deepening the development of group-level boards, tailoring approaches to individual enterprises to bolster subsidiary boards, optimizing the governance mechanisms of listed companies, clarifying governance relationships, and defining clear boundaries of authority and responsibility. It also entails scientifically refining the functional positioning of boards, upholding and improving their core responsibilities of setting strategy, making decisions, and managing risks, while reinforcing their oversight role. Furthermore, it calls for perfecting board‑operating systems and mechanisms, dynamically updating lists of powers and responsibilities and decision‑making procedures, and enhancing mechanisms for delegation and empowerment. Finally, it emphasizes maximizing the contributions of independent directors by integrating them as a key component of the enterprise leadership cadre, strengthening standardized management and support for their duties, refining incentive and accountability frameworks, and elevating their capacity to fulfill their roles, among other measures.

Theoretical Symposium on the World Internet Conference: Advancing the Building of a Community with a Shared Future in Cyberspace to a New Stage
On September 3, the International Organization of the World Internet Conference convened in Beijing for a theoretical symposium on advancing the building of a community with a shared future in cyberspace into a new stage. The event reviewed the theoretical achievements and practical experiences accumulated since the concept was first proposed, and explored the profound implications, significant importance, and contemporary value of working together to take this endeavor to the next phase.
At the conference, leading experts and prominent figures from the internet sector in China, South Korea, the United Kingdom, France, Switzerland, and Australia engaged in discussions on topics including “The Global Significance of Building a Community with a Shared Future in Cyberspace,” “The Construction, Development, and Utilization of Digital Infrastructure,” “Online Cultural Exchange and Shared Prosperity through Mutual Learning among Civilizations,” “Innovative Development of the Digital Economy and the Sharing of Its Benefits,” “International Cooperation on Cybersecurity,” and “Global Governance of Cyberspace.”

Regulation of financial leasing companies continues to tighten, with the minimum registered capital requirement raised.
The National Administration of Financial Regulation has issued the revised Measures for the Administration of Financial Leasing Companies, which will take effect on November 1, 2024.
The main revisions to the Measures are as follows: First, the system for major investors has been revised and improved. The minimum registered capital requirement for financial leasing companies has been raised, and three new categories of major investors have been added, namely state‑owned capital investment and operation companies, state‑owned financial capital investment and operation companies, and overseas manufacturing enterprises. Second, business‑category‑based supervision has been strengthened. Third, corporate governance oversight has been enhanced, with clearer regulatory requirements regarding related‑party transactions, information disclosure, and other matters. Fourth, risk management has been reinforced, specifying regulatory standards for capital adequacy, credit risk, liquidity risk, operational risk, and significant related‑party transactions, while optimizing and introducing additional supervisory indicators. Fifth, cross‑border financial leasing activities have been standardized. Sixth, business‑operation rules have been refined.

The Ministry of Ecology and Environment has issued a document to further deepen the reform of environmental impact assessment.
The website of the Ministry of Ecology and Environment has published the “Notice on Further Deepening the Reform of Environmental Impact Assessment.”
The Notice comprises five main sections. First, it sets out the overarching principles for deepening EIA reform. Second, it provides guidance to provincial ecological and environmental authorities on streamlining the tiered approval process for project EIAs at the provincial level and below. Third, it outlines the work plan for piloting optimized classification-based management of project EIAs. Fourth, it details the pilot initiatives for standardizing EIA document preparation and implementing intelligent, AI‑assisted review processes. Fifth, it specifies concrete requirements for strengthening organizational support.

The Ministry of Transport has issued the Construction and Design Specifications for the Strengthening and Retrofitting of Wharf Structures.
The website of the Ministry of Transport has published the “Notice on the Issuance of the ‘Construction Code for the Strengthening and Renovation of Wharf Structures’” and the “Notice on the Issuance of the ‘Design Code for the Strengthening and Renovation of Wharf Structures’.”
The “Construction Code” covers technical aspects such as the reinforcement and retrofitting of high-pile wharf structures, gravity‑type wharf structures, sheet‑pile wharf structures, sloping wharf and floating wharf structures, as well as construction monitoring. The “Design Code” includes technical content on inspection, assessment and condition evaluation; reinforcement and retrofitting of high‑pile wharf structures; reinforcement and retrofitting of gravity‑type wharf structures; reinforcement and retrofitting of sheet‑pile wharf structures; reinforcement and retrofitting of sloping and floating wharf structures; and durability‑oriented design.

Taxation
The State Taxation Administration has established a task force to conduct a special campaign to address tax-related issues arising from illegal investment promotion.
At a press conference held by the State Council Information Office on September 23, Rao Lixin, Deputy Director of the State Taxation Administration, outlined the measures taken by the tax authorities to support the development of a unified national market.
Rao Lixin stated that, in accordance with the directives of the CPC Central Committee and the State Council, the tax authorities have proactively collaborated with relevant departments to resolutely curb all illegal investment‑attraction practices that undermine the unity and fairness of the national market. The State Taxation Administration and all provincial tax bureaus have established special task forces to address tax‑related issues arising from unlawful investment attraction, put in place a robust, standardized monitoring indicator system, promptly issue early warnings and conduct timely investigations and handling of identified red flags, and, in coordination with relevant agencies, publicize typical cases of tax‑related violations in investment promotion, thereby advancing governance through case‑based enforcement.

The catalog of non‑transport special-purpose vehicles exempt from the vehicle acquisition tax has been updated to the sixteenth batch.
The State Taxation Administration and the Ministry of Industry and Information Technology have jointly issued an announcement publishing the “Catalogue of Non-Transport Special-Purpose Vehicles with Fixed Installations Exempt from Vehicle Acquisition Tax (16th Batch).”
This batch of the “Catalogue” is the third release of 2024 and the sixteenth in total, covering 352 vehicle models from 146 enterprises. In accordance with Announcement No. 35 of 2020 issued by the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology, as well as Announcement No. 20 of 2020 issued by the State Taxation Administration and the Ministry of Industry and Information Technology, applicants may mark vehicles produced under the Catalogue with an exemption label in the vehicle’s electronic information. Based on this exemption label and any other documents required for filing the vehicle acquisition tax return, the tax authorities shall process the vehicle acquisition tax exemption procedures for taxpayers.

Litigation & Arbitration
The Supreme People’s Court has issued the Judicial Interpretation on the Tort Liability Section of the Civil Code.
The “Interpretation of the Supreme People’s Court on the Application of the Tort Liability Section of the Civil Code of the People’s Republic of China (I)” (Fa Shi [2024] No. 12, hereinafter referred to as the “Interpretation”) was promulgated on September 26, 2024, and entered into force on September 27, 2024. The Interpretation focuses on major controversial issues that have attracted widespread public attention and urgently require resolution in judicial practice following the implementation of the Civil Code, striving to clarify liability and resolve disputes through pragmatic and effective provisions, thereby effectively safeguarding the legitimate rights and interests of the people.

The Supreme People’s Court and the Supreme People’s Procuratorate jointly released typical cases of crimes that seriously endanger the safety of food agricultural products, to be punished strictly in accordance with the law.
On September 25, the Supreme People’s Procuratorate website released four typical cases of severe punishment, in accordance with the law, for crimes that endanger the safety of food agricultural products. These cases involve cracking down on illegal practices such as soaking silverfish in industrial-grade formaldehyde solution, the unlawful use of “lean meat powder,” excessive residues of veterinary drugs, and the production and sale of dyed yellow croakers.
In Case No. 1, from 2018 to March 2021, the defendant Sun Moujie sold silverfish from a stall at a certain agricultural wholesale market. In order to extend the shelf life of the silverfish under ambient conditions, Sun Moujie soaked the fish in an industrial-grade formaldehyde solution and then sold the treated product to merchants in Kunshan City, Jiangsu Province, and other locations, generating total sales of over RMB 1.29 million. The court convicted the defendant Sun Moujie of the crime of producing and selling toxic and harmful food, sentencing him to eleven years’ imprisonment and a fine of RMB 3 million; it also sentenced the defendant Liu Moujun to five years’ imprisonment and a fine of RMB 200,000.

Beijing plans to introduce the Regulations on the Establishment of the Beijing International Commercial Arbitration Center.
On September 23, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the Draft Regulations on the Establishment of the Beijing International Commercial Arbitration Center,” with the deadline for submitting feedback set for October 22.
The Regulations, which consist of 34 articles without separate chapters, propose establishing and improving a corporate governance structure, refining the arbitration fee system and the arbitrator remuneration regime; supporting and guiding arbitration institutions to innovate and enhance their roster of arbitrators, arbitration rules, and internal management systems, thereby elevating service quality and international competitiveness; encouraging Beijing-based arbitration institutions to strengthen professionalization and brand‑building, advance smart‑arbitration initiatives, and pursue multi‑level, multifaceted efforts to develop world‑class arbitration bodies; and introducing exploratory provisions on innovations in arbitration mechanisms, such as “three‑specific” arbitration, interim measures in arbitration, and the appointment of arbitrators not listed on the roster, among others.

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