JC Master Legal News Issue 1105

Key Takeaways for This Issue

The Shanghai Stock Exchange has issued rules governing asset-backed securities and guidelines on ongoing information disclosure, standardizing the operation and management of asset securitization.
On March 29, the Shanghai Stock Exchange issued the “Shanghai Stock Exchange Rules on Asset-Backed Securities Business” and the “Guidance No. 5 on the Application of the Shanghai Stock Exchange’s Self-Regulatory Supervision Rules for Bonds—Ongoing Information Disclosure for Asset-Backed Securities.”
The Shenzhen Stock Exchange has issued the Business Rules for Asset-Backed Securities and three accompanying guidelines.
On March 29, the Shenzhen Stock Exchange issued the “Shenzhen Stock Exchange Rules on Asset-Backed Securities Business” (hereinafter referred to as the “ABS Business Rules”), along with three accompanying guidelines: “Guideline No. 1 on Ongoing Supervision of Asset-Backed Securities—Periodic Reports,” “Guideline No. 2 on Ongoing Supervision of Asset-Backed Securities—Ad Hoc Reports,” and “Guideline No. 3 on Ongoing Supervision of Asset-Backed Securities—Credit Risk Management.”
The National Administration of Financial Regulation has issued guidelines to deploy inclusive credit initiatives for 2024.
On March 28, the website of the National Administration of Financial Regulation published the “Notice on Effectively Carrying Out Inclusive Credit Work in 2024.”
The Supreme People’s Court and the Supreme People’s Procuratorate jointly released typical cases of punishing bribery offenses.
Recently, the Supreme People’s Court and the Supreme People’s Procuratorate jointly released eight typical cases of punishing bribery offenses in accordance with the law.
Finance & Capital Markets
The Shanghai Stock Exchange has issued rules governing asset-backed securities and guidelines on ongoing information disclosure, standardizing the operation and management of asset securitization.
On March 29, the Shanghai Stock Exchange issued the “Shanghai Stock Exchange Rules on Asset-Backed Securities Business” (hereinafter referred to as the “Business Rules”) and the “Guidance No. 5 on the Application of the Shanghai Stock Exchange’s Self-Regulatory Supervision Rules for Bonds—Ongoing Information Disclosure of Asset-Backed Securities” (hereinafter referred to as the “Ongoing Information Disclosure Guidance”). These measures, formulated under the guidance of the China Securities Regulatory Commission, represent an important step by the SSE to establish an open, transparent, and predictable institutional framework, thereby further enhancing the bond market’s ability to serve the real economy.

Establishing the Basic Rules for Asset Securitization and Building a Multi-Tiered Regulatory Framework

In recent years, the Shanghai Stock Exchange has earnestly implemented national strategies, leveraged the functions of the asset-backed securities market, and helped increase the share of direct financing. As of the end of February 2024, the SSE had cumulatively issued asset-backed securities totaling RMB 6.58 trillion, with outstanding assets under custody amounting to RMB 1.39 trillion. The Exchange has spearheaded the high-quality development of China’s asset-backed securities market, playing a vital role in revitalizing existing assets, reducing corporate leverage, broadening financing channels, serving the real economy, and supporting supply-side structural reform.

As asset securitization enters a new stage of development and market conditions undergo significant changes, the need to strengthen asset‑level credit enhancement and bankruptcy remoteness, bolster investor protection, and clarify self‑regulatory requirements has become increasingly pressing. Against this backdrop, under the unified guidance of the China Securities Regulatory Commission and drawing on its day‑to‑day regulatory experience, the Shanghai Stock Exchange has revised and consolidated the “Shanghai Stock Exchange Guidelines on Asset Securitization” and the “Shanghai Stock Exchange Guidelines on the Conofficeation of Listing Conditions for Asset‑Backed Securities,” rebranding the updated framework as the “Shanghai Stock Exchange Rules on Asset‑Backed Securities.”

The “Business Rules” constitute the fundamental regulatory framework for the SSE’s asset‑securitization business, covering the entire lifecycle of asset‑backed securities. They encompass key stages and areas, including listing eligibility and conofficeation procedures, issuance and trading on the exchange, information disclosure, protection of investors’ rights, suspension and resumption of trading, delisting, and self‑regulatory oversight. By providing comprehensive, foundational guidelines for the end-to-end asset‑securitization process, these rules serve as an institutional safeguard for the stable and orderly development of the SSE’s asset‑securitization market. Together with the previously issued Guidelines on the Application of Listing Eligibility Conofficeation Rules Nos. 1 through 5 and the Guidelines on the Application of Bond Self‑Regulatory Rules Nos. 2 through 5, they form the SSE’s overarching regulatory framework for asset‑securitization activities.

Standardize ongoing information disclosure requirements, strengthen risk management, and clarify responsibilities for sound operations.

The newly issued “Guidelines on Ongoing Information Disclosure” further clarifies the disclosure requirements for periodic and ad hoc reports of asset-backed securities, specifying provisions on general information‑disclosure obligations, annual asset management reports, annual custody reports, ad hoc reports by the manager, holders’ meetings, credit rating reports, and other relevant disclosures. It also sets forth stringent, detailed requirements for information disclosure, thereby effectively safeguarding the legitimate rights and interests of investors.

The “Guidelines on Ongoing Information Disclosure” inherit the existing disclosure requirements while incorporating refinements and adjustments based on regulatory practice: First, it enhances the completeness and systematic nature of the rules by consolidating the disclosure obligations for periodic and ad hoc reports and standardizing disclosures related to the special‑purpose plan’s assets or cash flows, its business participants, and the asset‑backed securities. Second, it adopts a risk‑oriented approach and streamlines disclosure requirements, adding obligations to disclose events such as rights‑enhancement events, defaults by business participants, and bankruptcy filings. Third, it establishes a dedicated chapter to clarify the disclosure requirements for holders’ meetings, thereby fostering a unified expression of the holders’ collective will and improving the efficiency of credit‑risk management.

Going forward, the Shanghai Stock Exchange will, grounded in the new stage of development and guided by the new development philosophy, adhere to the principle of “strengthening fundamentals and consolidating the foundation,” and officely uphold the overarching theme of “enhanced regulation, risk prevention, and high‑quality development.” In accordance with the unified deployment of the China Securities Regulatory Commission, the Exchange will maintain openness and transparency, refine the regulatory framework for asset‑backed securities, encourage market participants to fulfill their respective roles and responsibilities, and stimulate innovation and growth. By further leveraging the functions of the asset‑securitization market, the Exchange will promote the high‑quality development of the bond market, better support the establishment of a new development paradigm, and continuously enhance the quality and effectiveness of its services to national strategies and the real economy.

The Shanghai Stock Exchange has issued a public initiative to Shanghai-listed companies to launch a special campaign titled “Enhancing Quality and Efficiency, Prioritizing Returns.”
The Shanghai Stock Exchange has issued an initiative to all listed companies on the Shanghai market, calling on them to launch a special campaign focused on “enhancing quality and efficiency while delivering strong returns.” The initiative aims to thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Financial Work Conference, continuously advance the State Council’s “Opinions on Further Improving the Quality of Listed Companies,” uphold stringent regulation, safeguard against risks, and promote high-quality development, thereby fostering the intrinsic motivation and sense of responsibility among listed companies to achieve high‑quality growth and enhance their investment value.

Investors are the lifeblood of the market, and listed companies are its foundation. This initiative aims to “further enhance the quality and investment value of listed companies,” guiding them to better fulfill their principal responsibilities and deliver greater returns to investors. Earlier, the STAR Market served as a testing ground for reform, proactively exploring and taking the lead in launching an initiative to promote “quality improvement, efficiency enhancement, and robust returns” among listed companies, which has been enthusiastically followed by Shanghai‑listed offices. To date, more than 380 Shanghai‑listed companies have introduced measures aligned with this agenda. Building on lessons learned from earlier experience and drawing on input from all stakeholders, this new initiative encourages listed companies to formulate 2024 Action Plans for “Quality Improvement, Efficiency Enhancement, and Robust Returns.” These plans will comprehensively, systematically, and purposefully introduce concrete, actionable, and verifiable measures across six key areas: elevating operational quality, boosting investor returns, accelerating the development of new‑type productive forces, and rigorously holding the “key few” accountable.

First, in terms of enhancing operational quality, targeted measures are emphasized. Listed companies are encouraged to implement specific actions to improve key performance indicators such as capacity utilization and return on equity. By pursuing high‑quality industrial M&A and other initiatives, they can optimize their asset structure and industrial positioning. Second, regarding the enhancement of investor returns, a focus on tangible, concrete benefits is called for. Listed companies are advised to formulate medium- to long-term dividend and share‑repurchase plans; explore more frequent annual dividends; execute buybacks followed by cancellation; develop contingency plans to stabilize stock prices; and guide shareholders toward rational share reductions—thereby delivering value to investors and boosting their sense of gain. Third, in driving growth momentum, the emphasis should be on new‑type productive forces. Companies are urged to adopt concrete steps—such as increasing R&D investment, accelerating new‑product development, refining talent‑incentive mechanisms, and strengthening industry‑university‑research collaboration—to propel high‑quality corporate development. Fourth, in bolstering investor communication, corporate transparency must be elevated. Listed offices are recommended to take specific measures—improving the readability of public disclosures, establishing investor‑engagement programs, and encouraging senior executives to participate in investor dialogues—to diversify channels of communication and enrich the investor experience. Fifth, in strengthening corporate governance, the priority is to safeguard the rights and interests of minority investors. In major decisions related to operations, investment, and M&A, listed companies should place greater emphasis on protecting investors’ legitimate rights and interests, particularly those of small and medium‑sized shareholders, while enhancing their level of participation and sense of ownership. Sixth, in reinforcing accountability among the “key few,” alignment of interests should be strengthened. Listed companies are encouraged to link the compensation of directors, supervisors, and senior management to the company’s operational efficiency and market‑capitalization performance, and to establish internal accountability mechanisms such as clawback provisions for performance‑based pay. Equity‑incentive schemes should incorporate metrics—like return on assets and investment returns—that more closely align with investor interests.

Building on the principle of corporate accountability for listed companies, the initiative also actively promotes the development of a market ecosystem that supports high-quality listed offices. It encourages investors—particularly institutional investors—to embrace rational, value‑oriented, and long-term investment approaches, placing greater emphasis on listed companies that deliver strong performance, demonstrate responsible stewardship, and offer attractive returns. Meanwhile, the Shanghai Stock Exchange will continue to refine its index product lineup and enhance the index‑investment ecosystem, providing investors with a broader array of channels to allocate capital to high‑quality listed companies.

In this special campaign, the Shanghai Stock Exchange encourages all listed companies on the Shanghai market to participate and recommends that constituents of the SSE 50, SSE 180, STAR 50, and STAR 100 indices take the lead by setting a positive example. At the same time, companies that are able to do so are encouraged to issue action plans in both Chinese and English, thereby better serving domestic and international investors. In addition, the initiative sets out specific requirements regarding the decision-making process, information disclosure, and evaluation and improvement of the campaign’s action plan, helping to foster open, transparent, and market‑based accountability.

Going forward, the Shanghai Stock Exchange will, in accordance with the CSRC’s strategic plans and arrangements, earnestly implement the “Two Strengthenings and Two Stricts” requirements, further promote the high-quality development of listed companies and enhance their investment value, continuously bolster investors’ sense of gain and satisfaction, and work together with all market participants to advance the high-quality development of the capital market.

The Shanghai Stock Exchange officially unveiled its 2024 initiatives to deliver tangible benefits to the market.
To continuously and steadfastly advance the initiatives of “conducting review, regulation, and services in an open manner,” and to officely uphold and put into practice a performance‑oriented approach that delivers tangible benefits to the people, the Shanghai Stock Exchange, after carefully assessing the needs and expectations of all market participants and taking into account its own operational realities, has compiled and released today the “Shanghai Stock Exchange 2024 List of Practical Measures for the Market” (hereinafter referred to as the “Project List”).

The “Project List” is a set of concrete, actionable measures formulated by the SSE based on in-depth study and implementation of the spirit of the Central Financial Work Conference and the 2024 National Two Sessions. It aligns with key priorities such as deepening and solidifying the registration-based IPO system, advancing the five major tasks in the financial sector, and driving digital transformation, all with the overarching goal of further transforming work styles, enhancing service efficiency, and delivering tangible benefits to all market participants. The “Project List” comprises ten concrete initiatives across four areas, covering the SSE’s core business domains, including listing review, frontline supervision, product innovation, market services, and information technology. First, it seeks to deepen “transparent exercise of power” and enhance the transparency of regulatory review. This includes launching an “IPO Primer,” compiling and publishing a comprehensive guide to the application of regulatory rules for listed companies, and streamlining communication channels with issuers and listed offices to reduce information asymmetry. Second, it aims to vigorously develop fund products that enable investors to secure stable returns. The SSE will further enrich the STAR Market index system and introduce more low‑risk, steady‑return products, such as dividend‑focused low‑volatility ETFs and bond ETFs, thereby better meeting investors’ wealth‑management needs. Third, it will proactively provide integrated services that demonstrate a strong commitment to serving the public. This includes hosting salons on new‑economy productivity and industry‑specific forums, organizing the “SSE ETF Twenty Years” series of events, advancing the development of an integrated platform for handling investor grievances, and enhancing the exhibition and service capabilities of the China Securities Museum. Fourth, it will optimize and refine system functionalities to make business processing faster and more efficient. This involves upgrading the bond issuance system and trading terminals, simplifying and digitizing services related to fund product issuance, and further integrating the “One‑Stop Service” platform to improve operational efficiency and user experience.

“When the people have a call, we act.” The SSE has consistently taken the initiative to listen to market voices and promptly address the concerns of investors, members, and other stakeholders. For two consecutive years, it has delivered tangible results for the market, earning widespread positive feedback. Following the release of this Project List, we welcome input and suggestions from all market participants. The SSE will remain fully committed to serving as a dedicated “shop assistant” and “service provider,” ensuring that every concrete measure is implemented effectively and with substance. With patience, meticulous attention to detail, and a professional, pragmatic approach, we will continue to enhance and refine our regulatory services, working together with all stakeholders to build and develop a robust and thriving market.

“SZSE·Chuangxianghui” focuses on new opportunities in computing‑power hardware technologies and discusses the emerging quality‑driven productivity in the computing‑power sector.
On March 27, the Shenzhen Stock Exchange hosted the 14th session of its “Innovation & Sharing Forum” on the development of general-purpose computing hardware technologies. More than 20 representatives from Shenzhen‑listed companies in the computing‑hardware sector gathered to discuss how the capital market can bolster the growth of new‑type productive forces in the computing‑power sector and drive high‑quality development.

General Secretary Xi Jinping has repeatedly emphasized that “developing new‑type productive forces is an intrinsic requirement and a key focus for advancing high‑quality development,” and that “we must use scientific and technological innovation to lead industrial transformation and actively foster and develop new‑type productive forces.” The 2024 Government Work Report likewise places “vigorously promoting the construction of a modern industrial system and accelerating the development of new‑type productive forces” at the top of this year’s ten priority tasks. Hosting this special “Chuangxianghui” event represents the Shenzhen Stock Exchange’s earnest implementation of the decisions and arrangements of the CPC Central Committee and the State Council, a deep understanding of the connotations and significance of new‑type productive forces, and a constructive effort to build momentum and empower the capital market to support the accelerated development of these forces.

In recent years, with the rapid advancement of emerging technologies such as artificial intelligence and digital twins, the three foundational pillars of AI—algorithms, computing power, and data—have garnered widespread attention across various sectors. As a new form of productive force that integrates information-processing capacity, data-storage capability, and network‑carrying capacity in the digital economy, computing power has become a key driver of technological innovation and industrial upgrading. Participants at the event agreed that accelerating breakthroughs in computing power and core hardware technologies is imperative, and that capital markets play a pivotal role and occupy a prominent position in supporting the development of the computing‑power industry. Speakers shared their perspectives on industry trends from diverse angles, presented case studies of companies leveraging capital-market instruments to grow and expand, and engaged in discussions on existing challenges and common issues. Attendees noted that, in recent years, the Shenzhen Stock Exchange has focused on priority areas such as advanced manufacturing, the digital economy, and green, low‑carbon development, fully harnessing market functions and enhancing service quality, thereby playing an active role in fostering and strengthening strategic emerging industries and promoting the high‑end, intelligent, and environmentally sustainable transformation of industries.

Going forward, the Shenzhen Stock Exchange will continue to organize a series of specialized events focused on key sectors, industries, and regions, with an emphasis on fostering corporate engagement, dialogue, and collaboration. Through these efforts, “Chuangxianghui” will be established as a prominent, market‑influential platform for exchange and networking, while actively building a new benchmark for market services that reflects the unique characteristics of the Shenzhen market.

The National Administration of Financial Regulation has issued guidelines to deploy inclusive credit initiatives for 2024.
On March 28, the website of the National Administration of Financial Regulation published the “Notice on Effectively Carrying Out Inclusive Credit Work in 2024.”
The Notice clarifies that, in 2024, efforts will be made to maintain robust support for inclusive credit, stabilize credit service pricing, and optimize the credit structure. It calls for appropriately setting interest rates on inclusive loans to small and micro enterprises, strengthening capacity-building for legal‑entity services targeting such businesses, increasing the issuance of first-time and renewal loans, actively developing small‑amount credit products, promoting a revolving loan model with on‑demand borrowing and repayment, and bolstering credit supply to small and micro enterprises across key industrial and supply chains, as well as in foreign trade and consumption sectors. At the same time, banking and financial institutions are required to refine their institutional mechanisms—through measures such as separately allocating credit quotas, tilting performance assessments, and offering preferential internal funds transfer pricing—to sustain strong resource commitments to inclusive credit operations, among other steps.

The Shenzhen Stock Exchange has issued the Business Rules for Asset-Backed Securities and three accompanying guidelines.
On March 29, the Shenzhen Stock Exchange issued the “Shenzhen Stock Exchange Rules on Asset-Backed Securities Business” (hereinafter referred to as the “ABS Business Rules”), together with three accompanying guidelines: “Guideline No. 1 on Ongoing Supervision of Asset-Backed Securities—Periodic Reports,” “Guideline No. 2 on Ongoing Supervision of Asset-Backed Securities—Ad Hoc Reports,” and “Guideline No. 3 on Ongoing Supervision of Asset-Backed Securities—Credit Risk Management” (hereinafter referred to as the “Periodic Report Guideline,” the “Ad Hoc Report Guideline,” and the “Credit Risk Management Guideline,” respectively), thereby steadily establishing an asset-backed securities regulatory framework centered on business rules, underpinned by business guidelines, and supplemented by operational manuals.
Asset securitization is steadily advancing, with its role in unlocking the value of existing assets becoming increasingly prominent.
The Shenzhen Stock Exchange, guided by the goals of aligning with national strategies and serving the development of the real economy, has actively promoted the steady and sound growth of the asset‑backed securities market. It has facilitated the issuance of ABS backed by receivables, finance‑lease claims, real estate, and other types of underlying assets, while supporting and encouraging enterprises to issue innovative ABS products in areas such as green and low‑carbon initiatives, technological innovation, and the digital economy. To date, the cumulative issuance of asset‑backed securities on the Shenzhen market has exceeded RMB 2.49 trillion, covering a full range of major underlying asset categories and featuring distinctive specialized asset classes, thereby becoming an important tool for the bond market to help the real economy unlock existing assets and broaden direct financing channels for enterprises. To foster high‑quality development of the asset‑backed securities business, refine self‑regulatory requirements, and strengthen investor protection, the Shenzhen Stock Exchange, under the guidance of the China Securities Regulatory Commission, has drawn on its prior experience in regulatory oversight and service provision, continuously optimized the institutional framework of the exchange’s bond market, and formulated and issued relevant business rules and accompanying guidelines.
Formulate and promulgate foundational rules to lay a solid foundation for business development.
The newly released “ABS Business Rules” consolidate and streamline existing business guidelines and operational manuals, while incorporating the foundational rules for asset-backed securities that have emerged from regulatory practice in recent years. These rules provide a systematic framework governing the entire lifecycle of asset-backed securities, covering eligibility conofficeation, issuance, listing and transfer, and ongoing management. First, the rules clearly define the listing criteria, review procedures, and basic requirements for underlying assets and key market participants, thereby strengthening the institutional foundation for access to the asset-backed securities market and fostering stable market expectations. Second, they establish a comprehensive mechanism for ongoing management, comprehensively regulating issuance and listing procedures, investor suitability, transfer arrangements, information disclosure, suspension and resumption of trading, and delisting, thus reinforcing end-to-end oversight across the pre‑, during‑, and post‑transaction phases. Third, risk prevention and control are strengthened through a dedicated chapter on the protection of holders’ rights, clarifying the credit risk management responsibilities of key market participants, standardizing arrangements related to holders’ meetings, and ensuring the effective functioning of mechanisms for safeguarding holders’ interests. Fourth, self-regulatory measures are specified, with a zero‑tolerance approach consistently applied to violations and enhanced supervisory enforcement.
Standardize ongoing disclosure practices and enhance the quality of information disclosure.
Adhering to information disclosure as the core is an essential requirement for enhancing transparency in the bond market. The newly revised “Guidelines on Periodic Reports” and “Guidelines on Ad Hoc Reports” further improve the timeliness, standardization, and effectiveness of information disclosure in asset-backed securities transactions. First, they raise the requirements for the completeness of document preparation and refine the basic elements that must be disclosed in various types of announcements. Second, they strengthen the targeted disclosure requirements for major asset classes, highlighting the characteristics of underlying assets and their dynamic changes. Third, they reinforce timely disclosure and early‑warning mechanisms for material matters, thereby reinforcing the manager’s obligation to continuously monitor the special‑purpose plan’s assets, cash flows, and key business participants. Fourth, they enhance the arrangements for the holders’ meeting mechanism, introducing new disclosure requirements for the implementation of holders’ meeting resolutions and progress updates, thus bolstering the protection of holders’ rights and interests.
Strengthen ongoing risk monitoring to enhance the effectiveness of credit risk management.
Strengthening proactive risk research and forecasting, as well as preventing and mitigating credit risks, is of paramount importance for effectively managing the current bond market. The revised “Credit Risk Management Guidelines” have refined the 2018 “Guidelines on Credit Risk Management During the Life Cycle of Asset-Backed Securities (Trial),” further enhancing the systematic, forward-looking, and targeted nature of credit risk management in asset-backed securities activities. Specifically: first, it reinforces the principal responsibilities of key market participants and strengthens their credit risk management duties; second, it specifies the requirements for managers’ risk monitoring and identification, thereby improving the effectiveness of credit risk management; and third, it refines arrangements for responding to and handling credit risks, encouraging key market participants to proactively manage their own credit risks and optimizing the reporting requirements for credit risk response and resolution plans.
Going forward, the Shenzhen Stock Exchange will thoroughly implement the spirit of the Central Financial Work Conference. Under the unified guidance of the China Securities Regulatory Commission, it will steadfastly uphold the overarching principles of robust regulation, risk prevention, and high‑quality development, focusing on the theme of high‑quality growth in the bond market. The Exchange will establish a streamlined, efficient, standardized, and transparent regulatory framework for asset‑backed securities, continuously refine its product lineup, strengthen training on business rules, enhance regulatory capabilities and service standards, and promote the sound and sustainable development of the exchange‑listed asset securitization market.

CSRC: Severely punish bribery in the capital market and rigorously address the “revolving door” between government and business.
According to the CSRC website on March 26, the CSRC convened the 2024 System-wide Conference on Comprehensively Strengthening Party Governance and Discipline Inspection and Supervision. The meeting reviewed the situation regarding the comprehensive strengthening of Party governance within the CSRC system and outlined key tasks for 2024.
The meeting emphasized that, in 2024, the CSRC system must maintain a strong crackdown on corruption, employ reform‑based measures to narrow the scope for rent‑seeking and abuse of power, reduce discretionary authority, and improve institutional mechanisms to prevent the emergence and spread of corruption. It also called for continued efforts to enhance regulatory transparency and impose severe penalties on bribery in the capital markets. Furthermore, it urged rigorous and stringent rectification of “revolving doors” between government and business, focusing on the key issue raised by the CPC Commission for Discipline Inspection and Supervision stationed at the CSRC—reducing the “status‑and‑position value” of departing officials—and adopting a political perspective and approach to address this challenge. Comprehensive measures will be implemented across both operational and managerial fronts to deepen targeted remediation efforts.

Three departments have issued the Interim Measures for the Management of the Operation of State-Owned Equity and Cash Proceeds Transferred to Enrich the Social Security Fund.
Recently, the Ministry of Finance, the Ministry of Human Resources and Social Security, and the State-owned Assets Supervision and Administration Commission of the State Council jointly issued the Interim Measures for the Management of the Transfer and Enhancement of State‑Owned Equity and Cash Income to the Social Security Fund (hereinafter referred to as the “Measures”), which set forth clear provisions on the operational principles, management procedures, investment scope, and supervisory mechanisms governing the transfer and enhancement of state‑owned equity and cash income for the social security fund.
The Measures stipulate that cash income may be invested only within the territory of the People’s Republic of China, and each receiving entity serves as the principal responsible for the investment and management of such cash income. At the central level, the National Council for Social Security Fund undertakes the investment and management of cash income; at the local level, no less than 50% of the cumulative cash income as of the end of the previous year shall be entrusted to the National Council for Social Security Fund for investment and management, while the remaining portion is managed by the respective local receiving entities within prescribed limits—namely, bank deposits, primary‑market purchases of government bonds, and capital increases in transferred enterprises and their controlled subsidiaries. The National Council for Social Security Fund shall formulate performance‑assessment measures for investment management institutions and use the assessment results as a key basis for renewing or adjusting the appointment of such institutions and for determining related fees. These assessments shall reflect an orientation that encourages long‑term investments of three years or more.

The China Banking and Insurance Regulatory Commission has issued the “Administrative Measures for Syndicated Loan Business (Draft for Comments).”
The National Administration of Financial Regulation recently revised the “Guidelines on Syndicated Loan Business” (hereinafter referred to as the “Guidelines”), resulting in the “Administrative Measures for Syndicated Loan Business (Draft for Public Comment)” (hereinafter referred to as the “Draft for Public Comment”), and has now opened it up for public consultation.
The Draft for Public Comments introduces more detailed regulations on syndicated loan management. In response to current issues such as the disorganized appointment of lead arrangers, independent handling of loans by individual banks, and multiple re‑deposits, it further clarifies the responsibilities of the lead arranger. The lead arranger must possess the requisite business capabilities and qualified personnel; for structurally complex syndicated loans, separate lead arrangers may be designated for different tasks, but only one lead arranger may be appointed for any given task. Additionally, it is explicitly stipulated that syndicated loans shall be centrally managed—through loan pooling, disbursement, and repayment—by the lead arranger, and all syndicate members are strictly prohibited from bypassing the lead arranger to directly disburse or recover funds.

Commercial & Corporate
In 2023, the State Administration for Market Regulation investigated and prosecuted 27 major antitrust cases, imposing fines and confiscations totaling RMB 2.163 billion.
On March 29, the website of the State Administration for Market Regulation released the 2023 Annual Report on Building a Law-Based Government.
The report summarizes work in five key areas, noting that in 2023, the State Administration for Market Regulation investigated and handled 39 administrative monopoly cases in accordance with the law and conducted 17 enforcement interviews; reviewed 148,000 new policy measures and 617,000 existing ones nationwide; prosecuted 27 major market‑dominance cases, imposing fines and confiscations totaling RMB 2.163 billion; completed a special campaign to address prominent problems in the medical aesthetics sector, closing 6,494 cases and levying fines and confiscations amounting to RMB 160 million; and rigorously cracked down on commercial bribery and unfair competition in the pharmaceutical industry, with fines and confiscations exceeding RMB 40 million.

Shanghai has introduced 20 measures to ease the tax, labor, and financing burdens on small and medium-sized enterprises.
On March 29, the Shanghai Municipal Government website published the “Notice on Issuing the ‘Several Policy Measures of Shanghai Municipality to Alleviate the Burden on Enterprises and Support the Development of Small and Medium-sized Enterprises.’”
The “Several Policy Measures” comprise five key areas and twenty specific provisions, stipulating that, effective April 2024: inspection and testing fees for special equipment will be reduced by 50%; registration fees for domestically produced pharmaceuticals will be cut by 50%; and registration fees for Class II medical devices manufactured in China will be lowered by 65%. Starting March 2024, the employer contribution rate to the basic employee medical insurance scheme will be temporarily reduced by one percentage point. Power generation companies are encouraged to lower monthly bilateral negotiated electricity prices. Also beginning March 2024, pipeline transportation charges in chemical industrial zones will be reduced by RMB 0.03 per cubic meter, while LNG regasification and pipeline transportation fees at Yangshan Port will be temporarily cut by RMB 0.02 per cubic meter; Shanghai Gas Company will abolish its previous 5% surcharge applied to certain users. Non-residential water users will be exempt from the progressive surcharge on water consumption exceeding their allocated quotas for 2024. Furthermore, efforts will be stepped up to expand inclusive micro‑ and small‑enterprise lending, with the goal of pushing the year‑end outstanding loan balance beyond RMB 1.3 trillion. The city’s policy‑based financing guarantee fund for SMEs will be gradually increased from RMB 10 billion to RMB 20 billion, and the maximum amount of entrepreneurial guarantee loans per borrower per transaction will be raised to RMB 4 million, among other measures.

Beijing has outlined ten key tasks to promote the high-quality development of livestreaming e-commerce.
Recently, the Beijing Municipal Government website released the “Several Measures to Promote the High-Quality Development of Live-Streaming E‑Commerce in Beijing (2024–2025).”
The “Several Measures” plan aims, by 2025, to cumulatively guide the designation of approximately 30 Beijing‑specific livestreaming e‑commerce bases, develop around 50 model cases or scenarios for livestreaming e‑commerce, and cultivate roughly 100 Beijing‑based brand merchants with annual livestreaming sales exceeding RMB 10 million. The initiative seeks to raise the city’s statistically reported livestreaming e‑commerce transaction volume to RMB 1.5 trillion by 2025, while outlining ten key tasks. Taking into account a broad range of stakeholders—including e‑commerce platforms, brand merchants, service providers, and e‑commerce talent—the measures propose a comprehensive, systematic set of concrete actions. These include incubation and attraction, demonstration‑driven leadership, and policy support to nurture market players in the livestreaming e‑commerce sector; leverage the agglomeration and catalytic effects of e‑commerce platforms; foster and attract high‑quality livestreaming service providers; build distinctive Beijing‑branded livestreaming e‑commerce IPs; and establish Beijing‑specific livestreaming e‑commerce bases.

The State Administration for Market Regulation has organized the application process for the third batch of national pilot programs on innovative commercial secret protection.
On March 29, the website of the State Administration for Market Regulation published the “Notice on Organizing Applications for the Third Batch of National Innovation Pilot Projects for Trade Secret Protection.”
The Notice clarifies that the third batch of innovation pilot programs will be carried out at the level of separately listed cities, sub-provincial cities, prefecture-level cities, and municipal districts (counties) of directly administered municipalities, with applications submitted by the local people’s governments. Based on the status of trade secret protection and their development needs, local governments may voluntarily submit applications for innovation pilots, prepare the requisite documentation, and submit it to the provincial market regulation authorities. Following a preliminary review of the submitted materials, the provincial market regulation authorities will select and forward the most promising applications to the State Administration for Market Regulation. The State Administration for Market Regulation will then convene experts to evaluate and substantiate these applications, choosing 5 to 10 regions—those demonstrating strong political commitment, clear strategic approaches, well-defined innovation priorities, distinct advantages in key industries, and a solid institutional foundation—as the third batch of innovation pilot areas.

The People’s Bank of China has released the overall operational status of the payment system for 2023.
Recently, the People’s Bank of China published on its website an overview of the 2023 payment system operations.
According to 2023 payment‑industry statistics, the national payment system operated smoothly, with overall growth in the number of bank accounts, the volume of non‑cash payment transactions, and the throughput of payment systems. Notably, activity in the electronic commercial bill system increased: in 2023, the Shanghai Bills Exchange’s electronic commercial bill system processed 28.0921 million acceptances totaling RMB 31.27 trillion, up 2.97% and 14.59% year over year, respectively; and 12.1199 million discounts amounting to RMB 23.81 trillion, representing year‑on‑year increases of 9.18% and 22.42%, respectively.

The Ministry of Ecology and Environment has issued implementation guidelines to accelerate the establishment of a modern ecological and environmental monitoring system.
On March 13, the website of the Ministry of Ecology and Environment published the “Notice on Issuing the ‘Implementation Opinions on Accelerating the Establishment of a Modern Ecological and Environmental Monitoring System.’”
The Implementation Opinions set forth the following key tasks: (1) to establish a comprehensive, integrated monitoring network spanning air, space, land, and sea; (2) to cultivate new competitive advantages in digital and intelligent monitoring technologies; (3) to strengthen high‑level support for monitoring operations; (4) to lay a solid foundation for high‑quality monitoring data; and (5) to advance efficient monitoring management.

The Beijing Municipal Bureau of Commerce has launched and implemented the “Global Services Partnership Program.”
Recently, the Beijing Municipal Government website published the “Notice on Implementing the Global Services Partnership Program.”
The Plan aims to attract and nurture a diverse array of service-sector enterprises and institutions that align with the capital’s functional positioning, continuously enhancing the global competitiveness of “Beijing Services.” It focuses on key areas including technology services, cultural and tourism services, information services, financial services, education services, health and medical services, professional services, aviation services, and commercial and trade services. By joining the Plan, participants can engage in high-level public–private dialogues, become members of the Expert Advisory Committee, and access a range of support services, such as policy‑alignment assistance, channels for addressing business concerns, project‑implementation support, market‑resource matchmaking, and specialized policy‑interpretation services.

The National Medical Products Administration has issued the Principles and Procedures for Exploratory Research on Drug Sampling.
On March 29, the website of the National Medical Products Administration published the “Notice on Issuing the Principles and Procedures for Exploratory Research in Drug Sampling Inspections.”
The Notice clarifies that provincial drug regulatory authorities may, based on the actual regulatory needs within their administrative jurisdictions, organize targeted exploratory studies as part of local drug sampling inspections. They shall strengthen unified leadership and coordinated management, guiding relevant drug testing institutions to conduct such exploratory studies in accordance with requirements set forth in documents like the “Principles and Procedures for Exploratory Studies in Drug Sampling.” The findings of these exploratory studies may serve as a reference for drug regulatory agencies in implementing risk‑based control measures and further regulatory actions. Conducting exploratory studies must be grounded in thorough preliminary research, taking into account current drug regulatory priorities and the realities of industrialized pharmaceutical production. It is essential to gain a comprehensive understanding of the industry landscape, clinical usage, quality standards, and existing issues associated with the products under investigation. Starting from key factors and critical stages that could affect drug safety and quality, researchers should carry out scientific, in-depth, and precise analyses to identify and propose leads regarding potential problems; possible root causes; corrective measures; and recommendations for strengthening oversight in areas such as quality standards, raw and excipient materials, manufacturing processes and formulations, packaging materials, package inserts, and suspected violations of laws and regulations.

The Ministry of Transport plans to revise the Measures for the Administration of Shore Power at Ports and on Ships.
On March 28, the website of the Ministry of Transport published the “Notice on Soliciting Public Comments on the Draft Amendment to the Measures for the Administration of Shore Power at Ports and Ships,” with a deadline for submitting feedback set for April 29.
The Measures comprise five chapters and thirty-four articles, adding requirements for coastal port operators to construct and upgrade shore‑side electrical supply facilities, as well as for coastal waterway transport operators to construct and upgrade onboard power reception systems. They also introduce penalties for vessels calling at coastal ports, coastal port operators, and shore‑side power supply providers that fail to use shore power in accordance with the prescribed regulations.

Hubei Human Resources and Social Security Department Issues Twenty-Three Guidelines for Adjudicating Labor Disputes
On March 24, the website of the Hubei Provincial Department of Human Resources and Social Security published the “Regulatory Guidelines on Several Issues in the Adjudication of Labor and Personnel Dispute Arbitration Cases in Hubei Province (I).”
The “Standardized Guidelines” establish uniform standards for discretionary decisions on 23 issues, including the scope of cases accepted by arbitration, thereby regulating the exercise of arbitral discretion and effectively preventing inconsistent rulings in similar cases. In line with the principles of fairness and impartiality in labor and personnel dispute arbitration, Articles 4, 5, 7, 11, 12, 14, and 23 of the Guidelines set forth provisions regarding the determination of employment relationships, exceptions to double wages and economic compensation, and the employer’s autonomy in hiring, thus avoiding overly broad determinations of employment relationships and the unwarranted expansion of employers’ obligations.

The human resources and social security authorities of Beijing, Tianjin, and Hebei have jointly issued the “Guidance on Compliance in Labor Dispatch Employment in the Beijing–Tianjin–Hebei Region.”
Recently, the human resources and social security authorities of Beijing, Tianjin, and Hebei Province jointly issued the “Guidance on Compliance in Labor Dispatch Employment in the Beijing–Tianjin–Hebei Region.”
The Guidelines primarily provide guidance on the qualifications and conduct of labor dispatch agencies and employing units, clearly delineating key aspects of the labor dispatch process through “key reminders,” thereby helping employing units to hire dispatched workers in compliance with laws and regulations and enabling labor dispatch agencies to carry out their business activities in accordance with applicable laws and standards.

Xi’an has issued a notice to launch an employment‑promotion initiative in the human resources services sector.
On March 28, the website of the Xi’an Municipal Human Resources and Social Security Bureau issued the “Notice on Further Strengthening Employment-Boosting Measures in the Human Resources Services Sector.”
The Notice emphasizes the importance of providing employment assistance to key groups. It calls for supporting human resources service agencies in effectively facilitating employment among priority populations—such as college graduates and rural migrant workers—by conducting specialized recruitment events on campuses, assessing actual needs in rural areas, and implementing targeted job‑matching initiatives in enterprises. Furthermore, it encourages these agencies to develop innovative service offerings and delivery models tailored to disadvantaged workers, including those from struggling businesses, junior and senior high school graduates who have not pursued further education, urban registered unemployed individuals, veterans, rural laborers seeking employment elsewhere, impoverished workers, and persons facing significant employment challenges. Such services should encompass diversified support measures, such as precision recruitment, entrepreneurship assistance, and skills training. Human resources service providers are also urged to fulfill their social responsibilities by proactively participating in employment‑assistance programs for vulnerable groups and by actively offering public‑interest services.

MIIT: This year, it will launch the “AI Plus” initiative to promote AI-driven transformation of new‑type industrialization.
On March 26, the State Council Information Office held a press conference, at which officials from the Ministry of Industry and Information Technology, the Ministry of Commerce, and the General Administration of Customs presented recent data on production, consumption, and imports and exports, as well as related policy updates.
An official from the Ministry of Industry and Information Technology stated that the ministry will continue to advance the technological upgrading and transformation of traditional industries, foster and expand emerging sectors, and promote the sound and orderly development of next-generation information technologies, intelligent connected vehicles, aerospace, biomanufacturing, and other emerging industries, while proactively planning and building future‑oriented industries. This year, the “AI Plus” initiative will be launched to deepen the integration of artificial intelligence with the real economy and leverage AI to drive a new wave of industrialization. Infrastructure such as 5G networks and computing power will be developed in a moderately forward‑looking manner, and large‑scale applications of the industrial internet will be accelerated. An official from the Ministry of Commerce indicated that international cooperation on foreign trade supply chains will be deepened, the adoption of electronic trade documents will be expedited, and efforts to steadily advance the construction of cross‑border e‑commerce pilot zones will continue. Meanwhile, the General Administration of Customs will work to enhance convenience and reduce costs by accelerating mutual recognition of AEO programs internationally, continuously standardizing fee‑charging practices at import and export stages, and introducing, as appropriate, additional policy measures tailored to individual enterprises or specific industries.

The 13th Ministerial Conference of the World Trade Organization adopted the WTO’s first global multilateral investment agreement.
Recently, the 13th Ministerial Conference of the World Trade Organization was held in Abu Dhabi, United Arab Emirates. The conference adopted the Abu Dhabi Ministerial Declaration, achieving practical outcomes on issues including investment facilitation, reform of the dispute settlement mechanism, smooth graduation of least developed countries, e‑commerce, regulatory cooperation, and small economies.
According to the head of the WTO Department of the Ministry of Commerce, the declaration comprises 23 paragraphs, reafofficeing the necessity of granting special and differential treatment to developing members and least-developed countries. It also incorporates supply-chain-related provisions for the first time and includes political commitments on trade and sustainable development, women’s economic empowerment, micro, small and medium-sized enterprises, and the services sector. During the conference, 127 WTO members announced the conclusion of the Agreement on Investment Facilitation for Development. This agreement marks the WTO’s first investment‑rules negotiation led by developing members, the first trade‑and‑economic agreement with development at its core, and the world’s first global multilateral investment agreement. Its key provisions cover enhancing the transparency and predictability of investment measures, streamlining and expediting administrative approval procedures, and promoting sustainable investment.

The State Council has unveiled a landmark package of 24 measures to further open up and attract foreign investment, explicitly calling for greater openness across multiple regions and sectors.
On March 19, the Chinese Government Website publicly released the “Notice of the General Office of the State Council on Issuing the Action Plan for Solidly Advancing High-Level Opening-Up and More Vigorously Attracting and Utilizing Foreign Investment,” calling for stronger policy measures to enhance China’s appeal to foreign investors.
The Plan comprises five key areas and 24 measures, proposing the comprehensive removal of foreign‑investment access restrictions in the manufacturing sector, the continued expansion of market openness in sectors such as telecommunications and healthcare, and the authorization of pilot free trade zones in Beijing, Shanghai, Guangdong, and other regions to select a number of foreign‑invested enterprises for pilot programs aimed at further opening up in fields like the development and application of gene‑diagnosis and gene‑therapy technologies. It also calls for broadening market access for foreign financial institutions in the banking and insurance sectors, supporting eligible foreign financial institutions to participate, in accordance with regulations, in domestic bond underwriting, expanding the scope of the Qualified Foreign Limited Partner pilot program, facilitating data flows between foreign‑invested enterprises and their headquarters, and intensifying efforts to align with international high‑standard economic and trade rules through targeted pilot initiatives.

Nine departments have rolled out 22 measures to promote the high-quality development of the catering industry.
On March 28, the Ministry of Commerce website released the “Guiding Opinions on Promoting High-Quality Development of the Catering Industry,” outlining 22 measures across eight key areas to stabilize and expand catering consumption and support the industry’s high-quality growth.
The “Guiding Opinions” focus on issues of public concern, such as food safety, food additives, and pre‑prepared dishes, and clearly stipulate the vigorous promotion of a system requiring restaurants to voluntarily disclose ingredient lists and preparation methods; the widespread adoption of seal‑on‑delivery systems for takeout orders; and the implementation of commitments to reduce the use of food additives in the catering sector—avoiding unnecessary additions and consciously resisting the illegal addition of non‑food substances. The document also calls for accelerating the development and refinement of relevant standards for pre‑prepared dishes. Furthermore, it emphasizes strengthening intellectual property protection in the catering industry and intensifying regulatory enforcement to combat food waste. It mandates strict investigation and punishment of all unauthorized fees imposed under the guise of equipment installation, certification, or the purchase of designated insurance. Finally, it requires timely crackdowns on violations such as forced consumption and compulsory “QR‑code ordering,” while obligating catering businesses to maintain human‑staffed service and traditional payment methods and to accept cash without refusal.

The Ministry of Natural Resources has issued the “Administrative Measures on Data Security in the Field of Natural Resources.”
On March 28, the website of the Ministry of Natural Resources published the “Notice on Issuing the Measures for the Administration of Data Security in the Field of Natural Resources.”
The Measures comprise seven chapters and thirty-seven articles, setting forth provisions on data classification and grading management, full‑life‑cycle data security management, data security monitoring, early warning, and emergency response, as well as oversight and inspection, and legal liabilities. They specify that, in the field of natural resources, data categories include, but are not limited to, geographic information, natural resource surveying and monitoring, territorial spatial planning, and natural resource management. Furthermore, they stipulate that data processors bear primary responsibility for the security of their data processing activities and shall implement tiered protection measures for all types of data.

Four departments have issued the “Implementation Plan for Innovative Applications of General Aviation Equipment.”
On March 27, the website of the Ministry of Industry and Information Technology published the “Notice on Issuing the Implementation Plan for Innovative Applications of General Aviation Equipment (2024–2030).”
The Implementation Plan sets forth 20 key tasks across five areas: (1) strengthening the industry’s capacity for technological innovation; (2) enhancing the competitiveness of industrial and supply chains; (3) deepening demonstration applications in priority sectors; (4) advancing the development of a robust foundational support system; and (5) building an efficient, integrated industrial ecosystem. Specifically, it calls for fostering high‑quality, diversified market players, bolstering the resilience and security of industrial chains, cultivating a cohort of specialized, refined, distinctive, and innovative “little giant” enterprises and manufacturing single‑champion offices, and establishing an integrated innovation‑driven industrial ecosystem that spans technology development, product R&D, demonstration and validation, and application promotion. The plan also aims to create a new type of advanced manufacturing cluster for general aviation equipment, characterized by seamless integration among large, medium, small, and micro enterprises, concentrated innovation resources, and highly efficient networked collaboration.

The Shanghai Administration for Market Regulation and the Management Committee of the Hongqiao International Central Business District have signed a cooperation agreement to jointly build a high ground for institutional openness.
On March 26, the Shanghai Municipal Administration for Market Regulation and the Management Committee of the Hongqiao International Central Business District signed a cooperation agreement to jointly build a high ground for institutional openness. Focusing on the development of the Hongqiao International Open Hub, the two parties unveiled nine institutional innovation policies.
The secretary of the Shanghai Municipal Market Supervision Administration stated that it is essential to vigorously support Hongqiao in building a world-class business environment, fully remove bottlenecks and obstacles hindering economic circulation, optimize regulatory services for new industries, new business forms, and new models, and improve the system for protecting trade secrets. It is also crucial to strongly assist Hongqiao in serving as an international bridge for openness, continuously expanding the scope of institutional and policy liberalization, enhancing the agglomeration of production factors and resources, and strengthening alignment with international standards and rules. Furthermore, Hongqiao should be robustly supported in developing high-end industrial clusters, striving to take the lead in cultivating new‑type productive forces, making tangible contributions to bolstering the quality‑based foundation, and boldly exploring ways to meet the demands of product‑quality upgrades and enterprise transformation and upgrading.

State Administration for Market Regulation: Strengthen the principal responsibility of food-delivery merchants to prevent food waste.
Recently, the State Administration for Market Regulation issued the “Notice on Further Strengthening the Standardization of Marketing Practices by Food Delivery Merchants to Prevent Food Waste,” requiring local authorities to urge online food‑delivery platforms and catering businesses to reinforce their principal responsibilities, continuously standardize their marketing practices, and effectively curb food waste.
With regard to enforcing the principal responsibilities of online catering platforms, the Notice requires that platforms be urged to optimize their marketing and contractual rules and prominently display prompts for moderate ordering on their pages; it also encourages platforms to refine incentive mechanisms, prompting merchants to develop, offer, and promote smaller‑portion dishes, set reasonable minimum order thresholds, improve “spend‑and‑save” and bundle‑discount schemes, and exclude staple foods from such promotional offers. Furthermore, platforms are directed to promptly rectify any non‑compliant marketing practices. As for strengthening the principal responsibilities of food‑delivery merchants, the Notice stipulates that merchants should be urged to implement dynamic management; they are guided to appropriately determine portion sizes and quantities, offer smaller‑portion options, accurately present menu information, and issue appropriate prompts for moderate ordering. Merchants are also required to ensure compliance with marketing regulations and set reasonable minimum order prices, while the use of tamper‑evident seals is encouraged.

The National Health Commission has outlined six key areas to strengthen the management of obstetric services.
On March 27, the National Health Commission website published the “Notice on Strengthening the Management of Midwifery Services.”
The Notice emphasizes that public medical institutions must assume the responsibility of providing a safety net for obstetric services and sets out specific requirements for strengthening midwifery care across six key areas. First, it calls for reinforcing the planning and spatial layout of midwifery services to ensure an adequate supply and effectively meet the needs of pregnant and postpartum women. Second, it mandates the proactive publication of lists of accredited maternity facilities and their acceptance of public oversight, thereby facilitating orderly access to care for the general public. Third, it underscores the need to strengthen quality management in midwifery services to comprehensively enhance both safety and quality. Fourth, it promotes the development of birth‑friendly hospitals, optimizes maternal and perinatal health services, and fosters safe, comfortable childbirth. Fifth, it standardizes the reallocation of midwifery service resources, clarifies the adjustment procedures, and ensures the accessibility of these services. Sixth, it seeks to improve and refine policy‑based support mechanisms, establishing a robust framework that fosters high‑quality development in obstetrics and motivates healthcare professionals in this field.

The 2024 Annual Work Conference of the Ministry of Commerce’s Domestic Trade Think Tank Liaison Mechanism was held.
The 2024 annual working conference of the Ministry of Commerce’s domestic trade think-tank liaison mechanism was held in Beijing.
The meeting thoroughly implemented the spirit of the Central Economic Work Conference and the National Commerce Work Conference, reviewed the 2023 performance of the liaison mechanism, and exchanged views on key research priorities for domestic trade in 2024. Relevant departments and bureaus of the Ministry of Commerce, along with responsible officials from the 18 member think tanks of the domestic trade network and eight commercial universities, attended the meeting. The meeting emphasized the need to focus on the central government’s strategic plans and the priorities of domestic trade work, continuously deepen theoretical innovation in the field of domestic trade, strengthen policy research, and intensify publicity efforts, thereby making greater contributions to building a robust domestic market and forging a new development paradigm.

Taxation
China has terminated the imposition of anti-dumping and countervailing duties on Australian wine imports.
On March 28, the Ministry of Commerce issued the “Announcement on the Review Ruling Regarding the Anti-Dumping and Countervailing Measures Applicable to Imported Wine Originating in Australia,” which shall take effect as of March 29, 2024.
The Announcement states that the Ministry of Commerce has determined that, in light of changes in the relevant Chinese wine market, it is no longer necessary to impose anti-dumping and countervailing duties on imported wines originating in Australia. Based on the Ministry’s recommendation, the Customs Tariff Commission of the State Council has decided that, effective March 29, 2024, the anti-dumping duty on imported wines originating in Australia will be terminated; following the termination of the anti-dumping duty, the countervailing duty will also not be imposed.

Four Shanghai departments have clarified the implementation guidelines for the pilot preferential stamp duty policy on offshore trade.
To implement the provisions of Cai Shui [2024] No. 8, the Shanghai Municipal Tax Service and three other departments have jointly issued the “Notice on Matters Relating to the Pilot Preferential Stamp Duty Policy for Offshore Trade in the China (Shanghai) Pilot Free Trade Zone and the Lingang New Area,” which shall be effective from April 1, 2024, to March 31, 2025.
The Notice applies to sales contracts entered into by enterprises registered in the Shanghai Free Trade Zone and the Lingang New Area when engaging in offshore resale transactions. Taxpayers who execute such contracts are eligible for an exemption from stamp duty. The Notice clarifies that the determination of resident and non-resident enterprise status shall be based on the country or region where the enterprise is registered. To avail themselves of the stamp duty preferential policy for offshore resale, taxpayers shall follow a processing procedure characterized by “self-assessment, declaration for benefit, and retention of relevant documentation for record‑keeping.” Taxpayers shall bear legal responsibility for the authenticity, completeness, and legality of the documents retained for inspection.

Minister of Finance Lan Fo’an: All types of business entities will be treated equally in areas such as tax and fee incentives and policy-based procurement.
At the opening of the 2024 Annual Meeting of the China Development Forum on the 24th, Chinese Finance Minister Lan Fo’an stated that China will continue to coordinate central and local fiscal policies to provide support for large-scale equipment upgrades and the trade-in of consumer goods.
Lan Fo’an stated that fiscal support for high-quality development will focus on five key areas, including actively promoting the construction of a unified national market, treating all types of market entities equally in tax and fee concessions and policy procurement, and supporting the consolidation of the foundations of foreign trade and foreign investment while enhancing the synergistic effects between domestic and international markets and resources. The Ministry of Finance will also, in accordance with the arrangements of the CPC Central Committee and the State Council, proactively plan a new round of fiscal and tax system reform and establish and improve a modern fiscal system that is aligned with Chinese-style modernization.

LITIGATION & ARBITRATION
The Supreme People’s Court and the Supreme People’s Procuratorate jointly released typical cases of punishing bribery offenses.
Recently, the Supreme People’s Court and the Supreme People’s Procuratorate jointly released eight typical cases of punishing bribery offenses in accordance with the law.
In Case Four, the defendant, Hu Mouting, while selling medical consumables—including medical films, disposable syringes, and infusion sets—to a central hospital in a certain city, repeatedly offered bribes totaling over RMB 5.32 million to two successive hospital presidents, Song Moumou and Sun Moumou, in order to obtain improper benefits. He also paid RMB 170,000 to Luo Mou, head of the Equipment Department; RMB 130,000 to Cao Moumou, head of the Pharmacy Department; and RMB 180,000 to Wang Moumou, head of the CT Room, for a total of over RMB 5.80 million. The court held that, in pursuit of illicit gains, the defendant Hu Mouting provided property to state functionaries under circumstances deemed particularly serious, thereby constituting the crime of bribery. Consequently, he was sentenced to ten years’ imprisonment and fined RMB 300,000 for the crime of bribery.

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