JC Master Legal News Issue 1098

Key Takeaways for This Issue
The National Administration of Financial Regulation has issued the Measures for the Administration of Fixed-Asset Loans, the Measures for the Administration of Working Capital Loans, and the Measures for the Administration of Personal Loans.
To further enhance the credit management capabilities and the quality and efficiency of financial services of banking and financial institutions, the China Banking and Insurance Regulatory Commission has revised a number of credit management regulations, including the Provisional Measures for the Administration of Fixed-Asset Loans, the Provisional Measures for the Administration of Working Capital Loans, the Provisional Measures for the Administration of Personal Loans, and the Guidelines on Project Financing, thereby formulating the Measures for the Administration of Fixed-Asset Loans, the Measures for the Administration of Working Capital Loans, and the Measures for the Administration of Personal Loans.
The Ministry of Finance has standardized the management of cooperative innovation procurement methods in government procurement.
On February 1, the Ministry of Finance launched a public consultation on the “Interim Measures for the Administration of Collaborative Innovation Procurement in Government Procurement (Draft for Comments),” with a deadline for submissions set for February 11, 2024.
The State Council is soliciting leads on issues that affect the business environment.
On February 1, the State Council issued the “Notice on Soliciting Clues Regarding Issues Affecting Business Environment Development,” inviting public submissions of leads and suggestions on five key areas.
The Supreme People’s Procuratorate has issued a notice: Conduct public-interest litigation in the field of work safety in a precise and standardized manner.
The Eighth Procuratorial Office of the Supreme People’s Procuratorate recently issued the “Notice on Fully Leveraging the Public Interest Litigation Functions of the Procuratorial Organs to Urge the Prevention and Resolution of Safety Production Risks and Hidden Dangers,” requiring procuratorial organs at all levels to fully exercise their public interest litigation functions, conduct such work in a precise and standardized manner, and effectively safeguard the lives and property of the people.
Finance & Capital Markets
Issued by the National Administration of Financial Regulation
Measures for the Administration of Fixed Asset Loans, Measures for the Administration of Working Capital Loans, Measures for the Administration of Personal Loans
To further enhance the credit management capabilities and the quality and efficiency of financial services provided by banking financial institutions, the China Banking and Insurance Regulatory Commission has revised several credit‑management regulations, including the Interim Measures for the Administration of Fixed‑Asset Loans (Order No. 2 of 2009 of the China Banking Regulatory Commission), the Interim Measures for the Administration of Working‑Capital Loans (Order No. 1 of 2010 of the China Banking Regulatory Commission), the Interim Measures for the Administration of Personal Loans (Order No. 2 of 2010 of the China Banking Regulatory Commission), and the Guidelines on Project Financing (CBRC Document No. 71 [2009]). These revisions have resulted in the formulation of the Measures for the Administration of Fixed‑Asset Loans, the Measures for the Administration of Working‑Capital Loans, and the Measures for the Administration of Personal Loans (hereinafter referred to as the “Three Measures”), which are hereby officially promulgated and shall enter into force on July 1, 2024.
The key revisions include: First, reasonably broadening the scope of uses and eligible borrowers for fixed‑asset loans and working‑capital loans, and optimizing the calculation requirements for working‑capital loans to better meet actual market needs. Second, adjusting and refining the thresholds for entrusted disbursement and moderately extending the time limits for such disbursements, thereby enhancing the flexibility of this mechanism. Third, in response to the growing demand for online loan processing, clarifying permissible methods such as video interviews and off‑site due diligence to accommodate emerging financing scenarios. Fourth, specifying loan‑term requirements to help commercial banks effectively manage maturity‑mismatch risks and further optimize their loan portfolios. Fifth, strengthening credit risk management to encourage commercial banks to elevate the standardization of their credit‑management practices. Sixth, incorporating the “Regulations on the Administration of Project Financing Business” as a dedicated chapter within the “Administrative Measures for Fixed‑Asset Loans.”
From January 6 to February 6, 2023, the “Three Measures” and the Regulations on the Administration of Project Financing were publicly solicited for comments, drawing widespread attention from financial institutions, academic experts, and the general public. Based on the feedback received, stakeholders generally expressed support for this round of revisions. The National Administration of Financial Regulation has systematically reviewed each comment, conducted thorough analyses, and carefully incorporated scientifically sound and reasonable suggestions, further revising and refining the relevant regulatory frameworks.
The promulgation and implementation of the “Three Measures” represent an important step in refining China’s credit management system for banking financial institutions, helping to further enhance their credit management capabilities, mitigate financial risks, and improve the quality and efficiency of financial services. Moving forward, the National Administration of Financial Regulation will ensure the effective implementation of these measures and actively promote the sound and orderly development of credit business.

The China Securities Regulatory Commission has further strengthened oversight of securities lending activities and imposed a comprehensive suspension on the borrowing of restricted shares.
To uphold an investor‑centric regulatory philosophy and strengthen oversight of the lending of restricted shares, the China Securities Regulatory Commission, following thorough deliberation and assessment, has further refined the securities‑lending regime. Specifically: first, it has imposed a comprehensive suspension on the lending of restricted shares; second, it has adjusted the market‑based order‑submission window for stock‑loan transactions from real‑time availability to next‑day availability, thereby placing limits on lending efficiency. Due to system‑adjustment requirements and other factors, the first measure took effect on January 29, while the second measure became effective on March 18.
In October 2023, the China Securities Regulatory Commission prohibited listed companies’ senior executives and core employees from lending shares through special asset management plans established for strategic allocations, and imposed restrictions on the methods and proportions of share lending by other strategic investors during the early stages of a company’s listing. Since the new regulations took effect, the outstanding balance of share loans by strategic investors has declined by nearly 40%, yielding positive results.
Building on the experience gained from earlier efforts to refine the securities‑lending regime, and guided by the principle of “prudent advancement and phased implementation,” the CSRC’s latest enhancements to the securities‑lending mechanism reflect the following regulatory objectives: First, to emphasize fairness and reasonableness, reduce the efficiency of securities lending, and curb institutional advantages in information access and the use of financial instruments, thereby affording all types of investors more time to digest market information and fostering a fairer market environment. Second, to strengthen rigorous oversight by imposing temporary restrictions on the borrowing of all restricted shares, further tightening supervision of securities‑lending involving such shares, while resolutely cracking down on illegal and non‑compliant practices that exploit securities‑lending as a means to circumvent share‑holding lock‑up periods or cash out illicitly.
Going forward, the China Securities Regulatory Commission will continue to strengthen regulatory oversight, place greater emphasis on ensuring fairness in the regulatory framework, promptly review and assess the effectiveness of its implementation, uphold market order in accordance with the law, and earnestly safeguard the legitimate rights and interests of the broad investor base.

The Shenzhen Stock Exchange has launched a special campaign titled “Dual Enhancement of Quality and Returns,” officely upholding an investor‑centric philosophy and striving to elevate the quality and investment value of listed companies.
The Central Financial Work Conference emphasized the need to significantly enhance the quality of listed companies. Recently, the State Council Executive Meeting once again underscored the importance of improving both the quality and investment value of listed offices. At a national video conference on deploying outreach visits to listed companies and promoting their high-quality development, Vice Premier He Lifeng pointed out that greater support should be provided to high‑quality listed companies, so as to bolster confidence, ensure capital market stability, and advance high‑quality economic growth.
Listed companies are the cornerstone of the capital market, and enhancing their quality is essential to bolstering the market’s vitality and resilience. To thoroughly implement the important directives of the CPC Central Committee and the State Council, earnestly carry out the arrangements set forth at the CSRC’s 2024 System Work Conference, and officely uphold an investor‑centric philosophy, the Shenzhen Stock Exchange on February 1 invited 12 representative Shenzhen‑listed companies to a symposium, officially launching the “Dual Enhancement of Quality and Returns” special initiative.
This special campaign aims to enhance the quality of listed companies by strengthening their focus on core businesses, improving their capacity for innovation and development, elevating the quality of information disclosure, and reinforcing sound corporate governance. It seeks to put the investor‑centric principle into practice and guide listed companies in bolstering their commitment to delivering value to investors.
At the symposium, the 12 participating companies engaged in exchanges and discussions on enhancing the quality and investment value of listed offices, sharing their approaches and experiences in pursuing steady, core‑business‑focused growth, strengthening internal governance, and boosting intrinsic corporate value. They also explored ways to proactively cultivate a positive corporate image and increase returns to investors. For instance, CATL stated that it will continue to ramp up R&D spending and innovation, using innovation as its guiding principle to continuously fortify its core competitiveness and reward investors with outstanding performance. BYD emphasized its commitment to officely anchoring an investor‑centric philosophy, sharpening its focus on its core business, and further consolidating its position as the global leader in new‑energy vehicle sales, while leveraging measures such as dividends to deliver value to shareholders. Inovance Technology indicated that it will expand its overseas investment footprint, bolster its international competitiveness, reinforce its dedication to returning value to investors, and enhance the company’s overall investment appeal.
The quality of listed companies is the cornerstone of investment value in the capital market. This quality is most clearly reflected in the returns they deliver to investors. Strong investment appeal not only enhances a company’s attractiveness to investors but also enables it to better leverage capital-market tools to strengthen its operations and enhance its competitiveness. Going forward, the Shenzhen Stock Exchange will thoroughly implement the spirit of the Central Financial Work Conference and the State Council Executive Meeting, and, in accordance with the requirements set forth by the China Securities Regulatory Commission, deeply recognize the political and people-centered nature of capital-market and exchange‑related work. It will carefully study and analyze feedback and suggestions from listed companies gathered through various channels, further harness the platform role and hub function of the exchange, adopt a multi‑pronged approach to support listed companies in improving their performance and bolstering their strength, and vigorously promote the enhancement of both corporate quality and investment value, thereby providing high‑quality services that underpin the economy’s move toward high‑quality development.

The Beijing Stock Exchange and the National Equities Exchange and Quotations Company have released the 2023 annual evaluation results on the professional practice quality of securities offices.
On January 29, 2024, the Beijing Stock Exchange and the National Equities Exchange and Quotations Company released the 2023 annual evaluation results for the professional quality of securities offices. In 2023, a total of 101 securities offices were assigned to one of four rating tiers: Tier 1 comprised 20 offices, Tier 2 included 40 offices, Tier 3 consisted of 20 offices, and Tier 4 encompassed 21 offices.
The evaluation results comprehensively reflect the professional quality of securities offices in the Beijing Stock Exchange and the New Third Board markets. First, service capabilities continue to improve. In 2023, securities offices steadily increased their investment across various market activities, with the average number of companies they sponsor and the average financing amount raised by listed companies both showing steady growth compared to the previous year. Meanwhile, the value of stocks traded on behalf of clients and the number of research reports issued surged. Innovative services such as market making and margin‑and‑short‑selling on the Beijing Stock Exchange operated smoothly; trading activity for market‑making stocks improved markedly, and margin‑and‑short‑selling coverage extended to all listed company shares. Second, participation has been steadily rising. Large, diversified securities offices have seized the new opportunities brought by market reforms, mobilizing all business lines and earning top‑tier ratings in the annual professional‑quality assessment, while maintaining leading positions in multiple key indicators. A number of smaller, specialized offices have also deepened their focus and delivered strong performance. Third, professional quality has further improved. In 2023, the total compliance‑related penalty points for securities offices decreased by 36% compared with the previous year, and the number of offices receiving penalties fell by 19%. Compliance‑related penalties have declined for three consecutive years, reflecting a continuously strengthened commitment to compliant operations.
In the next phase, the Beijing Stock Exchange and the National Equities Exchange and Quotations Company will, in light of the new landscape of market reform and development, further refine their professional‑practice quality‑assessment framework, encourage securities offices to actively participate in the development of the Beijing Stock Exchange and the New Third Board, fully leverage their role as a central hub, continue to increase investment in business operations, uphold high standards of professional conduct, and steadily enhance their capacity to serve innovative small and medium‑sized enterprises.

Strengthening Training and Service Support to Enhance the Quality of Information Disclosure — The Beijing Stock Exchange and the National Equities Exchange and Quotations Company Host the 2023 Annual Report Disclosure Series of Training Sessions
To thoroughly study and implement the spirit of the Central Economic Work Conference and the Central Financial Work Conference, consistently uphold the “Three Services” principle, and promote the standardized and sound development of listed companies, the Beijing Stock Exchange and the National Equities Exchange and Quotations Company have strengthened their service and support efforts, promptly responding to market needs. From January 16 to 25, they organized a series of training sessions on 2023 annual report disclosure, adopting a “by entity, by theme, and in phases” approach, and collectively provided guidance to nearly 5,000 participants, including listed companies, securities offices, accounting offices, and other stakeholders involved in annual report information disclosure.
This series of training sessions adheres to the service principles of “ensuring broad coverage, enhancing precision, and strengthening participants’ sense of gain,” inviting experts from the Public Affairs Department, the Accounting Department, the Inspection Bureau, and the Inspection Corps of the China Securities Regulatory Commission, as well as from Shanghai and Shenzhen‑listed companies and intermediary institutions. Through thorough interpretation of relevant rules, meticulous analysis of case studies, and candid sharing of practical experience, the program aims to improve the quality of information disclosure and the level of compliant operations among companies listed on the over-the-counter market and those seeking an IPO.
First, we have innovated the training format to ensure comprehensive coverage. The program combines in-person instruction, live streaming, and pre-recorded online courses. For the “key few”—including board secretaries and chief financial officers of listed companies—we conduct specialized on-site training sessions to communicate the latest regulatory priorities and enhance professional competencies. In addition, we offer live, cloud-based training sessions open to all market participants, with tailored curricula that convey differentiated regulatory principles. We also promptly make online courses available, enabling relevant stakeholders to access annual report‑related content at any time, reducing participation costs and effectively broadening engagement.
Second, we focus on market needs to enhance the precision of our training. The program centers on key issues and challenges in annual report preparation and disclosure, with an emphasis on explaining the disclosure requirements for common material matters in corporate operations, clarifying reporting standards, and addressing companies’ most pressing concerns. It also provides detailed, step-by-step guidance on upgrading, editing, and validating reporting tools, supplemented by illustrative diagrams and text to help companies get up to speed quickly. Furthermore, the training underscores the essential elements of a high‑quality annual report, using both positive and negative case studies and insights shared by outstanding company secretaries to encourage a culture of continuous improvement across the industry.
Third, we have enriched the curriculum and enhanced participants’ sense of fulfillment from the training. The course design is closely aligned with the theme of information disclosure and keeps pace with current hot topics in the capital markets. We have included sessions on an analysis of the revised Company Law, an overview of equity‑distribution policies, and key aspects of the share‑repurchase regime, addressing issues of particular concern to companies and resolving practical questions raised by trainees. In addition, we have expanded the program to cover ESG‑related disclosures, earnings‑call presentations, and investor‑relations management—topics that are highly relevant to annual report disclosure—thereby boosting participant satisfaction and their overall sense of value.
The Beijing Stock Exchange and the National Equities Exchange and Quotations Company will continue to provide robust support for periodic reporting by issuing regulatory updates, establishing dedicated consultation hotlines, and offering comprehensive training and guidance. These measures are designed to encourage companies to operate in a standardized and compliant manner, disclose information accurately, and contribute to the high-quality development of innovative small and medium-sized enterprises.

Interbank Market Dealers Association: Green Debt Financing Instruments Are Subject to the “Guidelines on Ongoing Information Disclosure for Green Bonds”
On January 31, the National Association of Financial Market Institutional Investors of China issued the “Notice on the Application of the ‘Guidelines for Ongoing Information Disclosure of Green Bonds’ to Green Debt Financing Instruments,” which takes effect from the date of its issuance.
The scope of the Notice covers both outstanding green debt financing instruments as of the effective date and newly registered and issued green debt financing instruments. The Notice sets forth the information disclosure requirements for existing green debt financing instruments and for newly registered and issued ones, as well as the formats for ongoing‑period disclosure. Issuers of outstanding green debt financing instruments shall disclose, by August 31 each year, the mid‑year information pertaining to their green debt financing instruments; such information may be included in the annual report or disclosed separately in a dedicated document.

The National Administration of Financial Regulation convened its 2024 work conference.
On January 30, the China Banking and Insurance Regulatory Commission held its 2024 work conference, reviewing the achievements of 2023 and outlining key priorities for 2024.
The meeting made it clear that in 2024, efforts will be fully focused on advancing the reform and risk mitigation of small and medium-sized financial institutions, improving the institutionalized mechanisms for handling financial risks, proactively and prudently managing risks in key areas, accelerating the implementation and effectiveness of the urban real estate financing coordination mechanism, resolutely enforcing stringent regulatory requirements, comprehensively strengthening the “five major regulatory pillars,” taking a proactive step to enhance coordination between central and local regulators, vigorously preventing and cracking down on illegal financial activities, steadfastly deepening financial reform and opening-up, guiding financial institutions to stay focused on their core businesses, strengthen internal capabilities, reduce costs, and improve efficiency, steadily expanding institution‑based opening-up, providing precise and efficient services to support economic and social development, and ensuring the smooth and orderly completion of institutional reform tasks.

The National Administration of Financial Regulation has issued a document to establish a statistical system for technology insurance business.
On January 29, the website of the National Administration of Financial Regulation published the “Notice on Issuing the Statistical System for Science and Technology Insurance Business.”
The Notice establishes a statistical framework for technology insurance on the liability side and a data‑reporting mechanism, based on two dimensions: “supporting the entire lifecycle of science and technology activities” and “serving the entities engaged in such activities.” It requires that institutions effectively enhance their operational and service capabilities in the technology insurance sector, formulate a strategic plan for developing this line of business, strengthen specialized training and talent development, and ensure accurate and efficient reporting of technology‑insurance data, thereby guaranteeing that the data are truthful, precise, and complete.

Central Bank: In 2023, the bond market maintained steady growth, while total trading volume on the Shanghai and Shenzhen stock exchanges contracted year-on-year.
On January 29, the People’s Bank of China published its report on financial market performance for 2023. According to the report, in 2023, the bond market expanded steadily, with government bond yields trending downward amid volatility; high‑level opening-up of the bond market advanced steadily, and the investor base remained diversified; money‑market trading volume continued to rise, and interbank derivatives turnover maintained growth; meanwhile, major stock indices declined.
In 2023, the bond market issued a total of RMB 71.0 trillion in various types of bonds, up 14.8% year on year, including RMB 11.0 trillion in government bonds and RMB 9.3 trillion in local government bonds. Interbank money market turnover reached RMB 181.72 trillion, an increase of 19.0% compared with the previous year. The face value of commercial bills accepted totaled RMB 31.3 trillion, while the face value of discounted commercial bills amounted to RMB 23.8 trillion. Interbank domestic‑currency derivatives trading volume stood at RMB 31.9 trillion, up 49.8% year on year. The Shanghai Composite Index closed at 2,974.9 points, down 114.3 points, or 3.7%, from the end of 2022; the Shenzhen Component Index ended at 9,524.7 points, a decline of 1,491.3 points, or 13.5%, from year‑end 2022. Total trading volume across both markets for the year was RMB 212.2 trillion, down 5.5% year on year.

Commercial & Corporate
The Ministry of Natural Resources has promulgated the Measures for the Administration of Qualifications of Urban and Rural Planning Preparation Units.
Recently, the Ministry of Natural Resources issued Order No. 11, promulgating the Measures for the Administration of Qualifications of Urban and Rural Planning Preparation Units, which shall take effect from the date of its promulgation.
The Measures introduce four major changes: ensuring a smooth transition; reducing the number of qualification levels and revising the eligibility criteria for applications; optimizing approval services; and strengthening ongoing and post‑approval oversight. The Measures streamline the approval process for Class A qualifications, shifting from a preliminary review by provincial authorities to direct submission to the Ministry of Natural Resources. They also implement the “one‑stop online service” requirement, mandating electronic submission throughout the entire process and providing end‑to‑end online services—including application acceptance, review decisions, and certificate delivery. Furthermore, electronic certificates have been introduced, thereby lowering the costs for enterprises and institutions in obtaining qualifications.

The Ministry of Finance has standardized the management of cooperative innovation procurement methods in government procurement.
On February 1, the Ministry of Finance launched a public consultation on the “Interim Measures for the Administration of Collaborative Innovation Procurement in Government Procurement (Draft for Comments),” with a deadline for submissions set for February 11, 2024.
The Draft for Public Comment comprises seven chapters and forty-two articles, covering general provisions, demand management, ordering procedures, first‑purchase procedures, research‑and‑development contract management, dispute resolution, supervision and inspection, and legal liabilities, as well as supplementary provisions. According to the Draft, collaborative innovation procurement refers to a procurement method in which the procuring entity invites suppliers to engage in joint research and development, share the associated risks, and purchase the successfully developed new products or technologies in quantities or amounts stipulated in the R&D contract. The application of collaborative innovation procurement is limited to three specific scenarios and is divided into two phases: ordering and first purchase. Furthermore, the Draft elaborates on the requirements for dispute resolution, supervision and inspection, and legal liability in the context of collaborative innovation procurement.

Guangdong Issues Guidelines on Lawful Operations for Online Trading Platforms During the Spring Festival Period
Recently, in order to foster a fair and orderly online market environment and a safe, consumer‑friendly shopping experience during the Spring Festival, the Guangdong Provincial Administration for Market Regulation has issued guidelines to further guide operators of online trading platforms to fulfill their legal obligations, standardize their business practices, and safeguard consumers’ rights and interests.
The guidelines require platforms to: fulfill their responsibilities for management oversight; safeguard consumer rights; ensure transparent pricing of goods; enforce food safety and product quality supervision; uphold obligations to prevent food waste in the catering sector; assume responsibility for advertising activities; ensure public safety through emergency response measures; and collaborate effectively with regulatory authorities. Furthermore, the guidelines stipulate that online catering platforms must, in accordance with the law, discharge their statutory duties to combat food waste, optimize the structure of their meal offerings, actively promote smaller portion sizes, strengthen consumer‑awareness reminders throughout the entire process, provide multi‑faceted guidance on ordering appropriate amounts, and foster a culture of frugality and opposition to waste.

Shanghai is deepening its “One-Stop Online Services” reform to optimize government services and enhance administrative efficiency.
Recently, the General Office of the Shanghai Municipal People’s Government issued the “Shanghai Action Plan for Optimizing Government Services, Enhancing Administrative Efficiency, and Deepening the ‘One-Stop Online Service’ Reform (2024–2026).”
The Action Plan covers six areas comprising a total of 32 items, including overarching requirements, advancing “smart and precise” government services, promoting “fair and accessible” government services, establishing an intelligent and streamlined platform support system, building a scientific and accurate performance evaluation framework, and outlining supporting measures.

Beijing has issued the Administrative Measures for the Operation of New-Type Energy Storage Power Stations.
On January 29, the Beijing Municipal Commission of City Management and three other departments issued the “Administrative Measures for the Operation of New‑Type Energy Storage Power Stations in Beijing (Trial).”
The Measures apply to the operation and supervisory management of new‑type energy storage power stations—excluding pumped‑storage hydropower—with a rated power of no less than 500 kW or an energy capacity of no less than 500 kWh, constructed within the administrative boundaries of Beijing (including new construction, reconstruction, and expansion). The Measures stipulate that the operating entity of such new‑type energy storage power stations (i.e., the project filing entity) shall establish and improve a responsibility system for production safety and fire safety, put in place a dual preventive mechanism comprising tiered risk control and hazard identification and remediation, strengthen operational safety management and risk assessment, and enhance emergency management and accident response.

The State Council is soliciting leads on issues that affect the business environment.
On February 1, the State Council issued the “Notice on Soliciting Clues Regarding Issues Affecting Business Environment Development,” inviting public submissions of leads and suggestions on five key areas.
The issues and leads solicited this time include: those related to barriers to market entry and exit; those hindering fair competition in the market; those affecting the quality of government services and administrative efficiency; those infringing upon the legitimate rights and interests of business entities; and those impeding the further opening-up of the economy. In addition, we are seeking opinions and suggestions on building a first-class business environment that is market‑oriented, law‑based, and internationally competitive.

Four departments have issued a document to further enhance the convenience of real estate registration and promote an improved business environment.
On February 1, the Ministry of Natural Resources, the State-owned Assets Supervision and Administration Commission of the State Council, and two other departments jointly issued the “Notice on Further Enhancing the Convenience of Real Estate Registration and Optimizing the Business Environment.”
The Notice comprises eight key areas, including the comprehensive promotion of “end-to-end online processing,” the innovation of full‑life‑cycle registration services for project development, the enhancement of business‑related registration services, and the establishment of a long‑term mechanism for resolving historically accumulated issues. The Notice introduces the practices of “issuing certificates upon land (or property) handover” and “issuing certificates upon mortgage registration,” gradually achieving information sharing and parallel processing across land supply, planning permits, real estate registration, and other related procedures. In addition, real estate registration fees are waived for micro and small enterprises.

The Ministry of Finance has revised and issued the Measures for the Administration of Central Funds for Guiding Local Scientific and Technological Development.
On January 31, the Ministry of Finance’s website published the “Notice on Issuing the Measures for the Administration of Central Funds Guiding Local Scientific and Technological Development.”
The Measures comprise 28 articles and primarily revise the areas of support for guiding funds, expanding them from the original four categories to five: (1) Major scientific and technological tasks; (2) Building regional innovation systems; (3) Developing science and technology innovation platforms; (4) Transferring and commercializing scientific and technological achievements; and (5) Basic research in the category of free exploration. Under these measures, guiding funds are allocated using a combined approach that integrates both project‑based and factor‑based methods; for those funds allocated on a factor‑based basis, a new policy‑task factor has been introduced, accounting for 20% of the allocation weight.

Ministry of Finance: Prioritizing Data Asset Management in Three Key Areas
On February 1, the State Council Information Office held a press conference on the fiscal revenue and expenditure situation for the full year 2023, during which Hou Junming, Director-General of the Department of Asset Management of the Ministry of Finance, addressed questions related to data assets.
Hou Junming stated that, in the next phase, the Ministry of Finance will focus on advancing three key areas related to data assets: First, strengthen end-to-end management of data assets by standardizing processes such as registration, storage, use, disclosure, and disposal, thereby establishing a clear and comprehensive data‑asset management framework and steadily promoting the assetization of data. Second, foster the development and utilization of data assets by encouraging the lawful and compliant provision of public‑sector data assets, increasing the transparency of data‑asset information disclosure, and enhancing the transparency of data‑asset circulation. Third, ensure the compliant and secure use of data assets by reinforcing monitoring and oversight, rigorously preventing risks associated with data leakage, damage, or loss. At the same time, appropriate procedures will be put in place for data‑asset valuation and trading to prevent the artificial inflation of data‑asset values.

The State Administration for Market Regulation has outlined seven key tasks to implement targeted support measures tailored to the different types and categories of individual business households.
On January 31, the website of the State Administration for Market Regulation released the “Guiding Opinions on Carrying Out Targeted Support and Enhancing Development Quality Through Segmentation and Classification of Individual Industrial and Commercial Households.”
The Guiding Opinions set forth the following key tasks: (1) Promote the establishment of a policy framework that covers the various stages of development of individual business households. (2) Intensify efforts to nurture “well-known, distinctive, high-quality, and innovative” individual business households. (3) Advance, in an orderly manner, all work related to classification and categorization. (4) Strengthen the endogenous driving forces for the sustained and healthy development of different types of individual business households. (5) Highlight Party building leadership to enhance the quality of their development. (6) Continuously optimize the development environment for individual business households and foster a favorable atmosphere. (7) Strengthen communication and exchange, monitoring and analysis, and research on emerging issues.

Nine departments have issued a work guideline to improve the recycling system for renewable resources.
On February 1, nine government departments, including the Ministry of Commerce, the National Development and Reform Commission, and the Ministry of Industry and Information Technology, jointly issued a notice promulgating the “Guidelines for Typical Construction of a Robust Recycling System for Waste Household Appliances, Furniture, and Other Secondary Resources.”
The Guidelines set a clear target: by 2025, a number of model cities and enterprises nationwide will be established to develop recycling systems for waste household appliances, furniture, and other secondary resources. The national volume of recycled waste household appliances and furniture is expected to increase by more than 15% compared with 2023. Furthermore, the Guidelines specify that applicant model enterprises must meet at least four requirements, including offering door-to-door “delivery of new” and return‑trip “collection of old” services; organizing activities such as bringing home appliances and furniture to rural areas, trade‑in programs, and promotional discounts; leveraging after-sales service networks to carry out reverse logistics for collecting end-of-life appliances; and establishing dedicated storage and transportation facilities for waste appliances or centralized warehouses for furniture recycling.

Twelve departments have jointly launched the “Seamless Integration” initiative for the industrial internet identifier resolution system.
On January 31, the website of the Ministry of Industry and Information Technology published the “Notice from Twelve Departments on Issuing the ‘Interconnection’ Action Plan for the Industrial Internet Identifier Resolution System (2024–2026).”
The Action Plan outlines the following key tasks: (1) Streamline industrial and supply chains; (2) Fully empower the “Three‑Product” strategy for consumer goods; (3) Promote the integration of digital healthcare; (4) Enhance green and low‑carbon management; (5) Elevate safety management standards; (6) Raise the level of urban digitalization; and (7) Drive the upgrading of industrial clusters. The Action Plan explicitly supports the integration of priority sectors—such as pharmaceuticals and medical devices—into the industrial Internet identifier resolution system, with a focus on advancing data aggregation and trusted authentication across information platforms covering raw materials, manufacturing, logistics and warehousing, and consumable procurement, thereby achieving trustworthy, efficient, and unified management of data resources in the healthcare sector.

The State-owned Assets Supervision and Administration Commission has clarified that asset appraisals are not required in eight scenarios, including internal transactions among central enterprises.
On January 30, the website of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) issued the “Notice on Matters Relating to the Optimization of Asset Valuation Management for Central Enterprises,” accompanied by the “Guidelines for the Review of Valuation Reports of Central Enterprises.” These measures aim to promote the optimization of the layout and structural adjustment of the state‑owned economy, support enterprises in achieving high‑quality development, and enhance the management of state‑owned asset valuations.
The Notice, for the first time, stipulates that central enterprises shall implement categorized management of asset valuation projects; it consolidates into a single framework the circumstances—previously scattered across existing regulatory documents—in which asset valuation is not required, clearly identifying eight categories of transactions, such as the sale or lease of real estate for which market prices can be readily obtained through open markets, where asset valuation is unnecessary, while mandating that such transactions must be conducted via public listing. It also strictly limits the applicable scenarios for five types of valuation reports and requires central enterprises to establish internal systems for managing asset valuation projects; further refines and standardizes pricing mechanisms for the trading and transfer of intellectual property, scientific and technological achievements, data assets, and other forms of assets; and provides clarifications on several frequently encountered issues in the management of state‑owned asset valuations.

Protecting Corporate Assets: The Supreme People’s Court and the Supreme People’s Procuratorate Amend Article 169 of the Criminal Law to Define the Relevant Offense
On January 31, the Supreme People’s Court and the Supreme People’s Procuratorate jointly issued the “Supplementary Provisions (VIII) of the Supreme People’s Court and the Supreme People’s Procuratorate on Determining Criminal Offenses in the Implementation of the Criminal Law of the People’s Republic of China.”
The Regulations stipulate that the following amendments shall be made to the “Provisions of the Supreme People’s Court on Determining Criminal Offenses under the Criminal Law of the People’s Republic of China” and the “Opinions of the Supreme People’s Procuratorate on the Application of Criminal Offense Names as Specified in the Special Part of the Criminal Law”: The offense listed in Article 169 of the Criminal Law of the People’s Republic of China (Article 3 of the Twelfth Amendment to the Criminal Law) shall be amended from “Crime of Privately Abusing Power to Fraudulently Offer Shares at Low Prices or Sell State‑Owned Assets” to “Crime of Privately Abusing Power to Fraudulently Offer Shares at Low Prices or Sell Assets of Companies and Enterprises.”

The Ministry of Industry and Information Technology has issued the Guidelines for Cybersecurity Protection of Industrial Control Systems.
On January 30, the website of the Ministry of Industry and Information Technology published the “Notice on Issuing the Guidelines for Cybersecurity Protection of Industrial Control Systems.”
The Guidelines apply to enterprises that use and operate industrial control systems. The scope of protection encompasses industrial control systems as well as other devices and systems whose operation—directly or indirectly—may be affected by cyberattacks. The document specifies security management requirements in areas such as asset management, configuration management, supply chain security, and awareness‑raising and training. It also defines technical safeguards covering host and endpoint security, architectural and perimeter security, cloud‑based security, application security, and system data security, while setting forth corresponding requirements for security operations and accountability.

The State Administration for Market Regulation has standardized the supervisory random examination of enterprise food safety management personnel.
On January 30, the website of the State Administration for Market Regulation published the “Announcement on the Release of the ‘Guidance for Supervisory Spot-Check and Assessment of Enterprise Food Safety Management Personnel’ and the ‘Outline for Supervisory Spot-Check and Assessment of Enterprise Food Safety Management Personnel.’”
The “Guidelines” comprise six chapters and twenty-four articles, stipulating that the proportion of professional‑content questions in examination items for each category of personnel shall not be lower than the following: 20% for principal persons in charge, 40% for food safety directors, and 60% for food safety officers. For enterprises with high risk levels, the frequency of supervised random assessments may be appropriately increased. The “Outline” is divided into two parts: a general section and a specialized section. The general section covers an overview, food safety laws, regulations, and rules, food standards and sampling inspections, food safety‑related systems, and food safety risk prevention and control. The specialized section addresses areas such as food production, food sales, catering services, and special‑purpose foods, and sets out specific assessment requirements for three categories of personnel: principal persons in charge, food safety directors, and food safety officers.

China’s Society of Automotive Engineers has officially awarded certification to its first autonomous driving standards validation base.
On January 26, the establishment of the Intelligent Driving and Active Safety Testing Technology Innovation Center at the East China Headquarters of China Automotive Research Institute, along with the launch event for the capabilities of the Suzhou Yangcheng Peninsula Intelligent Connected Vehicle Test Base, was successfully held. During the event, Chen Guihua, Director of the Standards and Consulting Department of the China Society of Automotive Engineers and Deputy Secretary-General of the China Intelligent Connected Vehicle Industry Innovation Alliance, presented the plaque designating the Suzhou Yangcheng Peninsula Intelligent Connected Vehicle Test Base as the first automated driving standards verification base.
China Automotive Research Institute has established the Intelligent Driving and Active Safety Testing Technology Innovation Center at its East China headquarters. Leveraging the Suzhou Yangcheng Peninsula Intelligent Connected Vehicle Test Base, and in accordance with the relevant management requirements and procedures of the China Society of Automotive Engineers, it has officially been designated as the CSAE Automated Driving Standards Validation Base. As the only intelligent connected vehicle test base strategically located in the Yangtze River Delta, the facility will provide enterprises and research institutions with an ideal experimental environment and comprehensive testing conditions. By using standards validation to drive technological innovation in intelligent driving and active safety assessment, the center will progressively develop a cutting-edge, integrated evaluation system for high-level automated driving based on complex real-world scenarios, thereby accelerating the deployment of vehicle–infrastructure–cloud‑integrated intelligent connected vehicles.

Beijing is publicly soliciting opinions on the benchmark for discretionary powers in four areas of market regulation.
On January 30, the Beijing Municipal Government website published the “Notice on Public Solicitation of Comments on the Benchmark for Discretionary Powers in Administrative Licensing, Administrative Conofficeation, Administrative Compulsion, and Other Administrative Authorities within the Beijing Market Supervision System,” with a deadline for submitting feedback set for February 8.
The Notice is accompanied by the following annexes: “Benchmark for Discretionary Powers in Administrative Licensing of the Beijing Municipal Administration for Market Regulation,” “Benchmark for Discretionary Powers in Administrative Conofficeation of the Beijing Municipal Administration for Market Regulation,” “Regulations on the Application of Discretionary Powers in Administrative Compulsion of the Beijing Municipal Administration for Market Regulation,” and “Benchmark for Discretionary Powers in Other Administrative Functions of the Beijing Municipal Administration for Market Regulation.” Specifically, the administrative licensing section has reviewed 23 administrative licensing authorities; the administrative conofficeation and other administrative powers sections have respectively reviewed 2 administrative conofficeation authorities and 14 other administrative powers; and the administrative compulsion section has primarily reviewed 39 administrative compulsion authorities.

Six departments have jointly issued seven guidelines to strengthen one-stop mediation of labor disputes in new forms of employment.
On January 31, the Ministry of Justice website published the “Notice on Strengthening One-Stop Mediation of Labor Disputes in New Forms of Employment.”
The Notice clarifies that, in regions where the platform economy is thriving and labor disputes arising from new forms of employment are frequent, human resources and social security departments, people’s courts, judicial administrative organs, trade unions, federations of industry and commerce, and enterprise federations shall strengthen cooperation to establish a one-stop, multi‑party joint mediation mechanism for such labor disputes. This mechanism may be implemented at the mediation centers of labor and personnel dispute arbitration institutions or, as appropriate, by adding joint mediation functions to relevant mediation organizations. Where conditions permit, one‑stop mediation centers may be set up to accept applications for mediation submitted by workers in new forms of employment against platform enterprises and employing partner companies concerning labor remuneration, rewards and punishments, rest periods, occupational injuries, and other labor‑related issues. Upon reaching a mediated settlement agreement, the one‑stop mediation center or the mediation organization conducting the joint mediation shall prepare a written mediation agreement.

Seven departments have outlined 16 key tasks to promote innovation and development in emerging industries.
On January 29, the website of the Ministry of Industry and Information Technology released the “Opinions on Promoting the Innovative Development of Future Industries.”
The “Implementation Opinions” set out 16 key tasks across six priority areas, outlining development targets for 2025 and 2027 in such domains as technological innovation, product breakthroughs, enterprise cultivation, scenario expansion, and industrial competitiveness. The document specifies that specialized policy documents will be formulated around cutting-edge fields such as brain–computer interfaces and quantum information, thereby establishing a comprehensive policy framework for future industries. It also calls for the launch of an Action Plan to Kickstart Future Industries among central enterprises, encouraging investment in early-stage, small-scale ventures focused on hard‑tech sectors, refining financial and fiscal support measures, guiding local governments to establish dedicated funds for future industries, exploring the creation of risk‑compensation funds, and optimizing risk‑provisioning mechanisms and other compensatory arrangements.

The National Administration of Financial Regulation has issued a document to establish a statistical system for technology insurance business.
On January 29, the website of the National Administration of Financial Regulation published the “Notice on Issuing the Statistical System for Science and Technology Insurance Business.”
The Notice establishes a statistical framework for technology insurance on the liability side and a data‑reporting mechanism, based on two dimensions: “supporting the entire lifecycle of science and technology activities” and “serving the entities engaged in such activities.” It requires that institutions effectively enhance their operational and service capabilities in the technology insurance sector, formulate a strategic plan for developing this line of business, strengthen specialized training and talent development, and ensure accurate and efficient reporting of technology‑insurance data, thereby guaranteeing that the data are truthful, precise, and complete.

In 2023, the total operating revenue of state-owned enterprises nationwide increased by 3.6% year on year.
On January 29, the Ministry of Finance website released data on the economic performance of state-owned and state-controlled enterprises nationwide for the period from January to December 2023.
Data show that from January to December, state-owned enterprises recorded total operating revenue of RMB 85.73061 trillion, up 3.6% year on year; total profits amounted to RMB 4.63328 trillion, an increase of 7.4% year on year; taxes and fees payable totaled RMB 5.87458 trillion, down 0.5% year on year; and the asset–liability ratio stood at 64.6%, up 0.3 percentage points.

Beijing has released the first batch of the “2024 Beijing Municipal Guidelines for the Implementation of Funds Supporting the Development of Small and Medium-sized Enterprises.”
On January 24, the Beijing Municipal Government website published the “Notice on the Issuance of the ‘Implementation Guidelines for the 2024 Beijing Funds to Support the Development of Small and Medium-sized Enterprises (First Batch)’.”
The “Implementation Guidelines (First Batch)” identifies six key priorities across three areas: (1) Enhancing the SME service system: Priority 1: Performance‑based incentives for SME service systems. Priority 2: Subsidies for SME service vouchers. Priority 3: Rewards for SME‑specific industrial clusters. Priority 4: Incentives for SME innovation and entrepreneurship. (2) Improving the financing environment for SMEs: Priority 5: Subsidies for SME “first‑time loans.” (3) Promoting the “specialized, refined, distinctive, and innovative” development of SMEs: Priority 6: Digital‑transformation subsidies for SMEs. Specifically, the Guidelines stipulate that for Beijing‑based micro, small, and medium enterprises whose “first‑time loan” transactions are registered with the Beijing Loan Service Center and for which loan contracts were signed and disbursements made between January 1, 2024, and December 31, 2024, a subsidy of 100 basis points will be provided in the form of interest rate reductions or guarantees. The subsidy period shall, in principle, not exceed one year; no subsidies will be granted for overdue or extended loans.

Taxation
In 2023, more than 70% of tax and fee relief measures benefited the private sector.
According to data recently released by the State Taxation Administration, in 2023, nationwide tax and fee reductions, refunds, and deferrals totaled RMB 2.22899 trillion. By economic sector, private-sector taxpayers benefited significantly, with new tax and fee reductions, refunds, and deferrals amounting to RMB 1.68646 trillion, accounting for 75.7% of the total.
By sector, manufacturing and the related wholesale and retail industries accounted for the largest share, with new tax and fee reductions, refunds, and deferrals totaling RMB 949.53 billion, or 42.6% of the total. By enterprise size, small, medium, and micro enterprises benefited most prominently, receiving RMB 1,426.42 billion in new tax and fee reductions, refunds, and deferrals, representing 64% of the total. By policy type, the VAT exemption and reduction policy for small-scale taxpayers generated RMB 650.98 billion in new tax and fee reductions; the income tax reduction policy for small and micro enterprises added RMB 178.88 billion; the VAT additional credit‑offset policy supporting technological innovation—targeting advanced manufacturing, industrial machine tools, and integrated circuit enterprises—resulted in RMB 120.85 billion in new tax reductions; and the policy raising the standards for individual income tax special additional deductions contributed RMB 39.18 billion in new tax savings.
With coordinated policy measures, market vitality has steadily increased and the industrial structure has continued to improve, thereby accelerating the development of a unified national market. Tax data show that in 2023, the number of newly established tax‑related business entities—those filing for tax type registration, obtaining invoices, and making tax returns with the tax authorities for the first time—reached 16.876 million, up 28.3% year on year. Among them, 4.494 million were new tax‑related businesses centered on emerging industries, new business forms, and innovative business models, accounting for 26.6% of all new entities. Furthermore, 4.608 million of these newly established entities engaged in interprovincial trade, an increase of 32% compared with the previous year.

The latest Implementation Rules for the Invoice Management Measures have been issued, incorporating numerous revisions.
According to a January 30 announcement on the website of the State Taxation Administration, the “Decision of the State Taxation Administration on Amending the Implementing Rules of the Measures for the Administration of Invoices of the People’s Republic of China” is hereby promulgated and shall take effect as of March 1, 2024.
The Implementing Rules have been revised in alignment with the amendments to the Measures of the People’s Republic of China on the Administration of Invoices. The legal status and statutory validity of electronic invoices have been clarified, and relevant provisions pertaining to electronic invoices have been added; for example, the term “invoice” in Articles 3, 7, 14, and 31 has been replaced with “paper invoice,” and new provisions have been introduced regarding the definition of electronic invoices and the issuance of red‑character invoices. In addition, the Implementing Rules have revised or added corresponding provisions concerning invoice acquisition, the issuance of red‑character invoices, and tax administration by tax authorities.

The 2023 Individual Income Tax Comprehensive Income Settlement and Finalization Arrangements Have Been Released.
On February 1, the website of the State Taxation Administration published the “Announcement of the State Taxation Administration on Handling the 2023 Individual Income Tax Comprehensive Income Settlement and Finalization,” which comprises twelve provisions.
Compared with previous years, the Notice introduces four key changes: First, the deadline for conofficeing agency‑based tax settlement has been further extended, and taxpayers are no longer required to finalize their entrustment with their employer by April 30. Second, the procedures, timing, and location for filing consolidated returns for multiple equity‑incentive plans have been clarified. Third, provisions governing the service of relevant tax‑settlement documents have been further refined for taxpayers who underreport or fail to pay additional taxes. Fourth, the start date for scheduling tax‑settlement appointments has been moved to February 21. This year, regulatory oversight will also be strengthened, with a particular focus on taxpayers who incorrectly report special additional deductions, as well as those who either fail to file supplementary tax returns or underpay their supplementary taxes.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has issued a notice: Conduct public-interest litigation in the field of work safety in a precise and standardized manner.
The Eighth Procuratorial Office of the Supreme People’s Procuratorate recently issued the “Notice on Fully Leveraging the Public Interest Litigation Functions of the Procuratorial Organs to Urge the Prevention and Resolution of Safety Production Risks and Hidden Dangers,” requiring procuratorial organs at all levels to fully exercise their public interest litigation functions, conduct such work in a precise and standardized manner, and effectively safeguard the lives and property of the people.
The Notice clarifies the key areas of oversight, requiring local authorities to conduct in-depth assessments tailored to their specific circumstances. It calls for a focused examination of priority sectors and domains—including gas supply, fire safety, hazardous chemicals, flammable and explosive materials, construction, transportation, mining, and special‑purpose equipment—while zeroing in on “nine small venues” such as small shops, as well as mixed‑use facilities that integrate multiple functions like catering, lodging, and entertainment. Particular attention should be paid to high‑risk factors in densely populated settings—such as hotels, restaurants, public entertainment venues, and large commercial complexes—including potential malfunctions of facilities and equipment, illegal or non‑compliant practices, and deficiencies in safety management. The notice mandates concentrated efforts to address pressing issues, including unauthorized or non‑compliant construction and operations, inadequate emergency evacuation conditions, and the unlawful installation of security grilles and advertising signs. It also specifies key supervisory priorities and criteria for identifying major accident hazards, establishes a comprehensive register of safety risks and hazards, and requires systematic, benchmark‑based inspections and investigations to effectively prevent and mitigate safety risks.

The Supreme People’s Court has issued implementation measures to strengthen the development of relatively underdeveloped grassroots people’s courts nationwide.
Recently, the Supreme People’s Court issued the “Measures for Strengthening the Development of Relatively Weak Grassroots People’s Courts Nationwide,” launching a nationwide initiative to bolster the capacity and performance of such courts.
The Implementation Measures require all higher people’s courts to establish a “one court, one file” management system for weak courts, and to specify criteria for lifting such courts out of weakness across five dimensions. The process for achieving this is structured as follows: applications submitted by the weak courts, assessment by the intermediate people’s courts, review by the higher people’s courts, and filing and random inspection by the Supreme People’s Court. The work of lifting these courts out of weakness shall be completed within one to three years.

The Supreme People’s Procuratorate has released the second batch of typical cases demonstrating how procuratorial organs are implementing the Civil Code.
On January 30, the Supreme People’s Procuratorate website issued the “Notice on the Issuance of Typical Cases for the Implementation of the Civil Code (Second Batch),” publishing 11 typical cases.
From the perspective of their content, these typical cases cover chapters of the Civil Code that are relatively frequently applied in supervisory practice, such as the General Provisions, Property Rights, and Contracts. In terms of specific legal issues, they address pressing and challenging topics in judicial practice, including the evaluation of discretionary powers, the application of the principle of public order and good morals, and unauthorized lending through credit cards. From the standpoint of supervisory types, they encompass the full spectrum of civil procuratorial work—ranging from oversight of final civil judgments and enforcement supervision to supporting litigation—covering all stages and procedures. In Case No. 1, the procuratorial organs identified instances where certain cases exhibited improper exercise of discretionary power in areas such as the application of law, legal interpretation and reasoning, and the standardization of adjudicative criteria. Consequently, they adopted a case‑type‑based supervisory approach, mandating that case‑type retrieval be a mandatory step in the prosecutorial oversight of discretionary powers. They further conducted a systematic analysis of the principal circumstances constituting improper exercise of such powers, thereby strengthening the standardization of judicial discretion, reinforcing trial supervision and management, and preventing and sanctioning the abuse of discretionary authority. To this end, they issued comprehensive recommendations to the courts.

JC Master Law Office
Address: 9th Floor, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing City
Postal Code: 210036
Phone: 025-84503333
Fax: 025-84505533
Website: www.jcmaster.com
This legal notice is provided solely for informational purposes and does not constitute legal advice or a legal analysis of any specific case. The transmission of this notice does not establish an attorney–client relationship between JC Master Law Office and the user or reader. JC Master Law Office assumes no responsibility for any third-party content accessible via the internet. If you do not wish to receive this legal notice, please notify us by email at jcm@jcmaster.com.
The copyright of this legal information is owned by JC Master Law Office ©. Without written permission, no organization or individual may reproduce, publish, or cite it in any form.