JC Master Legal News Issue 1089

Key Takeaways for This Issue

The Shanghai Stock Exchange and the Dubai Financial Market have signed a memorandum of understanding on cooperation.
On November 20, the Shanghai Stock Exchange and the Dubai Financial Market announced the signing of a memorandum of understanding on cooperation, aimed at further strengthening collaboration and exchanges between their capital markets. The implementation of this partnership marks another significant milestone in China’s efforts to open its capital market to the outside world and enhance cross-border cooperation.
Encourage financial institutions to support the development of small and medium-sized listed companies on the Beijing Stock Exchange.
Recently, the State Council approved the “Work Plan for Supporting Beijing in Deepening the Construction of the National Demonstration Zone for Expanding Service Sector Opening-Up,” aiming to enhance the quality and level of trade and investment cooperation in the services sector and to pioneer trials in aligning with high-standard international economic and trade rules.
Four departments have called for the swift formulation and implementation of measures to bolster financing support for technology-based enterprises.
Recently, the People’s Bank of China, the Ministry of Science and Technology, the National Administration of Financial Regulation, and the China Securities Regulatory Commission jointly convened a meeting to exchange views and advance work on science-and‑technology finance. The meeting called for directing more financial resources toward fostering scientific and technological innovation.
The Supreme People’s Procuratorate has issued the fifth batch of typical cases involving procuratorial hearings.
On November 22, the Supreme People’s Procuratorate website released the fifth batch of typical cases involving procuratorial hearings, strengthening the institutional framework for hearings, promoting their substantive implementation, and guiding procuratorial organs nationwide to uphold and develop the “Fengqiao Experience” of the new era. These efforts aim to leverage procuratorial hearings in resolving social conflicts, advancing source‑level governance, and enhancing the quality and efficiency of case handling.
Finance & Capital Markets
The China Securities Regulatory Commission has issued the “Rules on Listed Companies Issuing Convertible Corporate Bonds to Specific Investors for Asset Acquisitions.”
Mergers and acquisitions (M&A) and restructuring of listed companies constitute a key channel through which the capital market fulfills its function of optimizing resource allocation. As a payment instrument in such transactions, targeted convertible bonds are subscribed by the counterparty using assets and combine both equity‑like and debt‑like characteristics, thereby providing a more flexible bargaining mechanism for both parties and helping to enhance the vitality and efficiency of the restructuring market. To further support listed companies in using targeted convertible bonds as a payment tool for restructuring, injecting high‑quality assets, and improving the overall quality of listed offices, the China Securities Regulatory Commission, drawing on lessons learned from earlier pilot programs, has formulated the “Rules on Listed Companies Issuing Convertible Corporate Bonds to Specific Investors for Asset Acquisitions” (hereinafter referred to as the “Targeted Convertible Bond Restructuring Rules”).

The “Rules on Targeted Convertible Bond‑Based Restructuring” are positioned as a set of “special provisions” to the “Administrative Measures for Major Asset Restructuring of Listed Companies” (hereinafter referred to as the “Restructuring Measures”) and the “Administrative Measures for Convertible Corporate Bonds” (hereinafter referred to as the “Convertible Bond Measures”), among other regulations. Taking into account the specific characteristics of restructuring transactions, these rules lay down dedicated provisions governing matters related to targeted convertible bond‑based restructuring. The full text comprises 17 articles, with the main contents including: With respect to applicable principles, it is stipulated that, in addition to these Rules, when a listed company issues targeted convertible bonds to acquire assets, it must also refer to and apply the relevant provisions of the Restructuring Measures concerning share‑issuance‑based asset acquisitions, as well as the Convertible Bond Measures and other pertinent regulations issued by the China Securities Regulatory Commission. Regarding issuance conditions, by way of referencing higher‑level laws, it is clarified that the implementation of restructuring through the issuance of targeted convertible bonds must simultaneously satisfy multiple requirements, including those pertaining to major asset restructuring, public issuance of corporate bonds, and the issuance of new shares to specific investors (except where the shares converted from bonds originate from share repurchases). As for pricing and lock‑up periods, in accordance with the principle of “equal treatment under equal circumstances,” and drawing on the relevant provisions and established practices for share‑issuance‑based asset acquisitions, the rules set forth provisions governing the pricing mechanism and the duration of share‑lock‑up periods for targeted convertible bonds used as consideration. Concerning the calculation of equity interests, the rules clearly specify the methods for determining the number and proportion of a investor’s equity holdings in a listed company when assessing whether a transaction constitutes a restructured listing or other similar scenarios. Furthermore, pursuant to the “Rules on Targeted Convertible Bond‑Based Restructuring,” a listed company may independently use targeted convertible bonds as the sole form of consideration, deciding at its discretion whether to pay the entire transaction price in targeted convertible bonds or to combine such bonds with a portion of shares and cash.

The “Rules on Restructuring via Convertible Bonds with Designated Purposes” were publicly solicited for comments from September 15 to October 15, 2023. Stakeholders in the market generally endorsed the content of the rules and submitted suggestions for revision. The China Securities Regulatory Commission reviewed each provision, carefully considered and incorporated these suggestions, and accordingly refined relevant provisions, including those pertaining to phased unlocking arrangements and ongoing information disclosure requirements.

Going forward, the China Securities Regulatory Commission will continue to deepen market-oriented reforms of mergers and acquisitions and restructuring, encouraging listed companies to make effective use of diversified payment instruments such as targeted convertible bonds, thereby enhancing quality and efficiency through restructuring and strengthening their competitive position.

The China Securities Regulatory Commission is soliciting public comments on the “Administrative Measures for the Supervision and Administration of Derivatives Trading (Second Draft for Comments).”
To implement the Futures and Derivatives Law, promote the sound and standardized development of the derivatives market, support the real economy, prevent and defuse financial risks, crack down on illegal and non‑compliant activities as well as regulatory circumvention, and safeguard market stability, the China Securities Regulatory Commission (CSRC), drawing on practical experience, drafted the Measures for the Supervision and Administration of Derivatives Trading (Draft for Public Comment) and solicited public input from March 17 to April 16, 2023. Subsequently, the CSRC carefully reviewed the public comments, convened multiple symposiums to gather industry feedback, and revised and refined the draft, resulting in the Measures for the Supervision and Administration of Derivatives Trading (Second Draft for Public Comment) (hereinafter referred to as “these Measures”). To further uphold the principles of democratic and open lawmaking, the CSRC is once again seeking public input on these Measures and their explanatory notes.

Overall, the industry has expressed strong support for the issuance of these Measures, viewing them as conducive to standardizing the development of the derivatives market and bolstering market confidence. The majority of the comments submitted in the preliminary stage were interpretive and operational in nature, with a primary focus on how to implement the Measures’ requirements at the practical level. The CSRC has incorporated and adopted certain suggestions, including refining provisions on basic principles, defining “operating institutions,” specifying reporting requirements for new‑type contracts, establishing rules on performance‑guarantee mechanisms, clarifying information‑reporting obligations for hedging transactions, strengthening customer privacy protections, and improving relevant wording. By contrast, the principal recommendations not adopted encompassed: abolishing the consolidated position‑reporting regime for on‑ and off‑exchange holdings; removing the prohibition on short‑term trading through derivatives transactions; eliminating the ban on circumventing share‑reduction and lock‑up restrictions via derivatives trades; deleting the restriction barring specific entities of listed companies from engaging in derivatives transactions whose underlying asset is the company’s own stock; discarding the provision establishing a derivatives‑accounting framework; scrapping the requirement for business segregation; and removing regulatory provisions applicable to overseas institutions. To strengthen oversight of the derivatives market, close regulatory gaps, and mitigate market risks, we have chosen not to adopt the aforementioned proposals.

The revised and improved Measures comprise eight chapters and 50 articles, primarily regulating derivatives trading and settlement, prohibited trading practices, market participants, derivatives business entities, derivatives trading venues, derivatives clearing institutions, the derivatives trade reporting repository, and derivatives industry associations. Adhering to the principles of functional regulation, coordinated oversight, and robust risk prevention, these Measures seek to address the following issues:

First, in order to implement the requirements of the Futures and Derivatives Law, administrative oversight of the derivatives market will be strengthened. The Futures and Derivatives Law brings derivatives trading within its legal framework and establishes systems such as industry access standards. This Measures brings all entities and activities in the derivatives market under the supervision of the China Securities Regulatory Commission (CSRC) within its regulatory scope, adopting a function‑based approach to set uniform admission criteria, conduct rules, and liability provisions, thereby effectively reinforcing market oversight and promoting the sound development of the derivatives market.

Second, regulatory rules have been refined to rigorously crack down on practices that use derivatives as “conduits” to circumvent securities and futures market oversight. The CSRC has conducted a systematic review of this issue and has consolidated relevant provisions into this regulation, which prohibits: circumventing position‑limit regimes, disclosure requirements, and share‑reduction and lock‑up restrictions through derivative transactions; engaging in short‑term trading, insider trading, or market manipulation via derivatives; and allowing derivative‑trading institutions to enter into derivative transactions—where the underlying asset is the stock of a listed company—with major shareholders, actual controllers, directors, supervisors, senior management, or entities subject to share‑reduction and lock‑up obligations of that listed company.

Third, strengthen cross‑market and cross‑border monitoring and surveillance to rigorously prevent risks. Given the close interconnections among the derivatives market, the securities market, and the futures market in terms of capital flows and risk contagion, this regulation establishes a comprehensive cross‑market and cross‑border monitoring and surveillance framework to safeguard against risks. This includes setting up a derivatives‑market account system, a trade reporting repository, an infrastructure data‑sharing mechanism, a cross‑market monitoring and surveillance mechanism, as well as a reporting regime for transaction information from both domestic and foreign‑invested market participants, thereby ensuring that derivatives transactions are both transparently observable and effectively regulated.

We welcome valuable feedback from all sectors of society on these Measures. The China Securities Regulatory Commission will, based on the results of the public consultation, further revise and refine these Measures.

The Shanghai Stock Exchange and the Dubai Financial Market have signed a memorandum of understanding on cooperation.
On November 20, the Shanghai Stock Exchange (SSE) and the Dubai Financial Market (DFM) announced the signing of a memorandum of understanding to further strengthen cooperation and exchanges between their capital markets. The formalization of this partnership marks another significant milestone in China’s efforts to open its capital market to the outside world and enhance cross-border collaboration.
This partnership not only facilitates information exchange between the SSE and the DFM but will also effectively enhance the efficiency and transparency of both markets. Under the Memorandum of Understanding, the SSE and the DFM plan to jointly explore the development of ESG‑related and sustainability‑focused products to meet the needs of market participants in both jurisdictions. In addition, the two parties will collaboratively pursue the creation of financial instruments such as cross‑border indices and ETFs, highlight their respective strengths to market participants, and provide them with more comprehensive and convenient capital market services.
Cai Jianchun, General Manager of the Shanghai Stock Exchange, stated that he is delighted to establish a partnership with the DFM. The SSE looks forward to deepening communication and exchanges with the DFM, jointly exploring opportunities for collaboration in areas such as indices, ETFs, and ESG. Moving forward, under the unified guidance of the China Securities Regulatory Commission, the SSE will further advance high‑level, institution‑based opening-up, continue to develop diversified mechanisms for cooperation and connectivity with exchanges in the Middle East, strengthen bilateral partnerships, explore multilateral cooperation, and continually enrich the forms and deepen the substance of its collaborative efforts.
DFM CEO Hamed Ali stated that the memorandum of understanding between DFM and the Shanghai Stock Exchange marks an important step forward in strengthening international cooperation and advancing collaboration in key areas of capital market development. This partnership opens new avenues for exploring fresh opportunities and expanding market reach. He added that, in an ever-evolving financial landscape, global cooperation is essential, and he looks forward to working with the Shanghai Stock Exchange to share best practices and expertise, thereby bolstering the growth of the financial ecosystem.

Pioneering trials to align with high-standard international economic and trade rules: Beijing’s plan for building a comprehensive demonstration zone for the opening-up of the service sector has been approved, and financial institutions are encouraged to support the development of small and medium-sized enterprises listed on the Beijing Stock Exchange.
Recently, the State Council approved the “Work Plan for Supporting Beijing in Deepening the Construction of the National Demonstration Zone for Expanding Service Sector Opening-Up” (hereinafter referred to as the “Plan”), aiming to enhance the quality and level of trade and investment cooperation in the services sector and to pioneer trials aligned with high-standard international economic and trade rules.
The Plan proposes exploring regulatory frameworks for emerging business models, optimizing financial service delivery and governance mechanisms, and encouraging financial institutions to support the growth of small and medium-sized enterprises listed on the Beijing Stock Exchange and the National Equities Exchange and Quotations. It also calls for refining the performance‑assessment system for inclusive finance policies and further improving the financing environment for SMEs. Commercial banks and other financial institutions are encouraged to tailor their financial products and services to the unique needs of innovative SMEs, developing specialized offerings—such as credit, guarantees, and supply-chain finance—targeted at key stages like R&D, technology acquisition, and M&A. Moreover, collateral requirements for loan financing to companies listed on the Beijing Stock Exchange will be appropriately relaxed. The plan also envisages studying and, when appropriate, launching exchange-traded open‑end index funds, while actively advancing the Beijing Stock Exchange’s efforts to open up to international investors. Securities offices and professional service providers are urged to leverage the Beijing Stock Exchange and the New Third Board to expand their operations and contribute to supporting SMEs throughout their entire life cycle.
On the premise of controllable risks, we will support overseas insurance companies in directly initiating and establishing insurance asset management offices with a presence in Beijing. We will encourage venture capital and private equity offices to launch investment funds focused on supply-chain finance. In accordance with applicable laws and regulations, we will enable Beijing’s regional equity market to leverage its comprehensive services for subscription rights, exploring the development of related products targeted at private equity funds and other investors. We will also support eligible consumer finance and financial leasing companies in issuing financial bonds.
All funds that are genuine, compliant, and related to foreign investors’ investments shall be permitted to flow in and out freely, in accordance with the law and relevant regulations, without any delays. Efforts will be made to promote data sharing and business integration between the Beijing Big Data Platform, the Financial Metropolitan Area Network, and the Comprehensive Financial Services Network, thereby expanding the scope of data sharing and system interconnectivity between government departments and financial institutions.
With regard to deepening reform and expanding opening-up in key sectors of the service industry, the Plan stipulates that, in the financial services sector, applications for financial business submitted by foreign financial institutions, investors in such institutions, and cross-border financial service providers—provided that the supporting documents are complete and comply with statutory requirements—shall be processed by the financial regulatory authorities in accordance with the principle of national treatment.
Meanwhile, we will explore ways to allow insurance asset management companies, subject to account segregation and risk isolation, to issue RMB‑denominated asset management products overseas in appropriate scales. We will also support venture capital and private equity offices in engaging in market‑based collaborations with various financial institutions, providing financing services to portfolio companies in accordance with applicable laws and regulations.
In the professional services sector, qualified individuals from overseas are permitted to engage in securities investment advisory and futures trading advisory services. The list of recognized foreign professional qualifications will be dynamically updated, and supporting policies will be further refined.
In addition, with regard to optimizing trade and investment institutional arrangements, the Plan specifies that measures will be taken to enhance the convenience of cross-border capital flows, deepen the pilot program for a unified domestic‑foreign currency bank settlement account system, and continue to expand the pool of participating banks. It also calls for expanding the pilot program for multinational corporations’ integrated domestic‑foreign currency funding pools, exploring ways to streamline quota management, and improving the efficiency of these pools. Furthermore, it supports enterprises within the zone in using RMB—after converting it directly into foreign currency abroad—to make payments to overseas exporters.

Nine Years of Interconnectivity: Northbound Trading Has Accumulated a Total of RMB 112 Trillion in Transactions
As the world’s first two-way capital market opening-up model, the Shanghai–Hong Kong Stock Connect recently celebrated its ninth anniversary. Over nine years of stable operation, the mechanism has grown increasingly mature, with trading volumes steadily expanding and continued strong market support, injecting fresh vitality into the securities markets of both Mainland China and Hong Kong.
To fulfill its role as a “super connector,” the Hong Kong Stock Exchange has continuously refined the mechanisms linking the mainland and Hong Kong markets, expanded the range of eligible securities under these frameworks, and, starting with equities, gradually incorporated bonds, ETFs, interest-rate swaps, and other financial products. It has also optimized the trading calendar, achieving a series of groundbreaking advances.
Ninth Anniversary of Interconnectivity
Transaction volume continues to grow.
As of October 31, 2023, the average daily turnover under the Shanghai–Hong Kong Stock Connect and Shenzhen–Hong Kong Stock Connect reached RMB 108.4 billion, up 7% year on year; meanwhile, the average daily turnover under the Hong Kong–Shanghai Stock Connect stood at HK$31.5 billion, a 9% increase compared with the same period last year.

Over the past nine years, the cumulative total transaction value of Northbound Trading under the Shanghai–Hong Kong Stock Connect and Shenzhen–Hong Kong Stock Connect (Shanghai Stock Connect and Shenzhen Stock Connect) reached RMB 111.8 trillion, with a net inflow of RMB 1.8 trillion into the mainland stock market. Meanwhile, Southbound Trading under the Hong Kong Stock Connect—comprising both the Shanghai–Hong Kong Stock Connect‑based Hong Kong Stock Connect and the Shenzhen–Hong Kong Stock Connect‑based Hong Kong Stock Connect—recorded a cumulative total transaction value of HK$37.3 trillion, attracting a net inflow of HK$2.9 trillion from mainland investors into the Hong Kong stock market.
The total value of mainland Chinese stocks held by Hong Kong and overseas investors via the Shanghai–Shenzhen Stock Connect has steadily increased, rising from RMB 86.5 billion at the end of 2014 to RMB 2.1 trillion. Meanwhile, the aggregate holdings of Hong Kong stocks by mainland investors through the Hong Kong Stock Connect have continued to climb, growing from HK$13.1 billion at the end of 2014 to HK$2.3 trillion.
This year has once again seen robust growth in market interconnectivity, with the investment universe under the Shanghai–Shenzhen–Hong Kong Stock Connect programs expanding once more. Following this expansion, a total of 1,034 A‑shares have been added to the Northbound Connect eligible list. On the Southbound side, the primary focus of the expansion has been to include foreign‑listed companies; the first batch comprises four such offices, several of which operate substantial businesses in China and are closely tied to Chinese consumers’ everyday spending habits.
Mao Zhirong, Strategic Advisor on Chinese Commodities and the Greater Bay Area at the Hong Kong Stock Exchange, stated that for mainland investors, the southbound program now includes a broader range of stocks—particularly international companies—allowing them to invest in global offices using familiar market conditions and trading practices. For international issuers, inclusion in the southbound stock list provides an additional financing channel and enhances Hong Kong’s appeal as an IPO venue, attracting increasing interest from foreign companies looking to tap into the Hong Kong IPO market.
For overseas investors, Mao Zhirong believes they now have greater opportunities to participate comprehensively in the A-share market. Over the past few years, the Northbound Stock Connect programs linking Shanghai, Shenzhen, and Hong Kong have become the primary channel for foreign and international investors to access A-shares, with roughly 70% of international capital flowing into A-shares via these Northbound channels.
Continue to do a good job of
“Super Contact”
For a long time, Hong Kong has enjoyed distinct advantages in its geographic location, human capital, and adherence to international regulatory standards. The Hong Kong Stock Exchange positions itself as a “super‑connector” linking the Chinese mainland’s capital markets with the global community. To fulfill this role, the exchange has continuously refined the mechanisms for market interconnectivity between the mainland and Hong Kong, expanded the range of eligible securities, and, starting with equities, gradually incorporated bonds, ETFs, interest‑rate swaps, and other financial products into its framework.
The key optimization measures include abolishing aggregate quota limits, increasing daily quotas, introducing investor identifiers for Northbound and Southbound Trading, launching a special centralized management service for overseas fund managers—Master SPSA—optimizing the trading calendar, significantly expanding the scope of eligible securities under Stock Connect, and introducing HKEX Synapse, a platform to accelerate settlement processes for Stock Connect transactions, among others.
On May 15 this year, the Mainland–Hong Kong Interest Rate Swap Market Connectivity Initiative, commonly known as “Swap Connect,” was officially launched, marking the latest development in the capital market’s mutual‑access mechanisms.
On June 19, the Hong Kong Stock Exchange officially launched the “HKD–RMB Dual‑Listing Scheme,” a move of great significance for further advancing the internationalization of the renminbi and for deepening the mechanisms linking the mainland and Hong Kong.
“The dual‑trading‑venue and market‑maker mechanisms further enrich Hong Kong’s RMB product ecosystem, helping to expand and deepen liquidity in the Hong Kong RMB market and laying the groundwork for mainland investors to trade RMB‑denominated securities via Stock Connect. Looking ahead, this model is expected to facilitate cross‑border flows of RMB capital between Hong Kong and the mainland,” said Charles Li, Chief Executive of the Hong Kong Exchanges and Clearing.
To effectively fulfill its role as a “super connector,” the Hong Kong Stock Exchange is also focusing on innovation in products, trading mechanisms, and listing rules.
Since the beginning of this year, the Hong Kong Stock Exchange has launched a new round of reforms. The newly introduced Chapter 18C to the Listing Rules, which came into effect on March 31, represents an extension and upgrade of Chapter 18A, opening up a pathway for specialized technology companies that have not yet met the standard Main Board eligibility criteria—namely, the requirements for profitability, revenue, or cash flow—to list on the Exchange’s Main Board. This marks the most significant overhaul of the HKEX’s listing rules since 2018, helping the next generation of innovative enterprises gain access to capital markets.
“The stock exchange serves as a bridge, connecting those with capital to those in need of it. We are currently placing particular emphasis on advancing Chapter 18C, with the aim of ensuring that our listing rules truly support the real economy—especially technology companies that require substantial capital investment. Meanwhile, the Hong Kong Stock Exchange will continue to innovate in both its products and services,” said Chan Yik-ting, Co‑Chief Operating Officer of the Hong Kong Stock Exchange.

The Shenzhen Stock Exchange has launched new indices, including the SZSE Repurchase Index.
On November 22, Shenzhen Securities Information Co., Ltd., a wholly owned subsidiary of the Shenzhen Stock Exchange, announced that it will launch the SZSE Dividend 300 Index (shortened to SZSE Dividend 300, code 970062) and the SZSE Buyback Index (shortened to SZSE Buyback, code 970063) on November 28. These indices are designed to further highlight Shenzhen‑listed companies that actively distribute cash dividends and engage in proactive share buybacks, guide listed offices toward high‑quality development, support the development of the investment side of the capital market, and better serve the medium- and long-term capital allocation needs.
At present, dividend payouts by listed companies have become a key channel for investors to share in the benefits of economic growth. The Shenzhen Stock Exchange has consistently encouraged listed offices to raise their dividend levels, refine their shareholder‑return mechanisms, and cultivate a cohort of high‑quality companies that demonstrate strong corporate social responsibility, prioritize investor returns, and steadily increase their dividend payouts. From 2020 to 2022, the total cash dividends distributed by Shenzhen‑listed companies grew for three consecutive years.
Since the beginning of this year, Shenzhen‑listed companies have shown growing enthusiasm for interim dividends. As of the end of the third quarter, nearly 100 Shenzhen‑listed offices had disclosed plans to distribute cash dividends for the first half of the year, a 53% year‑on‑year increase. Ninety percent of these companies have already completed dividend payouts, with total cash dividends amounting to nearly RMB 20 billion.
Specifically, the Shenzhen Dividend 300 Index tracks the price performance of listed companies on the Shenzhen Stock Exchange that feature relatively high dividend yields and strong potential for dividend growth. Among Shenzhen‑listed A‑shares that have ranked among the top in cash dividend yield over the past three years, the index selects the top 300 offices based on a composite ranking that weighs both dividend growth rate and the proportion of retained earnings. In terms of dividend growth, the constituent companies of the Shenzhen Dividend 300 reported nearly RMB 200 billion in total cash dividends over the past year, up 43% from 2020, accounting for more than half of the total cash dividends paid by all Shenzhen‑listed companies. Moreover, the dividend payout ratio has risen for three consecutive years, with an average payout ratio of 31%, exceeding the market average.
A strong dividend payout ratio is also a robust indicator of the company’s sound management and excellent profitability. According to data from the 2022 annual report, the Shenzhen Dividend 300 index posted a return on equity of 13%, while its constituent companies recorded average annual growth rates of 16% in operating revenue and 12% in net profit over the past five years. Calculations show that from the base date of end-December 2008 to end-October 2023, the Shenzhen Dividend 300 delivered cumulative returns of 517%, with an annualized return of 13.1%.
The Shenzhen Stock Exchange Buyback Index tracks stock price movements among listed companies in the Shenzhen market that engage in substantial proactive share buybacks and maintain relatively high buyback ratios. Among Shenzhen‑listed A‑shares that have announced and executed share buybacks within the past year, or that have disclosed preliminary plans to do so in the last three months, the index selects the top 50 offices based on a composite ranking of buyback amounts and buyback ratios as its constituent stocks. The index confines its scope to proactive buybacks—such as those undertaken for “market capitalization management” or “equity incentive programs”—and rebalances its constituents quarterly, thereby providing an accurate and timely reflection of the positive impact of share buybacks on listed companies’ stock prices.
Share buybacks play a positive role in enhancing corporate governance, boosting investor returns, and optimizing capital structure. According to statistics, since the beginning of this year, index constituent stocks have undertaken buybacks totaling RMB 18.8 billion, accounting for more than 70% of all buyback activity on the Shenzhen Stock Exchange during the same period, demonstrating strong representativeness. In terms of market performance, from the base date of end-December 2018 to end-October 2023, Shenzhen‑listed companies’ buybacks delivered a cumulative return of 87%, with an annualized return of 13.8%.
Data show that as of the end of October, the Shenzhen Dividend 300 index had a total market capitalization of RMB 9 trillion and a free-float market capitalization of RMB 4.5 trillion, with an average daily trading volume of RMB 89.4 billion over the past year. Meanwhile, the Shenzhen Stock Exchange Buyback Index recorded a total market capitalization of RMB 1.8 trillion and a free-float market capitalization of RMB 923.5 billion, with an average daily trading volume of RMB 18.5 billion over the past year. Both indices boast ample investable scale and robust liquidity, providing substantial room for the development of exchange-traded funds (ETFs) and other related products.

Encourage financial institutions to support the development of small and medium-sized listed companies on the Beijing Stock Exchange.
Recently, the State Council approved the “Work Plan for Supporting Beijing in Deepening the Construction of the National Demonstration Zone for Expanding Service Sector Opening-Up” (hereinafter referred to as the “Plan”), aiming to enhance the quality and level of trade and investment cooperation in the services sector and to pioneer trials aligned with high-standard international economic and trade rules.
The Plan proposes exploring regulatory frameworks for emerging business models, optimizing financial service delivery and governance mechanisms, and encouraging financial institutions to support the growth of small and medium-sized enterprises listed on the Beijing Stock Exchange and the National Equities Exchange and Quotations. It also calls for refining the performance‑assessment system for inclusive finance policies and further improving the financing environment for SMEs. Commercial banks and other financial institutions are encouraged to tailor their financial products and services to the unique needs of innovative SMEs, developing specialized offerings—such as credit, guarantees, and supply-chain finance—targeted at key stages like R&D, technology acquisition, and M&A. Moreover, collateral requirements for loan financing to companies listed on the Beijing Stock Exchange will be appropriately relaxed. The plan also envisages studying and, when appropriate, launching exchange-traded open‑end index funds, while actively advancing the Beijing Stock Exchange’s efforts to open up to international investors. Securities offices and professional service providers are urged to leverage the Beijing Stock Exchange and the New Third Board to expand their operations and contribute to supporting SMEs throughout their entire life cycle.
On the premise of controllable risks, we will support overseas insurance companies in directly initiating and establishing insurance asset management offices with a presence in Beijing. We will encourage venture capital and private equity offices to launch investment funds focused on supply-chain finance. In accordance with applicable laws and regulations, we will enable Beijing’s regional equity market to leverage its comprehensive services for subscription rights, exploring the development of related products targeted at private equity funds and other investors. We will also support eligible consumer finance and financial leasing companies in issuing financial bonds.
All funds that are genuine, compliant, and related to foreign investors’ investments shall be permitted to flow in and out freely, in accordance with the law and relevant regulations, without any delays. Efforts will be made to promote data sharing and business integration between the Beijing Big Data Platform, the Financial Metropolitan Area Network, and the Comprehensive Financial Services Network, thereby expanding the scope of data sharing and system interconnectivity between government departments and financial institutions.
With regard to deepening reform and expanding opening-up in key sectors of the service industry, the Plan stipulates that, in the financial services sector, applications for financial business submitted by foreign financial institutions, investors in such institutions, and cross-border financial service providers—provided that the supporting documents are complete and comply with statutory requirements—shall be processed by the financial regulatory authorities in accordance with the principle of national treatment.
Meanwhile, we will explore ways to allow insurance asset management companies, subject to account segregation and risk isolation, to issue RMB‑denominated asset management products overseas in appropriate scales. We will also support venture capital and private equity offices in engaging in market‑based collaborations with various financial institutions, providing financing services to portfolio companies in accordance with applicable laws and regulations.
In the professional services sector, qualified individuals from overseas are permitted to engage in securities investment advisory and futures trading advisory services. The list of recognized foreign professional qualifications will be dynamically updated, and supporting policies will be further refined.
In addition, with regard to optimizing trade and investment institutional arrangements, the Plan specifies that measures will be taken to enhance the convenience of cross-border capital flows, deepen the pilot program for a unified domestic‑foreign currency bank settlement account system, and continue to expand the pool of participating banks. It also calls for expanding the pilot program for multinational corporations’ integrated domestic‑foreign currency funding pools, exploring ways to streamline quota management, and improving the efficiency of these pools. Furthermore, it supports enterprises within the zone in using RMB—after converting it directly into foreign currency abroad—to make payments to overseas exporters.

Commercial & Corporate
Ministry of Commerce: The consumer market is expected to continue its steady recovery within the year.
On November 23, at the regular press conference, Ministry of Commerce spokesperson Shu Juting stated that, with the steady recovery and improvement of the national economy and the accelerated implementation and effectiveness of various policies to boost consumption, coupled with the arrival of the traditional peak consumption season at year’s end and the beginning of the new year, the consumer market is expected to continue its steady recovery throughout the year, further strengthening consumption’s fundamental role in driving economic growth.
Shu Juting stated that, in recent weeks, commerce authorities at all levels have seized the opportunity presented by the peak consumption season. In line with the overarching “Year of Boosting Consumption” plan, they have actively launched initiatives such as the Golden Autumn Shopping Festival, the Home‑Renovation Consumption Season, and the New‑Energy Vehicle Consumption Season, while expediting the implementation of existing policies and measures to further consolidate the momentum of recovering consumer spending. Overall, the current consumer market is characterized by three key features.
First, the recovery trend remains steady. In October, total retail sales of consumer goods rose 7.6% year on year, with the growth rate accelerating by 2.1 percentage points compared to September, marking the third consecutive month of improvement. Retail sales of commodities increased 6.5% year on year, up 1.9 percentage points from the previous month, while catering revenue grew 17.1%, with the pace of expansion picking up by 3.3 percentage points. Second, market vitality is strong. In October, foot traffic on 23 nationally piloted pedestrian streets surged by more than 70% year on year, and rose month-on-month for the fourth consecutive month. From January to October, retail sales at brick-and-mortar stores above the designated threshold expanded 4.3% year on year, with convenience stores and department stores posting increases of 7.3% and 7.2%, respectively. Third, development momentum remains robust. From January to October, online retail sales climbed 11.2% year on year, with online sales of physical goods rising 8.4%. Sales of new-energy vehicles jumped 37.8%, accounting for 30.4% of total new-car sales. Meanwhile, service-sector retail sales grew by 19%.

Ministry of Finance: In October, nationwide lottery sales totaled RMB 47.341 billion, up 59.3% year on year.
According to the Ministry of Finance, in October, nationwide lottery sales totaled RMB 47.341 billion, up RMB 17.622 billion, or 59.3%, year on year. Specifically, welfare lottery sales reached RMB 15.488 billion, an increase of RMB 4.497 billion, or 40.9%, compared with the same period last year; sports lottery sales amounted to RMB 31.853 billion, up RMB 13.125 billion, or 70.1%, year on year. This growth was primarily driven by higher sales of instant‑win and prediction‑type lotteries.
From January to October, nationwide lottery sales totaled RMB 475.876 billion, an increase of RMB 164.916 billion, or 53.0% year on year. Among these, welfare lottery sales reached RMB 160.027 billion, up RMB 36.804 billion, or 29.9% year on year; sports lottery sales amounted to RMB 315.849 billion, an increase of RMB 128.112 billion, or 68.2% year on year.

With approval from the State Council, two central state-owned enterprises have been merged into one.
With the approval of the State Council, China Electronics Technology Group Corporation (hereinafter referred to as “CETC”) and China Hualu Group Co., Ltd. (hereinafter referred to as “Hualu Group”) have undergone a restructuring. As a result, China Hualu Group Co., Ltd. has become a wholly owned subsidiary of China Electronics Technology Group Corporation and is no longer subject to the State-owned Assets Supervision and Administration Commission of the State Council’s duties as an investor.
According to the “List of Central Enterprises” on the website of the State-owned Assets Supervision and Administration Commission of the State Council, following this round of reform, the number of enterprises under the commission’s investor responsibilities has been adjusted to 97.
Adhering to the reform approach of “specialized integration” adopted by central state-owned enterprises.
Following the 2021 merger of China Putian into China Electronics Technology Group Corporation (CETC), CETC once again acted as the acquiring entity, undertaking a restructuring with Hualu Group.
According to its official website, China Electronics Technology Corporation (CETC) is a key state-owned enterprise directly managed by the central government, serving as China’s leading force in military electronics, the national team for cyberspace and information technology, and a strategic national scientific and technological powerhouse. The website also indicates that CETC holds stakes in listed companies such as Hikvision (002415.SZ, share price RMB 35.85, market capitalization RMB 335.697 billion) and Taiji Shares (002368.SZ, share price RMB 31.09, market capitalization RMB 19.376 billion).
Founded in 2000, Hualu Group is a large enterprise group directly managed by the State-owned Assets Supervision and Administration Commission of the State Council. It specializes in the development, production, marketing, services, and system integration of digital audio‑video, electronic information, and cultural‑creative industries. Its listed subsidiary, E-Hualu (300212.SZ; share price: RMB 35.62; market capitalization: RMB 23.716 billion), focuses on digital economy infrastructure, government and enterprise digitalization, and data‑operation services.
In early April, E-Hualu issued an announcement stating that it had received notice from its actual controller, China Hualu Group Co., Ltd., that Hualu Group is currently in discussions with China Electronics Technology Group Corporation (CETC) regarding a restructuring plan, under which Hualu Group intends to be integrated into CETC.
Regarding this restructuring, Wu Gangliang, a researcher at the China Enterprise Reform and Development Research Association, stated that Hualu Group’s full integration into CETC as a wholly owned subsidiary is an approach that will help leverage the complementary strengths of both parties, reduce homogeneous competition, and enable state capital and state-owned enterprises to grow stronger, better, and larger.
Zhou Lisha, Director of Research at the Institute for Modern State-Owned Enterprises of Tsinghua University, stated that Hualu Group’s planned integration into China Electronics Technology Group Corporation (CETC) follows a “large‑to‑small” merger model, under which Hualu Group would be transformed into a subsidiary of CETC through direct transfer of ownership or equity acquisitions.
Zhou Lisha stated that the “large‑plus‑small” model has the advantage of requiring no major adjustments to either party’s existing equity or business structures; instead, a straightforward equity realignment at the group level suffices to effect a change in ownership, making it both low‑complexity and short‑in‑duration. Given that Hualu Group is relatively small in scale and operates a single line of business, it can serve as the target entity and directly become a second‑tier subsidiary of a larger, more diversified group. This approach not only reduces the complexity and scope of state‑asset management but also enhances the resource base and competitive edge of both groups.
Liu Xingguo, a specially appointed senior researcher at the China Enterprise Confederation, analyzes that the reform of central enterprises should, on the one hand, accelerate the optimization of asset allocation and, on the other, focus on strengthening and enhancing their core businesses, thereby speeding up the development of world-class enterprises. Accordingly, specialized integration has become a key task and a major strategic direction for the current and foreseeable future of central enterprise reform. The merger between Hualu and CETC clearly aligns with this reform approach and will undoubtedly help to further deepen and advance the specialized integration of central enterprises.
The digital economy is set to benefit.
The restructuring between China Electronics Technology Group Corporation and Hualu Group is also expected to further advance the digitalization of China’s industries.
In February this year, Zhang Yuzhuo, Secretary of the Party Committee and Director of the State-owned Assets Supervision and Administration Commission of the State Council, emphasized during a visit to China Electronics Technology Group Corporation that it is essential to vigorously promote the deep integration of information and communication technologies with the real economy, continuously advance the digitalization of industries and the industrial application of digital technologies, strengthen the development of new infrastructure, empower the transformation and upgrading of traditional industries, foster new industries, business forms, and models, and bolster new engines of economic growth.
Zhou Lisha believes that, through the successful restructuring of two central state-owned enterprises, it is possible to implement a digital‑economy‑oriented industrial‑chain strategy, build a robust digital industry ecosystem, and accelerate the digital transformation of upstream and downstream offices. By fostering and expanding core sectors of the digital economy and adopting measures to promote high‑quality development of the digital industry, we can create internationally competitive digital‑industry conglomerates.
In a written interview, Liu Xingguo also noted that Hualu and CETC share strong synergies in their core businesses and exhibit complementary relationships along the industrial chain. Integrating the relatively smaller Hualu into CETC would help bolster CETC’s core capabilities, strengthen its indigenous information technology innovation (ITI) supply chain, and thereby enhance its competitive edge. For Hualu, being incorporated into CETC will likewise pave the way for faster, more robust growth. Moreover, this merger represents a significant boon for the broader ITI sector and the digital economy, injecting fresh momentum and vitality while opening up new opportunities.
In recent years, the pace of consolidation among central state-owned enterprises has accelerated markedly, with particularly vigorous efforts to expand their presence in emerging industries. In November, the People’s Daily reported that 14 pairs of specialized integration projects involving central SOEs were signed in Beijing, covering such sectors as new infrastructure, biotechnology, and intelligent connected vehicles, and involving 23 corporate entities.
Zhou Lisha stated that central enterprises should serve as a key driving force in China’s current efforts to accelerate the development of strategic emerging industries. On the one hand, since the 18th National Congress of the Communist Party of China, the CPC Central Committee and the State Council have set forth new requirements for the strategic restructuring of the industrial structure of state-owned enterprises. The “Guiding Opinions of the General Office of the State Council on Promoting Structural Adjustment and Reorganization of Central Enterprises” explicitly calls on central enterprises to increase investment in strategic industries, vigorously advance the development of strategic emerging sectors, and expedite the emergence of new growth drivers. On the other hand, with their substantial asset base and control over significant strategic resources, central enterprises possess stronger investment and innovation capabilities, as well as more robust risk-management frameworks, thereby assuming both the obligation and the responsibility to play a pivotal role in the development of strategic emerging industries.
Liu Xingguo also noted that, to address the issues of fragmented investment, weak competitiveness, and redundant capital allocation in emerging industries, the State-owned Assets Supervision and Administration Commission (SASAC) has been actively promoting specialized consolidation in these sectors in recent years, with the aim of swiftly establishing state‑owned industrial groups that can lead and drive sectoral development. At the same time, SASAC is deepening reforms of innovation‑related systems and mechanisms in emerging industries, fostering faster breakthroughs and advancing technological self‑reliance and independence.
Wu Gangliang stated that in 2023, central enterprises aim to increase the share of their strategic emerging‑industry deployments by at least two percentage points. Developing strategic emerging industries will enable state-owned enterprises in the new era to simultaneously fulfill three key roles: driving technological innovation, leading industrial development, and bolstering national security.

Four departments have called for the swift formulation and implementation of measures to bolster financing support for technology-based enterprises.
Recently, the People’s Bank of China, the Ministry of Science and Technology, the National Administration of Financial Regulation, and the China Securities Regulatory Commission jointly convened a meeting to exchange views and advance work on science-and‑technology finance. The meeting emphasized directing more financial resources toward fostering scientific and technological innovation. It called for focusing on key areas of technological advancement and addressing shortcomings in financial services, deepening supply-side structural reform in the financial sector, and further improving a comprehensive, multi‑tiered system of science-and‑technology financial services that encompasses credit, bonds, equities, insurance, venture capital, and financing guarantees. The goal is to continuously enhance the capacity, intensity, and quality of financial support for scientific and technological innovation, thereby contributing the financial sector’s strength to accelerating high‑level self‑reliance and self‑strengthening in science and technology.
The meeting emphasized that financial regulators, technology authorities, and all financial institutions must thoroughly implement the CPC Central Committee’s important directives on accelerating the building of a science and technology powerhouse and a financial powerhouse, earnestly strengthen their sense of mission and responsibility, establish and improve institutional mechanisms for advancing science‑and‑technology‑finance initiatives, promptly formulate concrete measures to intensify support for the financing of technology‑based enterprises, and ensure effective implementation. Furthermore, it called for refining the financial support policy framework in two key areas—major national science and technology programs and small and medium‑sized technology enterprises—and launching a special campaign to enhance the capacity of financial services for the tech sector. It also stressed the need to bolster supporting measures such as public sharing of scientific and technological information, financing guarantees, and intellectual property valuation and trading, while improving the statistical and evaluation systems for science‑and‑technology finance. All parties were urged to adhere to the overarching principle of seeking progress while maintaining stability, and to strike an appropriate balance between providing financial support and guarding against risks.

The Ministry of Industry and Information Technology plans to issue the “Guidance on Discretionary Administrative Penalties for Data Security in the Industrial and Information Technology Sectors.”
On November 23, the website of the Ministry of Industry and Information Technology published the “Public Notice Soliciting Comments on the ‘Guidance on Discretionary Administrative Penalties for Data Security in the Industrial and Information Technology Sectors (Trial) (Draft for Comments),’” with a deadline for submitting feedback set for December 23.
The “Discretionary Guidelines” consist of a main text and accompanying discretionary benchmarks. The main text comprises five chapters and twenty-six articles, while the annex contains fourteen provisions. It clarifies the scope of jurisdiction for data security violations, including the place of residence and the location of network access, and sets forth the triggering conditions for three categories of unlawful conduct: failure to fulfill data security protection obligations, unauthorized transfer of data abroad, and non‑cooperation with regulatory oversight. Taking into account factors such as the sensitivity and volume of the data involved, the duration of harm to the public interest, direct economic losses, and the extent of the impact, the guidelines categorize the severity of data security violations into levels ranging from “relatively minor” to “serious,” and specify the applicable rules and benchmarks for exercising administrative penalty discretion.

Five departments: Accelerate the establishment of a product carbon footprint management system.
On November 22, the National Development and Reform Commission’s website published the “Opinions on Accelerating the Establishment of a Product Carbon Footprint Management System.”
The Opinions set forth the following key tasks: formulating rules and standards for calculating product carbon footprints, strengthening the development of a background database on carbon footprints, establishing a certification system for product carbon labeling, expanding the range of application scenarios for product carbon footprints, and promoting international alignment and mutual recognition of carbon footprint assessments. They also call for improving policy support, bolstering capacity-building, enhancing data quality, and reinforcing intellectual property protection. Furthermore, the Opinions encourage leading enterprises to establish product carbon‑footprint management systems tailored to industry development levels and their own specific circumstances, thereby driving upstream and downstream offices to strengthen carbon‑footprint management and advancing the overall green and low‑carbon transformation of supply chains.

Taxation
The State Taxation Administration has released the “Compilation of Continued, Optimized, and Improved Tax and Fee Preferential Policies (2023 Edition).”
To further ensure the effective implementation of this year’s tax and fee preferential policies—those that have been extended, optimized, and refined—and to facilitate access and understanding for taxpayers, payers, and tax officials nationwide, the State Taxation Administration recently released the “Compilation of Extended, Optimized, and Refined Tax and Fee Preferential Policies (2023 Edition).” The compilation provides a comprehensive overview of all such policies issued from the beginning of the year through the end of October, accompanied by detailed explanations, thereby helping to ensure that these measures are promptly and efficiently delivered to eligible entities.
This year, amid a complex and challenging international environment and daunting domestic tasks related to reform, development, and stability, the CPC Central Committee and the State Council have demonstrated far-sighted vision and keen judgment by introducing and implementing a series of tax and fee preferential policies that are both sustained, optimized, and refined, thereby further stabilizing market expectations, bolstering market confidence, and invigorating market dynamism. The tax authorities have adopted multiple measures to ensure the thorough and meticulous implementation of these policies, delivering faster and higher‑quality services to help market entities fully benefit from the policy dividends.
The newly released “Compilation of Tax and Fee Preferential Policies for Continued Optimization and Improvement (2023 Edition)” is structured into four sections—preferential policies, policy explanations, Q&A, and related documents. It includes 70 tax and fee preferential policy documents issued in 2023, 6 relevant administration‑and‑collection announcements, 6 policy interpretation articles, 10 sets of Q&A, and 33 related policy documents from previous years. Building on a comprehensive review of all tax and fee preferential measures, the compilation provides detailed explanations of the background behind key policies, the calculation of tax and fee reductions and exemptions, and the procedures for accessing these benefits. In addition, it addresses practical issues of widespread concern to taxpayers and payers by drawing on specific scenarios, aiming to enable taxpayers and payers to more conveniently access information, more accurately understand the policies, and apply them more comprehensively.
An official from the Office of the Leading Group for Implementing Tax and Fee Preferential Policies under the State Taxation Administration stated that, as tax authorities comprehensively advance the implementation of these policies, they have continuously refined and introduced personalized, precision‑driven service measures to ensure taxpayers and payers are fully informed about and fully benefit from all applicable policies. Moving forward, efforts will remain focused on bridging the “last mile” in policy delivery, enabling more rapid and accurate “policy‑to‑person” outreach, and ensuring that the benefits of tax and fee reductions are delivered swiftly, accurately, and with high quality and efficiency, thereby contributing an even greater tax‑related impetus to high‑quality economic development.
It is understood that, in recent years, the tax authorities have successively compiled and issued a series of specialized policy guides on tax and fee preferential measures, including the “Guidance on Tax and Fee Preferential Policies for Small and Micro Enterprises and Individual Business Households,” the “Guidance on Tax and Fee Preferential Policies Supporting Rural Revitalization,” and the “Guidance on Tax and Fee Preferential Policies Supporting Green Development.” The release of this latest compilation further refines and enhances the system of policy compendia and guidance documents. All these compilations and guides are available on the website of the State Taxation Administration, enabling taxpayers and payers to identify and apply the tax and fee preferential policies best suited to their specific circumstances, thereby fully benefiting from the policy dividends.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has issued the fifth batch of typical cases involving procuratorial hearings.
On November 22, the Supreme People’s Procuratorate website released the fifth batch of typical cases involving procuratorial hearings, strengthening the institutional framework for hearings, promoting their substantive implementation, and guiding procuratorial organs nationwide to uphold and develop the “Fengqiao Experience” of the new era. These efforts aim to leverage procuratorial hearings in resolving social conflicts, advancing source‑level governance, and enhancing the quality and efficiency of case handling.
This batch of cases comprises a total of nine, encompassing various types, including cases proposed for non-prosecution, criminal appeal cases, civil litigation supervision cases, and administrative public-interest litigation supervision cases. In the “Administrative Public‑Interest Litigation Prosecutorial Hearing Case of the People’s Procuratorate of Hua County, Henan Province, Urging Remediation of a Dangerous Bridge over the Jindi River That Impedes Flood‑Control Safety Along the Yellow River,” the procuratorial organ, in response to issues such as inadequate follow-up by the administrative authority after receiving pre‑litigation prosecutorial recommendations, convened an on‑site hearing. Drawing on the opinions of the hearing panelists, it instituted a public‑interest lawsuit in accordance with the law, thereby enhancing the enforceability of prosecutorial oversight.

The Ministry of Justice plans to issue Measures on Soliciting Opinions and Conducting Hearings in the General Procedure for Administrative Review.
On November 21, the Ministry of Justice website published the “Notice on Public Solicitation of Comments on the ‘Measures for Hearing Opinions in the Ordinary Procedure of Administrative Review (Draft for Comments)’ and the ‘Measures for Hearings in the Ordinary Procedure of Administrative Review (Draft for Comments),’” with a deadline for submitting feedback set for November 30.
The “Measures for Soliciting Opinions” and the “Hearing Measures,” each comprising twenty articles, set forth six key areas that should be prioritized when soliciting applicants’ views, as well as six categories of major, difficult, or complex administrative reconsideration cases that must be subject to a hearing, while also specifying the relevant procedural requirements. Notably, the “Hearing Measures” stipulate that administrative reconsideration cases involving new business models, emerging fields, or novel types of administrative disputes, or those characterized by complex factual circumstances, shall be conducted through a hearing.
The Supreme People’s Court has released the 38th batch of guiding cases, focusing on the protection of the Yangtze River.
On November 21, the Supreme People’s Court released the 38th batch of guiding cases. This batch comprises five cases, focusing on the protection of the Yangtze River. They were selected and issued to provide robust guidance to people’s courts at all levels in the accurate implementation of the Law of the People’s Republic of China on the Protection of the Yangtze River, to facilitate the translation of valuable judicial practices into legal norms, and to ensure the consistent application of environmental and resource‑related adjudicatory principles and standards.
Among the cases in this batch of guiding cases, four are environmental public interest litigation matters aimed at safeguarding social and public interests. Specifically, Guiding Case No. 212 clarifies the rules on centralized jurisdiction over criminal cases involving illegal sand extraction across administrative boundaries, as well as the principles governing compensation for ecological and environmental damage; Guiding Case No. 214 sets forth the criteria for recognizing environmental pollution‑remediation expenses as common‑benefit debts in bankruptcy reorganization proceedings, treating such remediation as a key factor in realizing the value of the reorganization; and Guiding Case No. 215 establishes the rules for disregarding corporate legal personality and imposing joint and several liability on shareholders in cases of ecological and environmental torts.

The Supreme People’s Procuratorate has launched a pilot program at nine procuratorates to implement an intelligent case-handling support system for criminal trial supervision.
From December 2022 to June this year, the Supreme People’s Procuratorate conducted a pilot program of an intelligent case-handling support system for criminal trial supervision in nine procuratorial organs nationwide, which has already yielded significant results. The primary objective of operating this system is to address the current challenges of limited leads in criminal trial supervision and an insufficient supply of cases suitable for protest.
The nine pilot procuratorates are: the Beijing Municipal People’s Procuratorate, the Dalian Municipal People’s Procuratorate of Liaoning Province, the Liangxi District People’s Procuratorate of Wuxi City in Jiangsu Province, the Shaoxing Municipal People’s Procuratorate of Zhejiang Province, the Qingtian County People’s Procuratorate of Zhejiang Province, the Xiamen Municipal People’s Procuratorate of Fujian Province, the Wuhan Municipal People’s Procuratorate of Hubei Province, the Guiyang Municipal People’s Procuratorate of Guizhou Province, and the Xi’an Municipal People’s Procuratorate of Shaanxi Province. In coordinating the pilot program, the Second Procuratorial Department of the Supreme People’s Procuratorate has systematically identified and distilled 122 rules for supervising criminal trials. Based on the experiences gained in each locality, it has also prepared summary reports on the pilot initiatives, and the relevant best practices have been adopted and promoted by the Digital Prosecution Office of the Supreme People’s Procuratorate.

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