JC Master Legal News Issue 1088

Key Takeaways for This Issue

Building Consensus and Promoting Open Cooperation — The 2023 Shanghai Stock Exchange International Investors Conference Opens
On November 15, the 2023 Shanghai Stock Exchange International Investors Conference opened in Shanghai. Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, Xie Dong, Vice Mayor of Shanghai, and Qiu Yong, Chairman of the Shanghai Stock Exchange, delivered opening remarks, while Cai Jianchun, General Manager of the Shanghai Stock Exchange, presided over the opening ceremony.
State Administration of Foreign Exchange: Strengthen monitoring, analysis, and response to cross-border capital flows, and maintain the RMB exchange rate at a broadly stable level within an appropriate and balanced range.
On November 16, the State Administration of Foreign Exchange issued a statement indicating that, in the next phase, it will continue to refine the foreign exchange management system and mechanisms to better support the high-quality development of the real economy.
The State Taxation Administration has updated and released a list of “non-contact” tax filing and payment services.
On the 15th, the State Taxation Administration announced an updated list of 233 “non-contact” tax and fee services that can be handled online.
The Supreme People’s Court has issued thirteen provisions to standardize the work of comprehensive governance–related judicial recommendations.
On November 15, the Supreme People’s Court website published the “Provisions on Several Issues Concerning the Work of Comprehensive Governance–Related Judicial Recommendations.”
Finance & Capital Markets
Building Consensus and Promoting Open Cooperation — The 2023 Shanghai Stock Exchange International Investors Conference Opens
On November 15, the 2023 Shanghai Stock Exchange International Investors Conference opened in Shanghai. Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission; Xie Dong, Vice Mayor of Shanghai; and Qiu Yong, Chairman of the Shanghai Stock Exchange, delivered opening remarks, while Cai Jianchun, General Manager of the Shanghai Stock Exchange, presided over the ceremony. This year’s conference was themed “Building a New Development Paradigm and Promoting High-Quality Development,” with more than 150 representatives from renowned domestic and international investment institutions registering to attend. Participants jointly explored market, investment, and growth opportunities in China, forged a consensus on their long-term confidence in the Chinese economy, and discussed ways to advance high-quality development of the capital markets. This event marks another significant step taken by the Shanghai Stock Exchange to implement the spirit of the Central Financial Work Conference on promoting high-quality financial development.

China’s high-quality economic development is creating more opportunities for international investors. This year marks the fifth consecutive year that the Shanghai Stock Exchange has hosted its International Investors Conference. Over the two-day event, 18 keynote speeches and roundtable discussions were held, focusing on topics such as China’s investment prospects, measures to further facilitate foreign investor access, green development, technological innovation, and the growth of the SSE’s equity, bond, and derivatives markets. At the conference, both established international investment offices with long-standing ties to China and newcomers to the Chinese market expressed strong confidence in the country’s capital markets. They voiced support for China’s efforts to advance high‑level financial market opening-up, noting that China’s macroeconomic fundamentals are steadily improving, market valuations remain relatively low, and the comprehensive implementation of the registration‑based IPO system is providing sustained momentum to bolster investor sentiment. Meanwhile, the geographic reach of the International Investors Conference continues to expand, with participants this year including institutions from Europe, the United States, and the Asia‑Pacific region, as well as investors from the Middle East, South America, and Southern Africa.

As a flagship event marking China’s high‑level opening-up of its capital markets and the development of Shanghai as an international financial center, the SSE International Investors Conference has, over the past four years, served as a vital bridge for fostering dialogue, promoting open cooperation, conducting roadshows, and showcasing achievements, thereby providing international investors with an effective channel to gain first‑hand insight into China’s economic development and unlock market investment opportunities. In recent years, the Shanghai Stock Exchange has steadily advanced reform, development, and stability, continuously strengthening market functions and invigorating market dynamism, thus creating favorable conditions, a robust ecosystem, and diversified options for international investors. First, Shanghai‑listed companies have demonstrated clear allocation value: in the first three quarters of 2023, they reported total operating revenue of RMB 38.4 trillion and net profit of RMB 3.5 trillion, with overall performance remaining stable; cash dividends and investor returns have remained at relatively high levels, while valuations remain attractively undervalued. Second, innovation in Shanghai‑listed investment products continues to accelerate: the number and scale of equity ETFs are growing rapidly, the index universe is expanding, and the STAR 50 ETF options have been launched smoothly, offering domestic and overseas investors an increasingly diverse array of investable instruments. Third, the structure of Shanghai‑based investors is steadily improving: the shareholdings of insurance funds, social security funds, and corporate pension plans are rising, international participation is steadily increasing, and the base of long‑term investors is expanding. Fourth, the Exchange has persistently pursued high‑level opening-up, refining market connectivity mechanisms, enriching cross‑border investment products, and continuously enhancing the quality and effectiveness of services for international investors. This year, it has dispatched delegations to multiple regions worldwide to promote the market, organized visits for international investors to Shanghai‑listed companies and the bond market, and engaged in policy communication and outreach, telling China’s story in compelling ways.

Going forward, the Shanghai Stock Exchange will resolutely implement the decisions and arrangements of the CPC Central Committee, work to foster a convenient and investor-friendly cross-border investment and financing environment, better support the development of Shanghai as an international financial center and the country’s strategy of opening up, build a world-class exchange, and contribute to high-quality economic development.

The Shanghai and Shenzhen stock exchanges have issued the latest clarifications—concerning “margin lending and borrowing.”
The Shanghai and Shenzhen Stock Exchanges have further clarified matters related to the participation of shareholders holding 5% or more of a listed company in securities margin lending and borrowing.
Recently, both the Shanghai and Shenzhen stock exchanges have revised and issued self-regulatory guidelines on the handling of listed-company business. With respect to margin trading, securities lending, and related matters, these guidelines provide further clarification on the actions of shareholders holding 5% or more of a listed company’s shares, as well as on information disclosure requirements. For example, if a shareholder of a listed company participates in securities‑lending activities and, when combined with other holdings, exceeds 5% of the outstanding shares, any subsequent reduction in holdings must comply with the regulations governing large‑shareholder share sales; conversely, if the combined shareholding falls below 5% due to securities‑lending transactions, any buying or selling of shares would be subject to short‑term trading rules.
Industry insiders say that the latest clarification regarding the participation of shareholders holding more than 5% of listed companies in securities lending and borrowing transactions has enhanced transparency in this area, thereby helping to standardize related business practices.
Clarify the securities lending and borrowing activities of major shareholders holding more than 5% of shares.
Earlier, LONGi Green Energy announced that its shareholder, HHLR Management Co., Ltd. (hereinafter referred to as HHLR), had been placed under investigation by the China Securities Regulatory Commission for allegedly transferring shares of LONGi Green Energy in violation of restrictive regulations, drawing significant market attention. On the eve of this announcement, market reports indicated that HHLR had reduced its stake in LONGi Green Energy through securities lending and other transactions, lowering its shareholding from 5.85% to 4.98% and thereby no longer qualifying as a shareholder holding more than 5% of the company’s shares.
The most notable aspect of the self-regulatory guidelines recently revised and issued by the Shanghai and Shenzhen stock exchanges is the clarification of rules governing securities‑lending and borrowing activities undertaken by shareholders holding 5% or more of a listed company’s shares.
Specifically:
When an investor and its concert parties engage in securities margin trading, short selling, or stock lending and borrowing, if the combined holdings of shares of the same listed company in their ordinary securities accounts and client margin securities accounts, together with the shares of that company that have been lent out through such mechanisms but not yet returned, exceed 5% of the company’s total share capital, any reduction in holdings of that company’s shares shall be subject to the regulations governing reductions by major shareholders.
Shareholders holding more than 5% of a listed company’s shares who neither directly nor indirectly increase nor decrease their shareholdings, and who only engage in securities lending under the securities margin‑lending and borrowing program—lending and reclaiming securities within six months—are exempt from the short‑term trading rules. However, if, as a result of participating in such securities lending, a shareholder’s holdings fall below 5% of the total issued shares, any purchases or sales of stocks or other equity‑related securities during the lending period shall be subject to the short‑term trading regulations.
Directors, supervisors, senior management personnel, and shareholders holding more than 5% of a listed company’s shares shall not engage in securities margin trading or short selling involving that listed company’s stock as the underlying security. Where, as a result of participating in securities lending under the Stock Lending and Borrowing Program, a shareholder’s holdings fall below 5% of the total share capital, the provisions of the preceding paragraph shall apply.
Compared with previous versions, the Shanghai and Shenzhen stock exchanges have primarily clarified the securities trading rules applicable to shareholders holding 5% or more of a company’s shares who participate in securities lending and borrowing activities. For example, when the aggregate shareholding exceeds 5%, any reduction in holdings must comply with the provisions on major shareholder share reductions set forth in the “Detailed Rules for the Reduction of Shares by Shareholders, Directors, Supervisors, and Senior Management of Listed Companies,” among other relevant regulations. In addition, it has been explicitly stipulated that if, as a result of participating in securities lending and borrowing by lending shares, a shareholder’s stake falls below 5% of the total share capital, the short‑term trading rules shall also apply.
Enhance the transparency of securities lending and borrowing information for shareholders holding more than 5% of the shares.
In this revision of the business guidelines, the exchange also requires listed companies to disclose, in the “Share Changes and Shareholder Information” section of their periodic reports, detailed information on the participation of shareholders holding 5% or more of the shares, the top 10 shareholders, and the top 10 shareholders of unrestricted tradable shares in margin trading, short selling, and securities lending activities during the reporting period.
“Specific details” refer to particulars such as the names of the relevant shareholders, the number and proportion of shares held at the beginning of the reporting period, the number and proportion of shares lent under the securities margin‑lending and borrowing program at the beginning of the reporting period, the number and proportion of shares held at the end of the reporting period, and the number and proportion of shares lent under the securities margin‑lending and borrowing program at the end of the reporting period.
In previous versions, disclosure was required only for the top 10 shareholders and the top 10 shareholders of unrestricted tradable shares who engaged in securities margin trading, short selling, or stock lending. This revision adds a requirement to disclose participation in such activities by shareholders holding 5% or more of the shares.
Furthermore, if there have been any changes in the top 10 shareholders or the top 10 shareholders holding unrestricted tradable shares of a listed company compared with the information disclosed in the previous periodic report, the Guidelines require the listed company to verify with the relevant shareholders whether such changes are related to their participation in securities margin lending and borrowing activities during the reporting period. If so, the company shall disclose, in the “Share Changes and Shareholder Information” section of the periodic report, the number of securities involved in such margin‑lending and borrowing activities during the reporting period, as well as the corresponding percentage of the listed company’s total share capital; it must also disclose, at the end of the reporting period, the aggregate number of the company’s shares held by those shareholders together with the number of shares they have lent out through margin‑lending and borrowing but have not yet returned, along with the aggregate percentage of these holdings relative to the listed company’s total share capital.
The lending of shares allocated to strategic investors has been appropriately regulated and restricted.
With respect to the lending of shares allocated to strategic investors through securities margin lending and borrowing, the Shanghai and Shenzhen stock exchanges have already imposed appropriate regulatory restrictions.
On October 14 this year, both the Shanghai and Shenzhen stock exchanges issued a notice titled “Notice on Optimizing Arrangements Related to Short-Selling Transactions and Securities Lending under the Stock Margin Trading and Securities Lending Program,” thereby refining the rules governing the lending of shares allocated to strategic investors.
Specifically, for special asset management plans established to enable the issuer’s senior management and core employees to participate in strategic allocations, it is required that the shares allocated to them may not be lent out during the committed holding period.
For other strategic investors lending their allotted shares, the lending must be conducted via non‑agreed‑upon trading methods, and a cap on the proportion of shares lent during the first five days is imposed:
(1) Within the first five trading days, the proportion of shares lent on any given day to the total number of shares allocated to the investor shall not exceed 20%.
(2) Within the first five trading days, the aggregate number of allocated shares lent shall not exceed 50% of the total number of allocated shares.
The Notice adopts differentiated regulatory measures tailored to different categories of strategic investors. Industry insiders believe that, on the one hand, strategic‑investor lending constitutes the most critical source of borrowed securities in the early stages of a new share offering; therefore, it is objectively necessary to preserve the basic institutional framework for such lending. With the exception of special asset‑management plans for senior executives and core employees, other strategic investors are predominantly external investors. Although the lending of shares allocated to senior executives and core employees does not constitute a reduction in holdings, these investors play a pivotal role in corporate governance and operations. To ensure that listed‑company executives remain focused on their core business, the Notice prohibits this category of strategic investors from lending their allotted shares, while imposing moderate restrictions on the methods and proportions of lending employed by other strategic investors during the initial phase of a new share listing.

In the first ten months of this year, China’s outward non-financial direct investment has surpassed the US$100 billion mark, maintaining double-digit growth.
On November 16, the Ministry of Commerce held its regular press conference to provide an update on China’s outbound investment and cooperation activities for the period from January to October this year.
At a press conference, Ministry of Commerce spokesperson He Yadong stated that from January to October 2023, China’s outbound investment continued to grow, with non-financial outward direct investment reaching RMB 736.2 billion, up 17.3% year on year (equivalent to USD 104.74 billion, a year-on-year increase of 11%).
Among these, Chinese enterprises’ non‑financial direct investment in countries jointly building the Belt and Road Initiative totaled RMB 181.69 billion, up 27% year on year (equivalent to USD 25.85 billion, a 20.1% year‑on‑year increase).
In addition, from January to October 2023, the total turnover of China’s overseas contracted projects reached RMB 856.88 billion, up 8.3% year on year, while the value of newly signed contracts amounted to RMB 1,083.07 billion, down 1.1% compared with the same period last year. Among these, Chinese enterprises secured a turnover of RMB 702.32 billion in projects undertaken in countries jointly building the Belt and Road Initiative, an increase of 9.6% year on year, with newly signed contract values totaling RMB 902.64 billion, up 0.5% year on year.
We will focus on achieving the “three enhancements” to sprint toward a strong finish in the year’s foreign trade season.
In the first ten months of this year, China’s imports and exports posted positive growth. The fourth quarter is typically the peak season for foreign trade, and the Ministry of Commerce has accordingly rolled out a series of measures to stabilize foreign trade.
He Yadong stated that, since the beginning of this year, China’s foreign trade has withstood pressure and demonstrated strong resilience, performing overall better than expected. The fourth quarter is the final sprint and closing phase of the year’s foreign trade; the Ministry of Commerce will focus on “three enhancements” to further promote stable growth and higher-quality development in foreign trade.
First, we will strengthen services to help enterprises expand into new markets. We will fully leverage the trade‑promotion role of exhibition platforms and increase support for companies’ participation in domestic and international trade shows. We will also facilitate cross‑border business travel and ensure the efficient and unimpeded movement of foreign‑trade goods.
Second, we will elevate the level of innovation and development in foreign trade. We will introduce targeted policies to promote trade cooperation in new-energy vehicles and to enhance the development of processing trade. We will also conduct assessments of cross-border e‑commerce pilot zones, fully leveraging the exemplary and leading role of those that excel.
Third, we will enhance the quality of financial services for foreign trade. We will expand credit support for imports and exports, facilitate precise matchmaking between banks and enterprises, and strengthen assistance to small, medium, and micro-sized foreign‑trade offices. We will also broaden the scale and coverage of export‑credit insurance to help businesses secure market access and mitigate risks.
In the first three quarters, the scale of foreign investment attracted declined but remained at a historically high level.
From July to September this year, China recorded its first-ever quarterly deficit in foreign direct investment. Has the Ministry of Commerce issued any forecasts for FDI in 2024?
He Yadong stated that, according to global cross-border investment data released by UNCTAD, in recent years China has maintained a high level in terms of the scale, share, and growth rate of foreign investment inflows. Affected by the continued slump in global foreign direct investment and a relatively high base in the same period last year, China’s FDI inflows declined slightly from January to September this year, yet they remain at historically elevated levels.
“As we have previously explained, foreign-invested projects can span several years—from negotiation and contract signing to capital injection and production—so the annual figures for foreign investment inflows tend to fluctuate.”
He Yadong emphasized that, since the beginning of this year, the Ministry of Commerce has deepened regular exchanges with foreign-invested enterprises and foreign business associations through mechanisms such as roundtable meetings. During these exchanges, multinational corporations have generally expressed confidence in China’s development prospects and indicated their willingness to pursue long-term growth in the country. “We welcome more multinational companies to engage with the Chinese market and share in the benefits of China’s development,” he said.

State Administration of Foreign Exchange: Strengthen monitoring, analysis, and response to cross-border capital flows, and maintain the RMB exchange rate at a broadly stable level within an appropriate and balanced range.
On November 16, the State Administration of Foreign Exchange issued a statement indicating that, in the next phase, it will continue to refine the foreign exchange management system and mechanisms to better support the high-quality development of the real economy, ensure the stable functioning of the foreign exchange market, and strengthen integrated “macroprudential + micro‑supervision” governance. It will enhance monitoring, analysis, and response to cross‑border capital flows, reinforce expectations management, and maintain basic stability of the RMB exchange rate at an appropriate and balanced level. Furthermore, it will expand regulatory coverage across the entire foreign exchange sector, promote the reengineering of commercial banks’ foreign exchange business processes, improve the end-to-end foreign exchange business framework, and crack down rigorously on illegal and non‑compliant activities such as underground money exchanges and cross‑border gambling. Finally, it will refine the China‑specific management system for foreign exchange reserve operations to safeguard the safety, liquidity, and value preservation and appreciation of foreign exchange reserve assets.
The original text is as follows:
Advance the reform and opening-up of the foreign exchange sector in an orderly manner, and facilitate cross-border trade and investment and financing.
Comprehensive Department of the State Administration of Foreign Exchange
The Central Financial Work Conference emphasized that the financial sector must provide high-quality services to support economic and social development. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the foreign exchange authorities have fully, accurately, and comprehensively implemented the new development philosophy, steadily advanced reform and opening-up in the foreign exchange field, continuously enhanced the facilitation of cross-border trade and investment and financing, and contributed to China’s high-quality economic growth and high-level opening-up.
I. Upholding the coordinated approach to financial opening-up and security, the foreign exchange management system and mechanisms, aligned with the requirements of modernizing the governance system and governance capacity, continue to be refined.
Steadily advancing high‑level opening-up of the capital account. First, two‑way financial market opening has been expanded in an orderly manner. Under the securities investment category, a cross‑border investment framework has gradually taken shape, centered on institutional investor regimes, connectivity mechanisms, and direct market access for overseas investors, thereby establishing a multi‑channel opening-up approach that caters to diverse sectors and investor needs. China’s stock and bond markets have been included in several major international indices, earning broad recognition from global institutional investors. Second, cross‑border direct investment has achieved basic convertibility. Foreign‑direct‑investment foreign‑exchange management fully implements pre‑entry national treatment and negative‑list administration. Outbound direct investment is subject to categorized management, supporting enterprises in “going global” in a proactive yet prudent manner. Reforms have been advanced to facilitate cross‑border investments by private equity funds, enabling them to undertake cross‑border industrial and real‑economy investments. Third, a macroprudential framework for cross‑border financing has been essentially established. A unified, comprehensive macroprudential regime for cross‑border financing in both domestic and foreign currencies has been put in place, allowing financial institutions and enterprises to independently engage in cross‑border financing in either currency within limits tied to their capital or net worth. Furthermore, reforms to the management of multinational corporations’ centralized cross‑border fund‑management operations have been deepened, making it easier for these companies to coordinate and utilize cross‑border funds.
Actively supporting regional open innovation and the development of special economic zones. We have provided support for the construction of the Shanghai International Financial Center, the Hainan Free Trade Port, and the Guangdong–Hong Kong–Macao Greater Bay Area, and encouraged pilot free trade zones and other key platforms for opening-up to take the lead in experimenting with innovations in foreign exchange management. Pilot programs for high-standard opening-up in cross-border trade and investment have been launched in selected areas of four provinces and municipalities, including Shanghai and Guangdong, exploring safer and more open foreign exchange management models. As of the end of September 2023, these pilots had processed approximately 160,000 transactions totaling US$140.6 billion, thereby providing strong support for the development of China’s priority regions.
Establish and improve a dual‑pronged management framework for the foreign exchange market that integrates macroprudential measures with micro‑supervision. Centered on strengthening macroprudential oversight, refine the governance of cross‑border capital flows, put in place robust mechanisms for monitoring, early warning, and response, and employ counter‑cyclical, market‑based tools to temper procyclical behavior in the FX market, thereby safeguarding overall stability in the foreign exchange market and national financial and economic security. With a focus on transforming regulatory approaches, enhance micro‑supervision of the FX market, upgrade the methods for verifying the authenticity of banks’ foreign‑exchange transactions, and gradually establish a management system characterized by substantive truthfulness, diversified modalities, due‑diligence‑based liability exemptions, and secure, efficient operations. At the same time, crack down rigorously on illicit activities such as underground money‑laundering networks and cross‑border gambling, ensuring a sound and orderly foreign‑exchange market.
II. Upholding the principle of serving the real economy as its fundamental purpose, the level of facilitation for cross-border trade and investment and financing continues to improve.
We have continued to deepen reforms in foreign-exchange management for cross-border trade. Nationwide, we have implemented policies to facilitate foreign‑exchange receipts and payments for cross-border trade, granting banks greater discretion in review and approval, streamlining foreign‑exchange settlement for high‑quality enterprises, and supporting innovation and development in the trade sector. As of the end of September 2023, more than 4.27 million transactions under the facilitation scheme had been processed nationwide, totaling over US$1.9 trillion. We have also supported construction‑contracting offices in centralizing their overseas funds, helping them effectively unlock dormant overseas capital and contributing to the high‑quality development of the Belt and Road Initiative.
Actively support the sound development of new trade formats. Banks and payment institutions are encouraged to process trade settlements for cross-border e‑commerce and other emerging trade entities based on electronic transaction information, helping market participants reduce costs and improve efficiency. From January to September 2023, banks and payment institutions processed approximately 650 million foreign exchange transactions for cross-border e‑commerce using such electronic data. Furthermore, settlement channels for market procurement have been streamlined, enabling registered merchants on the networked information platform to handle foreign exchange collection and settlement online through self-service. Since 2023, self‑service online processing has accounted for about 70% of such transactions, benefiting more than 90,000 small and micro enterprises.
Increase foreign exchange support for technological innovation and small and medium-sized enterprises. For small, micro, and medium-sized high-tech offices as well as “specialized, refined, distinctive, and innovative” enterprises—companies with relatively limited net assets—pilot programs have been launched to facilitate cross-border financing, allowing these entities to independently access foreign debt up to the equivalent of US$10 million or US$5 million. Currently, these pilot initiatives cover approximately 80% of the country and encompass 280,000 high-tech and “specialized, refined, distinctive, and innovative” enterprises. In addition, a cross-border financial services platform has been established, introducing eight financing‑related application scenarios and three facilitation‑oriented ones, helping nearly 100,000 foreign‑related enterprises—primarily SMEs—secure cumulative financing exceeding US$290 billion and make payments totaling over US$1.2 trillion.
III. We have steadfastly advanced supply-side structural reform in the financial sector, and a foreign-exchange market characterized by openness and diversity, sound functionality, and orderly competition has essentially taken shape.
Diversify the participants in the foreign exchange market. At present, China’s interbank foreign exchange market comprises domestic banks as the main players, alongside a diverse array of domestic and overseas institutions. Domestically, non-bank financial institutions and non-financial enterprises are permitted to participate in the interbank FX market; internationally, offshore RMB clearing banks, participating banks, central bank‑type institutions, and foreign investors are allowed to engage in the onshore FX market.
More foreign-exchange market products have been introduced. China’s foreign-exchange market now offers a full suite of internationally established instruments, including spot, forward, FX swaps, currency swaps, and options. Banks list over 40 currencies, covering the major settlement currencies used in cross-border payments and receipts, thereby meeting enterprises’ needs for foreign-exchange conversion and hedging against exchange-rate risk in cross-border investment and financing activities. In 2022, total FX‑market turnover reached US$34.5 trillion, up 43.2% from 2017. According to the Bank for International Settlements (BIS) Global Foreign‑Exchange Market Survey, the renminbi’s average daily trading volume as a share of global FX turnover rose to fifth place worldwide in 2022.
Promote the sound and orderly development of the foreign exchange market. Issue the “Guidelines on Trading Conduct in the Foreign Exchange Market” to foster integrity, fairness, orderliness, and efficiency in market operations. Revise and release the “Interbank Foreign Exchange Market Market-Maker Guidelines” to standardize market‑maker trading practices. Provide guidance to the National Foreign Exchange Market Self‑Regulatory Mechanism in formulating industry‑specific operational standards, thereby encouraging banks to conduct business in compliance with regulations and maintain prudent operations. Continuously strengthen oversight of trading activities in the foreign exchange market and further refine a fair, efficient, and robust market regulatory framework.
Enhance services for corporate exchange-rate risk management. Issue the “Guidelines on Corporate Exchange-Rate Risk Management” and the “Collection of Exchange-Rate Risk Scenarios and Case Studies on the Use of Foreign-Exchange Derivatives” to help enterprises establish effective exchange-rate risk-management frameworks. Strengthen support and services for small, medium, and micro-sized enterprises by encouraging banks to reduce fees and offer preferential terms, improve the ease of obtaining credit lines for derivatives, and directing the China Foreign Exchange Trade System to waive interbank foreign-exchange market transaction fees associated with derivatives for such enterprises, thereby effectively lowering their costs of hedging exchange-rate risks. In 2022, the corporate hedging ratio rose to 24.0%, and the total notional value of foreign-exchange derivatives—such as forwards and options—used by enterprises to manage exchange-rate risk exceeded USD 1.3 trillion.
IV. In the next phase, we will continue to refine the foreign exchange management system and mechanisms to better support the high-quality development of the real economy.
We will steadily deepen reform and opening-up in the foreign exchange sector. We will expand pilot programs for high-standard opening-up in cross-border trade and investment, advance revisions to regulations governing overseas listings and the participation of foreign institutional investors in the domestic securities market, and work to enhance the quality of capital-account liberalization, thereby attracting more foreign financial institutions and long-term capital to establish and grow their businesses in China. We will refine the policy framework for the centralized management of cross-border funds by multinational corporations, supporting the development of headquarters economies. We will also support the development of Shanghai and Hong Kong as international financial centers and promote regional open innovation, fostering coordinated development between onshore and offshore foreign-exchange markets.
Continuously advance the facilitation of cross-border trade and investment‑financing. Strengthen and refine policies to streamline foreign‑exchange settlement for cross‑border trade, support more banks and payment institutions in providing settlement services for new trade formats such as cross‑border e‑commerce, and enable a greater number of small and medium‑sized enterprises—characterized by strong creditworthiness, smaller scale, and high transaction volumes—to benefit from these policy measures. Extend the cross‑border financing facilitation regime nationwide, thereby fostering innovation and development among more high‑tech offices and “specialized, refined, distinctive, and innovative” enterprises. Encourage banks to establish robust, long‑term mechanisms for managing exchange‑rate risks, helping enterprises better manage their currency‑risk exposures. Continuously expand and enhance the application scenarios of the cross‑border financial services platform, assisting a broader range of foreign‑related business entities—particularly SMEs—in reducing the costs of cross‑border financing and settlement.
Effectively safeguard the stable functioning of the foreign exchange market. Strengthen the integrated “macroprudential + micro‑supervision” management framework, enhance monitoring, analysis, and response to cross‑border capital flows, and reinforce expectations management to keep the RMB exchange rate broadly stable at an appropriate and balanced level. Expand regulatory coverage across the entire foreign exchange sector, promote the reengineering of commercial banks’ foreign exchange business processes, refine the end‑to‑end foreign exchange business framework, and crack down rigorously on illegal and non‑compliant activities such as underground money exchanges and cross‑border gambling. Further improve the China‑specific system for managing and operating foreign exchange reserves, ensuring the safety, liquidity, and preservation and enhancement of their value.

Two major securities offices under Central Huijin have refuted rumors of a merger and restructuring.
China International Capital Corporation Limited (hereinafter referred to as CICC) and China Galaxy Securities Co., Ltd. (hereinafter referred to as China Galaxy) both issued announcements on the 13th to clarify rumors of a merger and restructuring between the two offices.
Both brokerage offices’ announcements stated that, in recent days, they have noted market rumors alleging a merger and restructuring between CICC and China Galaxy Securities. To avoid misleading the public and investors, they hereby issue this clarification.
CICC stated that, as of the date of this announcement, it has not received any written or oral information from government authorities, regulatory bodies, or the company’s shareholders regarding the aforementioned rumors. Following conofficeation with its controlling shareholder, Central Huijin Investment Limited Liability Company (hereinafter referred to as “Central Huijin”), the controlling shareholder has neither planned nor is currently engaged in any material matters related to the aforementioned rumors or other matters that should have been disclosed but were not. Furthermore, the company itself has no information that should have been disclosed but remains undisclosed.
China Galaxy stated that, as of the date of this announcement, the company has not received any written or oral information from government departments, regulatory authorities, or the company’s controlling shareholder or actual controller regarding the aforementioned rumors. Following conofficeation by the company with its controlling shareholder, China Galaxy Financial Holdings Co., Ltd., and its actual controller, Central Huijin Investment Limited, neither the controlling shareholder nor the actual controller is currently planning any of the matters referred to in the rumors, nor are there any other material matters that should have been disclosed but have not been. The company likewise has no information that should have been disclosed but remains undisclosed.
According to media reports, in response to the earlier Central Financial Work Conference’s call to “cultivate world-class investment banks,” the China Securities Regulatory Commission recently stated that it will support leading securities offices in enhancing their competitiveness and scale through business innovation, group‑based operations, and mergers and acquisitions, with the aim of building first‑rate investment banks.
In response to the call to “cultivate world-class investment banks,” market rumors of securities‑office mergers and restructurings have recently gained momentum. China International Capital Corporation (CICC) and China Galaxy Securities are both subsidiaries of Central Huijin, and their businesses exhibit strong complementarity: CICC excels in investment banking, while China Galaxy is renowned for its brokerage operations.
Public data show that in the first three quarters of this year, CICC reported operating revenue of RMB 17.466 billion and net profit attributable to shareholders of RMB 4.608 billion. During the same period, China Galaxy recorded operating revenue of approximately RMB 25.483 billion and net profit attributable to shareholders of listed companies of about RMB 6.603 billion.
Lei Guoxuan, an analyst at Dongguan Securities, stated that the China Securities Regulatory Commission supports leading securities offices in enhancing their competitiveness and scale through mergers and acquisitions and other restructuring measures. He expects that the trend of M&A and restructuring among top-tier brokerage houses will further intensify, potentially driving a further increase in industry concentration. Against the backdrop of this year’s official policy initiative to invigorate the capital market, with a series of supportive measures already rolled out, the securities sector is poised to continue benefiting.

Commercial & Corporate
How can foreign trade be further stabilized in the fourth quarter? The Ministry of Commerce responds.
The fourth quarter is typically the peak season for foreign trade. How can we further stabilize foreign trade? At today’s regular press conference of the Ministry of Commerce, spokesperson He Yadong addressed this issue.
He Yadong pointed out that, since the beginning of this year, China’s foreign trade has withstood pressure and demonstrated strong resilience, performing overall better than expected.
He Yadong stated that the fourth quarter is typically the final sprint and closing phase of the year’s foreign trade, and the Ministry of Commerce will focus on “three key enhancements” to further promote stable growth and higher-quality development in foreign trade.
First, we will strengthen services to help enterprises expand into new markets. We will fully leverage the trade‑promotion role of exhibition platforms and increase support for companies’ participation in domestic and international trade shows. We will also facilitate cross‑border business travel and ensure the efficient and unimpeded movement of foreign‑trade goods.
Second, we will elevate the level of innovation and development in foreign trade. We will introduce targeted policies to promote trade cooperation in new-energy vehicles and to enhance the development of processing trade. We will also conduct assessments of cross-border e‑commerce pilot zones, fully leveraging the exemplary and leading role of those that excel.
Third, we will enhance the quality of financial services for foreign trade. We will expand credit support for imports and exports, facilitate precise matchmaking between banks and enterprises, and strengthen assistance to small, medium, and micro-sized foreign‑trade offices. We will also broaden the scale and coverage of export‑credit insurance to help businesses secure market access and mitigate risks.

The Ministry of Industry and Information Technology is soliciting public comments on 38 proposed voluntary national standards.
On November 16, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on 196 industry standards, one foreign-language version of an industry standard, and 38 proposed voluntary national standards, including “Test Methods for Dry Etching Equipment Used in Semiconductor Device and Integrated Circuit Manufacturing.” The deadline for submitting feedback is December 16.
This batch of draft national standards for public comment primarily includes the following projects: “Road Vehicles—Intelligent Connected Vehicle Perception Function Evaluation Test Equipment—Part 1: Requirements for Rear‑End Targets in Passenger Cars”; “Road Vehicles—Intelligent Connected Vehicle Perception Function Evaluation Test Equipment—Part 2: Requirements for Pedestrian Targets”; “Road Vehicles—Intelligent Connected Vehicle Perception Function Evaluation Test Equipment—Part 3: Requirements for 3D Passenger Car Targets”; “Road Vehicles—Intelligent Connected Vehicle Perception Function Evaluation Test Equipment—Part 4: Requirements for Cyclist Targets”; “Intelligent Connected Vehicles—Performance Requirements and Test Methods for Certain Driver Assistance Longitudinal Driving Control Systems”; “Semiconductor Devices—Reliability Test Method for Gallium Nitride (GaN) Transistors Based on Switching Stress under Inductive Loads”; and “Integrated Circuits—EMC Assessment of Transceivers—Part 5: Ethernet Transceivers,” among others.

The joint initiative to build “Credit Beijing–Tianjin–Hebei” has officially launched, aiming to strengthen credit‑based regulatory oversight and promote mutual recognition, sharing, and collaborative use of credit data.
The State Administration for Market Regulation recently hosted in Beijing the signing ceremony and related meetings for the joint initiative by market regulation authorities in the Beijing–Tianjin–Hebei region to build “Credit Beijing–Tianjin–Hebei,” marking the official launch of this collaborative effort.
The meeting emphasized the following three priorities: First, accelerate the interconnection, interoperability, and sharing of credit information. The State Administration for Market Regulation will intensify efforts to open and share enterprise‑related credit‑regulation data with the market‑regulation authorities of the three regions. Beijing, Tianjin, and Hebei should strengthen mutual recognition, sharing, and joint utilization of credit‑regulation data, comprehensively improve data quality, and better support high‑quality data applications. Second, steadily advance innovation in collaborative mechanisms for credit‑based regulation. Taking into account the regional differences among the three areas, we will focus on fostering complementary strengths, fully leveraging the foundational role of credit‑based regulation, and enhancing coordinated linkages. Third, strengthen and elevate the quality and effectiveness of services supporting balanced regional development. Using the joint building of a “Credit‑Based Beijing–Tianjin–Hebei” framework as a key initiative, we will actively integrate into and proactively serve and support major national strategies, promoting, in areas such as optimizing and upgrading credit‑related services, the adoption of uniform standards across jurisdictions and collaborative governance, thereby raising the overall level of market regulation.

Shanghai Releases Its Plan to Establish a Pilot Zone for “Silk Road E‑Commerce” Cooperation
On the morning of November 14, the Shanghai Municipal Government Information Office held a press conference, at which Zhang Xiong, Deputy Secretary-General of the Shanghai Municipal Government, outlined the key elements of the “Plan for Establishing a Pilot Zone for Silk Road E‑Commerce Cooperation in Shanghai.”
At present, the State Council has approved the plan to establish a pilot zone for “Silk Road E‑Commerce” cooperation in Shanghai.
Zhang Xiong stated that the pilot zone’s development plan focuses on pioneering institutional openness, fostering market entities, and advancing cooperative mechanisms, with the aim of accelerating alignment with high-standard international economic and trade rules, exploring innovations in systems and governance, and further opening up the e‑commerce sector to the outside world.
First, we will prioritize institutional openness. By aligning closely with high-standard international economic and trade rules such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), we will focus on key areas including paperless trade, electronic transaction regulations, and the data industry. In the pilot zones, we will spearhead innovative trials, introduce more concrete measures to open up markets, and accelerate the development of a regulatory framework and infrastructure for digital trade.
Second, we will prioritize the cultivation of market players. We will strive to create a world-class business environment, optimize the industrial ecosystem, strengthen the service system, and improve infrastructure for warehousing, logistics, payments, and other key areas. By effectively enhancing trade facilitation, fostering new models and formats of trade, and nurturing robust e‑commerce platforms and enterprises, we will support e‑commerce players in expanding their global operations and drive high‑quality development of the sector.
Third, we will prioritize institutional cooperation. Leveraging Shanghai’s strengths in reform and opening-up and institutional innovation, we will explore innovative mechanisms and frameworks to foster mutual industrial development, platform collaboration, and resource sharing. We will take the lead in establishing international cooperation platforms in areas such as think tanks, capacity-building programs, and digital technology applications, thereby providing robust support for win-win cooperation under the “Silk Road E‑Commerce” initiative and actively expanding new frontiers in international trade and economic engagement.
The overarching objectives set forth in the Pilot Zone Plan can be summarized as “four batches”: by 2025, a number of institutional innovations that serve as models and lead the way will be established; a cohort of internationally competitive e‑commerce operators will be concentrated; a series of regionally distinctive platforms will be developed; and a set of public service platforms will be built to foster the shared development of Silk Road E‑Commerce partner countries. As a result, e‑commerce transactions and international cooperation and exchanges will become more dynamic, with significantly enhanced comprehensive service capabilities, thereby providing both tangible outcomes and practical experience to support the further development of Silk Road E‑Commerce.
The main tasks focus on three key areas—expanding openness in the e‑commerce sector, fostering a conducive environment for pioneering initiatives, and vigorously promoting international and regional exchanges and cooperation—comprising a total of 19 specific measures.
First, we will expand openness in the e‑commerce sector. This comprises seven key tasks: broadening international data services; implementing high‑standard trade facilitation measures; promoting the adoption of international standards for electronic documents; exploring cross‑border interoperability of digital identities and electronic authentication; expanding cross‑border e‑commerce imports; fostering innovative development in cross‑border e‑commerce exports; and advancing cross‑border RMB settlement under the “Silk Road E‑Commerce” initiative.
Among these initiatives, proposals include establishing a data‑trading registration and service system and an international data‑trading platform, as well as participating in international standard‑setting efforts for data circulation; advancing international cooperation on the “Single Window” for international trade, enabling cross‑border customs clearance through data sharing and interoperability to support trade‑facilitation measures such as “one document, two declarations”; building a cross‑border electronic invoice interoperability platform to allow banks to accept electronic invoices as proof of payment for imports and promote their widespread use; facilitating the domestic and cross‑border use of electronic transferable records such as bills of lading and warehouse receipts; supporting the establishment of a cross‑border digital identity interoperability platform and exploring the alignment of cross‑border service regulations; backing the creation of an electronic certification services interoperability platform to meet the online exchange and verification needs of digital documents, including electronic contracts and digitized certificates of origin; and, in line with partner countries’ export demands, introducing and cultivating additional high‑quality products. Furthermore, it supports cross‑border e‑commerce enterprises, traditional foreign‑trade offices, logistics companies, and other stakeholders in developing overseas warehouses through various models, while piloting comprehensive overseas‑warehouse service platforms and related innovative measures.
Second, foster an environment conducive to pioneering and experimentation. This comprises six key tasks: establishing central functional zones within the customs special supervision areas of the Free Trade Pilot Zones and the Lingang New Area; developing a radiating and leading zone in the Hongqiao International Central Business District; setting up a global consolidation and distribution center for cross-border e‑commerce; nurturing and expanding “Silk Road E‑Commerce” enterprises; upgrading the infrastructure supporting “Silk Road E‑Commerce”; and creating an international hub for talent.
Among these measures, it is proposed to promote the establishment of bonded display zones within special customs supervision areas, expand cross-border e‑commerce models, and provide one-stop import services for enterprises from partner countries; to cluster trade and investment promotion agencies of partner countries in the Hongqiao International Central Business District, and to organize country‑specific cultural exchanges, business matchmaking, and product exhibitions under the “Silk Road E‑Commerce” initiative; to set up global distribution centers within special customs supervision areas that integrate multiple customs‑supervised functions, and to explore new approaches to customs supervision for goods entering and leaving warehouses; to encourage the agglomeration and development of e‑commerce platforms and specialized service providers, and to build independent cross‑border e‑commerce websites; to improve e‑commerce infrastructure—including warehousing, logistics, and payment—and to refine the cross‑border e‑commerce settlement system; and to optimize and broaden the scope of key institutions eligible for talent recruitment in the e‑commerce sector, while introducing pilot measures—such as facilitating applications for multi‑year work permits and work‑related residence permits—for outstanding foreign e‑commerce professionals.
Third, we will vigorously advance international and regional exchanges and cooperation. This comprises six key tasks: conducting think-tank exchanges on the “Silk Road E‑Commerce” initiative; promoting the application of digital technologies under the “Silk Road E‑Commerce” framework; facilitating training and exchange programs related to “Silk Road E‑Commerce”; ensuring smooth channels for e‑commerce-related exchanges and cooperation with partner countries; advancing regional cooperation under the “Silk Road E‑Commerce” initiative; and establishing an international service system for “Silk Road E‑Commerce.”
Among these initiatives, it is proposed to establish the “Silk Road E‑Commerce” International Think Tank Alliance to conduct research on cross‑border e‑commerce regulations, industry matchmaking, and intellectual property protection; to build a “Silk Road E‑Commerce” Digital Technology Application Center to advance the deployment of cloud computing, blockchain, big data, the Internet of Things, digital twins, and other technologies, and to launch a pilot program for traceability of imported gemstone and jade products; to set up a “Silk Road E‑Commerce” Cooperation and Training Center to develop a multi‑stakeholder e‑commerce talent‑development framework involving government, universities, civil society, and enterprises; to establish national pavilions integrating product showcases, tourism promotion, and cultural exhibitions, and to host “Silk Road Cloud Products”–themed consumer‑stimulating events; to strengthen cooperation among the Yangtze River Delta’s cross‑border e‑commerce public service platforms in areas such as customs clearance, logistics tracking, and business consulting, while encouraging collaboration among industry associations in the region; and to construct a “Silk Road E‑Commerce” cross‑border service platform and an overseas investment service platform, pioneering end‑to‑end, full‑chain services.
Zhang Xiong stated that establishing the “Silk Road E‑Commerce” Cooperation Pilot Zone is another major task entrusted to Shanghai by the central government, a key initiative for deepening the joint construction and shared benefits of the Belt and Road Initiative, and a significant opportunity for Shanghai to elevate the capabilities of its five core functional centers. Moving forward, Shanghai will, under the guidance and support of the Ministry of Commerce and other relevant national ministries and commissions, leverage the inter‑ministerial pilot‑zone coordination mechanism, capitalize on the city’s dual advantages as a pioneer in the new era of reform and opening‑up and as a convergence point for multiple national strategic priorities, strengthen overall planning and coordination, refine division of responsibilities, and ensure the high‑standard, high‑quality completion of all tasks related to the pilot‑zone’s establishment. The city will also conduct timely evaluations of its plans, distill innovative experiences and outcomes, and develop a portfolio of exemplary practices that feature robust institutional innovation, positive feedback from market players, and strong potential for replication and wider dissemination. Shanghai welcomes enterprises and institutions from all sectors of society and partner countries to join in and advance this endeavor, taking the establishment of the “Silk Road E‑Commerce” Cooperation Pilot Zone as a fresh starting point to build a premier international hub for digital‑economy cooperation and to better support the high‑quality development of the Belt and Road Initiative.

Ministry of Commerce: Nearly 15,000 professional buyers have registered for the Second Global Digital Trade Fair.
He Yadong, spokesperson for the Ministry of Commerce, stated that the second Global Digital Trade Expo will be held in Hangzhou from November 23 to 27. With a focus on international scope, professional expertise, and industry leadership, the event has been meticulously planned and is now in its final preparation phase. This year’s expo features several notable highlights: 68 international organizations and overseas business associations, along with 80 international dignitaries and foreign envoys accredited to China from 63 countries and regions, have conofficeed their participation. More than 800 companies will exhibit on-site, with overseas booths accounting for over 50% of the total exhibition space. Nearly 15,000 professional buyers have registered, including more than 1,700 from abroad. The expo spans 100,000 square meters, with custom-built stands making up 94% of the total area. In the Cutting-Edge Trends Pavilion, 50 leading global large-scale models will be showcased for the first time, demonstrating pioneering applications across sectors such as education, healthcare, office automation, automotive, and human–machine interaction. Additionally, the expo will unveil over 110 key outcomes, including the “China Digital Trade Development Report.”

National Development and Reform Commission: Expedite the formulation of an outline for drafting concession‑based project proposals to standardize the advancement of new public‑private partnership projects.
On November 16, the National Development and Reform Commission held its November press conference.
Spokesperson Li Chao provided an overview of power generation and consumption. In terms of total electricity output, from January to October, industrial power generation by enterprises above designated size nationwide reached 7.333 trillion kilowatt-hours, up 4.4% year on year. In October alone, power generation totaled 704.4 billion kilowatt-hours, an increase of 5.2%; among these, thermal, hydro, and solar (000591) power generation grew by 4%, 21.8%, and 15.3%, respectively.
From an electricity‑consumption perspective, during the period from January to October, national total electricity consumption increased by 5.8% year on year. Specifically, electricity use in the primary, secondary, and tertiary sectors, as well as for residential purposes, rose by 11.4%, 5.8%, 10.4%, and 0.4%, respectively. Regionally, in 14 provinces, autonomous regions, and municipalities, electricity growth exceeded 6%, while in five others it surpassed 10%. In October alone, total electricity consumption grew by 8.4%.
In terms of investment project approval, from January to October, a total of 130 fixed‑asset investment projects were reviewed and approved, with a combined total investment of RMB 1.08 trillion—100 projects were approved and 30 were ratified—primarily concentrated in high‑tech, energy, and water‑conservation sectors. In October alone, four fixed‑asset investment projects were approved, totaling RMB 5.6 billion, mainly in the energy and agriculture sectors.
Maximally encourage the participation of private enterprises.
Recently, the General Office of the State Council forwarded the “Guiding Opinions on Standardizing the Implementation of a New Mechanism for Public‑Private Partnerships” issued by the National Development and Reform Commission and the Ministry of Finance, stipulating that private enterprises will be given priority in participating in public‑private partnership projects. What considerations underlie this design of the new mechanism?
Li Chao stated that the new mechanism has three key features: first, it maximizes incentives for private enterprises to participate; second, it focuses on user‑pay projects as its primary source of revenue; and third, it adopts a concession‑based operating model across the board. Notably, the most salient feature is the strong encouragement of private‑sector involvement, which stems from three main considerations.
First, the new mechanism maximizes incentives for private enterprises to participate in public‑private partnership projects, representing an important measure to implement the decisions and arrangements of the CPC Central Committee and the State Council.
Second, we must return to the original intent of public–private partnerships (PPPs). In PPP—Public–Private Partnership—the first P stands for the public sector, the second for private entities, and the third for collaboration. China’s initial aim in promoting PPPs was to attract private capital and foreign investment into infrastructure and public‑utility projects, thereby enhancing operational efficiency and management standards. To implement the new mechanism for government–social capital cooperation in a standardized manner is to stay true to this original vision, return to its roots, and maximize incentives for private enterprises to participate.
Third, we will encourage private investment. At present, the structure of private investment is undergoing optimization and adjustment: from January to October, private investment in manufacturing and infrastructure grew by 9.1% and 14.2%, respectively, year on year, demonstrating robust investment dynamism. The newly established mechanism explicitly prioritizes the participation of private enterprises, which will further stimulate private investment enthusiasm and promote the continued optimization and restructuring of the private investment landscape.
To ensure that all tasks are effectively implemented, the new mechanism has established a “List of Concession‑Based New (including Renovation and Expansion) Projects Supporting Private Enterprise Participation.” Under this framework, government–social capital partnership projects involving new construction or renovation/expansion are categorized into three types based on their specific characteristics. It explicitly stipulates that projects with a high degree of market orientation and relatively weak public‑service attributes should be wholly owned or majority‑controlled by private enterprises; for projects of significant national importance and strong public‑service orientation, the private sector’s equity share should, in principle, not fall below 35%; and for a small number of projects that involve national security, exhibit strong public‑service characteristics, and possess natural monopoly features, conditions should be actively created to encourage and support private enterprise participation.
It should be noted that the project list is not an access‑to‑market list; government‑social capital partnership projects in sectors outside the listed areas should also actively encourage the participation of private enterprises. Meanwhile, foreign‑invested enterprises participating in such projects shall comply with the relevant requirements and be governed by the aforementioned provisions.
“Going forward, our commission will promptly develop an outline for drafting concession‑based project plans, model concession agreements, and detailed implementation rules; dynamically adjust the project list; and guide localities in advancing new public‑private partnership projects in accordance with the new mechanisms, ensuring that private enterprises are encouraged to the greatest extent possible to participate in PPP projects—whether new construction or renovation and expansion—and that private capital is fully mobilized, thereby effectively invigorating private investment,” said Li Chao.
From January to October, imports and exports by private enterprises grew by 6.2%.
According to data from the National Bureau of Statistics, private investment in China fell 0.5% year-on-year from January to October. How should we assess the recovery trend of the private sector, and what measures can be taken to advance the next phase of work?
Li Chao stated that, recently, as policy measures to promote the development and growth of the private sector have been progressively refined and implemented, the outlook for the private economy has shown marginal improvement. In September, the number of newly registered private enterprises increased by 18.1% year on year, accelerating by 8.4 percentage points compared with the previous month. From January to October, private-sector imports and exports grew by 6.2%, accounting for 53.1% of the total, up 3.1 percentage points from the same period last year; meanwhile, private investment—excluding real estate development investment—expanded by 9.1%.
Going forward, we will focus on three key areas to address the bottlenecks, obstacles, and pain points hindering the development of the private sector, thereby promoting its high-quality growth.
First, we will continue to refine institutional design by strengthening efforts in assessing the development landscape of the private sector, coordinating policies, and advancing legislation, thereby fostering a favorable market environment, policy framework, and rule-of-law regime.
Second, we will continue to expand development space. We will systematically broaden market access for private investment and support private enterprises in tackling critical core technologies, undertaking major national science and technology projects, participating in global industrial division of labor and resource allocation, and contributing to the implementation of major strategic initiatives.
Third, we will continue to build service platforms. We will proactively establish six major service platforms—covering policy support, exchange and dialogue, cooperation, monitoring, evaluation, and public outreach—to continuously improve the business environment, ensure smooth communication channels, promptly address challenges and difficulties, and foster sound and sustainable development.

Taxation
The State Taxation Administration has updated and released a list of “non-contact” tax filing and payment services.
On the 15th, the State Taxation Administration announced an updated list of 233 “non-contact” tax and fee services that can be handled online.
There are 233 “non-contact” tax administration and payment services, including conofficeation of taxpayer information under the “one license, one code” system, reporting of taxpayer (withholding agent) identity information, filing of export tax refund/exemption enterprise registration information, reporting of new‑housing inventory information, tax reduction and exemption filing, business suspension registration, business resumption registration, reporting of consolidated corporate income tax filing information, vehicle acquisition tax refunds, and the reporting form for individual income tax matters related to personnel dispatched abroad, among others.
In recent years, tax authorities have continuously expanded “non-contact” and “no‑in‑person‑meeting” tax filing and payment services, broadened the scope of nationwide one‑stop handling for tax‑related matters for enterprises operating across provinces, and steadily improved tax‑filing and payment procedures, thereby reducing the administrative burden on taxpayers and better supporting the development of market entities. In addition, in line with the latest policy updates and operational adjustments, they have promptly revised the “List of Non‑Contact Tax Filing and Payment Services.”
On this basis, the tax authorities will further leverage the electronic tax bureau, mobile apps, mail, fax, email, and other channels to continuously expand “non-contact” tax filing and payment options. For certain complex matters, they will adopt a hybrid online–offline approach to better serve taxpayers and payers.

Hong Kong SAR Government: Effective tomorrow, the stamp duty rate on stock transactions will be officially reduced to 0.1%.
On November 15, the Legislative Council of the Hong Kong Special Administrative Region passed the Stamp Duty (Amendment) (Transfer of Securities) Bill 2023, implementing the measure proposed in the 2023 Policy Address to reduce the stamp duty rate on stock transactions to 0.1%.
A spokesperson for the Hong Kong Special Administrative Region Government stated that lowering the stamp duty rate will reduce investors’ transaction costs, boost market sentiment, and enhance the competitiveness of Hong Kong’s stock market. The government will work in concert with financial regulators and the Hong Kong Exchanges and Clearing Limited to follow up on other measures recommended by the Task Force on Enhancing Stock Market Liquidity, thereby promoting the market’s sustainable development. The amended ordinance will be gazetted on November 16 and will take effect from November 17.

LITIGATION & ARBITRATION
The Supreme People’s Court has issued thirteen provisions to standardize the work of comprehensive governance–related judicial recommendations.
On November 15, the Supreme People’s Court website published the “Provisions on Several Issues Concerning the Work of Comprehensive Governance–Related Judicial Recommendations.”
The Regulations comprise thirteen articles, emphasizing the principle of necessity and stipulating that efforts to issue judicial recommendations on comprehensive governance must be guided by quality, resolutely rejecting a purely quantitative approach and eschewing both “mass‑driven” initiatives and the practice of issuing recommendations merely for the sake of doing so. The Regulations also clarify the principle of jurisdiction at the same level: when identified issues requiring measures by a competent authority in another locality, work‑related recommendations may be submitted, with due reporting to the relevant higher people’s court for decision. Furthermore, they underscore the importance of research and consultation and highlight the need for coordinated implementation.

The 2023 Asia-Pacific Regional Arbitration Organization Conference opened in Beijing.
On the morning of November 14, the 2023 Asia-Pacific Regional Arbitration Organization Conference, themed “International Arbitration in an Era of Transformation: Confronting Challenges and Building Consensus,” opened in Beijing. Minister of Justice He Rong and Yin Yong, Deputy Secretary of the Beijing Municipal Party Committee and Mayor of Beijing, attended the opening ceremony and delivered remarks.
He Rong stated that in recent years, the Ministry of Justice of China has thoroughly implemented Xi Jinping’s Thought on the Rule of Law, fulfilled its responsibilities in public legal services and foreign-related rule of law, and fully leveraged the role of arbitration to provide high-quality, efficient, and professional legal services for international economic and trade exchanges. As a result, the international influence and recognition of Chinese arbitration have continued to grow. We will remain committed to upholding fundamental principles while fostering innovation, further improving an arbitration legal system with Chinese characteristics that is aligned with internationally accepted norms, and strengthening a diversified dispute-resolution mechanism that seamlessly integrates arbitration, mediation, and litigation, thereby supporting high-quality economic and social development. We will deepen and expand international exchanges and mutual learning, support regional arbitration organizations in the Asia-Pacific to play an even greater role, and engage in pragmatic cooperation in areas such as fostering a first-class business environment that is market‑oriented, law‑based, and internationally competitive, as well as enhancing the training of arbitration professionals. The Ministry of Justice of China is currently piloting the establishment of international commercial arbitration centers and will support Beijing and other localities in building international commercial arbitration centers of high credibility and global influence, cultivate a number of world‑class arbitration institutions, elevate the quality of international commercial dispute‑resolution services, and contribute to high‑level opening-up.
Yin Yong stated that Beijing is a pilot city for building an international commercial arbitration center. In recent years, with the strong support of the Supreme People’s Court and the Ministry of Justice, Beijing has seized the opportunities presented by the “Two Zones” initiative, intensified reforms in government services, and expanded the opening-up of the arbitration sector, yielding positive results across various pilot programs. Moving forward, Beijing will continue to deepen reform and opening-up, accelerate the development of an international commercial arbitration center, and make greater contributions to establishing itself as a new global hub for international commercial arbitration. We will strengthen the rule of law, establish foreign-related arbitration procedures aligned with international best practices, and optimize the judicial environment for arbitration; enhance communication platforms to provide high-quality services for cooperation and exchanges among domestic and international arbitration institutions and international arbitration organizations; pool legal resources—including arbitration, advocacy, notarization, and forensic expertise—while refining mechanisms for talent cultivation, exchange, and training, thereby creating a premier destination for international legal professionals; and elevate professional service capabilities to offer end-to-end, full‑process, integrated legal services to domestic and overseas legal service providers and international organizations. We welcome international arbitration organizations to establish operations in Beijing, working together to pursue cooperation and shared development.
At the opening ceremony, guests including He Rong and Yin Yong jointly pressed the button to officially launch the conference. The Asia-Pacific Regional Arbitration Organization is the only regional body in the field of commercial arbitration in the Asia-Pacific region. The Beijing Arbitration Commission joined the organization in 2005 and has served as a vice-chair unit since 2006; it also assumed the role of rotating chair for the eighth term, taking responsibility for hosting this conference. The event will serve as an important platform for Beijing to further open its arbitration sector to the international community and to showcase the achievements of China’s arbitration industry.
Wang Shumei, a full-time vice-ministerial member of the Judicial Committee of the Supreme People’s Court and a Second‑Class Grand Justice, Anna Joubin‑Bret, Secretary‑General of the United Nations Commission on International Trade Law, and Makihorn Camperano, representative of the President of the Asia‑Pacific Regional Arbitration Organization, delivered remarks. Mu Peng, Secretary‑General of the Municipal Government, attended the event.

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