JC Master Legal News Issue 1087

Key Takeaways for This Issue

Accelerate the cultivation of “smart capital” within China and vigorously advance regulatory transformation.
On November 8, Yi Huiman, Chairman of the China Securities Regulatory Commission, stated at the 2023 Financial Street Forum Annual Conference that the regulator will continuously enhance its adaptability, officely safeguard the risk bottom line, ensure the stable functioning of the capital market, bolster investor confidence, and accelerate the cultivation of “smart money” within China. He also emphasized the need to strengthen monitoring and analysis of quantitative high-frequency trading and to further deepen and solidify the implementation of the stock issuance registration system.
Yao Qian, Director of the Science and Technology Regulatory Bureau of the China Securities Regulatory Commission, stated that four key areas will guide the capital market’s high-quality digital transformation.
Yao Qian, Director of the Science and Technology Supervision Bureau of the China Securities Regulatory Commission, stated at the Financial Technology Innovation–Driven Digital Transformation of Capital Markets sub-forum of the 2023 Financial Street Forum that the CSRC will strengthen its leadership in financial technology innovation by: (1) enhancing coordinated planning and guidance for digital transformation; (2) continuously elevating the industry’s level of fintech application; (3) adopting a multi‑pronged approach to cultivate fintech talent; and (4) solidifying the security foundation for fintech applications—thereby steering the capital markets toward high‑quality digital transformation.
Yuan Ye, Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated: “We welcome private enterprises to proactively participate in the mixed-ownership reform of state-owned enterprises.”
On November 8, Yuan Ye, Member of the Party Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated at the 2023 Symposium on Promoting Collaborative Development between State-owned and Private Enterprises that the Commission has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, and has steadily advanced mutually beneficial cooperation between state-owned and private enterprises, thereby fostering a favorable situation characterized by deep interdependence and shared interests.
The Supreme People’s Court and the Ministry of Housing and Urban–Rural Development have jointly released typical cases involving the installation of elevators in older residential communities.
On November 8, the Supreme People’s Court website published eleven typical cases involving the installation of elevators in existing residential buildings in older urban neighborhoods, aiming to advance the renovation of such areas, implement the spirit of the National Mediation Work Conference, ensure the effective enforcement of the Law on the Construction of Barrier-Free Environments, and promote diversified dispute resolution and source-based governance.
Finance & Capital Markets
Highlighting Multi‑Tiered Innovation and Growth: The Shenzhen Stock Exchange Launches Three Indices, Including the SZSE Main Board 50
On November 8, Shenzhen Securities Information Co., Ltd., a wholly owned subsidiary of the Shenzhen Stock Exchange (referred to as SZSE Info), announced that it will launch the SZSE Main Board 50 Index, the ChiNext Mid-Cap 200 Index, and the ChiNext Small-Cap 300 Index on November 15. These indices will respectively track the price performance of innovative blue-chip companies listed on the Shenzhen Stock Exchange’s main board, as well as mid-cap and small-cap stocks on the ChiNext market. This move represents an important step by the Shenzhen Stock Exchange to highlight the exchange’s multi-tiered, innovation-driven growth profile in light of the progress made under the comprehensive registration-based reform, while further expanding the supply of high-quality broad-based indices to meet the market’s diversified index‑investment needs.
The Shenzhen Main Board 50 is the first broad-based index for the Shenzhen Stock Exchange’s main board. The constituent companies of the Shenzhen Main Board 50 have an average total market capitalization of nearly RMB 130 billion, underscoring their status as large-cap stocks. According to the 2023 interim reports, these constituents delivered solid operating performance: BYD (002594), SF Holding (002352), Vanke, and others reported first-half revenues exceeding RMB 100 billion, while Gree Electric Appliances (000651) and Ping An Bank (000001) posted net profits surpassing RMB 10 billion, highlighting the role of blue-chip offices as “market stabilizers.” The constituents place a strong emphasis on R&D innovation and shareholder returns, with combined R&D spending in the first half of 2023 reaching RMB 100.4 billion—accounting for 43% of the Shenzhen main board—and total interim dividends totaling RMB 7 billion, or 50% of the exchange’s main board.
The ChiNext 200, ChiNext Small‑Cap, and the ChiNext Index share a consistent methodology: they each select 200 stocks with relatively strong liquidity and medium market capitalization, as well as 300 smaller‑cap stocks, from the ChiNext market. The average total market capitalization of the ChiNext 200 and ChiNext Small‑Cap indices stands at RMB 10 billion and RMB 5.2 billion, respectively, clearly delineating a tiered structure in terms of size compared to the ChiNext Index (RMB 50.4 billion). Both indices highlight the leading sectors of the ChiNext market, with strategic emerging industries accounting for 87% and 71% of their respective weights; among these, next‑generation information technology is particularly prominent, representing 40% and 25%, respectively, thereby achieving strong complementarity with the ChiNext Index.
The ChiNext Board highlights its “strong innovation and high growth” characteristics, positioning itself around “innovation, creation, and creativity,” and is accelerating the development of a leading hub for strategic emerging industries. After more than a decade of growth, the board now hosts over 1,300 listed companies, with a combined market capitalization approaching RMB 12 trillion, forming a diverse cohort of offices that exhibit distinct industry profiles and varied market‑capitalization structures. Since the implementation of the registration‑based IPO system, the ChiNext Board has broadened its reach, enhanced its inclusiveness, and strengthened its appeal, becoming a widely recognized destination for medium- and long-term capital allocation. The launch of the ChiNext 200 and ChiNext Small‑Cap indices further enables multi‑dimensional tracking of market trends, enriching investors’ analytical frameworks and expanding their investment perspectives on the ChiNext market.
The Shenzhen Stock Exchange places great emphasis on building a robust index system for the Shenzhen market, having launched more than 280 indices that span broad‑based, thematic, strategy‑oriented, and ESG‑focused categories. These indices provide investors with a diverse array of tools to capture the benefits of Shenzhen’s growth. Among them, the ChiNext Index and the ChiNext 50—representative members of the ChiNext series—track assets totaling nearly RMB 120 billion, while since the beginning of this year, leading ETFs have seen net inflows exceeding RMB 35 billion, underscoring the pivotal role of broad‑based indices in channeling capital. A spokesperson from the Shenzhen Stock Exchange stated that, in line with the unified deployment of the China Securities Regulatory Commission, the Exchange will continue to enhance and strengthen its broad‑based indices and related products, expand the supply of high‑quality investment targets, offer diversified options for medium- and long-term capital allocation, attract additional capital flows, and support the market’s move toward higher‑quality development.

Accelerate the cultivation of “smart capital” within China and vigorously advance regulatory transformation.
On November 8, Yi Huiman, Chairman of the China Securities Regulatory Commission, stated at the 2023 Financial Street Forum Annual Conference that the regulator will continuously enhance its adaptability, officely safeguard the risk bottom line, ensure the stable functioning of the capital market, bolster investor confidence, and accelerate the cultivation of “smart money” within China. He also emphasized strengthening monitoring and analysis of quantitative high-frequency trading and advancing the implementation of a more robust and effective stock issuance registration system.
Yi Huiman pointed out that risk prevention is the primary objective of strengthened regulation, while enhanced regulatory oversight is an effective means of mitigating risks; both are essential safeguards for achieving high-quality development. Based on prevailing development patterns and regulatory experience over recent years, capital market risks can be attributed to several key factors, including excessive—sometimes even uncontrolled—leverage, a mismatch between innovation and regulation, fraud and falsification, and breaches of fiduciary duty.
Yi Huiman stated that strengthening capital market regulation, safeguarding the principles of fairness, justice, and transparency, protecting the legitimate rights and interests of investors, and preventing and defusing financial risks are the CSRC’s primary and statutory responsibilities. Over the past few years, the CSRC has adhered to a regulatory philosophy of “respecting the market, the rule of law, professionalism, and risk,” while leveraging the concerted efforts of all stakeholders. It has remained committed to its core mandate, upholding the principle that “only with clear oversight can effective regulation be achieved,” thereby ensuring that innovation proceeds under prudent regulatory safeguards. The CSRC has rigorously curbed excessive leverage, gradually bringing the scale and level of leveraged funds back into an appropriate range. With a policy of “zero tolerance” toward all forms of misconduct, it has reversed the longstanding situation in which the cost of securities‑related violations was unacceptably low. Upholding self‑discipline and pursuing internal reform, the CSRC has continuously strengthened Party conduct, integrity, and anti‑corruption efforts across its entire system.
Yi Huiman emphasized that, going forward, the CSRC will earnestly implement the arrangements set forth at the Central Financial Work Conference, deeply recognize the political and people-centered nature of capital market regulation, and comprehensively strengthen institutional oversight, conduct‑based supervision, functional regulation,穿透式监管 (penetrative supervision), and ongoing monitoring. The Commission will continuously enhance the adaptability and precision of its regulatory framework, officely safeguard the risk bottom line, ensure the stable operation of the capital market, bolster investor confidence, and advance along the path of developing a modern capital market with Chinese characteristics.
First, we will emphasize addressing root causes with stringent measures. We will strengthen coordination with public security and judicial authorities, continuously improve the mechanisms for preventing and combating fraud in the capital market, and advance a comprehensive accountability framework encompassing administrative, civil, and criminal liabilities. We will impose severe penalties on illegal activities such as financial fraud, fraudulent issuance, and market manipulation, and rigorously discipline intermediary institutions that fail to fulfill their duties, showing zero tolerance. We will also reinforce end-to-end regulatory oversight and law enforcement, strictly prohibiting “driving without a license” and rigorously investigating “violations by licensed entities.”
Second, we must prioritize reform as the driving force. The registration‑based reform is by no means a relaxation of regulation; rather, it seeks to achieve a better synergy between an efficient market and a proactive government. Experience has shown that, since the reform was implemented, regulatory oversight has become even more stringent, most notably through enhanced transparency. This improvement stems from the full‑process disclosure of review and registration procedures, subject to public scrutiny; from comprehensive, end‑to‑end supervision covering pre‑, mid‑, and post‑event stages; and from the thorough strengthening of the capital market’s foundational systems, particularly the further elevation of the rule of law. The CSRC will remain steadfast in upholding the core framework of the registration system while adapting to new circumstances and evolving dynamics, deepening and solidifying the stock issuance registration regime, and dynamically assessing and refining institutional arrangements related to pricing, share reductions, and refinancing. At the same time, we will vigorously advance reforms on the investment side, ensure the effective implementation of supporting policies to encourage medium- and long-term capital to enter the market, accelerate the cultivation of “smart money” within China, bolster the resilience and capabilities of industry institutions, and genuinely enhance their professional investment expertise and market leadership, thus charting a path uniquely suited to our own development.
Third, we will prioritize capability enhancement. We will vigorously advance the transformation of regulatory oversight, strengthen the implementation of regulatory responsibilities and accountability, and effectively elevate the quality of our performance. We will intensify monitoring and analysis of quantitative high-frequency trading and refine our regulatory measures. We will bolster the development of regulatory technology, enhance cross‑departmental information sharing, and reinforce comprehensive surveillance of market leverage levels and corporate debt risks, striving to ensure early identification, timely warning, prompt exposure, and swift resolution of all types of illegal activities and risks.
Fourth, we will emphasize the power of concerted efforts. We will strengthen inter‑ministerial coordination and central‑local collaboration, bring all types of securities activities under regulatory oversight in accordance with the law, rigorously scrutinize market access in areas such as private equity funds, crack down on “sham private equity,” and carry out rectification and cleanup of gold exchanges and “pseudo‑gold exchanges,” thereby eliminating regulatory gaps and blind spots. The China Securities Regulatory Commission will engage in enhanced communication and dialogue with all market participants, jointly upholding professionalism, rationality, synergy, and the rule of law, and safeguarding a sound market ecosystem.

Optimizing Regulatory Arrangements: Shanghai and Shenzhen Stock Exchanges Appropriately Tighten Restrictions on Refinancing
Yesterday, the Shanghai and Shenzhen stock exchanges announced that they would streamline regulatory arrangements for refinancing, imposing适度 tighter restrictions on listed companies’ subsequent equity offerings.
Relevant officials from the Shanghai and Shenzhen stock exchanges stated that they will adopt stricter and more stringent measures regarding the pace and scale of refinancing by listed companies, with a particular focus on supporting high-quality offices while restricting those of lower quality. This approach aims to channel resources toward premium listed companies, better balance the primary and secondary markets, and uphold a sound financing order in the capital market. It is understood that these enhanced regulatory arrangements for refinancing will apply to all new applications received after their implementation.
Officials from the Shanghai and Shenzhen stock exchanges stated that optimizing the regulatory framework for refinancing and appropriately tightening restrictions on listed companies’ secondary offerings are concrete measures taken in full consideration of the current market’s capacity and aimed at balancing the primary and secondary markets. These measures are consistent with the underlying spirit of other policy initiatives issued concurrently, such as those further regulating share reduction activities. The relevant arrangements will help enhance the quality of listed companies, encourage them to focus on core business operations, and improve their market capitalization.
This time, the Shanghai and Shenzhen stock exchanges have primarily optimized their refinancing regulatory arrangements in five key areas:
First, refinancing by listed companies is strictly restricted in cases where the stock price has fallen below its IPO price or its net asset value per share. Specifically, during the 20 trading days preceding the board meeting to approve the refinancing plan and during the 20 trading days immediately prior to the commencement of the offering, the company must not be trading below its IPO price or its net asset value per share.
Second, the interval between financings for companies reporting consecutive losses shall be strictly regulated: if a listed company has reported consecutive net losses attributable to the parent company—calculated on a basis that reflects the lower figure before and after deducting non-recurring gains and losses—for the most recent two fiscal years, the date of the board resolution approving the current refinancing plan must be no less than 18 months after the date when the proceeds from the previous fundraising were received.
Third, if a listed company has a high proportion of financial investments, it must correspondingly reduce the amount of funds raised through refinancing.
Fourth, strict oversight shall be exercised over the use of proceeds from prior fundraising. At the time the board of directors reviews a listed company’s refinancing proposal, the funds raised in the preceding offering should have been substantially utilized. In addition, the listed company is required to fully disclose the reasons for and rationale behind any delays, modifications, or cancellations of prior‑raised‑funds projects, as well as the causes of any shortfall in expected project returns. Furthermore, it must explain whether, following implementation, the funded projects will contribute to improving the company’s asset quality, operational efficiency, and profitability.
Fifth, we will strictly enforce requirements that proceeds from refinancing be primarily allocated to the company’s core business. Refinancing projects undertaken by listed companies must be closely aligned with their existing core operations and, upon implementation, demonstrate clear synergies with their established business lines. We will urge listed companies to place greater emphasis on their core businesses, focus on enhancing the quality of these businesses, and prevent indiscriminate cross‑industry and diversified investments.
While maintaining stringent and rigorous oversight of refinancing by listed companies, the Shanghai and Shenzhen Stock Exchanges support legitimate financing needs. Refinancing that aligns with major national strategic priorities is exempt from the current refinancing regulatory framework; refinancing conducted under the simplified procedure is not subject to the regulatory requirements related to share price below IPO price, trading below net asset value, or sustained operating losses; and refinancing in which the board of directors has designated all subscribers is likewise exempt from these same regulatory requirements.
Since the beginning of this year, the Shanghai and Shenzhen stock exchanges have consistently adhered to a stringent and prudent regulatory approach to refinancing. While ensuring that listed companies can meet their normal development needs, they have imposed strict oversight on practices drawing market attention—such as frequent and excessive fundraising, “hopping on trends” for cross‑industry expansion, and substantial idle funds from previous rounds of capital raising—thereby guiding listed companies to conduct refinancing in a rational and measured manner.
Relevant officials from the Shanghai and Shenzhen stock exchanges stated that they will continue to ensure the timely disclosure of refinancing proposals and restructuring plans, streamline project acceptance procedures, and rigorously review applications already filed. They will uphold strict, transparent, and prudent oversight of issuance and listing processes, thereby enhancing market predictability. If listed companies have any questions during implementation, they may seek clarification through written submissions or on-site consultations. The Shanghai and Shenzhen stock exchanges will adhere to the principle of “open and transparent review,” effectively safeguarding and promptly addressing the communication needs of market participants, and ensuring the smooth and orderly implementation of the latest measures to optimize refinancing regulation.

Cultivating World-Class Investment Banks: Senior Officials and Regulators Speak Out in Consecutive Statements
Supporting leading securities offices to grow stronger and larger, a series of plans are continuously being rolled out.
The Central Financial Work Conference emphasized the need to cultivate world-class investment banks. Subsequently, the China Securities Regulatory Commission (CSRC) stated that it would support leading securities offices in enhancing their competitiveness and scale through business innovation, mergers and acquisitions, and restructuring. As early as 2019, the CSRC had already signaled its intention to foster the development of “aircraft carrier‑level” securities offices.
Specific policies are also being gradually implemented. Recently, the China Securities Regulatory Commission (CSRC) opened a public consultation on revising the “Regulations on the Calculation Standards for Risk Control Indicators of Securities Companies.” According to reports, this move will help support compliant, sound, and high-quality securities offices in appropriately expanding their capital base, enhancing capital efficiency, and strengthening their overall competitiveness. “We expect further policy measures to be rolled out in the coming period,” analysts said.
At present, China’s securities offices are characterized by a “one dominant player and many strong contenders” landscape, with CITIC Securities (600030) officely in the lead.
Repeatedly encouraged leading securities offices to grow stronger and larger.
In recent years, fostering the growth and strengthening of leading securities offices has become a key policy priority, repeatedly underscored by regulators.
The recently convened Central Financial Work Conference stated, “We will foster world-class investment banks and investment institutions.” Subsequently, the CPC Committee of the China Securities Regulatory Commission conveyed and implemented the spirit of the Central Financial Work Conference, emphasizing, “We must strengthen internal governance within industry institutions, return to fundamentals, pursue prudent development, and accelerate the cultivation of first-rate investment banks and investment institutions.”
On November 3, the China Securities Regulatory Commission reiterated its stance, stating 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 world‑class investment banks that serve as key pillars in supporting the real economy and safeguarding financial stability.
Beyond the recent flurry of policy pronouncements, regulators have actually been guiding leading securities offices to grow stronger and larger for several years now.
In 2020, three years ago, the China Securities Regulatory Commission (CSRC) issued a document titled “Supporting the Securities and Fund Industry in Implementing Organizational and Management Innovation.” The document stated that, to help the industry grow stronger and larger, the CSRC encourages eligible institutions to undertake market‑driven mergers and reorganizations, thereby achieving rapid progress in areas such as capital strength, management capabilities, and information technology.
In 2019, four years ago, the China Securities Regulatory Commission (CSRC) responded to the “Proposal on Strengthening, Optimizing, and Expanding Leading Brokerage Offices to Build a Carrier‑Level Industry and Establish the Cornerstones of the Capital Market to Ensure Financial Security.” The CSRC stated that, to foster the development of carrier‑level securities offices, it will encourage and guide these offices to bolster their capital base, enhance their service offerings, refine their incentive and constraint mechanisms, increase investment in technology and innovation, improve their international footprint, and strengthen compliance and risk management. Additionally, the CSRC will actively support various forms of state‑owned capital in injecting funds into securities offices through the subscription of preferred shares, common shares, convertible bonds, subordinated debt, and other instruments, thereby helping the securities industry grow stronger and larger.
Expanding the capital capacity of high-quality securities offices
Encouraging leading securities offices to grow stronger and larger involves not only broad‑based strategic planning, but also the imminent implementation of specific, industry‑level policies.
On November 3, the China Securities Regulatory Commission (CSRC) released for public comment a draft amendment to the “Regulations on the Calculation Standards for Risk Control Indicators of Securities Companies.” The CSRC stated that the draft upholds the principle of strengthening categorized supervision and expands capital‑raising capacity for high‑quality securities offices. It appropriately adjusts the risk‑capital‑requirement adjustment factor and the total on‑ and off‑balance‑sheet asset conversion factor for securities companies that have ranked at the top in their three consecutive annual classification evaluations, promotes the pilot use of advanced risk‑measurement approaches such as internal model methods, and supports compliant, sound, and high‑quality securities offices in moderately expanding their capital base, enhancing capital‑use efficiency, and achieving greater strength and excellence.
According to reports, the draft for public comment further adjusts the classification‑based calculation coefficients for risk capital requirements: for offices rated Class A AA or above (inclusive) for three consecutive years, the coefficient is lowered from 0.5 to 0.4; for those rated Class A for three consecutive years, it is reduced from 0.7 to 0.6. At the same time, the rules governing the classification‑based calculation of total on‑ and off‑balance‑sheet assets have been revised: a rating of Class A AA or above (inclusive) for three consecutive years corresponds to a coefficient of 0.7, while a rating of Class A for three consecutive years corresponds to 0.9. Brokerage offices that meet the “whitelist” criteria—namely, maintaining a Class A AA or above rating (inclusive) for three consecutive years—may, upon approval by the China Securities Regulatory Commission, pilot advanced risk‑measurement approaches, such as the internal models approach, to calculate their risk capital requirements.
“Assuming all other conditions remain unchanged, the capital leverage ratios of securities offices that maintain an A‑class rating of AA or above (inclusive) for three consecutive years, and those that achieve an A‑class rating for three consecutive years, are projected to increase by 43% and 11%, respectively. For securities offices previously subject to consolidated regulatory oversight, if they sustain an A‑class rating of AA or above (inclusive) for three consecutive years, their capital leverage ratio will remain unchanged,” according to a research report by Huatai Securities (601688).
A research report by Zhejiang Securities notes that offices rated Class A can benefit from greater capital‑relaxation measures. Based on the 2019–2021 rating results, the securities offices that maintained an AA rating or higher for three consecutive years include CITIC Securities, CICC, CITIC Securities Investment (601066), China Merchants Securities (600999), Huatai Securities, Guotai Junan (601211), Guoxin Securities (002736), and Ping An Securities, among others—making them potential beneficiaries of relatively substantial policy advantages.
Luo Yamei, an analyst at Western Securities, believes that some leading, high‑rated securities offices, which have seen rapid growth in client‑driven businesses, are facing relative pressure on their net stable funding ratio and capital leverage ratio. These offices stand to benefit from the recent refinement of calculation standards, which should enhance capital efficiency and create room for ROE to rise.
The “one dominant player and many strong ones” landscape of the securities industry
At the brokerage‑office level, the current domestic landscape can broadly be described as “one dominant player and several strong contenders.” CITIC Securities stands far ahead, with a handful of other leading offices closely trailing behind.
Taking the third-quarter report as an example, as of the end of the third quarter this year, CITIC Securities’ total assets stood at RMB 1.4 trillion, making it the only domestic securities office with assets exceeding RMB 1 trillion. The other top five offices are: Guotai Junan with approximately RMB 880 billion, Huatai Securities with about RMB 870 billion, Haitong Securities (600837) with roughly RMB 740 billion, and Galaxy Securities with around RMB 680 billion.
Galaxy Securities states in its articles of association that it is committed to “building a flagship brokerage office and developing a modern investment bank.”
In September this year, CITIC Securities held an event marking the 20th anniversary of its A-share listing and the 2023 Investor Open Day. Yang Minghui, General Manager of CITIC Securities, outlined the company’s gap compared with world-class investment banks. Specifically, he stated:
First, its scale and size lag far behind those of world-class investment banks. In the first half of 2023, Goldman Sachs’s total assets were 7.6 times those of CITIC Securities, its net worth was 3.2 times that of CITIC Securities, its operating revenue was 5.2 times that of CITIC Securities, and its net profit was 2.7 times that of CITIC Securities.
Second, the proportion of international business remains low, and its global competitiveness is still inadequate, with relatively limited capabilities in conducting operations and allocating resources worldwide. CITIC Securities’ overseas business accounts for only about 15% of its total revenue, a significant gap compared to offices like Goldman Sachs and Morgan Stanley, whose international revenues typically represent 30% to 40% of their total income.
Third, its asset–liability management capabilities are constrained, and its resilience to cyclical fluctuations remains relatively weak. CITIC Securities’ leverage ratio stands at 4.2 times, still lagging behind that of Goldman Sachs, Morgan Stanley, and other peers, whose leverage ratios exceed 10 times.
Fourth, structural issues in the talent pool are pronounced, and there is a gap between the current level of information technology and the demands of development. The pool of internationally experienced professionals fails to meet the needs of business growth, innovation in IT applications remains insufficient, and the full potential of data value has yet to be unlocked and realized.

Promoting inclusive development and pioneering the future: The High-Quality Development Conference on Mergers and Acquisitions and Restructuring of Listed Companies was held in Huangshan City, Anhui Province.
On November 3, the China Listed Companies Association’s 2023 Conference on High-Quality Development of Mergers and Acquisitions and Restructuring of Listed Companies was held in Huangshan City, Anhui Province. The event was co-hosted by the China Listed Companies Association and the People’s Government of Huangshan City, with support from the China Listed Companies Association’s Committee on Integration and Financing, Hu’an Securities Co., Ltd. (600909), Huangshan Tourism Development Co., Ltd. (600054), and the China Intelligence Science and Technology Evaluation Research Center, and under the auspices of the Anhui Securities Regulatory Bureau. Zhou Xian, a member of the Party Leadership Group and Vice Chairman of the Anhui Provincial Committee of the Chinese People’s Political Consultative Conference; He Yi, Deputy Secretary of the Huangshan Municipal Party Committee and Mayor of Huangshan; and Liu Lei, Secretary of the Party Committee and Executive Vice President of the China Listed Companies Association, attended the conference and delivered remarks. Sun Nianrui, a member of the Party Committee and Vice President of the China Listed Companies Association, gave the closing address. Nearly 200 participants—including officials from the Ministry of Culture and Tourism, the National Administration of Financial Regulation, the State-owned Assets Supervision and Administration Commission of the State Council, the China Securities Regulatory Commission, the Anhui Securities Regulatory Bureau, and the Shanghai, Shenzhen, and Beijing stock exchanges; representatives from listed companies, financial institutions, local financial development authorities, and regional associations of listed companies; as well as industry experts—were in attendance.
The conference, themed “Inclusive Development, Pioneering the Future,” convened in-depth discussions on how the capital market can serve as the primary channel for mergers and acquisitions and restructuring under the comprehensive registration-based system, thereby supporting the high-quality development of listed companies, as well as on how the capital market can better bolster China’s drive toward high-level scientific and technological self-reliance and strength. Concurrently, the launch ceremony for the Culture and Tourism Professional Committee of the China Association of Public Companies was held.
In his address, Zhou Xian stated that listed companies serve as a crucial “ballast” for high-quality economic development. Mergers and acquisitions have become an important capital‑management tool for listed offices, playing a decisive role in helping enterprises pursue diversified strategies, harness synergies, and expand their market share. In recent years, Anhui has emphasized the pivotal role of the capital market, worked to strengthen its regional capital‑market presence, and continuously advanced the high‑quality development of listed companies. Moving forward, the province will enhance the quality and efficiency of M&A activities among listed offices, foster industrial clustering across regions, and bolster financial support for cultural and tourism sectors, thereby providing cultural and tourism enterprises with more flexible and diversified products and services to facilitate their further growth.
In his address, He Yi stated that Mount Huangshan is Anhui’s “window,” China’s “calling card,” and the world’s “treasure,” serving as the birthplace of modern Chinese tourism and a globally influential tourist destination. He summarized Mount Huangshan in four key phrases: “well‑connected in all directions,” highlighting its increasingly prominent locational advantages; “blessed by nature,” underscoring its exceptional natural endowments; “rich Huizhou charm and Anhui flair,” reflecting its profound historical and cultural heritage; and “booming with vitality,” signifying the rapid emergence of its industrial strengths. He expressed hope that listed companies and financial institutions will invest in, partner with, and make substantial commitments to Mount Huangshan, thereby providing robust support and injecting strong momentum into the development of the Greater Mount Huangshan region through high‑quality investment.
In his address, Liu Lei stated that the Central Financial Work Conference emphasized the need to accelerate the building of a financially strong nation, unswervingly follow the path of financial development with Chinese characteristics, better leverage the pivotal role of the capital market, and significantly enhance the quality of listed companies. As a national self-regulatory organization for listed companies under the leadership of the China Securities Regulatory Commission, the China Association of Public Companies has consistently taken serving and guiding high-quality development of listed companies as both its starting point and ultimate goal. Moving forward, the Association will continue to strengthen its self-regulatory functions and promote the sound and compliant development of listed companies, particularly by fully harnessing the expertise of the M&A and Restructuring Committee to help improve the quality and efficiency of corporate mergers and restructurings, and by leveraging the Association’s platform to bolster collaborative efforts in fostering the cultural and tourism industries. At the same time, the Association remains committed to working hand-in-hand with all sectors of society to contribute to raising the quality of listed companies and ensuring the sustained, healthy development of the capital market.
During the keynote session, panelists offered insightful presentations on M&A and restructuring practices under the comprehensive registration-based system, drawing on perspectives such as enhancing the quality and efficiency of central state-owned enterprises, trends in domestic and international M&A markets, the new economy, and the national strategy for technological innovation.
During the regulatory dialogue session, participants discussed the market conditions surrounding mergers and acquisitions and corporate restructurings on the Shanghai, Shenzhen, and Beijing stock exchanges, as well as the development trends and regulatory policies for M&A and restructuring activities in the context of the comprehensive registration-based system and efforts to invigorate the capital markets.
During the dialogue session of the Committee Members, participants engaged in discussions on two key themes: “How M&A and restructuring can support the high-quality development of listed companies under the comprehensive registration system” and “How M&A and restructuring can contribute to the high-quality development of technological innovation.”
During the session on sharing classic M&A case studies, Yang Xiao, Vice President of the M&A Business Line at the Investment Banking Committee of CITIC Securities (600030), served as the moderator. Representatives from Hua’an Securities, TCL Technology, and Fushi Holdings presented compelling case studies on site.
This time, the China Association of Public Companies has initiated the establishment of the Culture and Tourism Committee, with the aim of promoting China’s fine traditional culture, building a platform for communication and collaboration among listed companies in the cultural and tourism sectors, fostering mutual learning and cross‑industry exchange, and advancing the high‑quality development of the cultural and tourism industries.

Yao Qian, Director of the Science and Technology Regulatory Bureau of the China Securities Regulatory Commission, stated that four key areas will guide the capital market’s high-quality digital transformation.
On November 9, Yao Qian, Director of the Science and Technology Regulatory Bureau of the China Securities Regulatory Commission (CSRC), stated at the Financial Technology Innovation–Driven Digital Transformation of Capital Markets sub-forum of the 2023 Financial Street Forum (000402) that the CSRC will strengthen its leadership in financial technology innovation by: first, enhancing coordinated planning and guidance for digital transformation; second, continuously elevating the industry’s level of fintech application; third, adopting a multi‑pronged approach to cultivate fintech talent; and fourth, solidifying the security foundation for fintech applications—thereby steering the capital markets toward high‑quality digital transformation.
Yao Qian stated that the China Securities Regulatory Commission attaches great importance to the financial technology transformation and digitalization of the capital market. The level of informationization, digitization, and intelligentization in the capital market continues to rise, and the digital transformation has yielded phased results. These include more standardized and efficient regulatory technology, systematic efforts to advance industry-wide digitalization, new progress in fintech innovation pilots, and the achievement of interim milestones in building regulatory technology capabilities.
Yao Qian stated that the China Securities Regulatory Commission will strengthen its leadership in financial technology innovation, thoroughly implement the 14th Five-Year Plan for the Development of Science and Technology in the Securities and Futures Industry, and guide the capital market toward a high-quality digital transformation.
First, strengthen the coordinated planning and guidance for digital transformation. Guide industry institutions to formulate clear digital transformation strategies, define specific transformation objectives, and promote standardized data production, operations, and utilization, thereby enhancing overall digital operational efficiency and improving the quality and effectiveness of customer services. Explore the establishment of an industry-wide data governance framework that classifies and grades public, institutional, and personal data, and implement effective measures to ensure data security and reliability.
Second, continuously elevate the level of financial technology adoption across the industry. Encourage financial institutions to closely monitor the latest developments in cutting-edge technologies such as big data, artificial intelligence, cloud computing, blockchain, and cybersecurity; foster stronger collaboration among financial institutions, technology offices, and research institutes to accelerate the translation and application of research findings; strengthen financial‑technology education for consumers, enhance their financial‑technology literacy, and bolster their understanding of and confidence in fintech products and services; and carry out fintech innovation pilot projects in a prudent and orderly manner, consistently distilling the key takeaways from these pilots, refining emergency response plans for diverse scenarios, and ensuring the sustained, stable, and long‑term advancement of fintech applications.
Third, adopt a multi-pronged approach to cultivate fintech talent. Encourage financial institutions to strengthen the recruitment and development of technical professionals. Regulatory authorities and local governments should work with relevant stakeholders to establish diverse collaborative platforms, fostering fintech talent with expertise across multiple domains, and promoting exchanges and cooperation among fintech professionals, thereby providing robust human resource support for the fintech sector.
Fourth, we will continue to strengthen the security foundation of financial technology applications. In coordination with relevant national authorities, we will enhance oversight of financial infrastructure, ensure that information technology applications in the securities and futures sectors comply with applicable laws and regulations, develop emergency response plans, conduct regular emergency drills, and promptly and effectively address unforeseen incidents. We will also build an industry‑wide network and information security situational awareness platform, guide the industry in assessing the security landscape, swiftly evaluate current and future conditions based on available information, formulate appropriate responses, and proactively mitigate and resolve security risks. Furthermore, we will refine the industry’s standardization framework, promote deep integration between business operations and standardization, bolster the supply of standards in key areas, and enhance the demonstrative and leading role of these standards.

Central state-owned enterprises hold equity stakes in more than 13,000 enterprises across various sectors.
On November 8, the “2023 State-Owned and Private Enterprise Collaborative Development Project Promotion Conference” was held in Beijing. At the event, 394 collaborative projects were showcased, spanning strategic emerging industries such as artificial intelligence, biotechnology, and new materials.
In his address, Yuan Ye, Member of the Party Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated that since the launch of the three-year action plan for state‑owned enterprise reform, central enterprises have engaged in equity partnerships with private enterprises and other forms of social capital totaling over RMB 900 billion. To date, central enterprises hold stakes in more than 13,000 enterprises across various sectors. Moving forward, the SASAC will take this promotion event as an opportunity to place greater emphasis on equal cooperation and shared development among enterprises of all ownership types; to deepen and diversify joint‑venture and cooperative arrangements across all dimensions; and to enhance the technological content of such partnerships. It will continue to improve cooperation mechanisms, expand areas of collaboration, and broaden the scope of outcomes, striving to foster mutually beneficial, complementary, and common development between state‑owned and private enterprises.
An Lijia, Vice Chairman of the All-China Federation of Industry and Commerce, stated that the coordinated development of state-owned and private enterprises is a crucial pathway for upholding and improving China’s basic economic system, advancing high-quality economic growth, and enabling enterprises to participate effectively in market competition. Moving forward, the All-China Federation of Industry and Commerce will continue to serve as a vital bridge and link, working to establish platforms for exchange and cooperation while steadily enhancing the policy, market, and rule-of-law environments that support such collaboration. In doing so, it will help private enterprises seize opportunities for partnership and contribute to their own high-quality development.
Xu Xinchao, Deputy Secretary-General of the Beijing Municipal Government, stated that Beijing will encourage various forms of social capital to strengthen cooperation in areas such as technological innovation, emerging sectors of the digital economy, and integration into the development of the city’s sub-center, thereby playing a greater role in fostering a new development paradigm and advancing high-quality growth. At this promotional event, a number of leading state-owned enterprises from Beijing participated, spanning industries including electronics, information technology, advanced materials, new infrastructure, and finance.
The heads of six enterprises, including Aeroengine Corporation of China Commercial Aircraft Engine Co., Ltd., Beijing JianGong New Building Materials Co., Ltd., and Shanghai Yiyao Technology Co., Ltd., delivered on-site project pitches. Analysts believe that such collaborative initiatives are likely to enable enterprises across different ownership structures to pool their strengths and tackle key challenges in core sectors and emerging fields, thereby fostering a number of modern industrial clusters with global competitiveness.

Commercial & Corporate
Yuan Ye, Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated: “We welcome private enterprises to proactively participate in the mixed-ownership reform of state-owned enterprises.”
On November 8, Yuan Ye, Member of the Party Committee and Deputy Director of the State-owned Assets Supervision and Administration Commission of the State Council, stated at the 2023 Symposium on Promoting Collaborative Development between State-owned and Private Enterprises that the Commission has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, and has steadily advanced mutually beneficial cooperation between state-owned and private enterprises, thereby fostering a favorable situation characterized by deep interdependence and shared interests.
Yuan Ye stated that private enterprises are welcome to actively seek areas of mutual interest and the greatest common ground for cooperation, proactively participate in the mixed-ownership reform, strategic restructuring, and specialized integration of state-owned enterprises, foster deep integration among capital entities of all forms of ownership, and jointly advance high-quality development.
Central state-owned enterprises hold equity stakes in more than 13,000 overseas-invested enterprises.
Yuan Ye stated that since the launch of the three-year action plan for state-owned enterprise reform, the total value of equity partnerships between central SOEs and private enterprises and other forms of social capital has exceeded RMB 900 billion. To date, central SOEs hold stakes in more than 13,000 enterprises, marking significant progress in fostering capital cooperation between state-owned and private sectors.
The State-owned Assets Supervision and Administration Commission of the State Council will adhere to a market-oriented approach, supporting state-owned enterprises in leveraging the functions of state capital and transforming their operating mechanisms by attracting high-quality strategic investors and, as needed for development, taking equity stakes in private enterprises.
Li Jin, Executive Dean of the China Enterprise Research Institute, stated that state-owned enterprises boast robust financial resources, comprehensive technological capabilities, and well‑structured organizational frameworks, while private enterprises are more efficient. Through industrial collaboration, state-owned and private enterprises can leverage each other’s strengths, address their respective weaknesses, and achieve synergistic development.
Yao Jianming, Director of the Research Center for Enterprise Innovation and Development at Renmin University of China and Dean of the Institute for Industrial Innovation in the Digital Economy, stated that China is currently undergoing industrial transformation and upgrading, with circumstances markedly different from the past. As a result, corporate investment patterns and profitability are evolving, and related institutional frameworks—such as oversight and governance mechanisms under mixed-ownership reform—must adapt to the demands of economic development.
What remaining areas require improvement in the process of implementing mixed-ownership reform in state-owned enterprises?
Li Jin stated that a salient issue in the mixed-ownership reform is the inflexibility of governance mechanisms, with a notable absence of differentiated management frameworks tailored to mixed-ownership enterprises.
The “Opinions of the CPC Central Committee and the State Council on Accelerating the Improvement of the Socialist Market Economy System in the New Era,” issued in May 2020, explicitly stipulates that, for mixed‑ownership enterprises, mechanisms for corporate governance and regulatory frameworks distinct from those applicable to wholly state‑owned or fully state‑controlled companies should be explored. Furthermore, for mixed‑ownership enterprises in which the state no longer holds an absolute controlling stake, more flexible and efficient regulatory regimes are to be piloted.
Furthermore, Li Jin noted that, in terms of ensuring fair and impartial treatment, I believe addressing this issue hinges on the separation and proper management of ownership, operational control, distribution rights, and oversight. First, property rights should be equal; second, ownership and operational control ought to be kept distinct; and finally, a rational allocation mechanism is needed to boost the enthusiasm of private enterprises.
Li Jin believes that the mixed-ownership reform of state-owned enterprises will continue to advance, fostering complementary strengths and shared development among different forms of ownership. This, in turn, will require the introduction of new policies and measures to further refine the mechanisms governing the mixed-ownership reform of SOEs.
State-owned enterprises and private enterprises can achieve complementary advantages through cooperation.
At this promotional event, Yuan Ye stated that, in terms of innovation, central enterprises have pooled their strengths to vigorously advance the development of original‑technology hubs. They have established seven innovation consortia and launched joint research initiatives with nearly 200 private enterprises, universities, and research institutes, achieving breakthroughs in a large number of critical core technologies with independent intellectual property rights and making significant contributions to China’s drive for high‑level scientific and technological self‑reliance and strength.
The State-owned Assets Supervision and Administration Commission of the State Council is rolling out initiatives to revitalize the industrial base of central enterprises and launch next‑generation industries, focusing on 15 key sectors—including next‑generation mobile communications, artificial intelligence, biotechnology, and new materials—to accelerate the deployment and development of strategic emerging industries by central state‑owned enterprises.
Yuan Ye stated that the State-owned Assets Supervision and Administration Commission is coordinating central enterprises to launch initiatives for industrial upgrading and the development of emerging industries, which urgently calls for the active participation of enterprises across all forms of ownership. Private enterprises are encouraged to engage in extensive cooperation with state-owned enterprises through joint ventures, capital increases and share expansions, as well as investment and mergers and acquisitions, thereby jointly advancing China’s industrial and value chains toward the mid- to high-end segments and contributing to the building of a modern industrial system.
Yao Jianming stated that, compared with state-owned enterprises, private enterprises enjoy significant advantages—particularly in the development and construction of emerging industries—in areas such as innovation capability and market insight. By fostering joint participation between state-owned and private offices, complementary strengths can be leveraged.
Li Jin stated that it is necessary to bolster the development of emerging industrial chains, with state-owned enterprises—particularly central SOEs—taking the lead and private enterprises participating in tandem, thereby enabling these chains to grow stronger and more robust.

Connecting global resources and enabling all parties to share the spillover effects of the China International Import Expo.
“Through years of firsthand experience, we have come to deeply appreciate the ever‑expanding spillover effects of the China International Import Expo, which enables cutting‑edge ideas and resources from both home and abroad to connect effectively with China’s vast market, creating more opportunities for mutual benefit and win‑win outcomes worldwide,” said Tao Kuangchun, Chairman of KPMG Asia Pacific and China, during the sixth edition of the CIIE. He added that the Expo has become a vital platform for China’s opening-up, offering new prospects for global businesses and providing a stage for companies to compete on an equal footing and collaborate in earnest.
As the sixth China International Import Expo draws to a close, its spillover effects are steadily unfolding and continuing to deliver tangible benefits. On one hand, the Expo has effectively connected global resources with Chinese expertise, with indicators such as the number of collaborative projects and the total value of signed agreements consistently rising, underscoring the commitment of all parties to further opening-up and strengthened cooperation. On the other hand, the Expo has powerfully catalyzed regional economic synergy and industrial upgrading; the host city, Shanghai’s Hongqiao Business District, has capitalized on these spillover effects, yielding substantial achievements in regional development.
“At the CIIE, shop the world.” This year’s expo has attracted more than 3,400 exhibitors, with over 400 new products, technologies, and services making their debut. For businesses across the globe, this edition of the CIIE is undoubtedly the ideal opportunity to fill their shopping carts with top-quality goods from around the world.
Jinchuan Group, a leading nonferrous metals conglomerate from Gansu Province, is a long-time participant in the China International Import Expo. During this year’s event, Jinchuan signed agreements with internationally renowned companies such as Rio Tinto and Norilsk Nickel, securing five projects totaling RMB 9.02 billion. These deals span multiple sectors, including the procurement of nickel and copper raw materials and the import of complete sets of equipment. According to reports, since its debut at the first CIIE in 2018, Jinchuan has inked a cumulative 34 cooperative agreements worth RMB 39.8 billion.
“We’ve closed another deal.” At the Zhejiang Province Key Import Platform Promotion Conference and the Zhejiang Provincial Delegation’s Centralized Signing Ceremony for Import Procurement, China Jushi (600176) secured an order worth US$100 million.
Trade delegations from across the globe participating in the China International Import Expo not only tap into its vast array of products and business contacts, but also demonstrate their commitment to opening up their markets to the world and expanding economic and trade cooperation.
During the sixth China International Import Expo, the Shanghai State-owned Assets Delegation held a centralized signing ceremony. The delegation secured 110 preliminary procurement orders totaling US$2.706 billion, with both the number of orders and the total intended value continuing to rise.
Shanghai Vice Mayor Chen Jie stated that, for the sixth consecutive year, the Shanghai State-owned Assets Procurement Delegation has ranked first among all sub-delegations within the Shanghai Trade Delegation. This round of contract signings vividly underscores the robust momentum driving Shanghai’s high-quality development and its unwavering commitment to advancing high-standard opening-up, while also highlighting the proactive role of Shanghai’s state-owned enterprises in integrating into the new development paradigm and bolstering the city’s four core functions.
Yiwu, the world’s largest hub for small commodities, sent more than 20 delegations totaling over 4,300 people to Shanghai to participate in the China International Import Expo, marking a record-breaking scale.
Zhang Weimin, Assistant to the President of the National Exhibition and Convention Center (Shanghai) Co., Ltd., stated at the Spillover Effects Forum of the 6th China International Import Expo that exhibitors have leveraged the CIIE platform to deepen their presence in the Chinese market and share in the dividends of China’s development. The vision of “turning exhibits into products and exhibitors into investors” has been translated from blueprints into reality, with a wave of projects taking root and flourishing. High‑quality goods and services from around the world continue to flow into the Chinese market through the CIIE, steadily meeting domestic consumer demand, driving industrial transformation and upgrading, and fostering synergistic linkages between international and domestic markets and resources.
Former Minister of Commerce Chen Deming stated that the China International Import Expo generates broader spillover effects in terms of social benefits, extending beyond merchandise trade and exchange to exert a powerful cultural and humanitarian impact.
Overlooking the permanent venue of the China International Import Expo—the National Exhibition and Convention Center (Shanghai)—the building is shaped like a four-leaf clover, earning it the nickname “the Four-Leaf Clover.” In recent years, the Expo’s spillover effects have steadily gained momentum, and the area surrounding the “Four-Leaf Clover” has become lush with greenery, yielding tangible results for local development.
The Xihongqiao Business District in Qingpu, Shanghai, stands as a vivid example of the spillover effects generated by the China International Import Expo. Ma Wenjuan, Deputy General Manager of Shanghai Xihongqiao Business Development Co., Ltd., stated, “Driven by the CIIE, we have focused on our pillar industries, attracting more than 100 high‑quality projects and over 30 reputable trade‑related enterprises and institutions, while continuously drawing in top‑tier resources and talent. As a result, businesses and organizations from both home and abroad have flocked to the area. We have partnered with hundreds of corporate headquarters and more than 16,000 enterprises and institutions, achieving mutual success and shared growth, and realizing a transformative journey from small to large and ultimately to strength.”
Ma Wenjuan stated that since the inception of the China International Import Expo, the Xihongqiao economic development zone has enjoyed steady and positive momentum. Since the first edition of the Expo, its annual tax revenue has grown by more than 25% on average, with this year’s growth already surpassing 50%—well ahead of the full-year target. Moreover, companies in Xihongqiao have secured the Shanghai Trade Delegation’s inaugural order at the CIIE for three consecutive years, with cumulative transaction value approaching US$4 billion. This year alone, they have already committed to purchase orders totaling over US$1 billion.
The Hongqiao International Central Business District has also become the area that most directly and effectively captures the spillover effects of the China International Import Expo.
Zhang Bin, Deputy Director of the Shanghai Hongqiao International Central Business District Management Committee, stated that the Hongqiao International Central Business District, underpinned by its functional platforms, is strengthening its core role as a major hub for the distribution of Asia-Pacific imported goods. The Greenland Global Commodity Trade Port and the Hongqiao Pinhui have each introduced more than 20,000 and over 60,000 product categories, respectively. Meanwhile, the “6+365” year-round trading service platform continues to expand its reach, establishing effective links that transform exhibition items into marketable products and turn exhibitors into investors.

Public‑Private Partnerships Have Adopted a New Mechanism, with Private Enterprises Given Priority in Participation.
According to a November 8 announcement by the National Development and Reform Commission, the “Guiding Opinions on Standardizing the Implementation of the New Government–Social Capital Partnership Mechanism,” jointly issued by the NDRC and the Ministry of Finance, has recently been promulgated. The document further clarifies and standardizes the government–social capital partnership (PPP) mechanism.
The Opinions stipulate that, under the new public‑private partnership mechanism, the focus should be on user‑fee‑based projects. Such projects are characterized by clearly defined fee‑collection channels and methods, with operating revenues sufficient to cover construction investment and operational costs and to generate a reasonable rate of return, while not giving rise to any additional future fiscal expenditure obligations for local governments as a result of adopting the PPP model.
The Opinions clarify that, on the condition of strictly preventing the emergence of new implicit local government debt and in compliance with applicable laws, regulations, and relevant policy requirements, the government may, on a non‑discriminatory basis, provide government investment support for user‑fee projects during the project construction phase. Government payments may only be used to subsidize operations as prescribed; they may not be used to cover construction costs. Furthermore, no fiscal funds may be used—by way of feasibility gap subsidies, guarantees of minimum returns, availability payments, or any other means—to offset project construction or operational costs.
Wang Yingying, an assistant researcher at the Tsinghua University Research Center for Investment and Financing Policy, argues that balancing project revenues over the entire lifecycle through user‑pay mechanisms can both alleviate fiscal pressures on local governments and reduce excessive government interference in project operations, thereby minimizing subjectivity and arbitrariness in revenue generation and stabilizing social capital’s expectations regarding investment returns.
The Opinions emphasize giving priority to the participation of private enterprises. Currently, the “List of New (including Renovation and Expansion) Concession Projects Supporting Private Enterprise Participation (2023 Edition)” has been released, encompassing a total of 30 types of projects. Among these, projects with a high degree of marketization and relatively weak public‑sector characteristics should be wholly owned or controlled by private enterprises; for projects that are closely tied to national economic and social development and possess strong public‑sector attributes, the private sector’s equity share should, in principle, not be less than 35%; and for a small number of projects involving national security, characterized by strong public‑sector features and natural monopoly traits, conditions should be actively created to support private enterprise participation.

Yang Zhengwei of the Ministry of Commerce: Ensure that the pilot free trade zones better fulfill their role as models.
Since China’s first free trade pilot zone was inaugurated in Shanghai in 2013, and most recently with the establishment of the Xinjiang Free Trade Pilot Zone, the country has now set up a total of 22 free trade pilot zones.
Regarding the decade-long achievements of China’s free trade pilot zones, Yang Zhengwei summarized them as four “groups”: the introduction of a series of institutional innovation measures; the development of a number of open‑up hubs; the establishment of industrial clusters that are world‑leading in their respective fields; and the widespread dissemination of a large array of institutional innovation outcomes.
At the “Ten-Year Achievements in the Development of Free Trade Pilot Zones” exhibit within the China Pavilion at the 6th China International Import Expo, Yang Zhengwei highlighted the successes of the negative list reform. On September 29, 2013, China’s first negative list for foreign investment access was unveiled in the China (Shanghai) Pilot Free Trade Zone. To date, the number of items on the negative list has been reduced from 190 to 27, and many sectors have eliminated restrictions on foreign investment entry.
Data show that in 2022, the 21 pilot free trade zones, accounting for less than 0.4% of China’s total land area, contributed approximately 18% of the nation’s total foreign investment inflows and total import‑export value. From January to August 2023, the FTZs maintained steady progress in both foreign investment and foreign trade, with continuous improvements in quality; their growth rates exceeded the national averages by 5.7 and 4.8 percentage points, respectively, playing a positive role in stabilizing foreign trade and foreign investment.
In addition, the pilot free trade zones have cumulatively replicated and promoted 302 institutional innovations at the national level and more than 2,800 at the local level, fully leveraging their role as a “testing ground” for reform and opening-up.
Speaking about the next decade of the pilot free trade zones, Yang Zhengwei stated that, as China embarks on a new journey, the zones will, on the basis of a comprehensive review of ten years of development, vigorously implement an upgrading strategy, boldly take the lead in pioneering and overcoming challenges, and carry out exploration across broader fields and at deeper levels, striving to build free trade zones of an even higher standard. Upholding the Party’s overall leadership, the zones will remain guided by high‑level opening-up and centered on institutional innovation, balancing development with security, aligning rigorously with international economic and trade rules, advancing institutional openness in depth, strengthening holistic planning and systematic integration of reforms, and promoting innovative development across entire industrial chains, so that the pilot free trade zones can better fulfill their role as models.

The Ministry of Commerce has issued a notice requiring the thorough implementation of a special campaign to eliminate unreasonable differential treatment between domestic and foreign-invested enterprises.
On November 8, the website of the Ministry of Commerce published the “Letter on Requesting Thorough Rectification of Unreasonable Differential Treatment Between Domestic and Foreign-Invested Enterprises.”
The document calls for a further, in-depth review and removal of regulations, policies, and measures that may discriminate against foreign-invested enterprises. Specifically, it seeks to eliminate provisions—found in currently effective laws, regulations, normative documents, and other policy measures issued by local people’s governments and various departments—that impose or adopt restrictive measures targeting foreign investment in areas of equal market access for domestic and foreign capital; create obstacles or burdens for the business operations of foreign-invested enterprises; exclude or discriminate against foreign-invested enterprises and their products or services by imposing “brand” restrictions or citing “foreign‑owned brands”; or impose additional conditions on foreign-invested enterprises and their products or services when accessing relevant policies. It also aims to address practices that, through such measures as limiting the type of ownership, effectively exclude or restrict foreign-invested enterprises from participating in local bidding, government procurement, and other related activities, thereby engaging in disguised discrimination against foreign-invested enterprises in policy implementation.

The Ministry of Commerce has decided to conduct a reinvestigation into the anti-dumping measures case concerning stainless steel products originating in Japan.
On November 9, the Ministry of Commerce website published the “Notice on Filing a Case Regarding the Implementation of the WTO Dispute Settlement Ruling on Anti-Dumping Measures Against Stainless Steel.”
The Announcement clarifies that on July 22, 2019, the Ministry of Commerce issued Announcement No. 31 of 2019, imposing anti-dumping duties on imports of stainless steel billets and hot-rolled stainless steel sheets/coils originating in the European Union, Japan, the Republic of Korea, and Indonesia. On July 28, 2023, the WTO Dispute Settlement Body adopted the panel report in the dispute “China—Anti-Dumping Measures on Stainless Steel Products Originating in Japan.” Accordingly, the Ministry of Commerce has decided to conduct a review of the original anti-dumping case and to implement the rulings and recommendations set forth in the aforementioned WTO panel report.

Taxation
The tax-related business environment continues to improve, bolstering foreign trade and boosting confidence.
Over the past decade, China has implemented cumulative tax and fee reductions, refunds, deferrals, and exemptions totaling more than 14 trillion yuan. Recently, the State Taxation Administration released these figures and, concurrently, published the “China Tax Business Environment Development Report (2013–2022).” The “Optimizing the Tax Business Environment and Unleashing Growth Momentum” series of reports provides an in-depth look at the Chinese tax authorities’ efforts and achievements in recent years to improve the tax business environment.
Recently, the State Taxation Administration launched the “Shuilutong” service brand and established a sound, long-term mechanism for cross-border investment tax services, striving to deliver more robust support to facilitate high-quality inbound investment and high-level outbound expansion.
“The ‘Shuilutong’ service brand extends tax services across the entire lifecycle of cross-border investment and operations. By streamlining communication mechanisms, providing end-to-end support, establishing specialized service teams, and developing innovative knowledge products, it has rolled out 12 concrete measures to help enterprises enhance their overseas operational efficiency and resilience,” said Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration.
The launch of the “Shuilutong” service brand is a microcosm of China’s ongoing efforts to optimize the tax‑related business environment and bolster trade confidence through high‑quality policy implementation.
Over the past decade, China has continuously launched the “Spring Breeze Action for Convenient Tax Services,” introducing a total of 620 tax and fee‑related service measures and steadily advancing the development of smart taxation. According to the “China Tax Business Environment Development Report (2013–2022),” all administrative licensing procedures in the tax field are now handled entirely online, significantly streamlining tax‑related processes. In addition, 61 types of tax‑related certification requirements have been abolished, six others are now subject to an informed‑commitment system, and the vast majority of tax incentives are now implemented through self‑assessment, declaration for enjoyment, with relevant documentation retained for record‑keeping purposes.
Since the beginning of this year, the CPC Central Committee and the State Council have successively issued documents such as the “Opinions on Promoting the Development and Growth of the Private Sector” and the “Opinions on Further Optimizing the Foreign Investment Environment and Strengthening Efforts to Attract Foreign Investment,” setting forth a series of new requirements for tax authorities to better serve cross-border taxpayers and advance high‑level opening-up. Across China, a range of tax policies has been thoroughly implemented and refined, effectively bolstering confidence in trade.
With a total exhibition area expanded to 1.55 million square meters, 74,000 booths, and 28,533 participating companies, the Canton Fair—widely hailed as “China’s No. 1 Trade Fair”—has once again set a new record in scale this year.
Over the past two decades, buoyed by the Canton Fair, a Guangzhou-based sporting goods company has established a market network spanning more than 30 countries across Europe, the Americas, Southeast Asia, Oceania, and Africa. According to Wu Huaqiang, the company’s deputy general manager, “With regard to export tax rebates, refund payments are credited to the company’s account within three business days, significantly accelerating cash recovery.”
As strategic initiatives to build Hunan into a leading hub for advanced manufacturing gain momentum, the province’s product mix continues to improve, and its export structure is undergoing marked transformation. According to statistics from Changsha Customs, in the first three quarters, “new three major exports”—including construction machinery, complete sets of electromechanical equipment, rail transit equipment, as well as electric vehicles, lithium-ion batteries, and photovoltaic products—have maintained robust growth, while labor-intensive manufacturers are actively seeking new avenues for expansion.
In the course of fostering new developments in foreign trade, Hunan’s tax authorities have refined and expanded 23 tax-refund service measures, further streamlining procedures and reducing documentation requirements. They have fully implemented electronic reminders, electronic filing, electronic refund processing, electronic invoicing, and electronic record‑keeping, significantly accelerating the handling of export tax refunds.
“Processing export tax rebates has become increasingly convenient; all six rebate payments have been credited within about two days, which has directly boosted companies’ cash flow, enabling them to allocate more funds toward upgrading new-product manufacturing processes and driving stronger demand in overseas markets,” said Li ShouLai, the finance director of a luggage‑and‑bag export company in Hunan that integrates design, production, and sales.
“Streamlining tax and fee‑related procedures helps enhance the quality of tax services, reduce business transaction costs, foster a favorable business environment, and strengthen China’s international competitiveness,” said Li Xuhong, Vice President and Professor at the National Accounting Institute in Beijing. She noted that the level of tax service is one of the key indicators for assessing the business climate of a country or region. By improving tax services, enterprises can lower their operating costs, while also boosting domestic–international economic interaction and cooperation, thereby supporting China’s efforts to establish a new development paradigm and advance high‑level opening-up. This, in turn, not only opens up new international avenues for China’s economic growth but also injects momentum into the global economy’s recovery and expansion.
Professor Tang Jiqiang of Southwestern University of Finance and Economics and Chief Economist at the SWUFE Think Tank argues that a series of tax‑support measures will help foster a market‑oriented, law‑based, and internationally competitive tax business environment, promote trade liberalization and investment facilitation, and strengthen efforts to attract foreign investment. At the same time, streamlining tax‑filing procedures can significantly enhance tax administration efficiency, reduce compliance costs, and support the steady growth of foreign‑trade enterprises.

The Belt and Road Tax Administration Cooperation Mechanism will exert greater global influence.
This year marks the tenth anniversary of General Secretary Xi Jinping’s major initiative to jointly build the Belt and Road.
The report to the 20th National Congress of the Communist Party of China explicitly calls for “advancing high-standard opening-up” and identifies “promoting high-quality development of the Belt and Road Initiative” as a key task. Over the past decade, General Secretary Xi Jinping has personally planned, deployed, and advanced this initiative, yielding substantial, tangible, and far-reaching historic achievements in policy coordination, infrastructure connectivity, unimpeded trade, financial integration, and people-to-people bonds.
Tax cooperation that promotes investment and trade development and facilitates the exchange of people is a key component of the Belt and Road Initiative. Under the guidance of the Belt and Road Initiative, and through the concerted efforts of tax authorities, relevant international organizations, and academic and industry circles, tax cooperation along the Belt and Road has yielded substantial results, effectively strengthening exchanges and mutual learning among national tax administrations and further enhancing transparent, efficient, stable, and predictable mechanisms for tax cooperation.
The Belt and Road Initiative offers a Chinese solution to global development challenges, paving the way for countries around the world to advance together on a path of shared prosperity. Looking ahead, tax cooperation under the Belt and Road holds vast potential. It calls for continued collaboration among participating countries and regions to jointly overcome difficulties, address the various challenges posed by international tax reform, further enhance the tax‑related business environment, and promote the thriving development of the Belt and Road Initiative.
The Belt and Road Tax Administration Cooperation Mechanism Has Yielded Abundant Results
The joint building of the Belt and Road Initiative has consistently adhered to the principles of extensive consultation, joint contribution, and shared benefits, upholding the concepts of openness, green development, and integrity. With the goals of high standards, sustainability, and improving people’s livelihoods, it has become a widely welcomed international public good and a platform for international cooperation. The Belt and Road Initiative represents China’s approach to engaging in global open cooperation, enhancing the global economic governance system, promoting common development and prosperity worldwide, and advancing the building of a community with a shared future for mankind. In May 2018, the State Taxation Administration of China, together with the State Revenue Committee of Kazakhstan and the Organisation for Economic Co-operation and Development (OECD), co-hosted the Belt and Road Tax Cooperation Conference. At the conference, the Astana Initiative on Belt and Road Tax Cooperation was launched, outlining a framework for establishing a long-term mechanism for tax cooperation under the Belt and Road Initiative. In April 2019, the first Belt and Road Forum on Tax Administration was held in Wuzhen, China. Tax authorities from 22 countries and regions, along with international organizations serving as observers, jointly signed the Memorandum of Understanding on the Belt and Road Tax Administration Cooperation Mechanism and issued the Wuzhen Declaration and the Wuzhen Action Plan (2019–2021). These steps marked the formal establishment of the Belt and Road Tax Administration Cooperation Mechanism. The mission of this mechanism is to foster a growth‑friendly tax environment by conducting tax cooperation and sharing best practices in areas such as law-based tax administration, enhancing tax certainty, expediting the resolution of tax disputes, improving taxpayer services, and strengthening tax capacity‑building.
The Belt and Road Tax Administration Cooperation Mechanism is the first international tax administration cooperation platform established under China’s leadership. To date, it has successfully hosted four forums, set up the Belt and Road Tax Administration Capacity‑Building Alliance, established a secretariat in Beijing, and founded five Belt and Road Tax Academies in Yangzhou, Beijing, Macao, Astana, and Riyadh. It has also launched the official website of the Belt and Road Tax Administration Cooperation Mechanism and the English‑language journal “Belt and Road Taxation,” thereby advancing the mechanism from conceptualization to concrete action and from vision to reality. At present, the number of members of the Mechanism’s Governing Council has grown to 36, with 30 observer countries, making it a multilateral tax cooperation platform of significant influence under the Belt and Road Initiative.
The Belt and Road Tax Administration Cooperation Mechanism is driving the facilitation of trade and investment among countries and regions along the Belt and Road. Through the revision and implementation of tax treaties, particularly by enhancing coordination and cooperation in tax administration, it supports economic stability and sustained growth across participating jurisdictions. Upholding the principles of extensive consultation, joint contribution, and shared benefits, China’s tax authorities have demonstrated their responsibility as a major economy and made significant contributions to the development of this mechanism—such as joining all four working groups under the Nur-Sultan Action Plan (2022–2024) and co‑hosting and fully engaging in specialized conferences on tax dispute resolution and tax administration digitalization. As a result, China has become a key force in advancing multilateral tax cooperation.
Facing the challenges of a new round of international tax reform
At present, the world is undergoing profound changes unseen in a century, with the characteristics of global, epochal, and historical transformations becoming increasingly pronounced, and the international environment growing ever more complex. In June 2012, the G20 Finance Ministers and Central Bank Governors’ Meeting agreed to address the challenges posed by Base Erosion and Profit Shifting (BEPS) through international cooperation, officially launching a new round of international tax reform spearheaded by the OECD at the behest of the G20. In October 2015, the final reports on the 15 actions of the BEPS Action Plan were published, and in June 2017, the first batch of 67 countries signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), marking the near completion of the BEPS 1.0 phase and ushering in the BEPS 2.0 phase, which focuses on tackling the tax challenges arising from the digitalization of the economy. On October 8, 2021, the G20/OECD Inclusive Framework on BEPS reached a comprehensive consensus on the “Two-Pillar” solution, which was subsequently endorsed at the G20 Leaders’ Summit in Rome on October 31 of the same year, signaling that the international tax reform under BEPS 2.0 has transitioned from political negotiations to concrete implementation. Under the Two-Pillar framework, Pillar One establishes a new allocation of taxing rights—referred to as Amount A—to assign a portion of the residual profits of very large, highly profitable multinational enterprises to market jurisdictions, while Pillar Two introduces a global minimum tax rate, setting a floor for the effective tax rates of large multinational enterprises and thereby curbing “race-to-the-bottom” competition among tax jurisdictions. According to the current timetable, Pillar One is scheduled to enter into force in 2025, and Pillar Two in 2024; meanwhile, the multilateral conventions and other instruments required for implementing these measures are still being vigorously negotiated and finalized.
The “Two-Pillar” framework represents another major reshaping of the principles governing the allocation of taxing rights among nations, posing a significant challenge for countries and regions along the Belt and Road Initiative. It demands close attention and concerted efforts to address. Judging from the outcomes achieved thus far, this new round of international tax reform exhibits clear hallmarks of deep global integration. The “soft law” nature of international tax rules is gradually giving way to “hard law,” and the international tax governance order is shifting from a “consultative mechanism” anchored in bilateral tax treaties to a more binding “rule‑based mechanism” underpinned by multilateral conventions. In this process of profound globalization, as globally harmonized rules take shape, the tax sovereignty of individual states will need to be ceded to a certain extent. Countries must strike a delicate balance between integrating into deep global economic networks and safeguarding their own tax sovereignty and fiscal interests. For instance, the global minimum tax provisions under Pillar Two effectively strip sovereign states of their ability to attract foreign investment through low tax rates—rates below 15%—with far‑reaching and consequential implications for global economic competition and development. Of course, this measure also has direct implications for the countries and regions along the Belt and Road.
Harness the greater role of the Belt and Road Tax Administration Cooperation Mechanism.
In the face of numerous daunting challenges, the future Belt and Road Tax Administration Cooperation Mechanism can uphold the principles of extensive consultation, joint contribution, and shared benefits, working in concert to foster economic growth and social development among countries and regions along the Belt and Road, and continuing to play an even more proactive role.
First, under the Belt and Road Initiative, we should actively uphold multilateralism in global tax governance. For some time now, unilateralism has been on the rise internationally, undermining multilateral institutions and international rules, posing challenges to global governance and international relations, and threatening global stability and development—effects that have also significantly impacted global tax governance. We should further leverage the positive role of the Belt and Road Initiative by engaging deeply, through its various working mechanisms, in the new round of international tax reforms and in global tax governance more broadly. This will help foster a growth‑friendly international tax environment, strengthen the voice of Belt and Road countries and regions in safeguarding multilateralism in global tax governance, and enhance the Belt and Road Tax Administration Cooperation Mechanism so that it can play an even more robust role, thereby providing strong support for countries and regions along the Belt and Road to better uphold multilateralism in global tax governance.
Second, we should strengthen cooperation with the United Nations and further enhance the influence of the Belt and Road Initiative’s tax administration cooperation mechanism. While the OECD has played a pivotal role in both the existing international tax framework and the latest round of global tax reforms, the tax rights and interests of developing countries have not been adequately safeguarded—particularly with respect to core rules such as the allocation of taxing rights, where these countries remain at a disadvantage. Compared with the OECD’s approach, which often reflects a pronounced ideological bias, the United Nations adopts a more inclusive and equitable stance. On December 30, 2022, at its 56th plenary meeting, the 77th session of the United Nations General Assembly adopted Resolution 77/244, launching intergovernmental consultations to promote inclusive and effective international tax cooperation—an important step in the UN’s efforts to advance global tax reform. As a key multilateral platform for tax cooperation, the Belt and Road Initiative’s tax administration cooperation mechanism can engage more deeply in the work of the United Nations, including participation in the United Nations Economic and Social Council (ECOSOC) and the United Nations Committee of Experts on International Cooperation in Tax Matters, thereby helping to uphold the UN‑centered international system.
Third, enhance the effectiveness of cooperation mechanisms and bolster tax administration capacity. A salient feature of the latest round of international tax reform is the complexity and high level of difficulty of its rules, posing substantial challenges for countries and regions along the Belt and Road. For instance, the various rules, conventions, interpretive notes, and Q&A documents already issued under the Two‑Pillar framework collectively exceed 10,000 pages—on a rough estimate—and are expected to grow further, not to mention the multilateral conventions that each country must conclude, the amendments to bilateral tax treaties, and the revisions to domestic tax laws. Such an exceptionally demanding undertaking calls for the Belt and Road Tax Administration Cooperation Mechanism to play an even more prominent role, helping to strengthen the tax administration capabilities of participating countries and regions. This is essential both for safeguarding national tax interests and for meeting the shared needs of all Belt and Road economies.
Looking ahead, as a long-term, cross-border, and systemic global initiative—a project for the ages—the Belt and Road Initiative will set out anew from a fresh starting point, becoming even more innovative and dynamic, as well as more open and inclusive. The Belt and Road Tax Administration Cooperation Mechanism, first proposed and championed by China, will also “take bold steps forward,” exerting greater global influence in the new round of international tax reforms and global tax governance. Together, we will build an international tax business environment that better facilitates the free flow of production factors and ensures fair, orderly competition, thereby contributing to the sustained recovery and improvement of the world economy.

LITIGATION & ARBITRATION
The Supreme People’s Court and the Ministry of Housing and Urban–Rural Development have jointly released typical cases involving the installation of elevators in older residential communities.
On November 8, the Supreme People’s Court website published eleven typical cases involving the installation of elevators in existing residential buildings in older urban neighborhoods, aiming to advance the renovation of such areas, implement the spirit of the National Mediation Work Conference, ensure the effective enforcement of the Law on the Construction of Barrier-Free Environments, and promote diversified dispute resolution and source-based governance.
In this batch of typical cases, the Supreme People’s Court has clarified that owners who lawfully install elevators are entitled to request neighboring building owners to cease any conduct that interferes with such installation; where the lawful installation of an elevator encroaches upon public green space in a manner that has only a minor impact on other owners, those other owners may not obstruct it; if an owner unlawfully impedes elevator‑installation work and thereby causes damage, they shall bear liability for compensation in accordance with the law; disputes arising from the use of an installed elevator shall be resolved through consultation in line with the principle of facilitating production and improving daily life; and an owner who fails to provide sufficient evidence demonstrating that a legally installed elevator adversely affects their ventilation, lighting, or access shall have no right to demand its removal.
The Guangdong High People’s Court has released typical cases of cracking down on cross-border gambling crimes.
On November 7, the Guangdong High People’s Court published a batch of typical cases involving the crackdown on cross-border gambling crimes.
This batch of typical cases comprises seven instances, primarily involving the severe punishment, in accordance with the law, of crimes such as providing financial‑guarantee services for overseas gambling, organizing and operating gambling websites in groups, acting as agents to promote online gambling platforms or games, establishing intermediary platforms for gambling websites, and organizing off‑course football betting. In Case No. 1, the defendant Li Mouhong opened a credit account with the “Sun City” casino in Macau and, together with her husband, the defendant Xu Moping, recruited 12 co‑defendants, including numerous relatives, thereby forming a criminal organization characterized by stable membership and clear division of labor. They solicited and organized mainland Chinese gamblers to travel to the “Sun City” casino in Macau to place bets. From April 2018 to April 2020, this criminal organization provided chips totaling over HK$130 million to 158 mainland gamblers, collected kickbacks exceeding HK$50 million, and simultaneously wagered against the casino’s patrons, illegally profiting more than HK$300,000. The court sentenced Li Mouhong to six years and six months’ imprisonment and imposed a fine of RMB 3 million; Xu Moping was sentenced to five years and six months’ imprisonment and fined RMB 2 million; the remaining defendants received prison terms ranging from three years and five months to eight months, along with fines; and all illegal proceeds were confiscated in accordance with the law.

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