JC Master Legal News Issue 1086

Key Takeaways for This Issue

The China Securities Regulatory Commission has issued nine financial industry standards, including the “Electronic Disclosure Standards for Listed Companies.”
Recently, the China Securities Regulatory Commission issued nine financial industry standards, which will take effect from the date of their publication.
The Central Financial Work Conference for the first time put forward the concept of a “financial powerhouse,” sending out ten key signals.
Under the financial regulatory framework of “two commissions, one bank, one bureau, and one committee,” the National Financial Work Conference has been elevated in status and, for the first time, renamed the Central Financial Work Conference. Held in Beijing from October 30 to 31, the conference conducted an in-depth analysis of the challenges facing high-quality financial development and outlined priorities for financial work both in the current period and over the medium term. Ranging from comprehensively strengthening financial regulation to preventing and defusing financial risks, the conference kept a office grip on the overarching goal of high-quality financial development and laid out a comprehensive roadmap for advancing financial reform and governance.
A major new regulatory framework for commercial bank capital has been unveiled.
On November 1, the website of the National Administration of Financial Regulation prominently released the “Capital Management Measures for Commercial Banks,” which will take effect on January 1, 2024.
The Supreme People’s Procuratorate has released typical cases of public-interest litigation in the field of work safety.
On October 31, the Supreme People’s Procuratorate website issued the “Notice on the Issuance of Typical Cases of Public Interest Litigation in the Field of Work Safety,” publishing 12 typical cases of public interest litigation related to work safety.
Finance & Capital Markets
Building an upstream–downstream industrial-chain exchange platform to support the high-quality development of the new-energy sector—The Shenzhen Stock Exchange’s “Chuangxianghui” hosted a dedicated event focusing on the power‑battery and new‑energy vehicle manufacturing industries.
On October 30, the Shenzhen Stock Exchange, in collaboration with the Changzhou Municipal People’s Government, hosted the tenth “Chuangxianghui” special event, focusing on the power battery and new‑energy vehicle manufacturing industries. The event brought together senior executives from leading listed companies in the new‑energy sector—including Enjie Co., Ltd., GEM Co., Ltd., Inovance Technology, Dangsheng Technology, Defang Nano, and Xinwangda—alongside representatives from venture capital offices such as the Changzhou Investment Group, experts from the Yangtze River Delta Physical Research Center, and guests including the head of the investment banking division at CITIC Securities and the chief analyst for power equipment and new energy at its research institute, to discuss how capital markets can support the high‑quality development of the new‑energy industry.
Promoting the clean, low‑carbon, and efficient use of energy and vigorously developing new energy sources are key measures for achieving the goals of peaking carbon emissions and achieving carbon neutrality. In 2022, China’s production and sales of new‑energy vehicles reached 7.058 million and 6.887 million units, up 96.9% and 93.4% year on year, maintaining its position as the world’s largest market for the eighth consecutive year. In recent years, Changzhou has placed greater emphasis on fostering the development of new and clean energy, establishing an integrated industrial chain encompassing power generation, storage, transmission, and utilization. Industries such as power batteries and new‑energy vehicles have become national hubs. In 2022, Changzhou’s power‑battery output totaled 108.5 GWh, accounting for roughly one‑fifth of the national total.
During the event, guests shared their perspectives on power batteries and new‑energy vehicles. Representatives from Enjie Co., Ltd. and GEM delivered keynote speeches on the opportunities and challenges that technological innovation brings to the new‑energy vehicle industry. A representative from Dang Sheng Technology offered an analysis and outlook on the future prospects of the power‑battery sector in the context of the emerging industrial landscape. Meanwhile, executives from Defang Nano and Xinwangda shared their experiences on how companies can leverage the capital markets to enhance their competitiveness and achieve sustained growth.
During the interactive discussion session, the Changzhou Municipal Government’s guidance fund presented local industrial support policies, while key companies in Changzhou slated for IPOs shared updates on their operations and growth aspirations. Experts from investment offices and underwriting institutions also outlined recent trends in the new‑energy vehicle manufacturing and power‑battery sectors, including capital‑raising structures, production capacity, and future growth prospects. By further streamlining communication channels and strengthening collaborative efforts among government, enterprises, and investors, this dialogue aims to help companies effectively leverage policy incentives and capital resources, thereby fostering high‑quality development in the new‑energy industry.
“Chuangxianghui” is a market‑service brand launched by the Shenzhen Stock Exchange, targeting key sectors, industries, and regions. Guided by the goal of fostering corporate interaction, dialogue, and collaboration, it leverages the leading role of flagship listed companies to create a platform for communication and support aimed at driving innovation and development in the real economy. With strong backing from the Changzhou Municipal Party Committee and Municipal Government, this event brought together local governments, investment institutions, enterprises, and the exchange to facilitate exchanges and knowledge sharing, sparking new ideas and building consensus on actions to advance high‑quality development in the new‑energy sector and the regional economy.

The China Securities Regulatory Commission has issued nine financial industry standards, including the “Electronic Disclosure Standards for Listed Companies.”
Recently, the China Securities Regulatory Commission issued nine financial industry standards, including “Electronic Disclosure Standards for Listed Companies—Part 1: Classification of Disclosures,” “Electronic Disclosure Standards for Listed Companies—Part 2: Initial Disclosure,” “Electronic Disclosure Standards for Listed Companies—Part 3: Trading‑Related Ad Hoc Announcements,” “Electronic Disclosure Standards for Listed Companies—Part 4: Corporate Governance‑Related Ad Hoc Announcements,” “Electronic Disclosure Standards for Listed Companies—Part 5: Equity‑Change‑Related Ad Hoc Announcements,” “Electronic Disclosure Standards for Listed Companies—Part 6: Financing‑Related Ad Hoc Announcements,” “Electronic Disclosure Standards for Listed Companies—Part 7: Other Ad Hoc Announcements,” “Electronic Disclosure Standards for Listed Companies—Part 8: Periodic Reports,” and “Guidelines for Information Security Operations Management in the Securities and Futures Industry.” These standards shall take effect from the date of their promulgation.
The “Electronic Disclosure Standards for Listed Companies” series of financial industry standards represents a revision of the earlier “Electronic Disclosure Standards for Listed Companies” in the financial sector. Since its promulgation, the original standard has played a crucial role in regulating the electronic documentation of information disclosure by listed companies. In recent years, driven by reforms and developments in the capital markets and advances in Extensible Business Reporting Language (XBRL) technology, listed companies’ information‑disclosure practices have encountered new circumstances and requirements. The revised series comprises eight parts, classifying publicly disclosed announcements by listed companies according to current business practices and establishing, from multiple perspectives, standardized scopes and technical requirements for information‑disclosure activities. Implementation of these standards will further enhance the standardization of information disclosure by listed companies, improve the consistency, accuracy, uniformity, and timeliness of disclosed content, and facilitate information sharing both within the industry and across sectors.
The Financial Industry Standard “Guidelines for Information Security Operations Management in the Securities and Futures Sector” outlines management approaches and methodologies for fundamental security, information assets, vulnerabilities, development security, data security, and other areas throughout the information security operations management process. It also provides measurement metrics for each management domain and industry‑best practices. The formulation and implementation of this standard can effectively guide industry organizations in establishing robust security operations frameworks and processes, standardizing information security operations management, and promoting the effective deployment and continuous improvement of relevant security measures.
Going forward, the China Securities Regulatory Commission will continue to advance the informatization of the capital market, with a strong focus on developing foundational standards and promoting the formulation of standards in areas such as information disclosure and information security, thereby steadily strengthening the foundation for technology‑driven regulation.

The Central Financial Work Conference for the first time put forward the concept of a “financial powerhouse,” sending out ten key signals.
Under the financial regulatory framework of “two commissions, one bank, one bureau, and one committee,” the National Financial Work Conference has been elevated in status and, for the first time, renamed the Central Financial Work Conference. Held in Beijing from October 30 to 31, the conference conducted an in-depth analysis of the challenges facing high-quality financial development and outlined priorities for financial work both in the current period and over the medium term. Ranging from comprehensively strengthening financial regulation to preventing and defusing financial risks, the conference kept a office grip on the overarching goal of high-quality financial development and laid out a comprehensive roadmap for advancing financial reform and governance.
The strategic status of financial work has been elevated.
“In the current period and for the foreseeable future, with the goal of accelerating the development of a financially strong nation,” is the mandate put forward at this year’s Central Financial Work Conference. This also marks the first time that “building a financially strong nation” has been explicitly mentioned at a financial work conference.
In recent years, China’s financial sector, as one of the key pillars of the national economy, has experienced rapid growth. According to the latest data released by the People’s Bank of China, as of the end of the second quarter of 2023, the total assets of China’s financial institutions stood at RMB 449.21 trillion, up 10.3% year on year.
Tian Xuan, Vice Dean of the Guanghua School of Management at Tsinghua University, stated that compared with the tone set at the Fifth National Financial Work Conference—namely, that “finance is a key core competency of the nation, financial security is an essential component of national security, and the financial system is a fundamental institutional framework for economic and social development”—this Central Financial Work Conference has further elevated the status of financial work within the country’s overall strategic framework.
Tian Xuan argues that the share of value added in China’s financial sector as a percentage of GDP has been rising year after year, now standing at around 8 percent—a level that is broadly comparable to that of more financially developed economies such as the United States. China’s financial system has thus completed an initial quantitative transformation, growing from small to large. However, objectively speaking, the system still faces challenges, including an imbalanced industry structure, inadequate infrastructure, and underdeveloped market mechanisms, leaving it in a state of being “large but not strong.” This situation creates a mismatch with the stage of economic development that places China among the world’s second-largest economy—a position it has held for many years.
All financial activities are brought under regulatory oversight.
Since 1997, the National Financial Work Conference has been convened every five years to set the tone for the next phase of financial regulation and reform. Wen Bin, Chief Economist at China Minsheng Bank (600016), believes that this year’s elevation of the conference to the Central Financial Work Conference—marked by the shift from “national” to “central”—fully underscores the CPC Central Committee’s centralized and unified leadership over financial affairs.
The Central Financial Work Conference emphasized that strengthening the CPC Central Committee’s centralized and unified leadership over financial work is the fundamental guarantee for effectively carrying out financial tasks. It is necessary to improve the systems and mechanisms for Party leadership over financial work, give full play to the role of the Central Financial Commission, and ensure robust overall coordination and oversight. At the same time, we must fully leverage the functions of the Central Financial Work Committee to earnestly strengthen Party building within the financial system, and effectively harness the roles of local Party committees’ financial commissions and financial working committees to ensure that responsibilities at the local level are fulfilled.
In the process of accelerating the development of a financially strong nation, the meeting emphasized the need to comprehensively strengthen financial regulation, effectively enhance its effectiveness, and bring all financial activities under regulatory oversight in accordance with the law. It called for a holistic reinforcement of institutional supervision, conduct‑based supervision, functional supervision, look‑through supervision, and ongoing supervision, while eliminating regulatory gaps and blind spots. Furthermore, it stressed the importance of strict law enforcement, the courage to take decisive action, and the vigorous crackdown on illegal financial activities.
With regard to the regulatory framework, the meeting emphasized the need to improve the financial regulatory system, establish and refine mechanisms for enforcing regulatory responsibilities and imposing accountability, and effectively prevent and defuse financial risks in key areas.
According to reports, in March this year, the “Plan for Reform of Party and State Institutions” adjusted the financial regulatory framework by establishing the Central Financial Commission and the Central Financial Work Committee, coordinating and advancing the reform of the branches of the People’s Bank of China, abolishing the China Banking and Insurance Regulatory Commission and setting up the National Administration of Financial Regulation as a directly affiliated institution of the State Council, and reclassifying the China Securities Regulatory Commission as a directly affiliated institution of the State Council.
Dong Ximiao, chief researcher at Zhaolian, believes that following the reform of the financial regulatory system, a “dual‑peak” regulatory framework with Chinese characteristics is taking shape, which will help reduce regulatory overlaps and gaps and enhance the quality and effectiveness of supervision. Specifically, after the reform, the People’s Bank of China will primarily oversee monetary policy and macroprudential regulation; the National Administration of Financial Regulation will assume unified responsibility for regulating the financial sector—excluding the securities industry—and for protecting the rights and interests of financial consumers and investors; while the China Securities Regulatory Commission will focus on capital market oversight, including the review and approval of corporate bond issuances. Going forward, efforts should be accelerated to refine local financial regulatory systems, strengthen coordination between central and local authorities, and better prevent and defuse regional and systemic financial risks.
Enrich the monetary policy toolkit
The real economy is the foundation of national strength, and financial services that support it are regarded as an indispensable pathway to high-quality economic development. The meeting emphasized the need to foster a favorable monetary and financial environment and to strengthen high‑quality financial services for major strategic initiatives, key sectors, and areas of vulnerability. It also called for maintaining the prudence of monetary policy, placing greater emphasis on both cross‑cycle and counter‑cyclical adjustments, and enriching the toolkit of monetary policy instruments.
Wen Bin pointed out that, compared with the Fifth National Financial Work Conference’s call to “strike a balance among stabilizing growth, adjusting the economic structure, and managing aggregate demand,” this conference places greater emphasis on the structural adjustment function of monetary policy, underscores the dual role of both aggregate‑level and structural monetary policy tools, and calls for the comprehensive use of a variety of policy instruments to sustain cross‑cycle and counter‑cyclical adjustments. In doing so, it aims to achieve a continued reduction in financing costs for market entities and the ongoing optimization of the economic structure.
Wen Bin expects that, over the coming period, monetary policy will continue to maintain a prudent stance, with the growth rates of money supply and total social financing remaining broadly aligned with nominal economic growth. The meeting’s call to “enrich the toolkit of monetary policy” suggests that additional structural monetary policy instruments will be introduced.
In addition, Zou Lan, Director-General of the Monetary Policy Department of the People’s Bank of China, stated that China will refine its modern monetary policy framework with Chinese characteristics, accelerate the development of a modern central banking system, and strengthen the “dual-pillar” regulatory framework integrating monetary policy and macroprudential policy.
Outlining Five Major Financial Directions
As the highest‑level conference in China’s financial sector, the Central Financial Work Conference plays a pivotal role in shaping the future direction of financial policy. The meeting outlined key priorities for the development of the financial sector, emphasizing the need to advance five major areas: technology‑driven finance, green finance, inclusive finance, elderly‑focused finance, and digital finance.
In recent years, green finance and inclusive finance have become key strategic priorities for financial institutions, particularly banks. From the perspective of credit allocation, financial institutions have directed more capital toward green and inclusive sectors. According to data from the People’s Bank of China, as of the end of the third quarter of 2023, the outstanding balance of inclusive small and micro enterprise loans stood at RMB 28.74 trillion, up 24.1% year on year, while the outstanding balance of green loans in both local and foreign currencies reached RMB 28.58 trillion, an increase of 36.8% compared with the same period last year.
Compared with the most recent session—the Fifth National Financial Work Conference held in July 2017—technology finance, elderly‑care finance, and digital finance made their debut at this Central Financial Work Conference.
In the areas of fintech, pension finance, and digital finance, financial institutions are actively expanding their presence. With the implementation of the individual pension system in 2022, China’s third pillar of the pension system has been enriched and refined. Banks, insurers, fund managers, and other financial players have successively launched a range of products—including savings accounts, wealth management offerings, commercial annuity insurance, and public mutual funds—thereby boosting the development of the pension‑finance market. Meanwhile, in the realms of fintech and digital finance, financial institutions are leveraging technological innovation and digital transformation to enhance operational efficiency and service capabilities, thereby strengthening their ability to support the real economy.
Xue Hongyan, deputy director of the Star Map Financial Research Institute, believes that the emphasis on technology‑driven finance at this Central Financial Work Conference represents a concrete implementation of calls to “strengthen financial support for new technologies, emerging sectors, and nascent markets, and accelerate the cultivation of new growth drivers and competitive advantages.” This signals that, in the period ahead, the financial system will need to optimize resource allocation to better underpin technological innovation and structural transformation and upgrading. Meanwhile, digital finance places even greater emphasis on the financial sector’s own digital transformation. As the saying goes, one must first strengthen oneself before forging iron; the high‑quality development of financial services hinges on the sector’s own high‑quality evolution.
Refine the positioning of financial institutions.
The meeting emphasized the need to refine institutional positioning, support large state-owned financial institutions in enhancing their competitiveness and resilience, and ensure they serve as the mainstay of financing the real economy and a stabilizing anchor for financial stability. It also called for stringent准入 standards and regulatory requirements for small and medium-sized financial institutions, encouraging them to pursue specialized operations tailored to local conditions, strengthening the functional roles of policy-based financial institutions, and leveraging the insurance sector’s capacity as an economic “shock absorber” and a social “stabilizer.”
China has a large number of financial institutions. Taking banking institutions as an example, according to the list of banking financial institutions published by the National Administration of Financial Regulation, as of June 30, 2023, there were a total of 4,561 banking financial institutions nationwide. These include six state-owned large commercial banks, 12 joint-stock banks, 125 city commercial banks, 1,609 rural commercial banks, 1,642 rural and township banks, 23 rural cooperative banks, and 545 rural credit cooperatives.
Wen Bin stated that supporting state-owned financial institutions in becoming stronger and more efficient, and ensuring they effectively serve the development of the real economy, requires fully leveraging their resource-allocation capabilities, sustaining steady growth in capital and credit, increasing medium- and long-term financing for the manufacturing sector, and genuinely meeting market demand for funding. At the same time, rigorously managing market access and oversight of small and medium-sized financial institutions while encouraging them to pursue specialized operations means that, on the regulatory front, shareholder qualification reviews must be strictly enforced and classified supervision of these institutions should be advanced; on the operational front, such institutions should be encouraged to capitalize on regional development strengths and the financing needs of small, micro, and medium-sized enterprises, focusing on key customer segments and adopting specialized, refined, and differentiated business models.
Activate the capital market
Since the beginning of this year, boosting the vitality of the capital market has been repeatedly emphasized. With regard to advancing key tasks in the financial sector, the meeting underscored the need to invigorate the capital market, better support the expansion of domestic demand, stabilize foreign trade and foreign investment, strengthen financial support for emerging technologies, new growth areas, and nascent markets, and accelerate the cultivation of new drivers and competitive advantages.
On November 1, Li Daxiao, Chief Economist at Yingda Securities, stated that the Central Financial Work Conference set forth clear directives to invigorate the capital markets, a move of great significance for the sector’s development. As a result, we can expect the capital markets to become more dynamic and investor confidence to strengthen. At the same time, the capital markets’ pivotal role has been officely established, their function as a key economic hub continues to grow, and their overall importance is increasingly evident.
Li Daxiao stated that, with the concerted efforts of a series of measures—stabilizing the economy and the real estate market, supporting the private sector and private enterprises, maintaining exchange-rate stability, and implementing an active fiscal policy alongside a prudent monetary policy—stable economic growth and a steady stock market are within reach.
According to reports, in February this year, the China Securities Regulatory Commission (CSRC) issued a series of institutional rules to fully implement the stock issuance registration system, officially ushering A‑shares into the era of comprehensive registration. Advancing the registration‑based IPO system in a substantive and effective manner remains a key priority for the CSRC. In September this year, the CSRC convened a symposium bringing together experts, scholars, and investors, during which it emphasized the need to use reform to promote development and stability, accurately recognize the positive trends that have emerged over the past four-plus years—such as the continued improvement of market conditions, significant optimization of market structure, and steadily strengthening endogenous stability—and steadily push forward reforms across the entire market, throughout the entire process, and along the entire value chain, thereby ensuring that the full implementation of the stock issuance registration system is both deepened and made more concrete.
Establish a long-term mechanism for mitigating local government debt risks.
While financial development progresses, preventing and defusing financial risks remains an enduring challenge. In light of the current state of the financial sector, this Central Financial Work Conference noted that various contradictions and problems in the financial sphere are intertwined and mutually reinforcing, with some issues particularly acute. Hidden risks to economic and financial stability remain substantial, the quality and effectiveness of financial services supporting the real economy are inadequate, financial irregularities and corruption persist despite repeated crackdowns, and financial regulatory and governance capacities remain weak.
On the front of financial risk prevention, the meeting focused on local government debt, the real estate sector, the RMB exchange rate, and the handling of risks at small and medium-sized financial institutions. With regard to local government debt, the meeting emphasized establishing a long-term mechanism for preventing and resolving local debt risks, developing a government debt management framework aligned with high-quality development, and optimizing the debt structure between the central and local governments.
“‘Establishing a long-term mechanism for preventing and defusing local government debt risks’ could encompass diversifying risk‑mitigation tools and approaches, strengthening risk monitoring, assessment, and prevention systems, and advancing risk resolution in key regions; ‘establishing a government debt management mechanism aligned with high‑quality development’ would integrate performance management into the entire lifecycle of project funds—borrowing, utilization, oversight, and repayment—thereby promoting the safe, standardized, efficient, and effective use of public resources,” Wen Bin explained.
Yang Fan, Chief Macro and Policy Analyst at CITIC Securities, believes that bank loans constitute a key mechanism for refinancing existing local government debt. By extending debt maturities and reducing debt-servicing costs, such lending ultimately achieves “trading time for space” to facilitate debt resolution. Overall, efforts to prevent and defuse local government debt risks are expected to accelerate from the top down, with fiscal authorities, policy banks, commercial banks, and local governments likely to coordinate their respective strengths to comprehensively and systematically mitigate these risks.
Real estate development is ushering in a new model.
With regard to the real estate finance sector, the meeting emphasized the need to foster a healthy cycle between finance and real estate, strengthen regulatory frameworks for real estate entities and capital oversight, and refine macroprudential management of real estate finance. It called for treating real estate enterprises of all ownership types equally in meeting their legitimate financing needs, tailoring policies to local conditions and making effective use of the policy toolkit to better support both first-time homebuyer and housing‑upgrade demand, accelerating the implementation of the “Three Major Projects” — including affordable housing — and establishing a new model for real estate development.
In Tian Xuan’s view, the recent Central Financial Work Conference has prescribed a relatively comprehensive “remedy” for real estate financial regulation: “strengthening oversight of property developers,” “improving monitoring of developer financing,” “enhancing macroprudential management,” and “ensuring equal treatment in meeting the legitimate financing needs of developers across all forms of ownership.” These policy guidelines precisely target the key areas for preventing and addressing current real estate risks, succinctly outlining the priorities for future real estate‑related financial work.
Tian Xuan believes that, going forward, under a real estate‑finance regulatory framework centered on overseeing real estate enterprises, complemented by a cross‑cycle macroprudential management mechanism, China’s real estate sector may enter a new model of healthy, mutually reinforcing interaction with the financial system.
Huang Wentao, Chief Economist at CITIC Securities, pointed out that the meeting took a unified approach to addressing real estate and financial issues, emphasizing strengthened regulation and risk prevention, while adopting new real estate models—such as affordable housing—to respond to the profound shifts in market supply and demand. Specifically: first, fostering a virtuous cycle between finance and real estate by improving regulatory frameworks for real estate entities and capital oversight, and refining macroprudential management of real estate finance; second, tailoring policies to individual cities and making full use of the policy toolkit to better support both rigid and improvement‑type housing demand, accelerating the implementation of the “three major projects,” including affordable housing, and establishing a new model for real estate development.
Steadily expand financial opening-up.
“The overarching tone of the meeting was set as ‘upholding the coordinated approach to financial opening-up and security, and adhering to the general principle of seeking progress while maintaining stability.’” In recent years, China’s financial markets have steadily intensified their opening-up, attracting foreign capital into the Chinese market. Mechanisms such as the Shanghai–Hong Kong Stock Connect, the Shenzhen–Hong Kong Stock Connect, and the Bond Connect—both its Northbound and Southbound channels—have been launched one after another, further expanding the scope of connectivity between domestic and international markets.
Wen Bin pointed out that the Central Financial Work Conference has set higher standards for the next phase of financial opening-up. On the one hand, it calls for accelerating the alignment of regulatory frameworks with international norms, establishing a fair, transparent, and well‑regulated market system, and fostering a world‑class business environment characterized by market‑orientation, rule of law, and internationalization. On the other hand, while advancing financial openness, it is equally important to safeguard financial security and stability, enhance risk prevention and resolution capabilities, and ensure that financial governance capacity is commensurate with the level of openness.
The meeting called for strengthening management of the foreign-exchange market and maintaining the basic stability of the RMB exchange rate at an appropriate and balanced level. It also emphasized enhancing high-quality financial services, expanding high-standard financial opening-up, supporting enterprises “going global” and the Belt and Road Initiative, and steadily and prudently advancing the internationalization of the RMB.
In Wen Bin’s view, the internationalization of the renminbi will not happen overnight; a “steady, prudent, and solid” approach is in line with the overarching principle of seeking progress while maintaining stability. At this stage, both domestic and external uncertainties remain substantial, and the continued divergence in monetary policies between China and the United States has intensified fluctuations in cross-border capital flows, placing the renminbi exchange rate under short-term, phase‑specific depreciation pressure. Against this backdrop, the internationalization of the renminbi places even greater emphasis on balancing security and development—continuously consolidating and building on past achievements while officely safeguarding against systemic risks.
Regarding the deepening of market-oriented reforms in interest rates and exchange rates, Zou Lan stated that it is necessary to advance supply-side structural reform in the financial sector, coordinate financial reform, opening-up, and security, improve the mechanisms for market-based interest rate formation, regulation, and transmission, enhance the flexibility of the RMB exchange rate, and maintain its basic stability at an appropriate and balanced level.
Promote the regulation of small and medium-sized financial institutions on a categorized basis.
The meeting emphasized the need to promptly address risks at small and medium-sized financial institutions. In recent years, regulatory authorities have, in accordance with laws and regulations, taken over Baoshang Bank, prudently managed risks at Jinzhou Bank and Hengfeng Bank, and promoted mergers and restructurings among small and medium-sized banks, effectively containing the contagion and spread of risks and safeguarding the bottom line of preventing systemic risk. Wen Bin stated that, as operating pressures on small and medium-sized financial institutions continue to mount, advancing regulatory reforms on a case-by-case basis and implementing targeted risk‑mitigation measures for institutions exposed to vulnerabilities will remain key priorities going forward.
The meeting emphasized the need to prevent and defuse financial risks by striking a balance between authority and responsibility, and by establishing a risk‑management accountability framework that aligns powers with responsibilities and ensures compatible incentives and constraints. It also stressed maintaining a proper balance between speed and stability, ensuring timeliness, appropriateness, and effectiveness while safeguarding overall stability, steadily and prudently resolving risks, resolutely punishing illegal and criminal activities as well as corruption, and rigorously guarding against moral hazard. Furthermore, it called for early identification, early warning, early exposure, and early resolution of risks, and for the improvement of an early‑warning and corrective mechanism for financial risks that is underpinned by stringent enforcement.
“Preventing and defusing risks has always been a perennial theme of financial work conferences,” said Xue Hongyan. Looking ahead, the resolution of risks at small and medium-sized financial institutions is expected to accelerate, particularly for rural and township banks, rural financial institutions, and certain city commercial banks. In fact, in recent years, measures such as the dissolution and merger of some rural and township banks, along with the orderly restructuring of county- and city-level rural commercial banks and city commercial banks, have been steadily implemented, yielding substantial and well‑established experience. With local and jurisdictional responsibilities officely reinforced, the consolidation and restructuring of higher‑risk banking institutions are likely to become the prevailing trend; the same applies to non‑bank financial institutions such as trust companies and financial leasing offices.

State Administration of Foreign Exchange: Strengthening Integrated “Macroprudential + Micro‑Supervision” Management of the Foreign Exchange Market
On November 1, the press conference for the 2023 Financial Street Forum Annual Conference was held in Beijing. Chen Zhiwei, Editor-in-Chief of the Foreign Exchange Research Center of the State Administration of Foreign Exchange, pointed out that since the beginning of this year, the State Administration of Foreign Exchange has vigorously advanced reform and opening-up in the foreign exchange sector, focusing on three key areas to enhance the facilitation of cross-border trade and investment financing.
First, we have continued to advance reforms to facilitate cross-border trade and investment‑financing, benefiting a broader range of market entities. Specifically: First, the policy providing streamlined foreign‑exchange settlement for high‑quality enterprises has been rolled out nationwide, fostering a policy orientation that rewards greater integrity with greater convenience and greater compliance with greater autonomy. In the first three quarters, the total value of newly facilitated transactions exceeded US$730 billion, with Beijing accounting for over RMB 900 billion of this amount. Second, we have ensured smooth fund flows for new forms and models of foreign trade. In response to the characteristics of cross‑border e‑commerce—high frequency, small transaction sizes, and electronic settlement—we have authorized banks and payment institutions to adopt flexible review procedures based on electronic transaction information. Third, we have kept pushing forward measures to simplify cross‑border investment, particularly for enterprises with relatively small net assets, such as those in high‑tech sectors and “specialized, refined, distinctive, and innovative” offices. Pilot programs have been launched to streamline cross‑border financing, allowing these companies, according to their individual circumstances, to manage foreign‑exchange operations independently within limits of up to US$10 million or US$5 million, respectively. To date, the pilot program has expanded to cover all regions across 17 provinces and municipalities, reaching approximately 80% of the country and encompassing 280,000 high‑tech and “specialized, refined, distinctive, and innovative” enterprises.
Second, with a focus on small and medium-sized enterprises, we will continue to enhance the quality and effectiveness of foreign exchange management services. Chen Zhiwei emphasized two key measures: first, we will help enterprises strengthen their capacity to manage exchange-rate risks by compiling and disseminating scenarios for exchange-rate risk and case studies on the application of FX derivatives, thereby enabling them to establish robust and effective exchange-rate risk-management frameworks. Second, we will advance the development of cross-border financial service platforms. As of the end of October, the platform had launched eight financing‑related use cases and three facilitation‑oriented FX policy applications. Nearly 100,000 foreign‑related enterprises, predominantly SMEs, have collectively secured over US$290 billion in financing, with total payments exceeding US$1.2 trillion.
Third, we have proactively supported regional open‑innovation initiatives and pioneered reforms in foreign‑exchange management. Chen Zhiwei noted that, in selected areas of four provinces and municipalities—including Shanghai and Guangdong—high‑level pilot programs for cross‑border trade and investment have been launched. As of the end of September 2023, banks had processed a total of 158,000 pilot transactions involving enterprises, with a combined value of US$140.6 billion. In alignment with Beijing’s “Two Zones” development, a number of nationally pioneering measures and first‑batch reform‑and‑innovation pilot policies have been introduced, bolstering the capital’s drive toward high‑level opening up and high‑quality economic growth. Among these, several foreign‑exchange pilots—such as the integrated domestic‑and‑foreign‑currency funding pool for multinational corporations and the pilot program for qualified overseas limited partners under foreign‑exchange management—have been designated as breakthrough policies and flagship projects within the “Two Zones.”
Chen Zhwei emphasized that, going forward, the State Administration of Foreign Exchange will balance development with security, systematically deepen reforms in the foreign exchange sector, steadily expand institutional openness, continuously foster the development of the foreign exchange market, and work to enhance the convenience of cross-border trade and investment‑financing. It will also strengthen the integrated “macroprudential + micro‑supervision” framework for managing the foreign exchange market, proactively guard against and defuse risks stemming from external shocks, and better support the high‑quality development of the real economy.

350,000-word comprehensive new regulations on commercial bank capital supervision have been officially released.
On November 1, the website of the National Administration of Financial Regulation prominently released the “Capital Management Measures for Commercial Banks,” which will take effect on January 1, 2024.
The Capital Measures consist of the main text and 25 annexes, covering five key areas. First, they establish a differentiated capital‑regulation framework to reduce compliance costs for small and medium‑sized banks. Second, they comprehensively revise the rules for calculating risk‑weighted assets, encompassing the credit‑risk weight method and the internal ratings‑based approach, the market‑risk standard approach and the internal‑model approach, as well as the operational‑risk standard approach. Third, they require banks to put in place effective policies, processes, systems, and measures to ensure the appropriateness and prudence of risk‑weight assignments. Fourth, they strengthen supervisory inspections, refine stress testing, and further enhance the effectiveness of regulation. Fifth, they raise disclosure standards and reinforce both qualitative and quantitative information disclosure.
The National Administration of Financial Regulation has concurrently issued the “Notice on Matters Related to the Implementation of the Measures for the Capital Management of Commercial Banks,” which sets forth clear requirements regarding loss allowances, information disclosure, measurement methodologies, and the submission of regulatory reports under the standardized approach.

The China Securities Regulatory Commission has stated that it will crack down hard on financial fraud and other serious misconduct, and will impose strict disciplinary measures on intermediary institutions that fail to fulfill their duties and responsibilities.
On November 1, the China Securities Regulatory Commission convened an expanded meeting of its Party Committee to convey and study the spirit of the Central Financial Work Conference and to deliberate on measures for its implementation.
The China Securities Regulatory Commission stated that it will comprehensively strengthen institutional oversight, conduct‑based supervision, functional regulation,穿透式监管 (penetrative supervision), and ongoing monitoring, with a focus on enhancing the effectiveness of regulatory efforts. It will reinforce the rule of law in the capital market, 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. The Commission will also enhance regulatory coordination, crack down on illicit financial activities—including “pseudo‑private equity funds” and “pseudo‑exchange‑traded platforms”—and bring all types of securities‑related activities under regulatory scrutiny in accordance with the law, thereby eliminating regulatory gaps and blind spots. Furthermore, it will adhere to the principles of early identification, early warning, early exposure, and early resolution, effectively preventing and defusing risks in key areas such as bond defaults and private equity funds.

The roadmap for capital market reform has been clarified, with high-quality development set to be the overarching theme.
On November 1, the China Securities Regulatory Commission convened an expanded meeting of its Party Committee to convey and study the spirit of the Central Financial Work Conference. The meeting examined measures for implementation, emphasizing the need to deepen and solidify the stock issuance registration system, intensify reforms on the investment side to attract more medium- and long-term capital, and invigorate the capital market. It also called for improving the multi-tiered market structure and guiding private equity and venture capital funds to invest early, in small enterprises, and in technology. Furthermore, it stressed the importance of vigorously enhancing the quality of listed companies and accelerating the development of world-class investment banks and institutions.
This clarifies the roadmap for the next phase of capital market reform. Zhang Jun, Chief Economist at Galaxy Securities, stated that with the full implementation of the registration-based IPO system in 2023, markets at different tiers will develop in a more differentiated manner, catering to the diverse needs of various investors and issuers, thereby supporting the development and construction of China’s key industries and meeting the demands of the real economy. Going forward, the overarching focus will remain on promoting high-quality development of the capital market, encompassing measures such as increasing the share of direct financing, enhancing services for the real economy and technological innovation, fostering balanced development across both investment and financing channels, and strengthening connectivity between domestic and international markets.
The registration-based reform will continue to be advanced.
As a cornerstone reform of the capital market, the registration-based system has been under way for nearly five years. Guided by a regulatory framework centered on information disclosure, the market has gained greater choice, further enhancing the effectiveness of financial services in supporting the real economy. The capital market’s ability to serve growth‑oriented and innovation‑driven enterprises has been strengthened, fostering a process of survival of the fittest, improving the quality of listed companies, reshaping the capital market ecosystem, and boosting both market dynamism and corporate competitiveness. These developments have played a positive role in helping China’s real‑economy enterprises achieve high‑quality growth, advancing industrial upgrading and economic structural adjustment, and better aligning with national development strategies.
In particular, since the beginning of this year, as the new round of comprehensive deepening reforms—led by the reform of the stock issuance registration system—has advanced in depth, the capital market’s institutional inclusiveness and adaptability to technological innovation have been significantly enhanced. This has broadened corporate financing channels, facilitated industrial transformation and upgrading, and strengthened the capital market’s ability to serve the real economy. At the same time, securities regulators and judicial authorities have rigorously cracked down on serious illegal practices such as fraudulent issuances and financial fraud, encouraging all market participants to fulfill their respective roles and responsibilities, thereby underscoring the rule-of-law principle of compliance, integrity, diligence, and accountability.
Going forward, “deepening and solidifying the stock issuance registration system” will remain a key priority for the capital market. Huang Wentao, Chief Economist at CITIC Securities (601066), notes that the policy direction of the stock registration system will continue to advance. On the one hand, efforts will be stepped up to enhance the quality of listed companies, refine mechanisms for refinancing and M&A restructuring, and further institutionalize and deepen the normalized delisting regime, thereby supporting listed offices in their transformation and upgrading and helping them become stronger and more competitive. On the other hand, complementary reforms on the investment side will be intensified to attract more medium- and long-term capital, invigorate the capital market, and better leverage its role as a pivotal hub.
Zhang Wangjun, Director of the First Department of Market Regulation at the China Securities Regulatory Commission (CSRC), stated that the CSRC will continue to refine its foundational systems covering issuance, listing, trading, mergers and acquisitions, restructuring, and delisting, further enhancing the maturity and institutional soundness of the capital market and bolstering the competitiveness and inclusiveness of a modern capital market with Chinese characteristics. At the same time, the Commission will vigorously advance reforms on the investment side, attract medium- and long-term capital into the market, address key bottlenecks, and guide social security funds, insurance funds, pension funds, and other types of capital to allocate assets in A‑shares. It will also keep expanding the range of capital market products and instruments, improve the convenience of investment and trading, and foster a market environment that is both welcoming and conducive to retention.
Improve the multi-tiered market system.
It is worth noting that the meeting also emphasized the need to improve the multi-tiered market system, support the Shanghai and Shenzhen stock exchanges in becoming world-class exchanges, ensure the high-quality development of the Beijing Stock Exchange, and promote the high-quality growth of the bond market.
After more than 30 years of development, China’s capital market has initially established a multi-tiered system characterized by differentiated development and complementary functions. From the launch of the STAR Market and the reform of the ChiNext Board, to the merger of the Shenzhen Stock Exchange’s Main Board and the SME Board, and the establishment of the Beijing Stock Exchange, the structure of the multi-tiered capital market has become clearer, its foundational institutional framework more robust, its role as a resource-allocation hub smoother, and the A‑share market ecosystem further optimized—enhancing its capacity to support high-quality economic growth. As we enter the era of full registration-based IPOs, all segments of the capital market must continuously improve the quality and effectiveness of their services to high‑quality economic development, while also strengthening synergies, ensuring seamless integration, pursuing differentiated development, and maintaining appropriate levels of competition.
“Improving the multi-tiered market system is an essential step in implementing the strategic task of increasing the share of direct financing,” said Zhang Wangjun, Director of the First Department of Market Supervision at the China Securities Regulatory Commission. He emphasized the need to focus on supporting the critical goal of achieving a high level of scientific and technological self-reliance, while promoting the coordinated development of the stock, bond, and futures markets. Additionally, it is important to expand diversified equity financing, support the Shanghai and Shenzhen stock exchanges in becoming world-class exchanges, build the Beijing Stock Exchange to high standards, and guide private equity and venture capital funds to invest early, in small‑scale ventures, and in technology‑driven enterprises.
This suggests that further policies to enhance the functions and operations of stock exchanges may be introduced in the future. Market expectations are broadly aligned that rules will be issued to optimize the domestic issuance and listing regime for enterprises, refine the enterprise‑listing support system, improve foundational frameworks for refinancing, mergers and acquisitions, and restructuring, and facilitate diversified exit channels.
Support listed companies in enhancing their competitiveness and fostering world-class investment banks.
The meeting noted the need to support listed companies in their transformation and upgrading, helping them become stronger and more competitive. It called for strengthening internal governance within industry institutions, returning to their core functions, pursuing prudent development, and accelerating the cultivation of world-class investment banks and investment offices. Furthermore, it emphasized the importance of improving the range of commodity futures and options products to enhance China’s influence over key commodity prices. Finally, the meeting stressed the need to balance openness with security, steadily expanding institutional openness in the capital market and facilitating cross-border investment and financing.
Luo Zhiheng, Chief Economist and Dean of the Research Institute at Yuekai Securities, stated that the core task of fostering a vibrant capital market is to enhance the attractiveness of listed companies. Only strong, well‑performing companies can drive the market; through natural selection—where superior offices endure and weaker ones exit—the capital market can gradually reflect the economy’s structural upgrading.
At present, the China Securities Regulatory Commission has launched the implementation of a new three-year action plan to enhance the quality of listed companies. Working in concert with relevant parties, it is focusing on refining a long-term, comprehensive regulatory framework, continuously improving the quality of information disclosure, maintaining a stringent enforcement stance, and rigorously punishing financial fraud and illegal appropriation of funds by major shareholders, thereby strengthening the intrinsic foundations of a valuation system with Chinese characteristics.
At the same time, efforts are being made to enhance the investment appeal of listed companies across multiple fronts, including the formulation and implementation of an action plan to leverage capital markets in supporting high‑level scientific and technological self‑reliance. A “green channel” has been established to streamline listing financing, bond issuance, and M&A restructuring for technology offices that have achieved breakthroughs in critical core technologies. Moreover, a stronger emphasis on dividend payouts is being pursued to bolster the stability, sustained growth, and predictability of dividends among listed companies, particularly those with large market capitalizations.
Regarding the call to “accelerate the development of world-class investment banks and investment institutions,” Zhang Jun argues that fostering such entities is essential for enhancing market stability and safeguarding investor interests. In his view, investment institutions must next “assess the situation and adapt accordingly,” deepening their understanding of financial markets; uphold “clear judgment and sound ethics,” adhering to the highest professional standards in their investment decisions; and demonstrate “unwavering dedication,” proactively elevating their expertise. Moreover, leading investment banks and institutions should prioritize collaboration with their international peers, leveraging mutual exchanges to “learn from strengths and address weaknesses” and integrate global best practices.
Gao Ruidong, Chief Economist and Director of the Research Institute at Everbright Securities (601788), stated that looking ahead, the multi-tiered capital market—encompassing equities, bonds, and futures—is expected to become further enriched and refined, accelerating the channeling of high-quality financial resources toward the nation’s science and technology innovation strategy. The capital market’s capacity to serve the real economy will continue to strengthen, not only providing enterprises with a steady stream of funding but also enabling social capital to share in the dividends of economic growth, thereby further boosting public investment appetite and consumer confidence.

The Measures for the Administration of Law Offices Engaging in Securities Legal Practice Have Been Revised and Completed.
On October 27, the Ministry of Justice website published the Measures for the Administration of Law Offices Engaging in Securities Legal Services, which standardizes lawyers’ professional conduct in activities such as securities issuance, listing, and trading.
The Measures comprise seven chapters and forty-six articles, clarifying that law offices may expand their practice in the securities law field to encompass initial public offerings of shares and depositary receipts, as well as listings; information disclosure by listed companies and non-listed public companies; and the issuance, trading, and transfer of corporate bonds. The Measures also stipulate that law offices may accept commissions to draft prospectuses and other related documents. Furthermore, the Measures introduce provisions on filing‑based administration for securities‑related legal services and on the verification and validation requirements that law offices must fulfill, while mandating the strengthening of risk‑control systems and the improvement of the legal liability framework governing law offices’ engagement in securities‑law practice.

Commercial & Corporate
How can consumption be boosted in the short term? Experts believe these two factors are crucial.
On November 2, the China Finance Forty Forum (CF40) released its “Third-Quarter 2023 Macroeconomic Policy Report,” which includes a special analysis on “how to boost consumption in the short term.”
The report notes that from 2012 until the onset of the COVID‑19 pandemic, household consumption generally maintained a robust growth trajectory, with its expansion outpacing GDP growth, and within consumption there was a clear shift toward higher‑value services as opposed to manufacturing. These patterns of consumption growth and structural change are broadly consistent with the experiences of high-income countries at comparable stages of development. However, following the outbreak of the pandemic, the pace of consumption slowed sharply, leaving it significantly below its trend level.
“These new developments are clearly not the result of the medium- to long-term factors that constrained consumption growth prior to the pandemic; rather, they reflect the emergence of entirely new constraints on consumption,” argues Zhang Bin, a senior researcher at CF40 and deputy director of the Institute of World Economy and Politics at the Chinese Academy of Social Sciences. He contends that, since the onset of the pandemic, the decline in consumption growth can be attributed to two main components: a slowdown in the growth rate of households’ disposable income and a fall in the marginal propensity to consume. In particular, the deceleration in disposable-income growth is largely driven by a moderation in the growth of financial assets across the economy—put another way, by a slowdown in broad‑based credit expansion.
The report argues that, post‑pandemic, as restrictions on consumption venues are lifted, the primary driver of a short‑term rebound in consumption will rest on two key factors: first, broad‑based credit expansion, which boosts aggregate financial assets and puts more money in the pockets of households, offices, and the government; second, an increased propensity to spend—both on consumption and investment—given the existing stock of financial assets held by these sectors. Given that the share of disposable income in total national income remains relatively stable, achieving these two conditions is essential to raising overall spending, thereby increasing total income and, in turn, boosting both disposable income and consumer expenditure.
The report analyzes that both lowering policy interest rates and increasing public-sector borrowing and spending can effectively boost the growth rate of broad credit and raise the share of spending allocated to financial assets, thereby raising households’ disposable income and consumption in the short term. Compared with advanced economies, even when China’s local governments’ implicit debt is taken into account, the Chinese government has not resorted to excessive borrowing. The share of government‑related debt additions in total societal debt growth remains below the average level observed in advanced economies.
By expanding credit and boosting nominal income, can the additional money actually reach households? In response, Zhang Bin stated: “When the economy is severely depressed, low-income groups suffer more pronounced income losses. Countercyclical policies that help the economy emerge from a downturn ultimately improve, rather than worsen, income distribution. Empirical research based on China’s experience has conofficeed this view.”
“Raising credit and nominal incomes to boost consumer spending will only be effective in an environment of insufficient demand. In such a setting, this approach raises aggregate expenditure, increases the economy’s real output, and expands real consumption. By contrast, if there is no demand shortfall—or, conversely, if demand is excessive—expanding credit and nominal incomes is more likely to fuel inflation than to raise real consumption,” Zhang Bin added.

The State Council has approved the temporary adjustment to the implementation of relevant administrative regulations in the Hainan Free Trade Port.
On November 2, the Chinese Government Website published the “Reply of the State Council Approving the Temporary Adjustment of Relevant Administrative Regulations in the Hainan Free Trade Port.” To support the development of the Hainan Free Trade Port, and in accordance with the Overall Plan for the Construction of the Hainan Free Trade Port, it was agreed that, effective immediately, certain relevant provisions would be temporarily adjusted for implementation within the Hainan Free Trade Port. Specifically, foreign certification bodies that conduct only export‑product certification activities in the Hainan Free Trade Port will be exempt from obtaining certification‑body qualifications and completing business entity registration; upon filing with the State Council’s department responsible for certification and accreditation supervision, they may carry out export‑product certification, with certification results intended solely for use by exporting enterprises overseas. The conditions and procedures for such filing shall be formulated by the State Council’s department responsible for certification and accreditation supervision.

The National Development and Reform Commission and other departments have announced that “bamboo‑for‑plastic” products will be included in the scope of government procurement support, with efforts to expand the scale of such purchases.
The National Development and Reform Commission and other departments have issued a notice on the “Three-Year Action Plan for Accelerating the Development of ‘Bamboo‑for‑Plastic’,” listing the development, production, and application of “bamboo‑for‑plastic” products as encouraged projects in the Catalogue for Guiding Industrial Structure Adjustment. In accordance with regulations, existing funding channels will be coordinated to support the construction of demonstration bases for the promotion and application of “bamboo‑for‑plastic” solutions. Local authorities may include eligible bamboo forest cultivation within the scope of central government policies supporting afforestation and forest‑quality improvement. Financial service mechanisms will be refined to encourage financial institutions to develop financial products tailored to the characteristics of the “bamboo‑for‑plastic” industry. “Bamboo‑for‑plastic” products will be incorporated into the scope of government procurement support, with efforts to increase the scale of such purchases. Public institutions and other entities are encouraged to actively procure relevant “bamboo‑for‑plastic” products.

The 2023 National Conference on the Digital Transformation of Small and Medium-sized Enterprises was held in Hefei.
From October 28 to 30, the 2023 National Conference on the Digital Transformation of Small and Medium-sized Enterprises was held in Hefei, Anhui Province. Xu Xiaolan, Vice Minister of the Ministry of Industry and Information Technology, attended the opening ceremony and delivered a speech.
Xu Xiaolan stated that digital transformation is a key measure for SMEs to enhance their innovation capabilities and an indispensable path toward high-quality development. The Ministry of Industry and Information Technology will thoroughly study and implement the spirit of General Secretary Xi Jinping’s series of important instructions and directives on promoting the development of SMEs, and will carry out the tasks set forth at the National Conference on Advancing New‑type Industrialization. By focusing on policy support, strategic guidance, and service infrastructure, the Ministry will further explore pathways for SMEs’ digital transformation and high‑quality growth. To strengthen policy support, it will launch a special campaign to empower SMEs through digitalization, vigorously promote and continuously refine the “Evaluation Indicators for SME Digitalization Levels” and the “Guidelines for SME Digital Transformation,” and conduct pilot projects in cities to advance SME digitalization, thereby developing more practical models and exemplary practices tailored to local conditions. To better align supply with demand, the Ministry will leverage cross‑industry and cross‑domain industrial Internet platforms and industrial apps, cultivate a cohort of high‑quality digital service providers, and develop and integrate a suite of “small, fast, lightweight, and precise” digital solutions and products, creating resource pools and toolkits that address both common industry needs and the personalized requirements of SMEs. To solidify foundational safeguards, the Ministry will promote industrial Internet platforms to drive SME digital transformation, strengthen standards and benchmarks for network and data security tailored to SMEs, and bolster their cybersecurity and data protection capabilities. Finally, to foster a healthy ecosystem, the Ministry will support large enterprises in building cloud‑based platforms while helping SMEs adopt cloud services and platform‑based solutions; guide large offices to lead upstream and downstream SMEs in chain‑linked digital transformation; and organize initiatives such as “Digital Empowerment,” “Technology‑Driven Intelligence,” and “Quality‑Standard‑Brand Value‑Addition,” continuously injecting new momentum into SME digitalization.
This conference is themed “Digital-Physical Integration Empowering Ten Thousand Enterprises,” co-hosted by the Ministry of Industry and Information Technology and the People’s Government of Anhui Province. It features an opening ceremony, a plenary forum, parallel forums, specialized field visits, and an exhibition of innovative achievements. Officials from relevant departments and bureaus of the Ministry of Industry and Information Technology, its affiliated institutions, as well as representatives from related government departments and local governments, attended the event.
During the event, Xu Xiaolan also attended a working exchange on pilot cities for the digital transformation of small and medium-sized enterprises nationwide. She emphasized the need to deeply recognize the importance and urgency of digital transformation for SMEs, focusing on key industries, critical industrial chains, pivotal links, pressing challenges, priority cities, industrial clusters and industrial parks, as well as integrated development. Seizing the opportunity presented by the city‑level pilot programs, she called for supporting the digital transformation of a broad range of SMEs, fostering the emergence of more specialized, refined, distinctive, and innovative SMEs, and contributing to the accelerated advancement of new‑type industrialization and Chinese‑style modernization. More than 200 participants, including representatives from provincial SME authorities and the 30 pilot cities, took part in the exchange.

Ministry of Commerce: China’s foreign investment inflows remain at a relatively high level for the same period over the past decade.
At a regular press briefing on the 2nd, Ministry of Commerce spokesperson Shu Juting stated that, in the first nine months of this year, China’s foreign investment inflows declined year-on-year but remained at a relatively high level for the same period over the past decade. In particular, the number of newly established foreign-invested enterprises grew rapidly, underscoring that foreign investors’ long-term enthusiasm for investing in China has not waned.
Ju Ting Shu stated that the Ministry of Commerce will focus on the following five areas: First, it will further ease market access for foreign investment. This includes studying ways to appropriately shorten the negative list for foreign investment access, comprehensively lifting restrictions on foreign investment in the manufacturing sector, and expanding market access for foreign investors in modern services. The ministry will also strive to remove implicit barriers that impede foreign market entry and ensure that both domestic and foreign investors enjoy equal, lawful access to sectors not covered by the negative list.
Second, we will strengthen support policies. In coordination with all relevant departments and local authorities, we will ensure the effective implementation of the 24 measures to stabilize foreign investment issued by the State Council, further intensify publicity, interpretation, and training, and continue to roll out corresponding detailed rules and guidelines, so as to guarantee that these policies are fully put into practice and yield tangible results, thereby enhancing the sense of gain among foreign-invested enterprises.
Third, we will build the “Invest in China” brand. We will provide guidance and support to local governments in their ongoing efforts to promote foreign investment. During the Sixth China International Import Expo, we will host the “Year of Invest in China” Summit, strengthen outreach on investment opportunities and policies, and facilitate investment matchmaking and project pairing.
Fourth, we will advance the development of open platforms. We will deepen the national pilot program for comprehensive demonstration of expanded opening-up in the service sector and take the lead in establishing a service-sector opening-up framework aligned with high-standard international economic and trade rules. We will also further promote innovation and upgrading in national-level economic and technological development zones, turning them into key strategic hubs for stabilizing foreign trade and foreign investment.
Fifth, we will strengthen services and safeguards for foreign-invested enterprises. We will make full use of the special task force for key foreign-invested projects, the roundtable mechanism for foreign-invested enterprises, and the system for collecting and addressing their concerns and requests; deepen regular exchanges with foreign-invested enterprises and foreign business associations; and proactively coordinate to resolve difficulties, ensuring that foreign-invested enterprises can not only enter the market but also stay and thrive.

Guidelines on International Registration Applications for Industrial Designs Have Been Published
To thoroughly implement the tasks and arrangements set forth in the “14th Five-Year Plan for National Intellectual Property Protection and Utilization,” strengthen protection at the source, enhance quality oversight of intellectual property applications and registrations, and help innovation entities efficiently and appropriately leverage the Hague System to pursue global product deployment while fostering enhanced capabilities in industrial design innovation, the National Intellectual Property Administration has compiled the “Guidance on International Registration Applications for Industrial Designs” for reference by relevant innovation entities.

The Jiangsu Provincial Bureau, in collaboration with nine departments, has issued a three-year action plan to lead the development of county-level commerce, further advancing the construction of rural delivery and logistics systems.
To further lead the way in building a county-level commercial system, nine departments—including the Jiangsu Provincial Department of Commerce, the Provincial Development and Reform Commission, and the Provincial Postal Administration—recently jointly issued the “Three-Year Action Plan for Leading County-Level Commerce in Jiangsu Province (2023–2025)” (hereinafter referred to as the “Action Plan”), which calls for strengthening the county‑township‑village logistics and delivery network and further smoothing two-way channels for industrial products to reach rural areas and agricultural products to enter urban markets.
The Action Plan proposes optimizing and upgrading county‑level commercial infrastructure, renovating and upgrading village‑level retail outlets to enhance service quality, and achieving “multi‑functionality at a single point and multi‑use of a single network” to meet farmers’ needs for convenient, local consumption. It also aims to reduce costs and boost efficiency in county‑to‑village logistics and delivery by building and upgrading county‑level logistics and distribution centers, improving last‑mile delivery networks in towns and villages, and promoting joint logistics and delivery across counties, townships, and villages. Furthermore, it calls for guiding the digital transformation of county‑level distribution enterprises, encouraging postal services to evolve into integrated upstream–downstream supply chain management platforms, and supporting large distribution offices in extending their supply chains to lower tiers. The plan seeks to enrich rural product offerings and services, strengthen the construction and renovation of logistics sorting centers and forward warehouses, and establish a commodity circulation network tailored to the development level of each county. Finally, it promotes high‑quality growth of rural e‑commerce by advancing the integrated development of livestreaming e‑commerce with postal and express delivery services, and by fostering a model that combines livestreaming e‑commerce, origin‑based warehouses, and shared express delivery.
The Jiangsu Provincial Postal Administration stated that, in the next phase, it will anchor itself to its development goals, refine coordination mechanisms, strengthen policy alignment and resource sharing, and actively guide postal and express delivery enterprises in developing new business forms and models. It will also work to channel resources and factors of production toward rural markets, thereby better meeting the needs of rural industrial revitalization and the production and daily life of rural residents.
Taxation
The 7th National Congress of Members of the All-China Association of Certified Tax Agents was held in Beijing.
On November 2, the Seventh National Congress of Members of the All-China Association of Certified Tax Agents was held in Beijing. The congress heard the work report and financial report of the Sixth Council of the Association, approved a draft amendment to the Articles of Association, and elected the Seventh Council. The Party Committee of the State Taxation Administration attached great importance to the meeting; Wang Jun, Secretary of the Party Committee and Director-General, along with other bureau leaders based in Beijing, attended the session.
Wang Daoshu, a member of the Party Committee and Deputy Director of the State Taxation Administration, delivered a speech on behalf of the Administration’s Party Committee. He commended the sixth Council for, since its inception, continuously strengthening the Party’s overall leadership over the tax advisory profession, promoting the deep integration of Party building with professional practice, coordinating the high‑quality development of the industry along the “six modernizations,” and steadily improving the industry’s management and service systems, thereby achieving new progress and tangible results in all areas of the Association’s work. He expressed the hope that the new Council, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, align with the decisions and arrangements of the CPC Central Committee and the State Council, and follow the deployment requirements of the Administration’s Party Committee. It should continue to strengthen the Party’s comprehensive leadership over the tax advisory sector, constantly elevate the industry’s self‑regulatory governance and service standards, and strive to advance the high‑quality development of the tax advisory profession. Furthermore, it should lead the entire industry in shouldering its role as the main force in tax‑related professional services, contributing the strength of the tax advisory sector to advancing tax modernization and supporting Chinese‑style modernization.
Song Lan, President of the Sixth Council of the All-China Association of Certified Tax Agents, delivered a work report to the conference, outlining the achievements of the Sixth Council since its inception in upholding the Party’s overall leadership, advancing the industry’s “six‑fold” development, enhancing publicity for the tax agent profession, and strengthening internal capacity building. She also put forward recommendations for future work.
The congress elected 222 directors to the seventh council, 74 executive directors, one chairperson of the supervisory board, and two vice‑chairpersons of the supervisory board. Liu Lijian, former deputy director of the State Taxation Administration, was elected chairperson of the seventh council.
Liu Lijian stated that the new council will remain guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, proactively adapt to the new circumstances of China’s economic and social development and the new requirements of tax reform and development, comprehensively strengthen Party building, professional development, and talent cultivation within the tax advisory profession, and fully leverage the functions and roles of the All-China Association of Certified Tax Agents. In doing so, it will continue to demonstrate the tax advisory profession’s sense of responsibility and commitment in supporting high-quality economic growth, thus opening up new prospects and making fresh contributions to advancing tax modernization and Chinese‑style modernization.
Xie Bin, Vice President of the All-China Association of Certified Tax Agents, chaired the meeting. Leaders from the Central Organization Department, the United Front Work Department, the Ministry of Civil Affairs, and other relevant departments, along with responsible officials from the General Office and the Personnel Department of the State Taxation Administration, as well as key representatives from the China Institute of Taxation and the China International Tax Research Association, attended the meeting. Also in attendance were representatives from provincial, autonomous region, directly administered municipality, and separately planned city tax associations, tax accounting offices, and related research institutes, industry associations, and universities.

The 7th Congress of Members of the China International Tax Research Association was held in Beijing.
On October 26, the Seventh Congress of Members of the China International Tax Research Association was held in Beijing. The meeting heard reports on the work and financial affairs of the Sixth Council of the Association, approved a draft amendment to the Articles of Association, and elected the leadership bodies of the Seventh Council. The Party Committee of the State Taxation Administration attached great importance to the event; Wang Jun, Secretary of the Party Committee and Director-General, along with other bureau leaders based in Beijing, attended the meeting.
Rao Lixin, a member of the Party Committee and Deputy Director-General of the State Taxation Administration, delivered a speech on behalf of the Administration’s Party Committee, extending warm congratulations on the convening of the conference. He commended the Sixth Council for, since its establishment, elevating the level of theoretical research through high‑level strategic planning, advancing the development of a new type of think tank with high quality, and expanding China’s tax influence at an elevated level, thereby achieving new progress and tangible results in all aspects of the Association’s work. Mr. Rao emphasized that the international tax landscape is undergoing complex and profound changes, posing new and higher demands on tax theory research. He urged the Association and the broader community of international tax scholars to accurately grasp the evolving situation, explore innovative approaches, address emerging issues, and contribute to the modernization of taxation in support of Chinese‑style modernization. He further called for raising political awareness, officely upholding the principle of strengthening the Association under the leadership of Party building, consciously using the Party’s innovative theories to guide thinking, inform practice, and advance work, diligently fulfilling core responsibilities and serving the nation’s major interests, enhancing international communication to foster win‑win cooperation, and proactively engaging with the global frontier to bolster China’s international tax influence.
Zhang Zhiyong, President of the Sixth Council of the China International Tax Research Association, delivered a work report to the conference, outlining the achievements made since the establishment of the Sixth Council in areas such as strengthening internal capacity, advancing research outcomes, promoting tax awareness, and fostering international exchanges, and put forward recommendations for future work.
The congress elected 146 directors, 48 executive directors, and one supervisor to the seventh council. Sun Ruibiao, former deputy director of the State Taxation Administration, was elected president of the seventh council.
Sun Ruibiao stated that the new council will prioritize four key areas: “strengthening Party leadership and shouldering political responsibilities,” “fulfilling principal responsibilities and performing duties conscientiously,” “highlighting Chinese characteristics and building a new type of think tank,” and “honing internal capabilities and enhancing research capacity.” By pooling the wisdom and strength of all members, the council will uphold fundamental principles while fostering innovation, strive with vigor, and continue to write new chapters in advancing the high-quality development of the China International Tax Research Association and in supporting tax modernization to serve China’s distinctive path to modernization.
Fu Shulin, Vice President and Secretary-General of the China International Tax Research Association and President of the China Tax News, chaired the meeting. Officials from the General Office and the Personnel Department of the State Taxation Administration, as well as responsible officials from the China Tax Institute and the All-China Association of Certified Tax Agents, attended the meeting, along with representatives from international tax research associations in all provinces, autonomous regions, and municipalities directly under the central government, relevant research institutes, universities, and enterprises.

Litigation & Arbitration
The Supreme People’s Procuratorate and the All-China Women’s Federation have released six typical cases to safeguard the lawful rights and interests of rural women related to land.
On November 1, the Supreme People’s Procuratorate website published typical administrative prosecution cases aimed at safeguarding the lawful rights and interests of rural women in land-related matters.
This batch of typical cases comprises six instances, focusing on safeguarding the lawful land-related rights and interests of rural women. The Supreme People’s Procuratorate notes that, influenced by traditional marriage customs and patriarchal, gender‑biased attitudes, rural women often face exclusion in the allocation of land benefits when their marital status or household registration changes. Disputes arise in areas such as the use of residential land, conofficeation of membership in rural collective economic organizations, land contract management, and compensation and resettlement in cases of land expropriation or requisition, all stemming from infringements on their legitimate rights and interests. These cases underscore the importance of equally protecting rural women’s property rights, offering a significant model for appropriately resolving disputes over land rights, and effectively promoting the thorough implementation of relevant laws and policies at the grassroots level.

The Supreme People’s Procuratorate has released typical cases of public-interest litigation in the field of work safety.
On October 31, the Supreme People’s Procuratorate website issued the “Notice on the Issuance of Typical Cases of Public Interest Litigation in the Field of Work Safety,” publishing 12 typical cases of public interest litigation related to work safety.
The cases span multiple sectors, including gas supply, construction projects, transportation, fire safety, mining, hazardous chemicals, and industrial and commercial enterprises. For instance, the People’s Procuratorate of Jincheng City, Shanxi Province, took addressing safety hazards in mine‑specific personnel positioning systems as its entry point, thereby catalyzing a citywide, four‑month special inspection of 115 coal mines operating normally. This initiative established a working mechanism featuring end-to-end control, comprehensive inspections, and full‑coverage supervision, and introduced a blacklist system for electrical equipment used in coal mines, effectively mitigating potential safety risks in the coal industry. In key sectors such as water conservancy projects and natural gas, procuratorial organs have leveraged the preventive functions of public interest litigation to promote source‑level governance of workplace safety.

The Guangdong High People’s Court has released typical cases on personal information protection.
On October 31, the official WeChat account of the Guangdong High People’s Court released a batch of typical cases involving personal information protection.
This batch of cases comprises seven matters, primarily addressing violations of personal information rights—such as unlawful collection and processing of data by internet platforms, algorithmic errors resulting in infringement, unsolicited commercial text messaging, and the illegal capture of facial images—through lawful enforcement. These efforts aim to safeguard personal privacy and information security and to regulate commercial promotional practices. In Case 3, an information company sent marketing‑related text messages without consent, thereby infringing upon both privacy rights and personal information rights; the court ordered it to issue a public apology to users and compensate them for the costs associated with unsubscribing from such text‑message communications.

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