JC Master Legal News Issue 1084

Key Takeaways for This Issue

October LPR rates released: 1-year rate at 3.45%, and the 5-year-plus rate at 4.2%.
The People’s Bank of China has authorized the National Interbank Funding Center to announce that, as of October 20, 2023, the Loan Prime Rate (LPR) stands at 3.45% for the one-year term and 4.2% for terms of five years and above. These LPR rates will remain in effect until the next announcement.
Innovative measures are being formulated and rolled out, as the Beijing Stock Exchange accelerates its reform.
On October 17, Sui Qiang, General Manager of the Beijing Stock Exchange, stated during his address at the main forum of the 13th China–Wuhan Financial Expo that the BSE is accelerating the implementation of a series of innovative reform measures.
The General Office of the State Council has issued the “Special Action Plan for the Commercialization and Application of Patents (2023–2025).”
Recently, the General Office of the State Council issued the “Special Action Plan for the Commercialization and Application of Patents (2023–2025)” (hereinafter referred to as the “Plan”), which lays out specific measures to vigorously promote the industrialization of patents in China and accelerate the translation of innovative achievements into real productive forces.
The State Administration for Market Regulation has launched a public consultation on the Product Quality Law.
On October 18, the website of the State Administration for Market Regulation published the “Notice on Soliciting Comments on the Draft of the Product Quality Law of the People’s Republic of China (Public Consultation Draft),” with a deadline for submitting feedback set for November 18.

Finance & Capital Markets
Striving to foster in-depth dialogue among all market participants, the Shanghai Stock Exchange plans to organize a 2023 centralized roadshow for listed companies.
Recently, in accordance with the unified deployment of the China Securities Regulatory Commission, the Shanghai Stock Exchange plans to organize more than 50 companies listed on the Shanghai Main Board and the STAR Market to conduct a series of centralized roadshows, showcasing from multiple perspectives how these companies are implementing the new development philosophy, fostering a new development pattern, and achieving high-quality growth. This initiative is an important step taken by the Shanghai Stock Exchange to implement the CPC Central Committee’s directives on invigorating the capital market and bolstering investor confidence, as well as a proactive effort to promote coordinated progress across investment, financing, and trading.

In recent years, the Shanghai Stock Exchange has earnestly implemented the State Council’s “Opinions on Further Enhancing the Quality of Listed Companies” (Document No. 14 [2020]), and has meticulously carried out the China Securities Regulatory Commission’s two rounds of the Three-Year Action Plan for Improving the Quality of Listed Companies. As a result, the overall quality of Shanghai‑listed companies has steadily improved, giving rise to a growing cohort of high‑quality listed offices that proactively align with national strategies, boldly engage in technological innovation, deliver tangible returns to investors, and actively assume social responsibilities. According to statistics, the total operating revenue of Shanghai‑listed companies has surpassed RMB 50 trillion, accounting for more than 40% of the nation’s GDP. Over the past three years, their revenues and net profits have posted average annual compound growth rates of approximately 12% and 10%, respectively. Total R&D spending has approached RMB 1 trillion, representing over 30% of the country’s total R&D expenditure, with an average annual compound growth rate of nearly 30% over the same period. Cumulative cash dividends have totaled nearly RMB 1.72 trillion, growing at an average annual compound rate of close to 20% over the past three years, while the ratio of cash dividends to net profit has remained consistently above 35%. Over the past three years, the number of leading companies with market capitalizations exceeding RMB 100 billion and large enterprises with market caps above RMB 10 billion has increased by 16 and 105, respectively, reaching 80 and 628. More than half of these newly added offices are technology‑driven enterprises. Among them, main‑board companies have further strengthened their role as stabilizing pillars, contributing over 70% of the market’s total operating revenue, nearly 80% of its net profits, close to 60% of its R&D spending, and almost 80% of its cash dividends in 2022. In the first half of 2023, despite multiple adverse factors, they demonstrated robust resilience, with operating revenue and net profit attributable to shareholders rising 31% and 16%, respectively, compared with the same period in 2019. They have directly and indirectly supported employment for 200 million people, playing a vital role in ensuring stable employment and safeguarding people’s livelihoods. Meanwhile, the STAR Market has increasingly highlighted its “hard‑tech” orientation, with pronounced demonstration and agglomeration effects across industrial chains such as integrated circuits, biopharmaceuticals, and new energy. In 2022 and the first half of 2023, R&D spending grew at annual rates of 28% and 19%, respectively, with R&D expenditures accounting for a median of 12% of operating revenue. On average, each company holds 168 invention patents, yielding a series of groundbreaking technological innovations that have helped overcome critical bottlenecks.

The more than 50 companies slated to participate in this round of centralized roadshows are highly representative, exemplary, and pioneering. Among them are the “Big Three Oil Companies” and the “Big Three Telecom Operators,” which have consistently prioritized national priorities and safeguarded China’s energy and network‑communication security; CRRC and Wanhua Chemical, which have steadily deepened their expertise in specialized fields and earned global recognition as leading Chinese brands; AMEC and United Imaging Healthcare, which continuously strengthen technological innovation and drive industry‑wide upgrades; and COSCO Shipping and Yangtze Power, which have long maintained prudent dividend policies and consistently rewarded investors. These companies will conduct roadshows centered on four key themes—industry leadership, the digital economy, public‑service initiatives, and state‑owned enterprise ESG—featuring senior executives from the listed offices. They will deliver vivid presentations and detailed explanations, drawing on their own business performance, industry trends, and progress in innovation and transformation, while engaging in in‑depth dialogue with domestic and international institutional investors, securities research analysts, and individual investors.

The first roadshow, themed “Industry Leaders,” and the second, themed “Digital Economy,” will be held on October 18 and 20, respectively. Under the “Industry Leaders” theme, executives from 17 industry-leading companies—including Kweichow Moutai, Zijin Mining, and SAIC Motor—will take the stage to outline the latest trends and key highlights in their businesses’ operations and development. Meanwhile, the “Digital Technology” session will bring together representatives from 10 leading electronics and technology offices, such as Haier Smart Home, Kingsoft Office, and HuaHong Group, who will discuss the emerging landscape of Digital China from the perspectives of technological innovation and industrial upgrading.

Building a communication platform to strengthen mutual promotion of investment and financing.
The Shenzhen Stock Exchange is organizing the “Industry Benchmarks Lay the Foundation” 2023 Centralized Roadshow for Listed Companies.
Strengthening investor relations management is a crucial pathway to respecting, honoring, and protecting investors, as well as a powerful measure for enhancing corporate governance and supporting high-quality development.

To thoroughly implement the requirements of the new round of initiatives aimed at enhancing the quality of listed companies, guide these companies in establishing and improving multi‑tiered, constructive engagement mechanisms with investors, and ensure smooth communication channels, the Shenzhen Stock Exchange, in accordance with the unified deployment of the China Securities Regulatory Commission, will, starting in late October, host three batches of concentrated roadshow events under three overarching themes: “Setting Industry Benchmarks to Lay a Solid Foundation,” “Surging Ahead on the Wings of Growth,” and “Pioneering Innovation to Ride the Waves.” These events will invite approximately 50 Shenzhen‑listed companies—characterized by high-quality development, strong representativeness, and robust growth and innovation—to actively disclose their operating performance, articulate their development strategies, address investor concerns, and listen to investor feedback, thereby further building consensus and strengthening mutual trust.

In recent years, the Shenzhen Stock Exchange has thoroughly implemented the State Council’s “Opinions on Further Enhancing the Quality of Listed Companies” (Document No. 14 [2020]), taking the in-depth implementation of the China Securities Regulatory Commission’s two rounds of the “Three-Year Action Plan for Improving the Quality of Listed Companies” as its central task. As a result, a cohort of high‑quality listed companies has emerged—proactively supporting national strategies, demonstrating outstanding innovation capabilities, maintaining sound corporate governance, delivering sustained strong operating performance, consistently enhancing investor returns, and actively fulfilling their social responsibilities. Over the past three years, the Shenzhen market has achieved remarkable results in serving the real economy: real‑economy enterprises have posted simultaneous growth in both revenue and profits, with operating income and net profit increasing by 34.69% and 18.99%, respectively. Key priority sectors have accelerated their development: advanced manufacturing offices are both widespread and of high quality, with a compound annual growth rate in net profit of 17.8% over the past three years; digital‑economy companies have continued to innovate and break new ground, posting a compound annual growth rate in net profit of 11.1% over the same period; and green, low‑carbon enterprises have begun to take shape and develop distinctive characteristics, with a compound annual growth rate in net profit of as much as 48% over the past three years.

Following the implementation of the comprehensive registration-based reform, the Shenzhen Stock Exchange has steadily refined its multi-tiered capital market system, establishing a “Main Board + ChiNext” market structure. With both segments advancing in tandem, it supports high‑level scientific and technological self-reliance and underpins high‑quality economic development. The Main Board emphasizes its “large‑cap blue chips” profile, focusing on strategic pillar industries with mature business models, stable operating performance, and strong representativeness. Meanwhile, the ChiNext highlights its “innovation‑driven, high‑growth” character, aligning with a positioning centered on “innovation, creation, and creativity,” and accelerating the emergence of a leading hub for the development of strategic emerging industries. In recent years, a number of Shenzhen‑listed companies—including Midea Group and Gree Electric Appliances—have deepened their core businesses, upheld a spirit of craftsmanship, and gradually evolved into industry benchmarks that set standards and serve as models. They have continuously written new chapters in supporting national strategies and the real economy. At the same time, offices such as CATL, SF Holding, and GEM have actively leveraged capital market tools to strengthen and expand their operations, achieving leapfrog growth. Furthermore, companies like Mindray Medical, Inovance Technology, Luxshare Precision, and BOE have boldly pursued expansion, remained committed to innovation, and emerged as shining “calling cards” in the market.

On October 19, the first batch of centralized roadshow events for Shenzhen-listed companies, themed “Setting the Benchmark for the Industry,” will be held simultaneously in person in Shenzhen, Beijing, Shanghai, and Chengdu. Key executives from 15 representative, high-quality leading listed companies, including BYD and Gree Electric Appliances, will engage in face-to-face discussions with a broad base of investors.

October LPR rates released: 1-year rate at 3.45%, and the 5-year-plus rate at 4.2%.
The People’s Bank of China has authorized the National Interbank Funding Center to announce that, as of October 20, 2023, the Loan Prime Rate (LPR) stands at 3.45% for the one-year term and 4.2% for terms of five years and above. These LPR rates will remain in effect until the next announcement.

China’s A-share market is once again seeing a wave of share buybacks and increased holdings, with several large state-owned enterprises listed on the stock exchange stepping in.
China’s A-share market is witnessing a new wave of share buybacks and additional share purchases. Recently, numerous listed companies have issued announcements indicating their plans to deploy substantial capital to execute buyback and share‑increase programs.
On October 17, the Shanghai Stock Exchange saw 31 companies simultaneously disclose announcements related to share buybacks and additional share purchases. Among them, eight companies announced buyback plans, 13 disclosed progress on their buyback programs, five introduced new share‑increase initiatives, and five reported updates on their share‑increase activities.
On October 16, ten listed companies issued announcements, deploying a “dual‑pronged” strategy of share buybacks and additional share purchases. Among them, five companies unveiled new plans to increase their holdings, with a combined value not exceeding RMB 1.63 billion; two companies reported progress on their share‑purchase initiatives, totaling approximately RMB 2.343 billion; one company announced a new buyback program worth up to RMB 3 billion; and two companies disclosed updates on their buyback efforts, amounting to roughly RMB 475 million.
It is worth noting that the companies participating in this round of share buybacks and additional purchases are predominantly large state-owned enterprises, which are industry leaders.
Among them, Baosteel Co., Ltd. announced that it plans to use up to RMB 3 billion of its own funds to repurchase A‑shares at a price not exceeding RMB 8.86 per share. The number of shares to be repurchased will be no less than 330 million and no more than 500 million, representing approximately 1.48% to 2.25% of the company’s total share capital prior to the repurchase. The repurchase period will not exceed 12 months from the date the board of directors approves this share‑repurchase plan. The repurchased shares will be used for future equity‑incentive programs.
China Three Gorges Energy announced that, driven by confidence in the company’s future development, its controlling shareholder, China Yangtze River Three Gorges Group Co., Ltd., plans to increase its stake in the company over the next 12 months, with an investment ranging from no less than RMB 300 million to no more than RMB 500 million, at a price not exceeding RMB 6 per share.
Yan Xiang, an analyst at Huafu Securities, noted that share buybacks and additional share purchases have long been a common tactic for listed companies to signal to the market that their stock is undervalued. When a company or its shareholders believes its share price is too low, they often resort to buybacks or increased holdings to stem further declines, while also helping to absorb some of the selling pressure and send a positive signal to investors. More importantly, buyback and share‑increase activities by industry leaders are likely to serve as benchmarks and set a trend, encouraging more listed companies to join this practice.
Yan Xiang believes that, from a market perspective, the wave of share buybacks and additional purchases by listed companies helps convey a positive and upbeat sentiment. Buybacks and increases in holdings by major shareholders can inject additional capital, bolster investor confidence, stabilize stock prices, and safeguard investors’ interests. At critical junctures, such decisive actions by major shareholders send a strong signal of stabilizing expectations and reinforcing confidence, thereby contributing to market stability and vitality.

IMF Chief Representative in China: China Remains the World’s Largest Engine of Economic Growth
“Over the next two years, the global economy is projected to grow by 3% and 2.9%, respectively, with China remaining the world’s largest engine of growth, accounting for one-third of global expansion,” said Steven Barnett, IMF Resident Representative in China, at the recent launch of the IMF’s 2023 World Economic Outlook report.
The recently released World Economic Outlook report indicates that global economic growth will decelerate from 3.5% in 2022 to 3% this year and 2.9% in 2024, a downward revision of 0.1 percentage point from the IMF’s July projection for 2024, yet still well below its historical average. In addition, headline inflation continues to ease, with year-on-year rates expected to fall from 9.2% in 2022 to 5.9% this year and 4.8% in 2024.
Silvia Albrizio, an economist in the IMF’s Research Department, noted in her analysis of the report that, with the exception of China, inflation across many global economies reached multi-decade highs in 2022, particularly core inflation; meanwhile, China’s core inflation remained virtually at 0%. According to IMF projections, most countries are unlikely to return to their inflation targets by 2025.
Steven Barnett stated that global medium- and long-term economic growth has been broadly sluggish, with the primary drivers being a decline and slowdown in total factor productivity, necessitating further structural reforms to bolster growth. Against this backdrop, he emphasized that trade has long served as a key engine of global economic expansion, calling for reduced trade frictions and decoupling, greater reliance on the WTO’s dispute settlement mechanism, and heightened attention to climate issues.
According to the announcement, this press conference was co-hosted by the International Monetary Fund’s China Office and the Institute of International Finance (IMI) at Renmin University of China, with the International Forum on Finance and Industrial Cooperation (IFIC) serving as a co-organizer.

State-owned central enterprises listed on the stock market have been issuing a flurry of announcements regarding share‑buying plans by their controlling shareholders.
Recently, several listed companies have announced share‑buyback plans by their controlling shareholders.
On the evening of October 19, six state-owned enterprises—including Guodian Power, China Nuclear Power, China Shenhua, Inner Mongolia Huadian, China Aluminum, and China Construction—announced share‑buyback plans by their controlling shareholders.
“This indicates that the listed company and its controlling shareholders are confident in the company’s future prospects and believe its stock price is undervalued, making it an opportune time to increase their holdings,” said Pan Helin, Co-Director of the Research Center for Digital Economy and Financial Innovation at the International Business School of Zhejiang University.
Specifically, on the evening of October 19, China Nuclear Power issued an announcement regarding its controlling shareholder’s share‑increase plan. The announcement stated that, driven by confidence in the company’s future development, the controlling shareholder, China National Nuclear Corporation (CNNC), together with its concerted actors, intends to increase its holdings of the company’s shares over the next 12 months, with the total purchase amount not exceeding RMB 500 million, funded by CNNC’s own capital.
On the same day, China Shenhua announced that its controlling shareholder, China Energy Investment Corporation, plans to increase its holdings of the company’s A‑shares over the next 12 months through its wholly owned subsidiary, China Energy Investment Capital Holdings Co., Ltd. The total amount of the additional purchases will be no less than RMB 500 million and no more than RMB 600 million, with the purchase price not exceeding RMB 33.10 per share.
China Construction also issued an announcement stating that on October 19, the company received notice from its controlling shareholder, China State Construction Engineering Corporation, that the latter plans to increase its holdings of the company’s A-shares through centralized bidding transactions, with the total amount of the additional purchase ranging from no less than RMB 500 million to no more than RMB 1 billion.
“The reasons behind the concentrated release of share‑buyback plans during this period are multifaceted. On the one hand, controlling shareholders of listed companies view the current environment as an opportune moment to increase their stakes, enabling them to acquire additional shares at lower prices. On the other hand, listed offices also seek to convey confidence to the market through these buybacks, signaling their belief in the company’s future prospects,” said Bo Wenxi, Chief Economist at IPG China.
As listed companies have been successively announcing share‑buyback plans, some offices that have already disclosed such plans are moving swiftly to implement them.
For example, on the evening of October 16, China Railway Construction Corporation issued an announcement regarding its controlling shareholder’s plan to increase its holdings of the company’s shares. The company’s controlling shareholder, China Railway Construction Group, intends to acquire additional A‑shares, with the cumulative increase representing no less than 0.1% and no more than 0.25% of the company’s total outstanding share capital prior to the increase, and the total purchase amount not exceeding RMB 300 million. After the market closed on October 18, China Railway Construction announced progress in its share‑acquisition plan, stating that China Railway Construction Group had, on that day, purchased 2.4 million A‑shares through centralized bidding, accounting for approximately 0.0177% of the company’s total share capital.
In response, An Guangyong of the Credit Management Committee of the All-China Federation of Industry and Commerce M&A Association stated that this swift implementation of a share‑buyback plan helps bolster investor confidence.

The Shenzhen Stock Exchange has issued a notice concerning algorithmic trading.
Regarding the market’s attention to algorithmic trading, the Shenzhen Stock Exchange today (October 18) issued three consecutive Q&A items. Details are as follows:
When will the “Notice on Matters Concerning the Strengthening of Programmatic Trading Management” and the “Notice on Matters Related to Reporting of Stock Programmatic Trading” take effect? Are existing investors required to file reports?
A: The “Notice on Matters Concerning the Strengthening of Programmatic Trading Management” and the “Notice on Matters Related to Reporting of Stock Programmatic Trading” shall take effect as of October 9, 2023. Investors who had already engaged in stock programmatic trading prior to the effective date of these notices (hereinafter referred to as “existing investors”) shall submit reports within sixty trading days after the notices come into force. Specifically, member clients shall report to their respective members, who will then forward the reports to the Shenzhen Stock Exchange; members and other institutions utilizing trading units shall report directly to the Shenzhen Stock Exchange.
Do investors conducting algorithmic trading of funds, depositary receipts, convertible bonds, and other securities on the Shenzhen Stock Exchange need to fulfill reporting obligations?
Answer: In accordance with the “Notice on Matters Concerning the Strengthening of Programmatic Trading Management” and the “Notice on Matters Related to Reporting of Stock Programmatic Trading,” investors conducting programmatic trading in the Shenzhen Stock Exchange’s fund and depositary receipt markets shall fulfill their reporting obligations as stipulated in the “Notice on Matters Related to Reporting of Stock Programmatic Trading.” Investors engaging in programmatic trading of convertible bonds on the Shenzhen Stock Exchange shall fulfill their reporting obligations in accordance with the requirements set forth in the “Notice on Matters Related to Reporting of Convertible Corporate Bond Programmatic Trading.”
Will the Shenzhen Stock Exchange impose regulatory measures on algorithmic trading investors who fail to fulfill their algorithmic trading reporting obligations, submit false reporting information, or otherwise violate relevant regulations?
Answer: According to the “Notice on Matters Relating to Reporting of Algorithmic Trading in Stocks,” if an algorithmic trading investor falls under any of the following circumstances, the Shenzhen Stock Exchange may, in accordance with the provisions of the Shenzhen Stock Exchange Trading Rules and other relevant business rules, impose appropriate self-regulatory measures:
(1) Engaging in algorithmic trading without fulfilling the reporting obligation;
(2) The reported information fails to meet the requirements of truthfulness, accuracy, completeness, and timeliness;
(3) Other circumstances that violate this notice.

The China Securities Regulatory Commission and the Shanghai and Shenzhen stock exchanges have previously taken action to strengthen oversight.
On September 1, the China Securities Regulatory Commission (CSRC) guided stock exchanges in introducing a series of measures to strengthen the regulation of algorithmic trading, issuing two notices: the “Notice on Matters Relating to Reporting of Stock Algorithmic Trading” and the “Notice on Matters Relating to Strengthening the Management of Algorithmic Trading” (hereinafter referred to as the “Reporting Notice” and the “Management Notice,” respectively).
In addition, the Shanghai and Shenzhen Stock Exchanges have issued announcements stating that they will conduct real-time monitoring of the securities trading activities of algorithmic traders, with particular focus on the following matters: (1) abnormal trading behaviors that, pursuant to the exchanges’ business rules, may affect securities prices, trading volumes, or the security of the exchange’s systems; (2) trading activities characterized by a maximum order‑submission rate of 300 orders per second or more, or by a daily total of 20,000 or more orders; (3) situations in which the prices or trading volumes of multiple securities exhibit marked anomalies, with substantial participation from algorithmic trading during such periods; and (4) any other matters that the exchanges deem warranting heightened scrutiny.
Industry insiders note that this move by the China Securities Regulatory Commission responds to market demand and deepens institutional innovation in key areas, marking the formal establishment of a programmatic trading reporting regime and corresponding regulatory framework in China’s stock market.
So‑called algorithmic trading refers to the execution of trade orders that are automatically generated or executed according to pre‑defined procedures or specialized software. Compared with traditional manual trading, algorithmic trading can process vast amounts of market data more rapidly, make split‑second decisions, and execute trades almost instantaneously, thereby significantly enhancing trading efficiency and flexibility and contributing positively to market liquidity. In recent years, the scale of algorithmic trading in the A‑share market has continued to grow, gradually becoming one of the key trading strategies employed by domestic investors. However, under certain market conditions, it may amplify market volatility, underscoring the need to guide its development in a manner that aligns with market dynamics and ensures proper regulation.
The “Reporting Notice” primarily clarifies the specific arrangements for reporting algorithmic trading in the stock market, covering the reporting entities, methods, and content, and introduces additional reporting requirements for high-frequency trading. According to estimates, the proportion of existing accounts across the market that are required to report is currently very low, and most of these are institutional investors. Given the ample preparation time afforded to all parties, this measure is unlikely to disrupt normal trading activities, particularly for the broad base of small and medium-sized investors.

State-owned enterprise reform in many regions has unveiled new initiatives, with restructuring and consolidation emerging as key priorities.
With the launch of a new round of initiatives to deepen and upgrade state-owned enterprise reform, recent months have seen fresh plans for the restructuring and consolidation of SOEs in cities such as Haikou, Lanzhou, and Qiqihar. According to data from Zhiben Consulting, since 2023, a total of 333 locally listed SOEs have engaged in mergers, acquisitions, and restructurings, marking a year-on-year increase of 98%. Under the relevant plans of the State-owned Assets Supervision and Administration Commission, the formulation of implementation schemes and work‑progress ledgers is expected to be completed by the end of October.
Industry insiders believe that, as localities accelerate the rollout of a new round of state-owned enterprise (SOE) reforms, the restructuring and consolidation of local state‑owned assets are likely to gain further momentum. In particular, M&A activity among listed SOEs is expected to pick up, while merger and acquisition deals focused on strategic emerging industries will also increase.
Local state-owned asset consolidation is accelerating.
Recently, state-owned enterprises across the country have been undertaking a series of major restructuring and consolidation initiatives. In Haikou, on October 8, six newly established municipal state-owned enterprises held a joint unveiling ceremony, marking the city’s adoption of a new state‑owned asset management framework: “two state‑capital investment and operation platforms plus four industry‑specific groups.”
“Going forward, our city will accelerate the integration and restructuring of municipally‑owned state‑owned enterprises, continuously enhancing their vitality and competitiveness, and driving state capital and SOEs to grow stronger, better, and larger, thereby making new and even greater contributions to building the core area of the Hainan Free Trade Port and a modern, internationalized Haikou,” said a relevant official from the Haikou Municipal Government.
In Qiqihar, Heilongjiang Province, Heilongjiang Zhengtong Big Data (Group) Co., Ltd. officially commenced operations recently, marking a milestone in the city’s efforts to integrate and restructure its state-owned enterprises. Through mechanisms such as asset transfers, restructuring and new establishment, and liquidation and dissolution, Qiqihar has reorganized six industrial investment groups: the Urban Investment Group, the Qixiang Group, the Agricultural Investment Group, the Culture and Tourism Group, Zhengtong Big Data (Group) Co., Ltd., and the Heyu Company. Additionally, the State Investment Company has been endowed with the functions of a state‑capital operating entity, becoming the city’s sole state‑capital investment and operation company. In alignment with the overarching goals of revitalizing the city’s industries and advancing technological innovation, two project companies—Hedong Company and the New Industry Investment Group—have been established, thereby completing a citywide corporate structure of “6+1+2.”
In Henan, since last year, the province has completed the establishment or restructuring of 17 provincially‑managed enterprises and set up 10 specialized subsidiaries, with an unprecedented level of strategic realignment. “Going forward, we will formulate specific guidelines for a new round of strategic restructuring, aiming to concentrate the steel, nonferrous metals, electronic information, aviation, construction engineering, logistics, and other business segments of provincially‑managed enterprises under leading companies, thereby strengthening their industrial leadership and value‑creation capabilities,” said a relevant official from the State‑owned Assets Supervision and Administration Commission of the Henan Provincial Government.
“As reform enters a new phase of implementation, the restructuring and consolidation of local state‑owned assets are expected to accelerate further,” says Chang Yanjun, Managing Partner at Zhiben Consulting and Director of the Institute for Comprehensive Reform. He notes that, in line with the principles of “strengthening and expanding” and clear functional positioning, provincially‑directly managed state‑owned enterprises will be further consolidated into more competitive, pillar‑level state‑owned asset groups. Meanwhile, guided by the principle of “enhancing quality and refining operations,” deeper restructuring—both across groups and within them—will advance toward a model of “one enterprise per industry” and “one industry per enterprise.”
Mergers and acquisitions and restructuring are surging.
From the perspective of the secondary market, mergers and restructurings involving listed companies controlled by local state-owned enterprises are gaining momentum.
On September 11, Dalian Thermal Power issued an announcement stating that the company plans to sell all of its assets and liabilities to Dalian Clean Energy Group Co., Ltd., and to issue shares to Hengli Petrochemical Co., Ltd. and Jiangsu Hengli Fiber Co., Ltd. in exchange for their combined 100% equity stake in Kanghui New Materials Technology Co., Ltd., while also raising accompanying funds. If this transaction is successfully completed, Dalian Thermal Power will strategically exit the thermal power sector and position itself in the new materials industry going forward.
On September 9, Dagang Shares announced that it would acquire a total of 77.7% equity interest in Xinnana Environmental Protection for approximately RMB 152 million in cash, thereby accelerating its strategic positioning in the environmental‑protection resources services business. In addition, recently, Huaihe Energy released a draft report on a major asset acquisition and related-party transaction, under which the company plans to pay Huaihe Power in cash to acquire its 100% stake in Panji Power Generation Company, a 50.43% stake in Huaizhou Coal‑Power, and a 49% stake in Huaizhou Electric Power. Upon completion of this transaction, Panji Power Generation Company and Huaizhou Coal‑Power will become wholly owned subsidiaries of the listed company, while Huaizhou Electric Power will become an equity‑method affiliate. The total consideration for the transaction amounts to RMB 4.327 billion.
According to data from Zhiben Consulting, since 2023, a total of 333 locally‑owned state‑controlled listed companies have engaged in mergers and acquisitions or corporate restructurings, with the majority concentrated in sectors such as real estate, and the production and supply of electricity and heat. This represents a year‑on‑year increase of 98%, reflecting an accelerating pace of M&A activity.
Recently, the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council published a signed article in the journal Qiushi, stating that efforts to advance market‑oriented consolidation and restructuring must be further intensified. It called for accelerating integration and reorganization in key sectors such as integrated circuits, machine tools, equipment manufacturing, electronic information, healthcare, and inspection and testing, while also stepping up specialized consolidation in areas like new energy, mineral resources, trunk pipeline networks, and port terminals, so as to promote the rational flow and optimal allocation of state capital.
“Optimizing the layout and structure of the state-owned economy relies heavily on mergers and acquisitions and corporate restructuring, and we expect the share of M&A‑related activities in strategic emerging industries to rise at an accelerated pace going forward,” said Chen Li, Chief Economist at Chuan Cai Securities.

Innovative measures are being formulated and rolled out, as the Beijing Stock Exchange accelerates its reform.
On October 17, Sui Qiang, General Manager of the Beijing Stock Exchange, stated during his keynote address at the main forum of the 13th China–Wuhan Financial Expo that the BSE is accelerating the implementation of a series of innovative reform measures, including expediting the research and formulation of rules and regulations related to direct IPOs on the exchange, launching a special action plan to enhance the quality of listed companies, soon introducing corporate bonds, guiding eligible BSE-listed companies to carry out all necessary transfer‑listing procedures in accordance with applicable rules, and studying the development of a specialized, niche, and innovative index for the BSE.
Striving to build a new market ecosystem.
“First‑class enterprises give rise to first‑class exchanges. We will adopt a multi‑pronged approach to enhance the growth momentum and market appeal of companies listed on the Beijing Stock Exchange,” said Sui Qiang. “We will both work to optimize the composition of the exchange’s listed companies and vigorously improve their overall quality.”
Sui Qiang stated that this reform, by refining the “12-month listing requirement” and allowing eligible high-quality small and medium-sized enterprises to conduct an initial public offering and list on the Beijing Stock Exchange, further streamlines diversified and convenient listing pathways, thereby attracting a cohort of high‑quality companies with strong market recognition to the exchange.
High‑quality, innovation‑driven small and medium‑sized enterprises are the Bourse’s cornerstone and source of vitality. Sui Qiang stated that the Beijing Stock Exchange will remain true to its mission, adhere to the growth patterns of SMEs, and implement a special action plan to enhance the quality of listed companies, ensuring that investors have access to listed offices that are genuine, transparent, trustworthy, and investable. At the same time, the Beijing Stock Exchange will pursue differentiated yet coordinated development with the Shanghai and Shenzhen markets, broaden sectoral coverage, and pool resources to support the listing and growth of more high‑quality, innovation‑driven SMEs.
The Beijing Stock Exchange’s next key priorities also include: upholding the coordinated development of investment and financing to better meet investors’ wealth-management needs; continuously expanding the range of underlying products and gradually establishing a “full‑category” system covering equities, bonds, and funds; and strengthening connectivity across market segments and fostering multi‑faceted synergies to cultivate a robust, full‑life‑cycle ecosystem that is more conducive to the innovation and growth of small and medium-sized enterprises.
Among these measures, the Beijing Stock Exchange will explore ways to optimize its issuance‑pricing framework, upholding reasonable pricing and rewarding high‑quality companies with favorable valuations, thereby fostering coordinated development between the primary and secondary markets. Sui Qiang stated that, in accordance with the “Special Provisions on Market‑Making Business of Securities Offices on the Beijing Stock Exchange,” the Exchange will proactively facilitate the admission of new market makers, further leveraging their role in enhancing valuation and pricing as well as improving liquidity.
To strengthen multi-tiered market interconnectivity, the Beijing Stock Exchange recently issued and implemented the revised “Guidance No. 7 on Ongoing Supervision of Listed Companies of the Beijing Stock Exchange—Transfer to Another Board.” “We will advance transfer-to-another-board initiatives in a proactive, prudent, and orderly manner, guiding eligible listed companies to carry out all relevant tasks in compliance with regulations and fostering stable expectations for such transfers,” said Sui Qiang.
All parties have responded positively to the reform.
In the nearly two years since its launch, the Beijing Stock Exchange has maintained overall stable operations, rapidly attracting a cohort of high-quality, innovation-driven small and medium-sized enterprises. Its market functions have begun to take effect, yielding significant interim results. Recently, the China Securities Regulatory Commission issued the “Opinions on High-Quality Development of the Beijing Stock Exchange,” which focuses on enhancing the exchange’s foundational infrastructure and product offerings, cultivating distinctive competitive advantages and a branded identity, and laying out a systematic plan for advancing the BSE’s development. The document outlines a 10-year roadmap and set of objectives, presenting major strategic opportunities for the exchange’s further growth. “As various reform measures are implemented and begin to deliver tangible results, the BSE’s market structure will be markedly optimized, operational quality will improve substantially, and its role in supporting national strategies—such as achieving high-level scientific and technological self-reliance and building a modern industrial system—will be better realized. Moreover, its contribution to regional economic development will become increasingly evident,” said Sui Qiang. Looking at developments over the past month since the release of the Opinions, responses from all stakeholders have been highly positive: leading companies have actively sought information and engaged in consultations; securities offices and public mutual funds have broadly stepped up their business efforts; and local governments at all levels have proactively coordinated with enterprises on talent cultivation and other initiatives. Overall, the BSE’s market ecosystem is demonstrating a robust and upward‑trending momentum.
Sui Qiang stated that since the issuance of the “Opinions,” investors of all types have actively participated, with the average daily number of new account openings exceeding ten times the pre‑release level. Public mutual funds have accelerated their entry into the market, and policies enabling private equity funds to increase their holdings in stocks of Beijing Stock Exchange‑listed companies through the secondary market have also been released. The Beijing Stock Exchange will continue to provide targeted services and facilitate effective connections to support the participation of various types of capital.

Commercial & Corporate
The General Office of the State Council has issued the “Special Action Plan for the Commercialization and Application of Patents (2023–2025).”
Recently, the General Office of the State Council issued the “Special Action Plan for the Commercialization and Application of Patents (2023–2025)” (hereinafter referred to as the “Plan”), which lays out specific measures to vigorously promote the industrialization of patents in China and accelerate the translation of innovative achievements into real productive forces.
The Plan states that, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we must comprehensively implement the spirit of the 20th National Congress of the Communist Party of China. Focusing on vigorously promoting the industrialization of patents and strengthening and improving the real economy, we will fully leverage the dual roles of the intellectual property system—providing both institutional support and technological resources—while effectively harnessing the patent system’s functions as a conduit for rights and a bridge for information. This will facilitate the efficient allocation and organic integration of key production factors such as technology, capital, and talent. To achieve these goals, we will intensify efforts on two fronts: enhancing patent quality and reinforcing policy incentives; address critical bottlenecks in patent commercialization and application; optimize market‑oriented services; foster a sound ecosystem; and stimulate the innovation drive and conversion momentum of all stakeholders. In doing so, we will translate the advantages of the patent system into a powerful impetus for innovative development, thereby contributing to the realization of high‑level scientific and technological self‑reliance and self‑strengthening.
The Plan sets forth that by 2025, a number of high‑value patents will be brought to industrial application. The patent commercialization rate among universities and research institutions will see a marked increase, and the nationwide turnover of technology contracts involving patents will reach RMB 800 billion. A cohort of enterprises specializing in hard‑tech fields and possessing robust patent portfolios will grow and strengthen, while competitive advantages in intellectual property within key industrial sectors will accelerate their emergence. Furthermore, the output value of patent‑intensive products that have been filed and recognized will exceed RMB 1 trillion.
The Plan lays out specific measures for a special campaign to promote the commercialization and application of patents across three key areas. First, it vigorously advances the industrialization of patents and accelerates the realization of their value. This involves systematically reviewing and revitalizing existing patent portfolios held by universities and research institutions, leveraging patent commercialization to foster the growth of small and medium-sized enterprises, strengthening intellectual property‑driven supply chains in priority industries to enhance efficiency, and cultivating and promoting patent‑intensive products. Second, it seeks to remove critical bottlenecks in the transfer process and stimulate endogenous momentum for utilization. This includes reinforcing incentives for patent commercialization at universities and research institutions, aligning policy priorities to improve patent quality and facilitate industrialization, and bolstering intellectual property protection efforts that support technology transfer and application. Third, it aims to nurture an intellectual property‑based factor market and build a robust service ecosystem. This entails establishing a high‑standard intellectual property market framework, advancing diversified financial mechanisms to support IP‑related activities, refining the service chain for patent commercialization and application, and ensuring smooth international circulation of IP‑related factors.
The Plan emphasizes the need to strengthen organizational implementation, enhance performance evaluation, increase investment and resource allocation, and bolster public awareness‑raising and experience‑sharing, thereby fostering a favorable societal environment for the commercialization and application of patents and ensuring that the tasks of this special campaign are effectively carried out and yield tangible results.

The State Administration for Market Regulation has issued the “Guiding Opinions on Promoting the High-Quality Development of the Instrument and Meter Industry through Metrology.”
To implement the “Metrology Development Plan (2021–2035)” and further leverage metrology’s role as a foundational enabler for the instrumentation industry, promote the translation and application of cutting-edge metrological innovations into the instrumentation sector, continuously enhance the industry’s capacity for independent innovation, cultivate core competitiveness, and help China’s instrumentation industry advance to the forefront of global standards, the State Administration for Market Regulation recently issued the “Guiding Opinions on Promoting High-Quality Development of the Instrumentation Industry through Metrology” (hereinafter referred to as the “Guiding Opinions”).
The Guiding Opinions state that by 2025, the metrological performance and technical specifications of certain domestically produced instruments and meters will reach or approach international advanced levels. A batch of high‑quality, highly reliable instruments and meters with internationally advanced measurement capabilities will be developed; a number of critical metrology and testing technologies will be overcome; the effectiveness of public metrological standards will be enhanced; new reference materials for instruments and meters will be formulated; and a set of metrological technical specifications for instruments and meters will be drafted or revised. These efforts will help establish a group of domestic brands in the instrumentation sector and accelerate the localization of primary metrological standards and instruments. By 2035, the metrological performance and technical specifications of domestically produced instruments and meters will attain international advanced levels, with some reaching world‑leading standards. A number of bottleneck‑breaking key metrology and testing technologies will be mastered, and a cohort of innovative instrument‑manufacturing enterprises—boasting cutting‑edge measurement capabilities and robust R&D and design expertise—will emerge.
The Guiding Opinions outline five key tasks to promote the high-quality development of the instrumentation industry through metrology. First, accelerate efforts to address critical metrological bottlenecks in the sector by refining an independent and controllable system for ensuring measurement values, expediting research on essential common‑use metrology technologies, and enhancing the capacity to supply high‑end metrological instruments and equipment. Second, stimulate innovation among instrumentation enterprises by leveraging the leading role of flagship companies, supporting the rapid growth of small and micro‑enterprises, and fostering specialized industrial clusters. Third, strengthen the foundational metrological capabilities of the instrumentation industry by advancing research on traceability and transfer of measurement standards, improving metrology technical specifications and standards, and upgrading metrological testing capacities. Fourth, cultivate a thriving metrological ecosystem for the instrumentation industry by innovating service models, nurturing a favorable environment for industrial development, creating conditions conducive to the application and commercialization of research outcomes, and facilitating the mutual sharing of industrial resources. Fifth, refine the metrology policy framework for the instrumentation sector by establishing a metrology testing and evaluation system, optimizing the policy landscape, and bolstering the training of high‑level metrology professionals.
The State Administration for Market Regulation will actively coordinate market regulation authorities and relevant entities across the country to ensure the effective implementation of the Guiding Opinions, strengthen the development of coordination mechanisms, fully leverage the role of think tanks, enhance policy and financial support, and continuously deepen international cooperation, thereby contributing metrological expertise to fostering high-quality development of the instrumentation industry and advancing China’s drive to become a manufacturing powerhouse.

The State Administration for Market Regulation has formulated and issued the “Compliance Guidelines for the Online Sale of Special Food Products.”
Recently, the State Administration for Market Regulation issued the “Compliance Guidelines for the Online Sale of Special Foods” (hereinafter referred to as the “Guidelines”).
Special foods include health foods, formula foods for special medical purposes, and infant formula, which are critical to the physical health and safety of key populations such as the elderly and young children. In recent years, the online market for special food transactions has continued to expand, but online sales pose significant risks, underscoring the urgent need for compliance guidance to support the industry’s sustainable development.
The State Administration for Market Regulation has systematically reviewed and summarized the provisions and requirements related to the online sale of special foods as set forth in existing laws and regulations, departmental rules, normative documents, and national food safety standards. Following an interpretation of key provisions and extensive consultation with local market regulation authorities, platform enterprises, operators of special foods, and academic experts, it has formulated this “Guideline.” The Guideline aims to further standardize the practices of third-party online food‑trading platforms and food operators on such platforms in selling special foods, enhance their compliance awareness, ensure that they fulfill their principal responsibilities for food safety, and safeguard the safety of special foods sold online.
The Guidelines comprise three main sections: “Definitions and Scope,” “General Requirements for Sales,” and “Special Requirements for Online Sales.” Adhering to the principle of consistency between online and offline channels, they provide interpretive guidance on situations where existing laws and regulations give rise to ambiguities in application or where provisions overlap or conflict. They also highlight key provisions, offering special‑food online sellers administratively oriented guidance that consolidates relevant legal and regulatory requirements and clarifies the specific rules for their application.

China has completely lifted foreign‑investment access restrictions in the manufacturing sector—what does this signal?
“Completely lifting foreign‑investment access restrictions in the manufacturing sector” — this was the major announcement made by China at the opening ceremony of the Third Belt and Road Forum for International Cooperation.
What does the complete removal of foreign‑investment access restrictions in the manufacturing sector signify? What impacts will it bring? And what clear signal does it send?
What does “completely abolishing” mean?
Chen Wenling, Chief Economist of the China Center for International Economic and Trade Exchange, Deputy Director of its Executive Bureau, and Deputy Director of its Academic Committee, told China News Finance that the comprehensive removal of foreign‑investment access restrictions in the manufacturing sector means that, as China’s manufacturing continues to undergo transformation and upgrading, foreign investors will enjoy unimpeded market access.
Bai Ming, a member of the Degree Committee of the Research Institute of the Ministry of Commerce, stated that, in fact, the comprehensive removal of foreign‑investment access restrictions in the manufacturing sector has been a gradual, step‑by‑step process. Initially, these restrictions were lifted within the free trade pilot zones; now, the scope has been expanded nationwide, with the model being replicated and rolled out across the country. The transition from pilot programs to nationwide implementation has already been completed, making this development a natural and inevitable outcome.
On September 27, Vice Minister of Commerce Sheng Qiuping stated at a press conference that the negative list for foreign investment access in the pilot free trade zones has now achieved “zero restrictions” in the manufacturing sector, and the next step will be to prioritize opening up the services sector. The Ministry of Commerce, together with relevant departments, will deepen its research and work to appropriately shorten the negative list for foreign investment in the pilot free trade zones. At the same time, it will push for the introduction of a negative list for cross-border trade in services, thereby leading the country in continuously expanding its opening-up.
According to the “Special Management Measures for Foreign Investment Access (Negative List) (2021 Edition),” the manufacturing sector has been largely fully opened, with only two restrictions remaining: “publication printing must be controlled by Chinese investors” and “investment is prohibited in the application of processing techniques such as steaming, stir-frying, calcining, and calcination for traditional Chinese medicine decoction pieces, as well as in the production of proprietary Chinese medicines based on confidential formulas.”
In addition, the “Special Management Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2021 Edition),” which came into effect on January 1, 2022, has been reduced to 27 items—17 prohibited and 10 restricted—bringing the number of manufacturing-related entries on the negative list for the pilot free trade zones down to zero.
What impact will it have?
In Bai Ming’s view, the comprehensive removal of foreign‑investment access restrictions in the manufacturing sector both fully reflects China’s commitment to high‑level opening-up and responds to the intrinsic needs of the manufacturing industry’s development.
He pointed out that the greater the degree of liberalization, the more opportunities for cooperation will arise, as China’s high-quality manufacturing development depends on leveraging a broader array of premium international inputs; only through comprehensive opening-up can global resources be optimally allocated. Particularly at this stage, as China transitions from a manufacturing giant to a manufacturing powerhouse, it is all the more important to emphasize the opportunities brought by openness.
Bai Ming believes that the full liberalization will indeed exert competitive pressure on domestic manufacturers. Under such pressure, the strong will prevail, and companies with robust competitiveness will not only withstand it but may even find greater room for growth. This is because the more dynamic a office is, the more willing foreign offices are to partner with it in the Chinese market—allowing for complementary strengths and enabling both sides to grow larger and stronger. More importantly, through collaboration, Chinese enterprises can learn from others’ best practices, injecting fresh momentum into the transformation and upgrading of China’s manufacturing sector.
What clear signal has been sent?
To the outside world, this represents a new initiative by China to improve its business environment and step up efforts to attract foreign investment. Recently, the scale of foreign investment inflows into China has declined. According to official data, in the first eight months of this year, the actual amount of foreign capital utilized fell 5.1% year on year.
“The new measures send a clear signal that China’s door of opening-up will open even wider,” said Bai Ming. He added that, amid today’s complex and volatile global economic landscape, China has grown more resolute in its commitment to and confidence in opening up to the world.
Bai Ming believes that multinational corporations place great emphasis on the business environment. China is not only expanding its opening-up but also working to improve it, a development that is particularly crucial for the manufacturing sector. While the scope of China’s openness continues to broaden, it is by no means a one‑off move; behind this opening-up lies a comprehensive package of policies aimed at further optimizing the business climate.
In August, the State Council issued the “Opinions on Further Optimizing the Foreign Investment Environment and Intensifying Efforts to Attract Foreign Investment,” which addresses the most pressing concerns of foreign-invested enterprises and introduces a new package of 24 targeted policy measures.
At the regular press conference on October 12, Ministry of Commerce spokesperson He Yadong stated that, going forward, China will continue to appropriately shorten the negative list for foreign investment access, study the feasibility of further removing or relaxing restrictions on foreign equity ratios, and attract more global resources to the Chinese market. At the same time, the Ministry will work with relevant departments and local authorities to effectively implement the State Council’s Opinions on Further Optimizing the Foreign Investment Environment and Strengthening Efforts to Attract Foreign Investment, striving to build a business environment that is market‑oriented, law‑based, and internationally aligned, and to provide higher‑quality services to foreign‑invested enterprises.

The National Administration of Financial Regulation has issued the “Notice on Matters Concerning the Strengthening of Management of Prefecture‑Level Branches of the China Export & Credit Insurance Corporation.”
To further strengthen the supervision and management of the prefecture-level branches of the China Export & Credit Insurance Corporation (hereinafter referred to as “Sinosure”), the National Administration of Financial Regulation recently issued the “Notice on Matters Concerning the Strengthening of Management of Sinosure’s Prefecture-Level Branches” (hereinafter referred to as the “Notice”).
The Notice adopts a problem‑oriented approach, taking full account of the actual conditions of the prefecture‑level branches of the export credit insurance company, and seeks to address specific issues encountered in regulatory practice. It aims to guide the company in better leveraging the role of export credit insurance and providing enhanced support to foreign trade enterprises. The Notice prominently embodies three key characteristics—effectiveness, precision, and forward‑looking orientation—and focuses on the following areas:
First, we have comprehensively strengthened internal management. We have systematically standardized the management requirements for prefectural-level branches of export credit insurance companies across key areas, including personnel management, job‑level checks and balances, business scope, risk and compliance, internal controls, and internal oversight.
Second, standardize system development and data management. Export credit insurance companies are required to strengthen their information systems, ensure independent statistical reporting of business data and separate accounting for financial data at the prefecture‑level branch level, and submit regulatory reports in a timely and accurate manner.
Third, regulatory requirements and responsibilities have been clarified. Export credit insurance companies’ prefecture‑level branches are to be subject to supervisory oversight in accordance with the relevant regulatory requirements applicable to central branch offices of insurance companies. In line with the principle of local‑jurisdiction supervision, the supervisory duties of the pertinent local bureaus have been further defined, thereby enhancing the quality and effectiveness of regulation.
Going forward, the National Administration of Financial Regulation will ensure the effective implementation of the Notice, further strengthen oversight and regulation of the export‑credit insurance company’s prefecture‑level branches, guide the company toward sound and steady development, and continue to support the stable expansion and structural optimization of foreign trade.

The State Administration for Market Regulation has launched a public consultation on the Product Quality Law.
On October 18, the website of the State Administration for Market Regulation published the “Notice on Soliciting Comments on the Draft of the Product Quality Law of the People’s Republic of China (Public Consultation Draft),” with a deadline for submitting feedback set for November 18.
The Product Quality Law comprises six chapters and 111 articles, setting forth provisions on operators’ obligations regarding product quality, product quality supervision, quality promotion and quality infrastructure, as well as legal liabilities. It clarifies that the State Council’s market regulation authority exercises comprehensive management over product quality nationwide and is responsible for overseeing and promoting product quality across the country. The state has established a product quality and safety traceability system; operators engaged in the production, sale, storage, transportation, or utilization of products posing significant quality and safety risks, as well as those providing related services, are required to establish a product quality and safety traceability system to ensure full-process traceability. Any organization or individual has the right to file complaints or reports concerning violations of product quality laws.

Taxation
China’s network of tax treaties has expanded to cover 114 countries and regions.
On October 17, China signed tax treaties with the governments of Senegal and Cameroon in Beijing. With these agreements, China’s network of tax treaties has expanded to cover 114 countries and regions, broadly encompassing both the primary destinations for China’s outbound investments and the major countries and regions investing in China.
It is understood that, following the entry into force of the tax treaties between China and the aforementioned two countries, taxpayers engaged in cross-border business will benefit from the elimination of double taxation, enhanced tax certainty, and more effective resolution of tax-related disputes, thereby playing a significant role in fostering bilateral trade, technological cooperation, capital flows, and people-to-people exchanges.

Continuously deepening tax collection and administration cooperation to optimize the tax-related business environment — The State Taxation Administration outlines tax services supporting high‑level opening-up.
Building the “Shuilutong” brand to help enterprises expanding overseas achieve steady and sustainable growth; achieving fruitful results in tax administration cooperation under the Belt and Road Initiative; and making positive progress in continuously improving the tax-related business environment—these were among the key highlights presented by relevant officials from the State Taxation Administration at a press conference held on the 13th.
“Shuilutong” Supports Enterprises Going Global
Meng Yuying, Director-General of the International Taxation Department of the State Taxation Administration, stated that, in order to continuously enhance cross-border tax services and help enterprises strengthen their awareness and capacity for compliance with foreign tax laws, the State Taxation Administration has launched the “Shuilutong” brand—a high‑level service initiative supporting China’s opening-up. The Administration has also established a sound, long‑term mechanism for cross‑border investment tax services, extending its support throughout the entire lifecycle of cross‑border investments.
Meng Yuying stated that the “Shuilutong” service brand can be summarized as “information access,” “policy clarity,” and “service excellence.” Specifically, this includes helping cross-border taxpayers ensure tax compliance and manage risks through policy briefings and specialized services such as country- and region-specific investment‑tax guides; refining the tax laws and regulations governing cross-border investment while strengthening policy interpretation and guidance to provide tax‑related policy certainty and legal predictability for investors operating in China; and establishing an expert team to deliver timely, professional responses to the needs of cross-border taxpayers.
Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration, stated that to ensure the effectiveness of the “Tax Road” service, the tax authorities have established a regular communication mechanism, strengthened dialogue with cross-border taxpayers and relevant organizations, and tailored their offerings to address the distinct tax-related needs at each stage—pre‑investment, during investment, and post‑investment—providing end-to-end support. At the same time, cross-border tax services have shifted from a “one‑on‑one” approach to a “one team serving one taxpayer” model, significantly elevating the level of professional expertise.
“Shuilutong” will establish a specialized advisory team under the 12366 Shanghai (International) Taxpayer Service Center, dedicated to serving cross-border taxpayers. Wu Jian, Deputy Director of the Shanghai Municipal Tax Service Bureau of the State Taxation Administration, stated that they will continue to enhance the comprehensiveness of policy responses, accelerate the exploration of taxpayer‑administration interaction in cross-border tax service scenarios, and deliver a new service experience characterized by “precise recommendations, intelligent interaction, coordinated inquiry and handling, and end-to-end engagement” for cross-border taxpayers.
The Belt and Road Initiative has yielded fruitful results in tax administration cooperation.
Rong Hailou, spokesperson for the State Taxation Administration, stated that, with a view to establishing a comprehensive, transparent, stable, efficient, and predictable tax cooperation mechanism, China’s tax authorities launched the Belt and Road Tax Administration Cooperation Initiative in 2019. To date, the number of members of the Cooperation Mechanism’s Governing Council has grown to 36, while the number of observers has increased to 30.
Meng Yuying stated that the cooperation mechanism operates in a substantive, institutionalized manner, with a permanent secretariat based in Beijing, China, serving as its day-to-day implementing body. Since 2019, participating parties have successfully convened four Belt and Road Tax Administration Cooperation Forums in China, Kazakhstan, Algeria, and Georgia, yielding a total of 20 key outcomes. The mechanism’s official website went live in 2020 and now attracts users from more than 170 countries and regions.
In addition, the Belt and Road Tax Academy has established a multilingual training network, having organized more than 60 training sessions to date, with over 3,500 tax and fiscal officials from more than 120 countries and regions participating.
Optimizing the tax-related business environment to support high-standard opening-up.
It is learned that the “China Tax Business Environment Development Report (2013–2022)” (Chinese edition) was released to the public on the same day, systematically showcasing the Chinese tax authorities’ efforts to optimize the tax business environment since the 18th National Congress of the Communist Party of China.
Shen Xinguo stated that China’s tax authorities have worked diligently to foster a market‑oriented tax and business environment that benefits both the public and enterprises. They have issued numerous announcements to streamline tax and fee‑related procedures, and for the past decade have consistently strengthened the “Spring Breeze Tax Service” brand. In addition, they have abolished 61 tax‑related certification requirements and introduced a notification‑and‑commitment system for six such requirements. Moreover, the vast majority of tax incentives now operate on a “self‑assessment, self‑declaration, and record‑keeping” model. Targeted outreach of tax and fee preferential policies has reached over one billion taxpayer and payer instances.
In addition, China’s tax authorities have continuously refined the tax system and actively participated in fiscal and tax reform; they have implemented a nationwide unified list of administrative penalties for tax violations that exempts first-time offenders from punishment; and they have established a new tax supervision framework based on “credit + risk” and underpinned by the “double-random, one-public” inspection approach. By organizing and hosting major international tax events such as the Belt and Road Tax Administration Cooperation Forum, China has contributed its expertise to enhancing global tax governance.
“Continuous efforts to optimize the tax-related business environment have yielded positive results. In 2022, the national taxpayer satisfaction score from third-party surveys rose from 79.7 in 2012 to 89.2,” said Shen Xinguo.

LITIGATION & ARBITRATION
The Supreme People’s Court has released typical cases involving the protection of personality rights of private enterprises and their principals.
On October 16, the Supreme People’s Court held a press conference to release typical cases involving the protection of personality rights of private enterprises and their principals.
This batch of typical cases comprises six instances. Through these cases, the Supreme People’s Court has clarified the following key points: 1) Online self-media platforms that capitalize on trending topics and fabricate false information to damage the reputation of private enterprises must bear tort liability in accordance with the law. 2) Registering a trademark that incorporates another person’s name for improper purposes constitutes an infringement of that person’s right to name and their personal dignity. 3) Posting disparaging or insulting remarks in WeChat Moments or group chats amounts to an infringement of a company’s right to reputation. 4) False complaints lodged by competitors that cause harm to the other party constitute commercial defamation. 5) Using misleading short videos to undermine the image and reputation of private enterprises likewise constitutes commercial defamation, among other matters.

The Shanghai Higher People’s Court has released its 2022 report on financial and commercial adjudication, including findings on disputes involving supply-chain finance.
On October 16, the Shanghai Higher People’s Court held a press conference to release information on the 2022 financial and commercial adjudication work of Shanghai courts, as well as on cases involving supply-chain finance disputes from 2018 to 2022. The court also announced the Top Ten Cases of Financial and Commercial Adjudication for 2022.
The white paper analyzes that Shanghai’s financial and commercial cases exhibit three key characteristics: first, the number and share of disputes over financial loan contracts continue to rise; second, the overall rate of case settlements and withdrawals is trending upward; and third, there is a relatively high volume of mass‑impact financial and commercial cases. The white paper forecasts that, going forward, disputes involving the protection of financial investors’ rights will continue to increase, primarily concentrated in areas such as financial loan contract disputes related to consumer credit, rights‑protection disputes involving asset‑management products, and disputes arising from securities trading. Moreover, financial and commercial disputes with cross‑border elements are expected to grow further.

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