JC Master Legal News Issue 1070

Key Takeaways for This Issue

CSRC: Studying measures to promote connectivity between the REITs market and the Hong Kong market, and accelerating the advancement of specialized legislation on REITs.
The China Securities Regulatory Commission is actively promoting the regular issuance of REITs, refining the underlying institutional framework, and strengthening market supervision. Progress has been made in advancing the allocation of public‑offering FOFs to REITs and in enhancing the classification, evaluation, and incentive mechanisms for market makers.
The Cyberspace Administration of China plans to issue the “Regulations on the Governance of Online Violence Information.”
On July 7, China Internet Information Office published the “Notice on Public Solicitation of Comments on the Draft Regulations on the Governance of Online Violence,” with the deadline for submitting feedback set for August 6.
The Measures for the Administration of Central Bank Deposit Accounts Have Been Issued, Strengthening Risk Management at Key Stages.
The Measures for the Administration of Central Bank Deposit Accounts, formulated by the People’s Bank of China, were officially promulgated on July 7 and will take effect on August 15, 2023.
The Supreme People’s Procuratorate has released the 45th batch of guiding cases, focusing on criminal appeals.
Recently, the Supreme People’s Procuratorate released the 45th batch of guiding cases, which also marks the first batch of such cases issued by the Supreme People’s Procuratorate focusing on criminal protest.
Finance & Capital Markets
The 2022 Central Government Final Accounts Report has been released! Last year, the central government’s general public budget revenue totaled RMB 9,488.714 billion.
Minister of Finance Liu Kun recently presented the 2022 Central Government Final Accounts Report to the Standing Committee of the National People’s Congress. According to the report, fiscal operations in 2022 remained generally stable, and the central government’s final accounts were broadly favorable.
The report shows that in 2022, central general public budget revenue totaled RMB 9,488.714 billion, reaching 100% of the budget and increasing by 3.8% compared with 2021. Central general public budget expenditures amounted to RMB 13,251.265 billion, achieving 98.9% of the budget and rising by 13.1%, primarily due to an increased scale of transfer payments to local governments.
Specifically, tax revenue totaled RMB 8,997.707 billion, representing 96.7% of the budget and an increase of 1.2%; non-tax revenue amounted to RMB 491.007 billion, or 271.3% of the budget, up 96.5%, primarily due to the remittance of retained profits from certain state-owned financial institutions and specialized agencies, as well as higher oil prices driving an increase in special oil‑related revenues.
In terms of specific expenditures, central government spending at the central level totaled RMB 3,557.083 billion, achieving 100% of the budget and increasing by 3.9%; transfers from the central government to local governments amounted to RMB 9,694.182 billion, reaching 98.9% of the budget and growing by 16.9%.
It is worth noting that in 2022, the central government’s budgetary allocations for the “Three Public Expenses” totaled RMB 2.824 billion, a reduction of RMB 2.476 billion compared with the original budget. This decline was primarily attributable to factors such as the COVID‑19 pandemic, which led many central government departments to postpone official overseas trips and foreign affairs接待 activities. Consequently, expenditures on official vehicles and official hospitality were significantly lower than usual levels. Specifically, spending on official overseas travel amounted to RMB 294 million, down RMB 370 million; procurement and operating costs for official vehicles totaled RMB 2.472 billion, a decrease of RMB 1.889 billion; and official hospitality expenses stood at RMB 58 million, reduced by RMB 217 million.
In 2022, central budgetary investment expenditures totaled RMB 639.928 billion, of which RMB 146.678 billion was allocated to the central government’s own expenditures and RMB 493.25 billion was transferred to local governments. These funds were primarily directed toward affordable housing projects, major infrastructure initiatives in water conservancy, transportation, and energy, as well as food security, balanced regional development, social programs, and environmental protection and ecological conservation.

CSRC: Studying measures to promote connectivity between the REITs market and the Hong Kong market, and accelerating the advancement of specialized legislation on REITs.
On July 6, at the opening ceremony of the “People’s Livelihood, Consumption, and Industrial REITs Development Summit,” Zhou Xiaozhou, Director of the Bond Department of the China Securities Regulatory Commission (CSRC), stated that the CSRC is working to normalize the issuance of REITs, refine the underlying institutional framework, strengthen market supervision, and advance initiatives such as promoting the allocation of REITs within public‑offering FOFs and enhancing the classification, evaluation, and incentive mechanisms for market makers, all of which have made significant progress.

He stated that research is being conducted to promote connectivity between the REITs market and Hong Kong, enhance the level of opening-up, attract overseas investors, and ensure the stable and sound operation of the REITs market. At the same time, efforts are being coordinated with relevant authorities, including the Legislative Affairs Commission of the National People’s Congress and the Ministry of Justice, to accelerate the enactment of specialized legislation on REITs. Following the approach of optimizing contract‑type REITs while exploring the introduction of corporate‑type REITs, the aim is to foster the coordinated development of these two product categories, thereby laying a solid institutional foundation for the high‑quality growth of China’s REITs market.

Promote the regular issuance of REITs.

“The REITs pilot program has yielded positive results, and its role in supporting high-quality economic development is becoming increasingly prominent,” said Zhou Xiaozhou.

Specifically, Zhou Xiaozhou explained that policy frameworks have been continuously refined to facilitate the regular issuance of REITs. To date, a total of 33 initial public offerings and follow‑on offerings have been approved, raising nearly RMB 100 billion in capital. The proceeds from these issuances have leveraged over RMB 560 billion in new project investments, with asset coverage spanning ten key sectors, including industrial parks, expressways, warehousing and logistics, wastewater treatment, clean energy, affordable rental housing, and new energy. As a result, both market‑scale effects and demonstration impacts are becoming increasingly evident.

Adhering to the fundamental principle of serving the real economy, we are contributing to high-quality economic development. In 2023, we launched the first batch of new‑energy projects in support of the “dual carbon” strategy. On June 16, the initial four expansion‑raising REITs were listed, further leveraging the long‑term strategic value of REITs as an “asset‑listing platform” and their role in continuously facilitating a smooth investment‑financing cycle.

We will uphold the principle of balancing development with regulation and continue to strengthen the foundational institutional framework. Centered on “asset management,” we have issued a regulatory work plan for infrastructure public‑offering REITs and refined end‑to‑end supervisory arrangements. We have introduced a market‑making mechanism to enhance price discovery, and established a comprehensive system for monitoring market transactions and managing and mitigating risks, thereby ensuring the stable functioning of the secondary market.

“Overall, over the past three years of the pilot program, China’s REITs market has maintained strong growth momentum, with a steadily expanding asset base, accelerated development of foundational systems, and a regulatory framework that is largely in place, while market operations have remained generally stable,” said Zhou Xiaozhou. He added that the new‑era REITs market faces fresh opportunities, and the CSRC will continue to uphold its fundamental commitment to serving national strategies and the real economy, further deepen market reform and opening-up, enhance market functions, help increase the share of direct financing, and ensure the steady and sustainable development of the REITs market.

Actively cultivate a community of professional investors.

“Since the beginning of this year, driven by a confluence of factors—including shifts in the macroeconomic and financial environment, underperformance in the operational efficiency of certain assets, and the increasingly short‑term, herd‑like trading behavior of some investors—volatility in the REITs secondary market has intensified. Overall, this round of adjustment represents a normal process in which prices gradually revert to their intrinsic value. At present, secondary‑market valuations remain broadly at relatively reasonable levels,” said Zhou Xiaozhou.

Zhou Xiaozhou stated that China’s REITs market has a relatively short history and remains an emerging asset class. All stakeholders should adopt a rational perspective, build consensus, and work together to promote the stable and sound development of the REITs market. He expressed the hope that original equity holders and asset‑operation management institutions will further cultivate an awareness and mindset toward asset securitization, focus on enhancing operational quality and efficiency, proactively ensure robust information disclosure, and strengthen investor relations management. Asset managers and intermediary institutions are urged to elevate their professional capabilities, reinforce their active‑management functions, and conscientiously fulfill their respective responsibilities. Meanwhile, all types of investors should deepen their commitment to value‑oriented and long‑term investing, establish and refine REITs‑focused research and investment frameworks, and optimize their internal control systems.

“At present, the China Securities Regulatory Commission is working to normalize the issuance of REITs, refine the underlying institutional framework, strengthen market supervision, and make steady progress in areas such as promoting the allocation of REITs within public‑offering FOFs and enhancing the classification, evaluation, and incentive mechanisms for market makers,” revealed Zhou Xiaozhou. He added that, going forward, the CSRC will promptly improve the REITs information‑disclosure system, tighten ad hoc disclosure requirements, increase the frequency and timeliness of disclosures, and ensure that such disclosures objectively and accurately reflect the operational status of underlying assets. The Commission will also intensify efforts to encourage long‑term institutional investors—such as social security funds, pension funds, and corporate annuity plans—to participate in REITs investments, actively cultivate a professional investor base for REITs, and explore ways to facilitate connectivity between the REITs market and Hong Kong, thereby elevating the level of opening up, attracting overseas investors, and fostering the stable and sound operation of the REITs market.

Enhance the legal framework for REITs.

“We will work to improve the legal framework for REITs and strengthen the institutional foundation for market development,” said Zhou Xiaozhou. During the pilot phase, REITs adopted a contractual product structure—comprising public‑offering funds and asset‑backed securities—which represented an active exploration and valuable innovation within the constraints of the existing legal regime. After more than three years of pilot implementation, the systems governing REIT issuance, trading, and other aspects have largely withstood market scrutiny, with their functions increasingly realized and positive outcomes achieved. However, as normalized issuance gains momentum and the market reaches a certain scale, there is an urgent need to accelerate the enactment of dedicated legislation for REITs.

He stated that, from a global market perspective, corporate and contractual organizational structures coexist. To further harness the initiative of industry participants, optimize the structure of REITs products, and enhance REITs governance efficiency, it is necessary to accelerate the establishment of a legal framework that accommodates both contractual and corporate REITs, allowing market entities to make autonomous choices based on practical needs. Going forward, under the frameworks of the Company Law and the Securities Law, the China Securities Regulatory Commission will actively coordinate with the Legislative Affairs Commission of the National People’s Congress, the Ministry of Justice, and other relevant authorities to expedite the enactment of dedicated REITs legislation. Guided by the approach of refining contractual REITs while exploring the introduction of corporate REITs, the Commission will promote the coordinated development of these two product types, thereby laying a solid institutional foundation for the high-quality growth of China’s REITs market.

“Going forward, the CSRC will focus on building a modern capital market with Chinese characteristics, earnestly advancing the development and reform of the REITs market, and strengthening regulatory efforts, thereby making a positive contribution to high-quality development and the advancement of Chinese-style modernization,” said Zhou Xiaozhou.

Barriers to entry are rising, regulatory oversight is tightening, and regulatory frameworks are steadily improving, leading to a growing divergence in the performance of private equity funds.
The trend of stringent regulation in the private equity fund sector continues. Securities regulatory authorities across multiple regions have been issuing fines, targeting private equity funds and their responsible officers. Reported issues include loss of operational control, unauthorized promises of returns to investors, and false or misleading disclosures. Analysts believe that the heightened regulatory standards for private equity offices will promote market discipline, fostering healthy industry development. The ongoing refinement of regulatory frameworks will lay a solid foundation for the sustainable and sound growth of this sector, which now exceeds RMB 20 trillion in size.

Several private equity offices have been singled out by regulators.

Recently, the Beijing Securities Regulatory Bureau issued a warning letter to Hai Na Bai Quan Fund, revealing that the company engaged in the following practices: first, in managing and deploying private‑fund assets, it failed to exercise due diligence and fulfill its obligations of honesty, good faith, prudence, and diligence; second, it did not, as stipulated in the fund contract, truthfully disclose to investors other material information that could affect their legitimate rights and interests. In response, the Beijing Securities Regulatory Bureau has decided to impose an administrative regulatory measure by issuing a warning letter to Hai Quan Fund, and has required the office to further enhance its compliance awareness and capabilities and to conscientiously discharge its duties as a fund manager.

According to incomplete statistics, since the beginning of this year, more than forty private equity funds have been penalized or issued warnings by regulators. The issues identified include loss of control over operations and management, unauthorized promises of returns to investors, and false statements in information disclosure. Penalties have ranged from suspending registration filings and revoking registration to issuing public reprimands. In addition to the funds themselves, their responsible executives have also been repeatedly singled out by regulators.

In addition to the Hai Na Bai Quan Fund, in June of this year, the Zhejiang Securities Regulatory Bureau publicly disclosed an administrative penalty decision against Aochuang Asset and its controlling shareholder, legal representative, and general manager, Sun Yutao. According to the decision, Aochuang Asset committed two violations: first, failing to file its private equity investment fund as required; and second, raising capital from unqualified investors. Based on the facts, nature, circumstances, and societal harm resulting from the parties’ unlawful conduct, the Zhejiang Securities Regulatory Bureau ordered Zhejiang Aochuang Asset Management Co., Ltd. to make corrections, issued a warning, and imposed a fine of RMB 30,000; it also issued a warning to Sun Yutao and levied a fine of RMB 30,000.

In the same month, the Shanghai Securities Regulatory Bureau issued more than twenty administrative penalty decisions in a single batch, targeting eight private equity funds, including Jingfeng Fund, Jinghao Fund, and Jingrun Fund. The legal representatives, executive directors, and de facto controllers of all eight funds were identified as Hu Mougang and Huang Moubo. The violations cited included failure to fulfill information disclosure obligations as stipulated in the fund contracts, failure to submit annual financial reports as required, and inadequate preservation of records related to private equity fund operations. In response, the Shanghai Securities Regulatory Bureau issued warnings to Hu Mougang and Huang Moubo and imposed fines.

In addition, since the beginning of this year, entities such as Shanghai Huaye Investment Management Co., Ltd. and Shanghai Taogu Asset Management Co., Ltd. have been penalized by regulators for failing to fulfill their duties of care and diligence; meanwhile, Shenzhen Hengtai Yongcheng Investment Management Co., Ltd. and Shanghai Huinuo Investment Management Co., Ltd. have been sanctioned by regulators for untimely updates of information.

Filing and issuance volumes declined year over year.

Jia Zhi, Managing Director of the Asset Management Department at Hualin Securities, stated: “At present, most private equity offices face significant pressure to achieve sustainable development. The regulatory authorities’ tightening of requirements for such offices will help promote survival of the fittest and foster the healthy growth of the private‑equity industry. For private‑equity funds, it is essential to maintain a strong sense of crisis, adhere to compliance standards, enhance investment research capabilities, and earn the trust and support of distribution channels and investors.”

Notably, amid tightening industry regulation, private‑fund issuance has temporarily cooled. According to Wind data, only 116 private securities investment fund managers have completed registration so far this year, a nearly 60% year‑on‑year decline from 284 during the same period last year. On a monthly basis, March and April saw the highest numbers of registrations—27 and 46, respectively—but these still represent substantial drops compared with 47 and 70 in the corresponding months of the previous year. Meanwhile, cumulative private‑fund product launches this year stand at just over 13,000, whereas 2021 and 2022 each saw roughly 40,000 and 30,000 launches, respectively. In June, fewer than 1,000 private‑fund products were issued, compared with 2,365 in the same month last year.

A private‑equity professional stated: “There are two main reasons behind the aforementioned situation. First, under current regulatory requirements, the initial fundraising and ongoing assets under management of private securities investment funds must not fall below RMB 10 million, effectively raising the threshold for establishing such funds. Second, the broader market is currently sluggish, a condition that itself stems from industry cycles.”

According to data from Private Equity Ranking Network, as of May 31, there were 94 private equity offices managing assets exceeding RMB 10 billion, while approximately 4,000 managed less than RMB 500 million. In terms of the number of products, 50 offices each oversee more than 200 funds, with Jiukun Investment managing 756 and Danshuiquan managing 671. Meanwhile, about 1,400 offices manage five or fewer funds, and roughly 170 manage just a single fund, highlighting a pronounced concentration effect.

In response, the private‑equity professional added: “All industries exhibit the Matthew effect—both in terms of patterns and trends. Drawing on international experience, private‑equity funds follow a similar trajectory. From a broader financial‑industry perspective, both performance and scale are critical; of course, strong performance is the essential foundation, while channel advantages and operational‑management capabilities also play a pivotal role. For smaller offices or those that entered the market more recently, lacking substantial AUM and robust distribution channels, growth can be particularly challenging.”

Regulatory frameworks are continuously being improved.

In recent years, driven by China’s economic growth, demand for wealth management has surged, spurring rapid expansion in the country’s private‑fund industry. According to the latest data from the Asset Management Association of China (AMAC), as of the end of April 2023, there were 22,270 active private‑fund managers in China, overseeing 153,763 funds with total assets under management amounting to RMB 20.75 trillion. Among them, 8,658 were private‑equity securities fund managers, managing 99,775 outstanding private‑equity securities funds with AUM of RMB 5.94 trillion. Private funds—particularly private‑equity securities funds—have continued to grow in scale and are increasingly becoming a key participant in the A‑share market.

Since the beginning of this year, regulatory frameworks governing private equity funds have been continuously refined, laying a solid foundation for their sustainable and sound development. In February, the Asset Management Association of China officially issued the Measures for the Registration and Filing of Private Investment Funds. The key provisions include: first, moderately enhancing registration standards by setting out compliance requirements for critical entities such as private fund managers, their investors, ultimate controllers, and senior management; second, clarifying operational norms to cover essential stages—fundraising, investment, management, and exit—and strengthening industry‑wide adherence to compliant practices. The Measures took effect on May 1.

In April, the Asset Management Association of China (AMAC) publicly sought comments on the “Guidelines for the Operation of Private Securities Investment Funds” (hereinafter referred to as the “Operation Guidelines”), setting forth baseline requirements for the fundraising, investment, and operational management of private securities investment funds, and addressing key issues to further refine the regulatory framework governing such funds.

The Operational Guidelines also stipulate that the initial paid-in capital of a private securities investment fund must be no less than RMB 10 million. The fund contract must explicitly provide that, except for changes in net asset value caused by market fluctuations, if the fund’s net asset value falls below RMB 10 million for 60 consecutive trading days, the private securities investment fund will enter liquidation proceedings. “This draft for public comment will have a fairly significant impact on the industry; the most immediate effect is that it raises the entry threshold and substantially increases ongoing fees and costs,” said the aforementioned private‑fund professional.

In addition to the “Operational Guidelines,” in June, the State Council Executive Meeting reviewed and approved the “Draft Regulations on the Supervision and Administration of Private Investment Funds.” The meeting noted that bringing private investment fund activities under a legally sound and standardized regulatory framework will better safeguard investors’ legitimate rights and interests and promote the industry’s orderly and healthy development.

There are three key highlights to watch in monetary policy for the second half of the year.
Recently, the Monetary Policy Committee of the People’s Bank of China (hereinafter referred to as the “PBOC Monetary Policy Committee”) held its second-quarter 2023 regular meeting and put forward several policy recommendations tailored to the current economic and financial landscape, including “strengthening counter-cyclical adjustments,” the “Loan Support Program for Ensuring Delivery of Pre-sold Homes,” and an “Action Plan to Support Financing for Technology‑Driven Enterprises.” These three initiatives are expected to be key focal points of monetary policy in the third quarter of this year and throughout the second half of the year.

On “strengthening counter-cyclical adjustments.”

In reviewing the domestic economic performance so far this year, this regular meeting placed particular emphasis on “a prudent monetary policy that is both precise and effective, with strengthened counter-cyclical adjustments.” By contrast, the first-quarter meeting did not mention “counter-cyclical adjustment,” instead highlighting such aspects of monetary policy as “maintaining continuity, stability, and sustainability, and managing market expectations in a scientifically sound manner.”

The reiterated call at this regular meeting to “step up counter-cyclical policy adjustments” signals that the monetary policy toolkit is already in use. Following the reserve requirement ratio cuts and successive reductions in deposit and loan rates in the first half of the year, should the real economy require it, a range of policy tools—including further RRR cuts and interest-rate reductions—will be deployed with precision in the third quarter and beyond.

Regarding the “Loan Support Program for Ensuring Delivery of Pre-Sold Residential Properties.”

This regular meeting emphasized “continuing to effectively leverage the funds from the policy-based and development-oriented financial instruments already deployed,” and proposed “maintaining the stability of relending and rediscount facilities, while extending the implementation of the inclusive small and micro‑loan support tool and the loan‑support program for ensuring housing project delivery.” The points raised at the first‑quarter meeting—such as “focusing on supporting and boosting infrastructure construction” and “adhering to the principles of ‘targeted focus, appropriate scale, and a balanced approach of advancing and retreating’ in structural monetary policy tools”—were not mentioned.

The “Loan Support Program for Ensuring Delivery of Pre-Sold Homes” is a key focus. Following the implementation of the three‑pronged approach to bolster property developers’ financing, the public continues to await further measures to stabilize the real estate market, with ensuring timely delivery of homes serving as the cornerstone of such stability. It is hoped that the Loan Support Program will be swiftly put into effect, and that, under the overarching goal of “promoting a new development model for the housing and real estate sector,” local governments will tailor policies to address both first‑time homebuyer and upgrade‑demand needs. In doing so, while revitalizing the real estate market, these measures will also contribute to the broader economic recovery.

Recently, several cities have successively introduced policies to further streamline the use of housing provident funds, including reducing the down payment ratio for first- and second-home loans to 20% and raising the maximum loan amount to one million yuan—measures that have been widely welcomed. Commercial banks should strengthen coordination with local governments to ensure the effective implementation of the “Loan Support Program for Ensuring Delivery of Pre-sold Homes.”

On the “Action Plan to Support Financing for Technology-Based Enterprises.”

In building institutional mechanisms to ensure that finance effectively supports the real economy, the People’s Bank of China’s Monetary Policy Committee emphasized at its first‑quarter meeting the need to “improve the financial support system for technological innovation” and to “ensure that financial support for private enterprises is commensurate with their contributions to economic and social development.” By the second quarter, this focus had been distilled into “fully implementing the action plan to intensify financing support for technology‑driven enterprises.” This marks a significant shift: moving from “improving the system” to “implementing an action plan” signals that effective financial support for the real economy has progressed from planning and preparation to concrete execution. Capital markets and bank credit should play pivotal roles in this financing initiative, creating a multi‑pronged framework—comprising equities, bonds, and loans, supplemented by other instruments and sources of capital—to provide technology‑focused offices with streamlined access to funding.

In addition, several statements at this meeting differed from those at the first-quarter session, such as the phrase “promote a steady and moderate decline in corporate financing costs and household credit costs,” which no longer places particular emphasis on reducing overall corporate financing expenses or personal consumer‑credit costs. This reflects a necessary adjustment in response to evolving economic conditions and building on earlier efforts, indicating that there is still room for cost reductions, though the scope is limited.

The use cases for digital RMB continue to expand.
Recently, the Ministry of Human Resources and Social Security issued the “Implementation Plan for Digital HR and Social Security Development,” which calls for enhancing the level of bank–social security card integration services and exploring the incorporation of digital RMB payment functionality into the social security card (hereinafter referred to as the “social security card”). Industry insiders believe that, given the social security card’s large issuance volume and high frequency of use, adding digital RMB payment capabilities would not only further expand its range of applications but also accelerate the adoption of digital RMB, creating a win‑win multiplier effect.
At present, across the country, the replacement of social security cards with third-generation versions is being rolled out. The third-generation card provides functions such as identity verification, information recording, self-service inquiries, medical expense settlement, payment and benefit disbursement, financial transactions, and urban transportation access, serving as an essential tool for cardholders to access human resources and social security services as well as other public services.
As social security cards across the country are gradually equipped with digital RMB payment functionality, their vast user base will significantly accelerate the adoption of digital RMB, enabling more members of the public to become familiar with it. According to data previously released by the Ministry of Human Resources and Social Security, as of the end of March 2023, the number of national social security cardholders had reached 1.37 billion, covering 97% of the population.
“Equipping social security cards with digital RMB payment functionality will help accelerate the rollout of digital RMB, expand its user base, and increase the number of digital wallets opened. For social security cards, digital RMB offers a wider range of payment options, while features such as traceability and controllable anonymity further ensure secure and efficient use.” According to Su Xiaorui, a senior consulting advisor in the financial sector at Analysys, the integration of social security cards with digital RMB hardware wallets will provide greater payment convenience for specific groups.
Notably, several commercial banks have already begun exploring and deploying solutions in the “social security card + digital RMB” space. For instance, Bank of China has developed a scheme to integrate a digital RMB hardware wallet into the third-generation social security card, further investigating ways to enhance the application and adoption of urban public services anchored in individuals’ digital social security identities, thereby providing greater convenience and tangible benefits to the public.
According to Li Xin, Chief Business Manager at the Digital Currency Office of the Bank of China, the third-generation social security card designed by the bank will go beyond the traditional physical card format by incorporating a digital RMB hardware wallet. The bank plans to introduce innovative form factors tailored to diverse new use cases and user groups, such as wristbands and portable tags, thereby expanding application scenarios to include everyday consumption, elderly care, bill payments, transportation, and benefit disbursement, and extending its services to a broader segment of society.
“As a financial innovation tool on the supply side, digital RMB—characterized by its efficiency and convenience, stability and security, and broad applicability—naturally aligns with the new requirements of a social security system that covers all citizens, integrates urban and rural areas, ensures fairness and uniformity, upholds safety and standardization, is sustainable, and operates across multiple tiers. The deep integration of digital RMB with social security is in line with the trends and direction of digital economic development,” said Li Xin.
Experts believe that integrating digital RMB payment functionality into social security cards—leveraging the strengths of both systems—represents a new step in advancing China’s distinctive path of financial development, and will help enhance inclusive finance and improve the sense of gain among the general public.
Since the beginning of this year, digital RMB has continued to explore new application scenarios in pilot regions, ranging from issuing digital RMB red envelopes and disbursing salaries to enabling purchases such as investment funds. At present, the pilot programs cover both online and offline channels, spanning wholesale and retail, catering and tourism, education and healthcare, public transportation, government fee payments, tax collection, and subsidy disbursements. The State Taxation Administration recently disclosed that, through the pilot program for paying taxes and fees using digital RMB, a total of 12,000 transactions amounting to RMB 25.9 billion were processed this year.
“For digital currencies and payment instruments, the richness of use cases often shapes users’ choices and their overall experience,” said Dong Ximiao, Chief Researcher at China Merchants Bank. He noted that, in preparation for the rollout of the digital RMB, local governments in the initial pilot regions have already undertaken extensive efforts, creating a robust ecosystem that supports the steady advancement of the program. This latest initiative to integrate digital RMB payment functionality into social security cards will leverage the currency’s features—such as “payment equals settlement”—to enhance the level of digitalization and improve service efficiency in the social security sector.
A research report by CICC notes that, since the beginning of this year, numerous localities have successively unveiled pilot implementation plans for the digital renminbi, further clarifying the key objectives, phased rollout steps, and supporting mechanisms for advancing the pilot program. As regions continue to refine their targets for piloting the digital renminbi, a “flywheel effect” may be taking shape, suggesting that the next three years could usher in a period of rapid growth.
“Going forward, we should further strengthen the development of digital RMB use cases, leveraging a robust ecosystem and diverse application scenarios to attract more individuals and institutions, thereby boosting usage frequency and enhancing user experience. At the same time, we can explore ways to better harness the digital RMB’s capabilities in public services and other areas, helping to advance the government’s digital and smart governance,” said Dong Ximiao.

The People’s Bank of China: Actively studying and advancing new measures to open up the bond market, and exploring the establishment of a custody‑bank model for overseas investors investing in the domestic bond market.
On July 4, at the “Bond Connect Anniversary Forum 2023,” several participants noted that, over the six years since its launch, Bond Connect has performed strongly, becoming the primary channel for overseas investors to allocate across borders into mainland China’s bond market, while the attractiveness of China’s onshore bond market to investors continues to grow.

Gao Fei, Deputy Director-General of the Financial Markets Department of the People’s Bank of China, stated that the bank is actively exploring additional measures to further open up the bond market to foreign investors, including piloting a custodian‑bank model for overseas investors in the domestic bond market and enhancing risk‑hedging and liquidity‑management tools available to them.
The Bond Connect program has performed well in its six years since launch.
“Over the past six years, Bond Connect has lived up to expectations,” said Zhang Yi, President of the China Foreign Exchange Trade System and Chairman of Bond Connect Co., Ltd. She added that, amid evolving domestic and global economic conditions, Bond Connect’s operations may experience some volatility, but its upward trajectory is unmistakable.
Zhang Yi stated that in 2017, the Bond Connect program recorded an average daily trading volume of RMB 2.2 billion, which has surged to RMB 38.9 billion this year. In 2017, more than 70% of Bond Connect transactions involved bonds with maturities of three years or less; this year, medium- and long-term bonds with maturities exceeding three years account for over 50% of total trading. In 2017, 178 overseas institutions participated in Bond Connect; today, that number has grown to more than 800. Since its launch in 2017, Bond Connect has facilitated secondary‑market bond trading, and this year it has also rolled out primary‑market services and foreign‑exchange trading services. Additionally, the “Swap Connect” derivatives trading platform has been brought online.
“Since its launch six years ago, Bond Connect has performed well, and the attractiveness of China’s onshore bond market to investors has continued to strengthen,” said Charles Li, Group Chief Executive of the Hong Kong Exchanges and Clearing.
Hong Kong SAR Government Financial Secretary Paul Chan stated that, over the six years since its launch, Bond Connect has continued to deepen and expand. The total value of mainland bonds held by overseas institutions through Bond Connect has exceeded RMB 3.1 trillion, while the trading volume under the Northbound Link has grown from RMB 31 billion in the first month after its launch in 2017 to more than RMB 970 billion as of May this year.
Hong Kong Securities and Futures Commission Chief Executive Officer Liang Fengyi stated that since the launch of Bond Connect in 2017, the scale of mainland bonds held by international investors has tripled, exceeding RMB 3 trillion in total.
Promote the opening-up of the bond market to foreign investors.
“Bond Connect” has witnessed the rapid growth of China’s bond market. “We are actively studying and advancing additional measures to further open up the bond market to international investors,” said Gao Fei. These include: further elevating the level of institutional, unified opening-up; exploring the establishment of a custodian‑bank model for overseas investors participating in the domestic bond market; enhancing risk‑hedging and liquidity‑management tools for foreign investors—beyond the already launched “Swap Connect”—and proactively addressing repo‑related issues that are of particular concern to overseas investors; investigating ways to make RMB‑denominated bonds held by foreign investors widely accepted as eligible collateral in offshore markets, and piloting the participation of overseas investors in standard bond‑forward transactions through direct market access channels; and optimizing the operating framework of “Southbound Connect” while steadily promoting cross‑border cooperation between domestic and international infrastructure platforms.
Rong Yihua, Deputy Director of the Financial Markets Department at the Shanghai Head Office of the People’s Bank of China, stated that going forward, the Shanghai Head Office will continue to implement all policies and measures designed to facilitate investment by overseas institutional investors in China’s bond market. “With regard to market access and registration, we will further strengthen communication and engagement with market participants, enhance our service orientation, and continuously streamline the registration process for foreign institutions. On the ‘Southbound Link’ monitoring front, we will refine the methods for reporting investment intentions, planning to collect such information through a systematic approach to improve monitoring efficiency. And in terms of trade reporting, we will keep refining the trade‑reporting monitoring framework to promote the stable and sound development of the market,” said Rong Yihua.
Zang Jian, General Manager of the Funds Department at the China Development Bank, recommends exploring the launch of a “Repo Connect” between Hong Kong and the Chinese mainland to better leverage bonds as high-quality collateral in financial institutions’ liquidity management, thereby creating synergies with the Bond Connect and Swap Connect initiatives. At the same time, while keeping risks under control, he advocates further studying the opening of a “Southbound” swap channel, credit swaps, and standardized bond forwards, among other derivatives, to more effectively meet overseas investors’ risk‑hedging needs and, at the same time, deepen the development of the domestic derivatives market.

The Measures for the Administration of Central Bank Deposit Accounts Have Been Issued, Strengthening Risk Management at Key Stages.
The Measures for the Administration of Central Bank Deposit Accounts, formulated by the People’s Bank of China, were officially promulgated on July 7 and will take effect on August 15, 2023.
The Measures comprise six chapters and 43 articles. They standardize the classification, opening conditions, and evaluation criteria for central bank deposit accounts; clarify the requirements for the establishment, modification, cancellation, and use of such accounts, thereby implementing full‑life‑cycle management. The Measures emphasize strengthening risk control at key stages and regulating agency settlement and account security management. At the same time, from the perspectives of the People’s Bank of China as the account‑servicing authority and the account‑opening institutions as users, they explicitly stipulate that the People’s Bank of China and the account‑opening institutions, as equal civil entities, shall delineate their respective rights, obligations, and liabilities through contractual arrangements.
Commercial & Corporate
The Ministry of Human Resources and Social Security has compiled data on minimum wage standards across the country as of the first half of the year.
On July 3, the website of the Ministry of Human Resources and Social Security published information on the minimum wage standards in all provinces, autonomous regions, and municipalities directly under the central government as of July 1, 2023.

The Ministry of Human Resources and Social Security has compiled, in tabular form, the status of minimum wage standards across the country as of July 1. The table lists the four tiers of monthly minimum wages and the corresponding four tiers of hourly minimum wages for each region. Notably, 15 provincial-level administrative regions have a first-tier monthly minimum wage of 2,000 yuan or more, including Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, Shandong, Henan, Hubei, Guangdong (including Shenzhen), Chongqing, Sichuan, and Shaanxi. Compared with the end of the first quarter, Shaanxi has been added to this list, with a first-tier monthly minimum wage of 2,160 yuan.

The Cyberspace Administration of China plans to issue the “Regulations on the Governance of Online Violence Information.”
On July 7, China Internet Information Office published the “Notice on Public Solicitation of Comments on the Draft Regulations on the Governance of Online Violence,” with the deadline for submitting feedback set for August 6.
The Regulations comprise seven chapters and 31 articles, outlining provisions on the monitoring and early warning of online harassment, the handling of such content, and protective mechanisms. They require online information service providers to establish comprehensive governance frameworks, refine systems for account management, content‑posting review, monitoring and early warning, reporting and assistance, and the handling of online harassment, and to strengthen the management of user account information to prevent impersonation, imitation, or malicious association with parties involved in online harassment cases—whether through unauthorized registration or the posting of inappropriate content—and to clearly specify liability for online harassment in user agreements. Online information service providers must take measures such as deleting or blocking harassing content, disconnecting links, and restricting its dissemination; enhance oversight of comment‑section content, online community forums, and group chats; offer one‑click settings to disable private messages, comments, shares, and notification alerts from strangers; and assist affected users in activating one‑click protection features.

The Ministry of Justice has standardized 81 notarization matters across 33 categories, further streamlining the supporting documentation required.
Recently, the Ministry of Justice publicly released the “Guiding Opinions on Further Improving the Management of Lists of Supporting Documents for Notarization” (hereinafter referred to as the “Guiding Opinions”). The “List of Supporting Documents for Notarization Matters (2023 Edition)” attached to the Guiding Opinions standardizes 81 notarization items across 33 categories.
Compared with the list of high-frequency notarization matters established in 2021, the standardized categories of notarization services have expanded from 12 to 33, and the number of notarizable matters has increased from 22 to 81. These include notarizations closely related to people’s daily lives, such as academic qualifications, degrees, criminal record certificates, family relationships, income statements, inheritance, wills, real estate transactions, premarital property agreements, and school‑admission lotteries (random draws). Moreover, when compared with locally formulated lists of required supporting documents, a total of 116 unnecessary documentation items have been eliminated.
The “Guiding Opinions” adhere to the principle of reducing documentation and facilitating public access, stipulating that no proof shall be required beyond what is listed on the official checklist. Where relevant information can be obtained through government data‑sharing mechanisms, parties shall not be asked to submit such documents, and unnecessary supporting materials must be rigorously eliminated. The document requires the judicial departments (bureaus) and notary associations in all localities, when practical circumstances necessitate supplementing the checklist with additional documentation, to have notary institutions proactively gather the requisite materials based on leads provided by the parties. In cases where locally published lists of notarization‑required documents conflict with the requirements set forth in this checklist, the latter shall prevail. Localities are encouraged to, in light of their specific conditions, develop supplementary checklists for notarization matters not covered herein. Notary institutions are obligated to conscientiously fulfill their review responsibilities in accordance with applicable regulations. Furthermore, the “Guiding Opinions” include an annex titled “Examples of Documents Requiring Certification,” which specifies the exact forms of documentary evidence required for each item on the checklist.
It is understood that the issuance of the “Guiding Opinions” represents another pragmatic measure taken by the Ministry of Justice in recent times to advance public‑oriented notarization, further standardize and streamline the documentation required for notarization, and continuously enhance the quality and efficiency of notarization services that benefit businesses and the public.

Beijing has issued 23 policy measures to leverage data as a key production factor and accelerate the development of the digital economy.
On July 5, the official WeChat account of the Beijing Municipal People’s Congress released the “Implementation Opinions on Better Leveraging the Role of Data as a Production Factor and Further Accelerating the Development of the Digital Economy.”
The “Implementation Opinions” comprise nine key areas and 23 specific measures, aiming to expand the data‑element market to RMB 200 billion by 2030, essentially complete pilot initiatives for the national data‑foundation system, and establish a cluster of data‑service industries. The document calls for taking the lead in implementing systems for data property rights and revenue sharing, accelerating the realization of data‑asset value, fostering the development of the data‑factor market, vigorously promoting the data‑services sector, and conducting pioneering trials of foundational data‑governance frameworks. It also emphasizes strengthening classified and graded data protection, rolling out industry‑specific guidelines on data classification and grading for sectors such as autonomous driving, healthcare, manufacturing, finance, and transportation, and advancing the research, development, and application of security technologies—including data‑security monitoring, encrypted transmission, access control, data anonymization, and privacy‑preserving computation—among other measures.

The 2023 Global Digital Economy Conference was held in Beijing.
On July 4, the 2023 Global Digital Economy Conference opened in Beijing. Wang Jiangping, a member of the Party Leadership Group and Vice Minister of the Ministry of Industry and Information Technology, attended the opening ceremony and delivered a speech.
In recent years, thanks to the concerted efforts of all stakeholders, China has achieved significant progress in developing its digital economy. The advantages of new‑type infrastructure have been further strengthened. As of the end of May this year, the country had built a cumulative total of 2.844 million 5G base stations, with over 2.05 billion cellular IoT terminal users; it also ranks first globally in total IPv6 address resources, and its computing‑power infrastructure has reached world‑leading levels. The integration of the digital economy with the real economy continues to accelerate: the CNC rate for key processes in key industrial enterprises has reached 59.4%, more than 62,000 enterprises nationwide have implemented the two‑integration management system standard, and over 1,700 digital workshops and smart factories have been cultivated. Meanwhile, the core industries of the digital economy are steadily expanding and strengthening. In the first five months of this year, China’s software industry generated revenue exceeding RMB 4.3 trillion, while information technology services accounted for RMB 2.84 trillion, injecting fresh vitality into technological innovation and socio‑economic development.
Wang Jiangping stated that the Ministry of Industry and Information Technology will earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, accelerate the deep integration of the digital economy with the real economy, and synergistically advance both the digitalization of industries and the industrial application of digital technologies, so as to better empower the real economy, serve society, and benefit the people. The ministry will expedite the development of new‑type infrastructure, promote the systematic advancement and large‑scale deployment of digital infrastructure, and speed up the construction of an intelligent, integrated digital information infrastructure that is high‑speed and ubiquitous, integrates space and terrestrial networks, seamlessly fuses cloud and network, is smart and agile, green and low‑carbon, and secure and controllable. It will also drive the digital transformation of industries, vigorously promote the integrated application of next‑generation information and communication technologies—such as 5G and gigabit optical networks—in vertical sectors, consumer‑oriented services, and areas vital to people’s livelihoods, and establish benchmark models for innovative applications in key fields. Furthermore, the ministry will bolster the momentum of digital development by accelerating innovation in strategic emerging industries like big data, artificial intelligence, and intelligent connected vehicles, vigorously developing advanced manufacturing, strengthening, optimizing, and expanding the digital economy, and fostering new engines of economic growth.
This year’s conference is co-hosted by the People’s Government of Beijing Municipality, the Ministry of Industry and Information Technology, the Ministry of Commerce, the Cyberspace Administration of China, and the China Association for Science and Technology. With the theme “Data-Driven Development, Intelligence-Led Future,” it aims to stimulate global innovation in digital technologies, advance the digital transformation of industries, and establish an important platform for international cooperation and exchange in the digital economy. Representatives from relevant countries, diplomatic envoys accredited to China, delegates from international sister cities, as well as industry leaders and experts and scholars, attended the event.

The National Medical Products Administration has issued the Measures for the Administration of Drug Standards.
On July 5, the website of the National Medical Products Administration published the “Announcement on the Issuance of the Measures for the Administration of Pharmaceutical Standards.”
The Measures comprise seven chapters and fifty-two articles, applying to national drug standards, drug registration standards, and provincial-level traditional Chinese medicine standards. They clarify the procedures, requirements, and interrelationships for the development and revision of these three categories of standards, and set forth corresponding provisions for the management of standards pertaining to chemical APIs, preparations manufactured by medical institutions, pharmaceutical excipients, and pharmaceutical packaging materials. Following the promulgation of the new edition of the National Drug Standards, if a marketing authorization holder determines, upon assessment, that the drug standards it currently applies are no longer compliant with the relevant requirements of the newly issued national standards, it shall conduct the necessary research and, in accordance with the regulations on post‑marketing change management, submit a supplementary application to the Center for Drug Evaluation, providing adequate supporting evidence.

The Ministry of Agriculture and Rural Affairs, together with 10 other ministries and commissions, has jointly launched the assessment of the “Vegetable Basket” mayoral responsibility system for the 2021–2022 period.
To thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and earnestly carry out the requirements of the CPC Central Committee and the State Council on rigorously assessing the “vegetable basket” mayoral responsibility system, the Ministry of Agriculture and Rural Affairs, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Commerce, the National Health Commission, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and other member units of the Inter-Ministerial Joint Conference on “Vegetable Basket” Food Management recently jointly issued the “Notice on Diligently Conducting the Assessment of the ‘Vegetable Basket’ Mayoral Responsibility System for the 2021–2022 Period” (hereinafter referred to as the “Notice”). The Notice stipulates that the implementation of the “vegetable basket” mayoral responsibility system in 36 large and medium-sized cities—including municipalities directly under the central government, cities separately listed in state planning, and provincial capitals—will be assessed for the 2021–2022 period.
The Notice states that conducting the assessment under the “Vegetable Basket” Mayor Responsibility System is an important measure for evaluating cities’ capacity to ensure stable production, supply, and prices of “vegetable basket” products; it serves as a key mechanism for holding mayors accountable for their principal responsibilities; and it constitutes an essential component of comprehensively advancing rural revitalization and accelerating the development of a strong agricultural nation.
The Notice specifies that the assessment will be conducted through self-assessment, review, spot checks, and third-party evaluations, following a procedure that includes city-level self-assessment, departmental review, random inspections and evaluations, comprehensive appraisal, and feedback on results. This round of assessments is scheduled to be completed by the end of the year, and the outcomes will serve as one of the criteria in evaluating the performance of the principal officials and the leadership team of the municipal people’s government.
The Notice requires all cities to meticulously organize and deploy the assessment work, submit materials on time and in accordance with the facts, thoroughly identify existing issues, and make every effort to ensure effective rectification.
Going forward, the Ministry of Agriculture and Rural Affairs will work with relevant agencies to conduct rigorous assessments, leveraging the assessment process as a guiding mechanism to drive improvements and ensure effective implementation. This will help strengthen and solidify the “vegetable basket” mayoral accountability system, thereby safeguarding the stable and secure supply of essential food products.

From January to May, total profits reached RMB 613.66 billion, and the machinery industry as a whole is performing well.
At a recent press conference for the 2023 Forum on the Development of Large, Key Backbone Enterprises in the Machinery Industry, it was announced that, since the beginning of this year, the machinery sector has generally maintained a positive momentum, with improved profitability and stable exports. From January to May, the machinery industry recorded cumulative operating revenue of RMB 11 trillion, up 10.6% year on year, and total profits of RMB 613.66 billion, an increase of 18.2% over the same period last year. The growth rates of these two indicators exceeded those of the national industrial average by 10.5 and 37 percentage points, respectively.
Production continues to recover. From January to May, among 120 major mechanical products, output increased year on year for 63 items, accounting for 52.5%—the first time this share has exceeded 50% since February last year—marking a rebound in production.
Fixed asset investment continued to grow. From January to May, the machinery industry recorded a year-on-year increase of 20.3% in cumulative fixed asset investment, outpacing the national, industrial, and manufacturing investment growth rates by 16.3, 11.5, and 14.3 percentage points, respectively. Among these, the electrical machinery, instrumentation, and automotive sectors played a key driving role, posting year-on-year growth rates of 38.9%, 25.3%, and 17.9%, respectively. By contrast, investment in the general-purpose equipment and special-purpose equipment industries remained relatively subdued, expanding by 4.5% and 8.6%, respectively.
Foreign trade exports posted year-on-year growth. From January to May, the machinery industry recorded cumulative imports and exports totaling US$446.6 billion, up 7.1% year on year. Specifically, exports reached US$328.1 billion, an increase of 18.1% year on year, while the trade surplus stood at US$209.7 billion, up 51.2% year on year.
Luo Junjie, Executive Vice President of the China Machinery Industry Federation, stated that although the machinery industry is generally performing well, it continues to face challenges such as insufficient market demand, difficulties in collecting receivables, and uncertainties in the foreign trade outlook, leaving significant pressure on achieving stable year‑round operations. Moving forward, it is essential to fully leverage the role of key backbone enterprises to underpin the sector’s steady performance.

The State Administration for Market Regulation has launched a special campaign to address serious illegal and untrustworthy conduct by business entities.
Recently, the State Administration for Market Regulation issued the “Notice on Launching a Special Campaign to Rectify Serious Illegal and Dishonest Conduct by Business Entities,” deciding to carry out this campaign from June to December 2023.
The special campaign is aligned with the General Administration’s overarching work philosophy of “upholding political integrity, strengthening regulatory oversight, promoting development, and ensuring safety.” It focuses on addressing serious violations and breaches of trust by business entities—issues that have drawn widespread public concern and strong condemnation—such as online and offline food safety violations, counterfeit and substandard products, false advertising, illegal and misleading advertisements, the issuance of falsified inspection and testing reports, the production of special equipment without authorization and the sale of such unauthorized equipment, as well as the unlicensed manufacture and sale of products listed in the CCC catalog. The campaign will resolutely impose stringent measures and take decisive action to intensify enforcement efforts.

The National Health Commission has issued two industry standards for the health sector.
On July 5, the website of the National Health Commission published the “Notice on the Issuance of the Recommended Hygiene Industry Standard ‘Standard for Prevention and Control of Hospital-Acquired Infections in Delivery Rooms’” and the “Notice on the Issuance of the Recommended Hygiene Industry Standard ‘Standard for Monitoring Flea Density.’”
The “Standard for Prevention and Control of Hospital-Acquired Infections in Delivery Rooms” specifies requirements for hospital infection management, facility layout and equipment, personnel management, item management, surveillance and reporting of hospital-acquired infections, preventive and control measures, as well as the management and disposal of medical waste. The “Standard for Methods of Monitoring Flea Density” outlines methods for monitoring adult flea density, including the pit‑search method, combing method, nest‑inspection method, and sticky‑trap method.

Taxation
Delivering tangible benefits to the people and demonstrating the tax authorities’ sense of responsibility.
— The tax authorities are deepening thematic education efforts to address the pressing concerns, difficulties, and expectations of taxpayers and payers.
In his report to the 20th National Congress of the Communist Party of China, General Secretary Xi Jinping emphasized, “We must go deep among the people and at the grassroots level, adopt more measures that benefit the people and win their hearts, and focus on effectively addressing the urgent, difficult, and pressing concerns of the masses.” Since the launch of the thematic education campaign, tax authorities have thoroughly studied and implemented Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th National Congress, taking the safeguarding of taxpayers’ and payers’ legitimate rights and interests as their starting point. They have conducted in-depth field visits and surveys across the country, listened attentively to the voices of taxpayers and payers based on actual conditions, and continuously improved the quality and effectiveness of tax and fee services. By turning taxpayers’ and payers’ worries and frustrations into sources of reassurance and warmth, they are ensuring that this thematic education within the tax system is carried out in depth and with tangible results.
End-to-end services empower “going global” enterprises to set sail.
Taking thematic education as an opportunity, the tax authorities regard taxpayer and payer satisfaction as the ultimate criterion and gold standard, actively soliciting feedback from businesses, continuously improving tax filing and payment services, and striving to build a “echo chamber” for public opinion and concerns, ensuring that every enterprise’s request is addressed and every issue is resolved.
“As this is our first time undertaking an overseas construction project, our company is unfamiliar with the export‑rebate policies for construction‑contracting exports and the customs‑declaration review procedures. We hope the tax authorities can provide further guidance and support,” said Yang Changtian, the company’s financial director at Hangzhou Zaopin Technology Co., Ltd., as he voiced this request to tax officials during a field visit and discussion.
According to reports, the company recently secured the Kuwait Environmental Remediation Project (KERP), an environmental restoration initiative under the United Nations Compensation Commission’s framework. The project aims to remediate 384 square kilometers of contaminated land resulting from oil spills at more than 600 wells in Kuwait during the First Gulf War. Zhaopin Technology is the sole Chinese office awarded a contract for this project.
Upon learning of the enterprise’s needs, the research team conducted an in-depth analysis and systematically identified the key pain points, bottlenecks, and challenges that might arise during the project’s operations. In response to “export trade involving overseas contracted projects,” they established a comprehensive, up-to-date policy database, covering everything from pre‑project individual income tax guidance, through mid‑project customs clearance review, to post‑project export tax rebate processing. By closely monitoring the enterprise’s requirements, they provided end‑to‑end, “accompaniment‑style” advisory and support services, effectively “walking alongside” the company as it ventures abroad. They also guided the enterprise in appropriately applying applicable preferential policies, helping it successfully secure its first export tax rebate of RMB 144,200, thereby providing strong support for its international expansion.
“Thanks to the tax authorities’ end-to-end, hands-on support, we were able to streamline our procedures and swiftly process our first tax refund, giving us even greater confidence as we expand onto the global stage,” said Yang Changtian, visibly excited.
In Hangzhou, this is far from the only company with tax‑related needs as it expands overseas. As a major city for the private sector, Hangzhou’s private enterprises contributed more than 60 percent of the city’s total tax revenue in 2022. Since the launch of the thematic education campaign, the Hangzhou tax authorities have set their sights on promoting the high‑quality development of private enterprises. Through field visits, symposiums, and the distribution of questionnaires, they surveyed 174 private offices, gathering 52 specific tax‑related issues, concerns, and suggestions. Based on these inputs, they established a “three‑one” working mechanism—“one issue per enterprise, one tailored policy per enterprise, and one dedicated file per enterprise”—to create a comprehensive support system. This approach comprises an initial phase of building a supportive framework, a mid‑stage of developing customized service plans, and a later stage of establishing a closed‑loop feedback system, thereby providing end‑to‑end, companion‑style services to address the post‑expansion challenges faced by private enterprises.
Since the launch of the thematic education campaign, Hangzhou has registered 7,231 export‑oriented enterprises, a year‑on‑year increase of 4.51%, and processed export tax refunds and exemptions totaling RMB 5.637 billion. The city has achieved 100% digitalization in the filing of export tax rebate documentation, with an additional 3.0195 million digitized documents submitted, thereby injecting strong tax‑related momentum into the international expansion of private enterprises.
A relevant official from the Hangzhou Municipal Tax Service of the State Taxation Administration stated that, going forward, the Hangzhou Municipal Tax Service will adopt an integrated strategy combining measures such as digitizing the entire export‑tax‑rebate process, implementing “acceptance with missing documents” for on-site verification of export tax refunds, and providing targeted services through a pilot program to grant general taxpayer status in comprehensive bonded zones, thereby delivering a coordinated package of support to help private enterprises expand overseas.
Real-time account verification ensures convenient and efficient tax refund processing.
The timely implementation of policy benefits is of paramount concern to the vast majority of business entities. “In particular, with tax refunds, the sooner the funds are received, the sooner enterprises can reap the rewards,” respondents emphasized during the survey.
In response to the growing prevalence of tax refunds as a high‑frequency tax‑related service, the Zhejiang Provincial Tax Service Bureau has established a dedicated research team. Adopting a “small‑scale, targeted approach,” the team has conducted an in-depth review of bottlenecks in the refund‑processing workflow, making it easier and more convenient for taxpayers to access these benefits.
During a field visit to Shangcheng District in Hangzhou, Mr. Zhu, the owner of the Qingchun Road branch of Dingzuo Restaurant, reported: “Earlier, I applied for a tax refund, but due to an issue with my bank account, tax officials proactively reached out and made several adjustments before the refund was finally processed.”
The research team subsequently learned that errors in taxpayers’ bank accounts account for as much as 43% of refund‑return cases. When faced with such situations, grassroots tax authorities must contact each taxpayer individually to verify and obtain the correct refund‑account information, which constitutes a major bottleneck hindering refund efficiency. To effectively reduce the incidence of refund‑return issues, the Zhejiang Provincial Tax Service Bureau has proactively coordinated with banks, China UnionPay, and other financial institutions, established inter‑departmental cooperation mechanisms, and explored secure account‑verification channels. These measures enable the dynamic transmission of refund‑account information, thereby enhancing both the accuracy and timeliness of tax refunds and ensuring faster, more timely disbursements.
Recently, Ms. Zhang, a tax officer at the Hangzhou Hei’er Photography and Design Studio, received a notification while applying for a tax refund: “Account verification failed. Please check the refund account information you provided or use another refund account.” After carefully reviewing the details, she discovered that the account number had been entered incorrectly. She promptly corrected the error and successfully submitted her refund application.
“A bank account number is a long string of digits, and it can be really hard to spot mistakes when you type it in. With the system’s validation feature, errors can be corrected promptly, saving a great deal of time. Otherwise, you might not discover the issue until the transaction fails, forcing you to re-enter the account number,” said Ms. Zhang.
“Small‑scale measures” drive “major improvements” in service delivery. The Zhejiang Provincial Tax Service Bureau is committed to enhancing the convenience of tax payment and refund procedures, continuously streamlining refund processes, upgrading its refund‑processing system, and shortening refund turnaround times. As a result, both the treasury departments of the People’s Bank of China and grassroots tax authorities have seen substantial gains in refund‑processing efficiency. Taking individual income tax refunds as an example, across Zhejiang Province, 5.23 million individual income tax refund records have now been verified online, with a return‑to‑treasury rate of just 0.2%, greatly facilitating taxpayers.
Serving the Overall Situation: Resolving the Long-Standing Challenge of Obtaining Property Certificates for Residential Properties
Treat investigation and research as a “flashlight” for identifying problems. In Ningxia, the longstanding difficulty of obtaining property certificates for urban residential properties—stemming from historical issues—has long been a persistent and intractable challenge; this issue has now been included on the list of key problems to be addressed during the thematic education campaign.
During their field visits, the research team from the Tax Service Bureau of the Ningxia Hui Autonomous Region learned that Tanglai Residential Community was designated as a dilapidated‑area redevelopment project in 2013, involving a total of 2,916 households. However, due to the five‑year suspension of construction on two resettlement apartment buildings built by the developer, all homeowners have been unable to obtain their property ownership certificates. Such “difficulties in obtaining property certificates” for urban residential properties—stemming from longstanding historical issues—are far from uncommon in Ningxia. Reasons include the disappearance of the original development entity, deviations from approved planning and construction standards, and incomplete land‑use procedures. As a result, when seeking to acquire corresponding rights, owners either fail to register or do not complete the full registration process, leaving them unable to secure property titles under current regulations. This situation adversely affects residents’ vital interests—such as settling down, enrolling children in school, and accessing mortgage financing—and has sparked strong public concern.
The Party Committee of the Ningxia Hui Autonomous Region Tax Service Bureau took immediate action, conducting an in-depth analysis and systematically categorizing the tax-related issues that prevent homebuyers from obtaining property registration under current regulations. It has proactively integrated the resolution of these tax‑related challenges in real estate registration into the broader effort to support Ningxia’s high‑quality development.
Under the leadership of the People’s Government of the Ningxia Hui Autonomous Region, the tax authorities, in collaboration with five other departments—including natural resources and housing and urban–rural development—have jointly issued a work plan to address the longstanding issue of difficulties in obtaining property certificates for urban residential properties. The plan refines and clarifies task objectives, scope of work, implementation measures, and deadlines. Additionally, the Ningxia Hui Autonomous Region Tax Service Bureau has released tax‑related operational guidelines for resolving the “certificate‑issuance difficulties” faced by urban residential properties arising from historical legacy issues. These guidelines standardize the specific procedures for handling such tax‑related matters across 11 categories, covering four dimensions: service description, required documentation, tax‑processing workflow, and policy basis.
The local tax authorities have also pioneered a “Five‑in‑One” working mechanism—“one unified plan for coordinated deployment, integrated analysis and joint advancement, a dedicated task force to oversee systematic implementation, a single guideline to standardize rules and procedures, and a standardized form for registration, follow-up, and monitoring”—to advance reforms in phases, close each item one by one, and transform the situation from “unable to handle” to “done right the first time.”
“The tax authorities provided proactive services, and we finally obtained the property ownership certificate, which has put our minds at ease,” said Ms. Li, a resident of Block B in Tanglai Community, Yinchuan, Ningxia, as she held the real estate title deed in her hand.
Professor Zhou Qing of the School of Marxism at Ningxia University stated: “By making practical measures to benefit the people a key component of the thematic education campaign, and by employing a ‘Five Ones’ working mechanism to systematically address the longstanding issue of difficulties in obtaining property certificates for urban residential properties, the tax authorities have delivered tangible, measurable results that resonate with the public. This has deepened the impact of the thematic education and won the hearts of the people.”
According to reports, since the launch of the thematic education campaign, the Ningxia tax authorities have steadily strengthened their “Five Ones” working mechanism, successfully resolving the issue of obtaining property certificates for more than 19,700 homebuyers.
Immediate investigation and rectification enable “tax services at your doorstep” in remote areas.
Since the launch of the thematic education campaign, the Xinjiang Uygur Autonomous Region Tax Service Bureau of the State Taxation Administration has extensively sought advice and identified needs, listened to public concerns and voices, and actively promoted investigative research and rectification efforts. It has delved deeply into the root causes undermining taxpayer and payer satisfaction, addressing their most pressing, difficult, and long‑awaited issues.
“Farmers and herders in remote areas, as well as corporate taxpayers, live far from the county seat, making it costly and inconvenient to travel back and forth to handle tax matters,” said Abdimaimaiti Obuli, a deputy to the National People’s Congress and Party Secretary of the Buguqi Village Party Branch in Tuohula Township, Yutian County, Hotan Prefecture, Xinjiang, recently to officials from the Fourth Research Group of the Xinjiang Uygur Autonomous Region Tax Service Bureau who were conducting a field survey.
The research team promptly coordinated with the local tax authorities to investigate and verify the relevant circumstances. In-depth fieldwork revealed that similar issues also exist in Karsai Town, located 30 kilometers from Moyu County seat and home to a relatively dense population, as well as in several remote townships deep within the desert. Taking the resolution of the challenge faced by taxpayers in these outlying townships—particularly farmers and herders—in accessing convenient, local tax services as one of the key issues identified for immediate investigation and rectification under the thematic education campaign, the team immediately convened a focused symposium involving the tax authorities at both the Hotan Prefecture level and the county levels of Moyu and Yutian, pooling collective wisdom to formulate targeted measures.
“We must take into account the specific needs of taxpayer and payer groups in remote areas, such as farmers, herders, and the elderly. While vigorously promoting smart tax services, we must also ensure robust fallback support to guarantee that policy benefits and measures designed to improve people’s lives reach every group and every taxpayer,” stated Yan Yong, a member of the Party Committee, Deputy Director, and head of the Fourth Research Group at the Tax Service Bureau of the Xinjiang Uygur Autonomous Region, during the seminar.
Following comprehensive field research and extensive consultations, and under the guidance of the research team, the Hotan Regional Tax Service Bureau of the State Taxation Administration has decided to adopt a taxpayer‑service support model—“township credit cooperatives + Party‑mass service centers + tax authorities”—tailored to the specific characteristics of each township. Pilot projects have been launched in three representative locations: Karsai Town and Buguqi Village in Tuohula Township, both in Yutian County, and Dariyabuyi Township in Yutian County.
“Kulayilik (Uyghur for ‘convenient’)!” At the newly renovated tax‑service extension point of the Dariyabuyi Township Party and Mass Service Center, Yusun Maitireimu, owner of the Jin Huyang Telecom Shop in Dariyabuyi Township, said excitedly after swiftly completing his invoice‑issuing service under the staff’s guidance: “In the past, we always had to travel to the tax service hall to have invoices issued—round trip was over 200 kilometers. Now that there’s a tax‑service extension point, we can get our invoices processed without even leaving the village. It’s really great.”
At the grassroots level, people’s livelihoods encompass food, clothing, housing, and transportation; at the national level, they bear on the very future of our country. Going forward, the tax authorities will further uphold a development philosophy centered on the people, focus on taxpayers’ and payers’ concerns, needs, and aspirations, conduct in-depth investigations and research, promptly identify and resolve issues, and translate the outcomes of these efforts into tangible results that advance tax reform and development—delivering both strength and warmth in addressing practical matters and alleviating public concerns. We will devote sustained effort to tackling the pressing, difficult, and long‑standing issues that trouble taxpayers and payers, and continue to deepen and solidify the thematic education campaign.

A national joint meeting to advance efforts to combat tax-related illegal and criminal activities was held in Beijing.
On July 3, the State Taxation Administration, the Ministry of Public Security, the Supreme People’s Procuratorate, the Supreme People’s Court, the General Administration of Customs, the People’s Bank of China, and the State Administration of Foreign Exchange convened in Beijing a national joint conference to advance efforts to combat tax-related illegal and criminal activities. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the meeting earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, conducted a phased review of the achievements of the ongoing, normalized campaign against the fraudulent issuance of invoices and tax fraud, outlined plans for the next phase of work, and sought to foster a law-based, fair business environment. Wang Jun, Secretary of the Party Committee and Director of the State Taxation Administration; Zhang Zhijie, a vice-ministerial‑level full‑time member of the Procuratorial Committee of the Supreme People’s Procuratorate; Shen Liang, a member of the Party Leadership Group and Vice President of the Supreme People’s Court; Wang Lingjun, a member of the Party Committee and Deputy Administrator of the General Administration of Customs; Liu Guoqiang, a member of the Party Committee and Vice Governor of the People’s Bank of China; Wang Chunying, a member of the Party Leadership Group and Deputy Director of the State Administration of Foreign Exchange; and Hua Liebing, Secretary of the Party Committee and Director of the Economic Crime Investigation Bureau of the Ministry of Public Security, attended the meeting and delivered remarks.
The meeting reviewed the achievements of the previous phase of the multi‑agency joint effort to combat fraudulent invoicing and tax fraud, and commended outstanding collectives and individuals nationwide for their remarkable contributions in 2022 to cracking down on illegal and criminal activities involving the fraudulent acquisition of additional tax refunds. A representative from Shenzhen’s interdepartmental task force on combating fraudulent invoicing and tax fraud also shared best practices.
The meeting noted that, since the establishment in October 2021 of a regularized joint mechanism for combating fraudulent invoicing and tax fraud, relevant departments have focused on cracking down on illegal and criminal activities such as issuing false invoices through “fake enterprises,” fraudulently obtaining export tax rebates via “fake exports,” and misrepresenting information to secure tax and fee concessions, achieving significant results. As of the end of May this year, a total of 270,000 enterprises suspected of fraudulent invoicing and tax fraud have been inspected, resulting in the identification of 10.4815 million false invoices and the recovery of RMB 11.78 billion in lost export tax rebates. Specifically, from January to May this year, 65,000 enterprises suspected of such offenses were inspected, with 1.8462 million false invoices identified and RMB 4.459 billion in export tax rebate losses recovered. Meanwhile, stringent investigations and severe crackdowns have been carried out against crimes involving the fraudulent acquisition of additional tax credit refunds; in 2022, a total of 7,813 enterprises suspected of fraudulently obtaining or improperly claiming such refunds were verified, recovering a combined RMB 15.5 billion in various tax losses, thereby effectively deterring offenders and safeguarding economic and fiscal order.
The meeting emphasized that all departments should take the in-depth study and implementation of the thematic education on Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as an opportunity to comprehensively align themselves with the decisions and arrangements of the CPC Central Committee and the State Council. They must rely officely on Party committees and governments at all levels, continuously improve and refine collaborative mechanisms, pool stronger synergies, and strive for lasting, sustainable results. Efforts should be stepped up to achieve new progress in coordinated collaboration, data-driven empowerment, targeted enforcement, and using law enforcement to promote governance—particularly in precisely cracking down on “fake enterprises,” “fake exports,” and “false declarations”; in addressing major industry‑wide and regionally significant cases and professional criminal syndicates; and in prosecuting ringleaders, repeat offenders, and those who collude between insiders and outsiders. All these measures should help foster a business environment characterized by the rule of law and fair competition, enabling new breakthroughs and contributions in serving high-quality development and making greater contributions to advancing the modernization of China’s governance system and governance capacity.
The meeting was held via video conference. Yao Laiying, Member of the Party Committee and Deputy Director-General of the State Taxation Administration, chaired the meeting, while Luo Tianshu, Chief Accountant of the State Taxation Administration, attended. Officials from relevant departments and bureaus of the State Taxation Administration, the Ministry of Public Security, the Supreme People’s Procuratorate, the Supreme People’s Court, the General Administration of Customs, the People’s Bank of China, and the State Administration of Foreign Exchange participated at the main venue. Meanwhile, responsible officials from the State Taxation Administration’s resident commissioner offices in various localities, as well as their counterparts from provincial tax authorities, public security organs, procuratorial organs, courts, customs administrations, the People’s Bank of China, and foreign exchange management departments, attended the meeting at sub-venues across the country.

The Financial Regulatory Authority issued a landmark document on the 2nd, expanding the scope of commercial insurance eligible for individual income tax incentives.
The “Notice on Matters Relating to Products Eligible for the Individual Income Tax Preferential Policy for Commercial Health Insurance,” issued by the National Administration of Financial Regulation, was officially released on July 6 and will take effect as of August 1, 2023.
The Notice expands the scope of commercial health insurance products eligible for personal income tax preferential policies to include major types of commercial health insurance, such as medical insurance, long-term care insurance, and critical illness insurance. A commercial health insurance information platform will establish policyholder information accounts to aggregate and record all relevant data on commercial health insurance policies that qualify for personal income tax benefits, thereby enabling policyholders to claim pre‑tax deductions in accordance with applicable regulations. The Notice also sets forth four specific conditions to encourage eligible life insurance companies to offer commercial health insurance products that meet these personal income tax preferential criteria.

Maintaining a high-pressure crackdown to vigorously promote law-based tax compliance—tax authorities have disclosed eight tax-related cases.
On June 28, tax authorities in Guangdong, Guizhou, Hunan, Liaoning, Hainan, Shanghai, Shenzhen, Tianjin, and other regions disclosed eight cases of tax-related violations.
The cases disclosed this time involve the fraudulent issuance of invoices and the defrauding of export tax rebates or input‑tax credit refunds by exploiting the value‑added tax additional deduction policy; failure to file individual income tax final settlement as required by law; the issuance of false invoices, the facilitation of such issuance, and the issuance of fully digital electronic invoices; the involvement of illegal tax‑related intermediaries in orchestrating false invoicing; as well as tax evasion at gas stations—among other unlawful acts. These cases underscore the tax authorities’ unwavering commitment to upholding tax order, fostering a fair and equitable tax environment, and consistently cracking down on tax‑related violations with strictness and speed.
Over the years, the tax authorities have consistently prioritized both the ongoing enhancement of tax and fee services and the vigorous crackdown on illegal activities such as malicious tax evasion and fraud. On the one hand, in conjunction with thematic education campaigns, they have focused on the needs of market entities and benchmarked against international best practices, issuing four batches of 81 measures under the “Spring Breeze Action for Convenient Tax Services” this year, thereby fostering a favorable tax‑related business environment conducive to high‑quality development. On the other hand, they have enforced the law to combat all forms of tax evasion and fraud, safeguarding both tax and economic order, promoting fair and equitable market competition among economic actors, and providing robust support for stable, upward‑moving economic growth.
Looking at the series of tax‑related violations exposed by tax authorities in recent years, it is evident that the types of cases are becoming increasingly diverse, and criminal methods are growing more sophisticated and covert. In response, tax authorities have been closely monitoring all kinds of tax‑related illegal activities, such as issuing false invoices to defraud taxes, while keeping a tight grip on emerging trends and challenges. They have maintained an unwavering “strict” stance, emphasizing the deterrent effect of enforcement actions, and have worked closely with public security and other agencies to deepen joint crackdowns, continuously strengthening cooperation in areas such as data sharing, joint analysis, and coordinated enforcement. At the same time, they have enhanced information exchange across all stages of tax supervision, enabling joint assessments and precision targeting of criminal groups, and concentrating resources on investigating and prosecuting a number of major and high‑profile cases. These efforts have underscored the effectiveness of multi‑agency, collaborative law enforcement and joint operations, fostering fair competition through impartial regulation.
According to reports, tax authorities have focused on high-risk key industries and priority areas, resolutely cracking down on all types of tax evasion, fraud, and other illegal tax‑related activities in accordance with the law. From January to May this year, national tax authorities investigated and prosecuted 41,000 taxpayers for violations, recovering tax losses totaling RMB 65.1 billion.
Whether corporate taxpayers or individual taxpayers, while benefiting from the dividends of national development, they should uphold the principle of law-based and honest tax compliance, assume their corresponding social responsibilities, and conscientiously fulfill their obligations to pay taxes in good faith.
Notably, the tax authorities have also disclosed a case involving an individual taxpayer who failed to file their annual individual income tax settlement as required by law. This marks the 16th such case this year in which an individual taxpayer has neglected to comply with statutory and regulatory obligations regarding the annual tax reconciliation. With the deadline for the 2022 individual income tax settlement approaching, the tax authorities urge taxpayers to complete their final tax settlement promptly and in accordance with the law, and to review prior years for any instances of unfiled settlements, irregular reporting and payment, or failure to declare taxable income, taking immediate steps to rectify any deficiencies.

Litigation & Arbitration
The Supreme People’s Procuratorate has released the 45th batch of guiding cases, focusing on criminal appeals.
Recently, the Supreme People’s Procuratorate released the 45th batch of guiding cases, which also marks the first batch of such cases issued by the Supreme People’s Procuratorate focusing on criminal protest.
The report to the 20th National Congress of the Communist Party of China stated, “Strengthen checks and oversight over judicial activities to promote judicial fairness” and “enhance the legal supervision work of the procuratorial organs.” The Opinions of the CPC Central Committee on Strengthening Legal Supervision by Procuratorial Organs in the New Era call for “comprehensively employing supervisory measures such as protests, corrective opinions, and prosecutorial recommendations to promptly rectify issues such as manifestly improper convictions and sentencing, or serious violations of trial procedures,” and for “improving the mechanisms for supervising trials.” To further implement these requirements, fully and accurately perform criminal trial‑supervision duties, and give full play to the exemplary and guiding role of protest‑based guiding cases, the Supreme People’s Procuratorate spent more than a year—conducting preliminary reviews, re‑examinations, repeated revisions, soliciting opinions from multiple parties, and holding two deliberations by its Case Guidance Committee—ultimately selecting five guiding cases from among 315 submissions received from across the country.
The five guiding cases are as follows: the second-instance protest case involving intentional injury and other crimes brought by Wang et al.; the second-instance protest case concerning drug trafficking brought by Liu; the second-instance protest case involving robbery, rape, and forcible indecency brought by Li; the retrial protest case concerning organizing, leading, and participating in a triad-like organization, as well as provoking trouble and other crimes brought by Meng et al.; and the second-instance and retrial protest case concerning dangerous driving brought by Song.
The guiding cases selected this time cover a wide range of categories, including ordinary crimes, serious crimes, and offenses committed by minors; they encompass both second-instance protest cases and cases subject to trial‑supervision procedures. These cases involve not only disputes over the application of law but also complex and difficult issues related to fact‑finding and the evaluation and admissibility of evidence. Moreover, they include instances where lighter charges are challenged on the basis of heavier ones, as well as situations in which acquittals are contested against convictions, thereby demonstrating both typicality and representativeness. The guiding cases highlight the procuratorial organs’ precise grasp of the conditions and standards governing criminal protests, underscore the significant institutional value of the criminal protest system in judicial practice, and emphasize the deep integration of criminal trial supervision with efforts to address the root causes of litigation.
“A single case is worth more than a dozen documents.” According to the head of the Second Procuratorial Office of the Supreme People’s Procuratorate, the Supreme People’s Procuratorate has issued a notice requiring procuratorial organs at all levels to earnestly organize study of the guiding cases on criminal appeals, attach great importance to their practical application, and take the release of these guiding cases as an opportunity to continuously strengthen criminal appeal work. The goal is to handle each criminal appeal case with high quality and efficiency, ensuring that the people can feel fairness and justice in every judicial matter.

Supreme People’s Procuratorate: Accelerate the Development of a Platform for Querying Funds in Accounts Involved in Cases
Recently, the Supreme People’s Procuratorate issued the “Regulations on the Administration of the Funds‑Query Platform for Accounts Involved in Cases Directly Investigated by People’s Procuratorates,” aiming to strengthen the legal supervision functions of the procuratorial organs and address pressing issues such as inadequate investigative tools and cumbersome access to information on funds held in accounts involved in cases, which have emerged following the transfer of anti‑corruption and anti‑dereliction‑of‑duty duties to the procuratorial system.
The Regulations set forth specific requirements regarding the legal basis for their formulation, the principal functions of the inquiry platform, the procedures for submitting inquiry applications, and measures for ensuring security and confidentiality. They stipulate that the inquiry platform shall be established and uniformly managed by the Supreme People’s Procuratorate, with separate inquiry access points set up at the provincial-level procuratorates. When local procuratorial organs at all levels need to inquire into the financial accounts and other related information of personnel at or above the department‑level, they must submit a request to the Supreme People’s Procuratorate for unified inquiry; for inquiries involving information on personnel at or below the county‑ or division‑level, the investigation departments of the provincial procuratorates shall conduct the inquiries in a unified manner. The Regulations further require that the inquiry platform implement a system of separation among application review, approval, and operational execution, whereby prosecutors responsible for reviewing and approving applications may not themselves carry out the actual inquiry operations.

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