JC Master Legal News Issue 1069

Key Takeaways for This Issue
The Shenzhen Stock Exchange hosts the International Forum on Financing and Investment for SMEs, supporting their specialized, refined, distinctive, and innovative development.
On June 28, the Second International Forum on Financing and Investment for Small and Medium-sized Enterprises, co-hosted by the Ministry of Industry and Information Technology, the State Administration for Market Regulation, and the People’s Government of Guangdong Province, and organized by the Shenzhen Stock Exchange, was held in Guangzhou.
The People’s Bank of China: Implement a prudent monetary policy in a targeted and effective manner, and resolutely guard against the risk of sharp exchange-rate fluctuations.
At its regular meeting for the second quarter of 2023, the Monetary Policy Committee of the People’s Bank of China stated that it will strengthen macroeconomic policy adjustments and implement a prudent monetary policy in a targeted and effective manner; maintain the stability of relending and rediscount facilities; extend the implementation of the inclusive small and micro‑loan support tool and the loan‑support program for ensuring housing project delivery; and adopt comprehensive measures to stabilize market expectations while resolutely guarding against the risk of sharp exchange‑rate fluctuations.
The State Administration for Market Regulation plans to issue an antitrust guideline in the field of standard-essential patents.
On June 30, the website of the State Administration for Market Regulation published the “Notice on Public Solicitation of Comments on the Draft Anti-Monopoly Guidelines in the Field of Standard-Essential Patents,” with the deadline for submitting feedback set for July 29.
The Supreme People’s Court has released the 2022 National Typical Cases in Maritime Adjudication.
On June 30, the Supreme People’s Court released ten typical cases from across the country in the field of maritime adjudication for 2022.
Finance & Capital Markets
The Shenzhen Stock Exchange’s “Chuangxianghui” hosted a special event on the digital and intelligent transformation and upgrading of the manufacturing sector, helping manufacturing enterprises achieve high-quality development through digital and intelligent empowerment.
On June 26, the Shenzhen Stock Exchange hosted a special event titled “Innovation & Sharing: Digital and Intelligent Transformation and Upgrading in the Manufacturing Sector,” bringing together more than 20 participants, including executives from leading listed companies such as Midea Group, iFLYTEK, and Inovance Technology, leaders of mature enterprises undergoing digital and intelligent transformation, representatives of companies planning to go public, and academic experts. The event provided a platform for discussing how capital markets can support high-quality development in the manufacturing sector. It received active participation and unanimous recognition from all attendees.
The report to the 20th National Congress of the Communist Party of China emphasized the need to “build a modern industrial system” and “promote the high‑end, intelligent, and green development of the manufacturing sector.” At present, China’s manufacturing industry is in the “deep waters” of transformation and upgrading. With the rise of next‑generation information technologies and artificial intelligence, further integrating industrial manufacturing with new concepts, cutting‑edge technologies, and innovative business models has become both an inevitable trend and a long‑term, arduous task. Participants at the conference agreed that manufacturing is the foundation and core of China’s modern industrial system and the backbone of the real economy. Against the backdrop of the full implementation of the registration‑based IPO system, it is of great significance for capital markets and stock exchanges to better support the digital and intelligent transformation of manufacturing enterprises.
Drawing on their own corporate development experiences, the guests shared representative case studies from diverse perspectives, highlighting key lessons learned during the transformation and upgrading process. They engaged in discussions on the conceptual framework, strategic directions, and practical pathways for digitalization and intelligentization in the manufacturing sector. Participants unanimously agreed that, through the “SZSE·Chuangxianghui” platform, in‑depth exchanges with leaders of mature enterprises undergoing digital and intelligent transformation have further strengthened their awareness of technological innovation. The exemplary cases and insights shared proved highly relevant and instructive.
Participants noted that the Shenzhen Stock Exchange remains committed to its mission of “pooling innovative capital and unleashing growth momentum,” focusing on key sectors such as advanced manufacturing and the digital economy. By fully leveraging its role as a market hub, the Exchange has helped enhance resource allocation efficiency and played a vital role in supporting technological self-reliance and serving the real economy, thereby making significant contributions to upgrading and transforming the manufacturing sector and advancing high-quality economic development.
“Chuangxianghui” is a market‑service brand meticulously developed by the Shenzhen Stock Exchange, distinguished by its unique Shenzhen‑market characteristics. To date, it has organized numerous specialized events centered on hot‑topic themes, steadily enhancing its influence and appeal. Moving forward, “Chuangxianghui” will continue to focus on priority areas, key industries, and strategic regions, proactively launching a series of initiatives aimed at fostering corporate engagement, dialogue, and collaboration, thereby striving to build an open and dynamic platform for capital‑market services.

The Shenzhen Stock Exchange and China Energy Conservation have signed a strategic cooperation agreement to further support the high-quality development of the green and low-carbon industries.
On June 27, the Shenzhen Stock Exchange (hereinafter referred to as the SZSE) and China Energy Conservation and Environmental Protection Group Co., Ltd. (hereinafter referred to as China Energy Conservation) signed a strategic cooperation agreement in Beijing. Chen Huaping, Secretary of the Party Committee and Chairman of the SZSE, and Song Xin, Secretary of the Party Committee and Chairman of China Energy Conservation, attended the signing ceremony and held a symposium on leveraging the capital market’s functions to better support state-owned enterprise reform and promote the development of the green and low-carbon industries.
China Energy Conservation is the only central enterprise in China whose core business is energy conservation and environmental protection. Guided by the mission of “conserving resources and protecting the environment,” it has established a complete industrial chain spanning energy efficiency, emission reduction, and ecological sustainability. With distinctive industry expertise, outstanding technological capabilities, and significant competitive advantages, it stands as China’s leading enterprise in the energy‑conservation and environmental‑protection sector—boasting substantial scale, comprehensive professional expertise, broad business coverage, and robust overall strength.
Green and low‑carbon development is one of the Shenzhen Stock Exchange’s three key priority areas. The Shenzhen Stock Exchange and China Energy Conservation share a common mission and aligned objectives in supporting green development and implementing the “dual carbon” strategy. The two parties enjoy a strong cooperative relationship, with fruitful outcomes from their earlier collaboration; five of China Energy Conservation’s subsidiaries are listed on the Shenzhen market. Taking this strategic cooperation agreement as an opportunity, they will focus on energy conservation, environmental protection, and green, low‑carbon development, engaging in comprehensive cooperation across multiple fronts—including fostering corporate listings, enhancing the quality of listed companies, expanding diversified financing channels, building industry‑finance service platforms, strengthening seminars and training, and advancing internationalization. They will also explore ESG framework development and climate‑change mitigation, further leveraging their respective strengths, achieving complementary advantages, and jointly contributing to the high‑quality growth of the green and low‑carbon sector.
The Shenzhen Stock Exchange has consistently prioritized supporting state-owned enterprise and state‑owned asset reforms, fully leveraging the dual‑market structure of the Main Board and the ChiNext Board. By focusing on five key areas—establishing long‑term mechanisms, deepening cultivation and development, improving foundational systems, driving quality‑oriented transformation, and enhancing connectivity and support—the Exchange helps a wide range of market entities leverage the capital markets for growth and expansion, thereby actively contributing to the building of a modern industrial system. To date, the Shenzhen Stock Exchange has established strategic partnerships with 32 central state‑owned enterprises.
Going forward, the Shenzhen Stock Exchange will continue to officely uphold the overarching requirements of the thematic education campaign—“study ideology, strengthen Party character, emphasize practical application, and achieve new accomplishments”—thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, fully, accurately, and comprehensively apply the new development philosophy, and earnestly carry out the CSRC’s latest initiatives to enhance the quality of listed companies. The Exchange will place strong emphasis on supporting high‑level scientific and technological self‑reliance and self‑strengthening, improve the functions of the capital market, bolster direct financing capacity, and vigorously advance a special action plan to serve state-owned enterprises, ensuring comprehensive alignment with central and local SOEs. Focusing on key areas such as advanced manufacturing, the digital economy, and green, low‑carbon development, the Exchange will promote high‑level circulation among technology, capital, and the real economy, actively contribute to optimizing the layout and restructuring of the state‑owned sector, and better support high‑quality economic development.

The Shenzhen Stock Exchange hosts the International Forum on Financing and Investment for SMEs, supporting their specialized, refined, distinctive, and innovative development.
On June 28, the Second International Forum on Financing and Investment for Small and Medium-sized Enterprises, co-hosted by the Ministry of Industry and Information Technology, the State Administration for Market Regulation, and the People’s Government of Guangdong Province, and organized by the Shenzhen Stock Exchange, was held in Guangzhou.
This forum was held under the theme “Technology Leads, Innovation Drives, and Capital Markets Empower the Specialized, Sophisticated, Distinctive, and Novel Development of SMEs,” aiming to better leverage the synergistic effects of direct and indirect financing, facilitate deeper international exchanges and cooperation among SMEs, and foster a virtuous cycle among technology, industry, and capital. Officials from the Ministry of Industry and Information Technology, the China Securities Regulatory Commission, the National Intellectual Property Administration, the Shenzhen Stock Exchange, the China Construction Bank, and the National SME Development Fund, along with representatives from securities investment institutions, attended the forum and delivered keynote speeches. The three stock exchanges in Shenzhen, Shanghai, and Beijing jointly hosted 577 specialized, sophisticated, distinctive, and novel enterprises, which issued the “Initiative on Focusing on Core Businesses, Pursuing Excellence, and Steadfastly Advancing Along the Path of Specialized, Sophisticated, Distinctive, and Novel Development.” The forum also featured the inaugural “One‑Month‑One‑Chain” investment‑and‑financing roadshow for specialized, sophisticated, distinctive, and novel SMEs, during which six such enterprises conducted on‑site investment‑and‑financing pitches via the Shenzhen Stock Exchange’s “Kerongtong” platform.
During his recent inspection tour of Guangdong, General Secretary Xi Jinping emphasized the need to strengthen support for innovation among small and medium-sized enterprises (SMEs) and to foster more innovative companies that possess independent intellectual property rights and core competitiveness. The Shenzhen Stock Exchange has long maintained close cooperation with the Ministry of Industry and Information Technology in supporting SME development, hosting the International Forum on SME Financing and Investment for two consecutive years. Moving forward, under the leadership of the China Securities Regulatory Commission and with the support of the Ministry of Industry and Information Technology, the Shenzhen Stock Exchange will remain committed to the “two unwavering principles,” uphold a market‑oriented, law‑based, and internationally aligned approach, and earnestly implement the national strategy for innovation‑driven development. It will place greater emphasis on supporting high‑level scientific and technological self‑reliance and self‑strengthening, actively contribute to building a modern industrial system, and create a favorable market environment for the innovative development of SMEs.
First, with a focus on bolstering high‑level scientific and technological self‑reliance and strength, we will refine the direct financing mechanism. We will further strengthen market functions, increase the share of direct financing, and concentrate on key areas such as advanced manufacturing, the digital economy, and green, low‑carbon development. By expanding targeted institutional and product offerings, we will continuously enhance our capacity to serve strategic emerging industries, growing innovation‑driven enterprises, and “specialized, refined, distinctive, and innovative” SMEs, thereby guiding innovative resources to converge in priority sectors supported by the state.
Second, by leveraging a digital‑intelligence service platform as a cornerstone, we will deepen and innovate our service ecosystem. In collaboration with national ministries and commissions, local governments, high‑tech industrial parks, research institutes, and other stakeholders, we are actively building a digital‑intelligent platform that supports enterprises throughout their entire lifecycle—spanning from IP development to IPOs and beyond, including post‑listing sustainable growth. We will extend the capital market’s service chain, accompany and guide small and medium‑sized enterprises (SMEs) toward steady, sustainable development, and help them stay focused on their core businesses, pursue innovation, and operate in compliance with regulatory standards. By ensuring that SMEs can fully leverage supportive policies and assume greater social responsibility, we aim to enable them to play an even more pivotal role in enhancing the stability of industrial and supply chains and in driving economic and social progress.
Third, taking the integrated development of the Guangdong–Hong Kong–Macao Greater Bay Area as a key priority, we will continue to advance opening-up. Leveraging the Shenzhen Stock Exchange’s locational advantages—“rooted in the Bay Area, oriented toward the world”—we will further enhance our level of international openness through mutual product listings, aligned mechanisms, interconnected infrastructure, and shared resources. We will actively promote exchanges and cooperation in the international investment and financing arena, and support small and medium-sized enterprises in pursuing a path of win-win international collaboration and high-quality development.

The Beijing Stock Exchange and the Dongguan Service Base of the National Equities Exchange and Quotations System were officially inaugurated.
Recently, the signing ceremony for the strategic cooperation agreement between the Beijing Stock Exchange, the National Equities Exchange and Quotations Company, and the Dongguan Municipal People’s Government, along with the unveiling of the Dongguan Service Base, was held in Dongguan. Sun Li, Deputy General Manager of the Beijing Stock Exchange, Li Yanzhen, Vice Mayor of Dongguan, Liang Shaoguang, Deputy Secretary-General of the Municipal Government, and other leaders attended the ceremony. The Dongguan Service Base is a city‑level service hub that the Beijing Stock Exchange and the National Equities Exchange and Quotations Company have strategically established in Guangdong Province, representing another key initiative to strengthen localized service capabilities and support the innovation and development of enterprises in the Pearl River Delta.
Deputy General Manager Sun Li stated that Dongguan’s industrial and enterprise ecosystem is highly aligned with the Beijing Stock Exchange’s market positioning of supporting the development of innovative small and medium-sized enterprises. Dongguan boasts a substantial base of listed companies, and the Exchange maintains a robust pipeline of potential issuers. The establishment of the Dongguan Service Base represents another valuable opportunity for the Beijing Stock Exchange and various departments of the Dongguan Municipal Government to deepen mutual understanding and collaborate in co‑building and jointly fostering growth. Through this initiative, the Beijing Stock Exchange will further strengthen its market‑oriented services for Dongguan’s innovative SMEs, thereby helping local enterprises drive innovation and development.
Vice Mayor Li Yanzhen stated that in recent years, Dongguan has remained committed to making manufacturing the cornerstone of its economy, focusing on the city’s distinctive model of “technological innovation plus advanced manufacturing.” As a result, the city has nurtured a large number of innovative small and medium-sized enterprises, including many specialized, refined, distinctive, and innovative “little giants.” Moving forward, Dongguan will encourage businesses to seize the opportunity presented by the Beijing Stock Exchange’s high‑quality expansion, leveraging the capital markets to achieve leapfrog growth.
Since the establishment of the Beijing Stock Exchange, Dongguan City has actively collaborated with the BSE’s South China Base, mobilizing and visiting high-quality enterprises to seize market opportunities and apply for listing on the BSE, thereby accelerating the buildup of its pool of potential IPO candidates. In 2023, both the number and quality of newly listed companies are expected to improve significantly, fostering a tiered development pattern for corporate listings.
Going forward, the Beijing Stock Exchange and the National Equities Exchange and Quotations Company will leverage the Dongguan Service Base to deliver a range of localized services, including market development, policy guidance, and resource matchmaking. They will focus on identifying and nurturing a cohort of high‑quality, innovation‑driven enterprises with strong IPO potential, enabling them to achieve high‑quality growth through listing. At the same time, all stakeholders will provide mutual support, jointly expanding the scope and depth of capital market services and enhancing the ability of financial services to underpin the real economy.

The Beijing Stock Exchange and the Hong Kong Stock Exchange have launched a “Beijing + H” listing arrangement.
On June 29, the Beijing Stock Exchange and the Hong Kong Exchanges and Clearing signed a Memorandum of Understanding on Cooperation (hereinafter referred to as the “Memorandum”). Sui Qiang, General Manager of the Beijing Stock Exchange, stated that the launch of the “Beijing + H” dual‑listing arrangement between Beijing and Hong Kong will further broaden the scope of benefits under the mainland–Hong Kong A+H model, enabling more enterprises to leverage the Beijing and Hong Kong markets to accelerate their growth. The Exchange supports more Beijing Stock Exchange‑listed companies in pursuing listings in Hong Kong and welcomes additional Hong Kong‑listed offices to expand northward by listing on the Beijing Stock Exchange.
Sui Qiang stated that the Beijing Stock Exchange shoulders the important mission of becoming a premier platform for serving innovative small and medium-sized enterprises. After more than a year of development, it has attracted over 200 listed companies, launched the BSE 50 Index, introduced margin trading and short‑selling, and implemented a hybrid trading system. With active participation from various types of investors, the exchange has transitioned from stable initial operations to a critical phase of simultaneous growth in scale and functionality. Moving forward, it will further deepen reforms to forge distinctive strengths and competitive advantages. The launch of the “Beijing + H” dual‑listing arrangement between Beijing and Hong Kong represents an important initiative under the coordinated guidance of the China Securities Regulatory Commission, aimed at advancing institutional openness in the capital markets, continuously deepening reform of the Beijing Stock Exchange, and responding to market demand. This move will broaden the scope of benefits under the mainland–Hong Kong A+H model, enabling more enterprises to leverage the Beijing–Hong Kong markets to accelerate their development. Moreover, cooperation between the two exchanges will support the building of Beijing as an international center for science and technology innovation, consolidate Hong Kong’s status as an international financial center, and better serve the real economy while fostering high‑level scientific and technological self‑reliance and strength.
Hong Kong Exchanges and Clearing CEO Nicolas Aguzin stated that the signing of the memorandum of cooperation has laid a solid foundation for long-term, in-depth financial collaboration between the two exchanges. He expressed his anticipation of working jointly with the Beijing Stock Exchange to bridge capital and innovation, actively support corporate growth, create opportunities for investors, and foster the shared prosperity of the capital markets on both sides.
Under the memorandum, the Beijing Stock Exchange and the Hong Kong Stock Exchange will support eligible listed companies from both markets in applying for listing on the other market. If a company listed on the Beijing Stock Exchange meets the Hong Kong Stock Exchange’s issuance and listing requirements, it may, in accordance with the Provisional Measures for the Administration of Securities Issuance and Listing by Domestic Enterprises Overseas, submit its issuance and listing application to the Hong Kong Stock Exchange and subsequently file it with the China Securities Regulatory Commission. Conversely, a company listed in Hong Kong that satisfies the relevant regulations of the China Securities Regulatory Commission and the Beijing Stock Exchange’s issuance and listing criteria may, pursuant to the existing regulatory framework, apply to conduct a public offering and list on the Beijing Stock Exchange. The two exchanges will also collaborate in areas such as project research, market promotion, personnel training and exchange, and investor services.
The Beijing Stock Exchange stated that this collaboration represents an important step in its efforts to strengthen external exchanges and cooperation and advance institutional openness, as well as a significant achievement in deepening capital market cooperation between Beijing and Hong Kong. Moving forward, the Beijing Stock Exchange will, guided by the goal of high-quality market development, continue to deepen reforms, enhance its service capabilities, and refine the market ecosystem, thereby advancing its internationalization to higher levels and greater depths. This will enable it to better support the innovative development of domestic small and medium-sized enterprises and allow more domestic and overseas investors to share in the dividends of China’s high‑quality economic growth.

The People’s Bank of China: Implement a prudent monetary policy in a targeted and effective manner, and resolutely guard against the risk of sharp exchange-rate fluctuations.
At its regular meeting for the second quarter of 2023, the Monetary Policy Committee of the People’s Bank of China stated that it will strengthen macroeconomic policy adjustments and implement a prudent monetary policy in a targeted and effective manner; maintain the stability of relending and rediscount facilities; extend the implementation of the inclusive small and micro‑loan support tool and the loan‑support program for ensuring housing project delivery; and adopt comprehensive measures to stabilize market expectations while resolutely guarding against the risk of sharp exchange‑rate fluctuations.
Experts note that, in recent weeks, the People’s Bank of China has intensified its counter-cyclical policy adjustments and sent strong signals of stabilizing growth, which is expected to bolster the economy’s recovery in the second half of the year and enhance market confidence in the outlook for economic recovery. Going forward, monetary policy will be better coordinated with other policy tools, ensure smoother transmission, and improve the precision and effectiveness of its measures.
Strengthen macro policy adjustments.
The meeting concluded that the external environment has grown increasingly complex and challenging, with a slowdown in international economic, trade, and investment activity, persistently high inflation, and the continued spillover effects of monetary tightening by central banks in advanced economies, all contributing to heightened volatility in global financial markets. Domestically, the economy is broadly on a recovery trajectory, with market demand steadily rebounding and production capacity continuing to expand; however, endogenous growth momentum remains weak, and demand‑driven growth continues to be insufficient.
On how to respond, the meeting emphasized the need to overcome difficulties and seize opportunities by strengthening macroeconomic policy adjustments. It called for the precise and effective implementation of a prudent monetary policy, enhanced cross‑cycle regulation, and fuller utilization of both the aggregate and structural functions of monetary policy tools. Efforts should be redoubled to ensure stable growth, employment, and prices, while providing robust support for expanding domestic demand, improving the consumption environment, and fostering a virtuous economic cycle, thereby delivering stronger backing to the real economy. Furthermore, it is essential to unblock the transmission mechanism of monetary policy, maintain appropriately ample liquidity, ensure moderate and steady credit growth, and keep the growth rates of money supply and total social financing broadly aligned with nominal economic growth.
On the front of structural monetary policy, the meeting noted that it will maintain the stability of relending and rediscount facilities, extend the implementation of the inclusive small and micro‑loan support tool and the loan‑support program for delivering pre‑sold housing units, and continue to strengthen support for key areas and weak links in the national economy, including inclusive finance, green development, technological innovation, and infrastructure construction. It will also adopt a comprehensive set of measures to promote balanced regional development.
“We should comprehensively employ both aggregate and structural monetary policy tools, continue to cut the reserve requirement ratio and interest rates, and adopt a balanced approach that combines short-term and long-term measures while addressing both quantity and price. This will enable us to effectively manage market liquidity and interest-rate levels, and channel liquidity more precisely to key sectors and areas of weakness,” said Dong Ximiao, chief researcher at China Merchants Bank.
The meeting also called for improving the market-based interest rate formation and transmission mechanism, optimizing the central bank’s policy rate framework, giving full play to the pivotal role of the market‑based deposit rate adjustment mechanism, and leveraging the effectiveness and guiding influence of the Loan Market Quote Rate reform, so as to ensure that corporate financing costs and household credit costs continue to decline steadily.
Maintain basic exchange rate stability.
The meeting noted that it is essential to deepen market-oriented reforms of the exchange rate, guide enterprises and financial institutions to uphold the principle of “risk neutrality,” adopt a comprehensive set of policy measures to stabilize market expectations, resolutely guard against the risk of sharp exchange-rate fluctuations, and maintain the basic stability of the RMB exchange rate at an appropriate and balanced level.
Experts note that, given the recent sharp exchange-rate volatility, the People’s Bank of China may deploy certain measures to stabilize the currency and manage market expectations. However, overall, the renminbi’s exchange-rate flexibility has strengthened markedly, and market sentiment remains stable.
In the real estate sector, the meeting called for adopting city-specific policies to support both first-time homebuyers and those seeking to upgrade their housing, while ensuring timely delivery of pre-sold homes, safeguarding people’s livelihoods, and maintaining overall stability. It also emphasized promoting the steady and sound development of the real estate market, accelerating the refinement of the housing‑rental financial policy framework, and advancing the establishment of a new model for the development of the real estate industry.
To promote the stable and healthy development of the real estate market, on June 20, the over‑5-year Loan Prime Rate (LPR) was cut by 10 basis points to 4.2%. Wen Bin, Chief Economist at China Minsheng Bank, stated that follow-up policies to support the real estate sector are expected to be introduced to mitigate debt risks and restore a virtuous cycle within the industry. At the same time, efforts to ensure timely delivery of pre-sold homes will be stepped up, with local governments’ responsibilities further reinforced, and banks encouraged to increase financial support in line with commercial principles.
In addition, the meeting emphasized upholding the “two unwavering commitments,” delivering a coordinated package of macro policies, demand expansion, reform and innovation, and risk prevention and resolution. It called for seamlessly integrating the implementation of the strategy to expand domestic demand with deepening supply-side structural reform, aligning policy effectiveness with the revitalization of market entities, further strengthening inter‑departmental policy coordination, fully leveraging the efficacy of monetary and credit policies, balancing internal and external equilibrium, and comprehensively advancing sustained improvements in economic performance, bolstering endogenous growth drivers, enhancing social expectations, and steadily addressing underlying risks—thereby ensuring a strong start to the endeavor of building a modern socialist country in all respects.

China Interbank Market Dealers Association: Strengthen Support for Innovative Development in the Corporate Asset-Backed Securities Market
On June 30, the National Association of Financial Market Institutional Investors (hereinafter referred to as the “Association”) issued the “Notice on Further Leveraging the Functions of the Interbank Corporate Asset-Backed Securities Market and Enhancing the Quality and Effectiveness of Services for the Real Economy” (hereinafter referred to as the “Notice”), which further strengthens support for innovative development in the corporate asset-backed securities market. By deploying a comprehensive package of measures, the Notice aims to help enterprises unlock the value of their existing assets, provide technology‑focused offices with diversified, relay‑style financial services, and further improve the ability of the interbank market to serve the real economy.
The Notice states that, closely aligned with major national strategies, it will encourage innovation in various structured products and vigorously promote real estate‑backed asset‑backed securities (interbank REITs), with a particular focus on supporting sectors such as rental housing, energy, utilities, and transportation. It will also continue to deepen the development of asset‑backed commercial paper (ABCP) to unlock the value of receivables, finance‑lease claims, factoring‑related receivables, and other debt‑type assets. Furthermore, it will actively advance pilot programs for collateralized bond instruments (CB), supporting a diverse range of asset types—including real estate and land‑use rights—while innovating transaction structures and introducing bankruptcy‑remote vehicles such as trust schemes.
The Notice states that technology‑based enterprises are encouraged to use existing intellectual property assets, such as patent rights and trademark rights, as underlying collateral to conduct securitization financing through diverse mechanisms, including intellectual property‑pledge loans, licensing‑fee receivables, and financial leasing. Private‑sector and small, medium, and micro enterprises are likewise urged to issue interbank corporate asset‑backed securities to broaden their access to financing channels. Furthermore, securitization financing is supported in key sectors such as real estate and infrastructure, with a focus on investment and financing initiatives in priority regions, including major national development zones and areas facing significant debt‑service pressures.
The Notice stipulates that participating institutions in corporate asset-securitization activities, including lead underwriters and trust companies, should increase resource allocation across organizational structures, business systems, and performance‑based incentive mechanisms, while strengthening operational compliance in areas such as duty fulfillment, due diligence, and information disclosure, thereby comprehensively enhancing their capabilities in the asset‑securitization business.

The central bank has increased the quotas for agricultural and small-business relending and rediscounting by RMB 200 billion, as monetary policy continues to exert force to stabilize growth.
On June 30, the People’s Bank of China announced that, in order to implement the spirit of the State Council Executive Meeting held on June 16 and to sustain the economic recovery and improvement, the central bank has decided to increase the quotas for agricultural and small‑and‑micro enterprise reloans and rediscounts by RMB 200 billion. This move will further strengthen financial support for agriculture, rural areas, and farmers; small and micro enterprises; and private enterprises, enabling targeted, precision‑driven policy delivery, reducing overall financing costs, boosting employment, and helping restore the economy’s endogenous growth momentum.
In terms of specific quota allocations, the quotas for agricultural re-lending, small-business re-lending, and rediscounting have been increased by RMB 40 billion, RMB 120 billion, and RMB 40 billion, respectively. Following these adjustments, the respective quotas now stand at RMB 800 billion, RMB 1.76 trillion, and RMB 740 billion.
Following the recent interest-rate cut, some market observers believe that structural monetary policy tools will be further strengthened to fully leverage both their aggregate‑level and structural functions. Agricultural and small‑business relending facilities, as well as rediscount operations, are long‑term instruments within the suite of structural monetary policy tools. According to central bank data, as of the end of the first quarter of this year, the outstanding balance of agricultural and small‑business relending and rediscount programs nationwide reached RMB 2.6 trillion, hitting a record high.
Wang Qing, Chief Macro Analyst at Orient Securities, stated that the central bank’s move to increase the quotas for agricultural and small-business re-lending and rediscount facilities signifies that, following the policy-driven interest-rate cut in June that prompted a across-the-board reduction in the Loan Prime Rate (LPR), monetary policy is continuing to tilt toward supporting economic growth.
Additionally, analysts note that the central bank’s earlier interest-rate cuts have pushed down the market‑wide benchmark rate, easing banks’ funding‑cost pressures and encouraging financial institutions to lower financing costs for the real economy. The latest decision to increase the quotas for agricultural and small‑business reloans and rediscounts, thereby bolstering support for agriculture, rural areas, farmers, micro‑ and small enterprises, and private offices, sends a strong signal of strengthened counter‑cyclical policy adjustments and is likely to reinforce market optimism about the economic recovery. Moreover, invigorating the vitality of agriculture, rural areas, farmers, micro‑ and small enterprises, and private businesses is of great significance for stabilizing employment, strengthening domestic demand, ensuring economic security, and advancing industrial transformation and upgrading.
Wang Qing expects that additional policies to boost consumption, expand investment, and steer the economy toward a sustained recovery will be rolled out in due course, thereby maximizing the cumulative impact of these measures and significantly strengthening the momentum of economic recovery in the third quarter. In particular, following the reduction in the over‑5-year Loan Prime Rate (LPR) in June, targeted support for the real estate sector is likely to be further stepped up, with the aim of helping the housing market quickly establish a sustained trend of stabilization and rebound. This not only would directly revive real estate investment and housing‑related spending but also help bolster overall consumer and business confidence, effectively addressing the widespread issue of insufficient market demand currently faced by small and micro enterprises.

Commercial & Corporate
China’s first government–enterprise‑collaborative dual‑carbon power center has officially been put into operation.
On the 27th, China’s first government–enterprise‑collaborative dual-carbon power center was officially inaugurated in Tianjin.
The Power Dual-Carbon Center integrates big data from government agencies, enterprises, and research institutions, consolidating enterprise‑level metrics such as production capacity, output value, and pollutant emissions. Leveraging this comprehensive dataset, the Center converts electricity consumption into carbon emissions and has developed seven specialized application scenarios—including “Carbon Emission Verification” and “Enterprise Carbon Reduction Consulting”—to provide end-to-end, one‑stop carbon management services for both governments and businesses.
At present, the center has attracted more than 20,000 enterprises, spanning 19 industries including manufacturing, wholesale and retail trade, and real estate.
Wang Weichen, Deputy Director of the Development Department at State Grid Tianjin Electric Power, stated: “The Dual-Carbon Center for Electricity has effectively established an integrated platform that brings together government, enterprises, academia, and research institutions. Leveraging this platform, we can tailor energy‑efficiency analysis reports and decarbonization‑and‑efficiency‑enhancement solutions for enterprises, helping them achieve a smoother low‑carbon transition.”
The center has also established a joint innovation workstation for academicians and experts, playing an active role in translating innovative achievements into practical applications, developing international standards, and cultivating leading talent in the “dual carbon” field.
The Ministry of Housing and Urban–Rural Development has launched the 2022 statistical survey on engineering investigation and design, as well as construction project supervision.
On June 30, the website of the Ministry of Housing and Urban–Rural Development published the “Notice on Conducting the 2022 Statistical Survey of Engineering Investigation and Design and Construction Project Supervision.”
The Notice clarifies that the scope of the national statistical survey on engineering investigation and design, as well as construction project supervision, covers enterprises holding certificates issued by the housing and urban–rural development authorities for engineering investigation, engineering design, and engineering supervision qualifications, during the period from January 1, 2022, to December 31, 2022. Housing and urban–rural development authorities at all levels shall organize relevant enterprises to log in to the National Construction Market Supervision Public Service Platform and, by July 31, 2023, use the National Statistical Survey Information Management System for Engineering Investigation and Design and Construction Project Supervision to submit all required statistical data, and to upload a scanned copy of the enterprise’s commitment letter, duly signed by the legal representative and affixed with the official seal of the enterprise.

Nearly 20 cities have eased housing purchase restrictions, and restrictive home‑buying policies are expected to be further relaxed.
Recently, many regions across China have adjusted and eased restrictive home-purchase policies.
On the 26th, the Housing and Urban–Rural Development Bureau of Lianyungang City, Jiangsu Province, unveiled nine measures to further refine real estate policies. Key initiatives include streamlining public housing fund loan and withdrawal procedures—reducing the down payment ratio for first-time homebuyers from 30% to 20%—continuing to issue home-purchase subsidies, extending the deadline for paying land premium, and implementing a “housing voucher” resettlement scheme, among others.
On the 25th, Yangzhou City in Jiangsu Province announced a new policy stating that, effective July 1, buyers of upgrade‑type housing within the urban area will no longer be subject to home‑purchase restrictions, and their previously owned homes will likewise be exempt from resale‑restriction measures, with these provisions valid for one year. This move comes roughly four months after the city introduced its first round of real‑estate policies in February, marking another round of adjustments to refine local market regulations. Following these two rounds of revisions, Yangzhou’s purchase and resale restrictions on the housing market have largely been lifted.
An official document released on June 15 in Fuqing City, Fujian Province, stated that the resale restriction policy will no longer apply to purchases of newly built commercial housing in the city. Since July 2017, the local authorities had, following Fuzhou’s approach, required that only properties with a purchase contract signed at least two years earlier and for which the real estate ownership certificate has been obtained could be transferred. As a result, Fuqing has become the first city this year to formally announce the lifting of housing resale restrictions.
This year, more than 100 localities have introduced policies over 300 times.
According to data from the China Index Academy, since 2023, more than 100 local governments have introduced over 300 real estate regulation measures. Among them, nearly 20 cities—including Jinan, Changsha, and Xiamen—have relaxed home-purchase restrictions, while some popular second-tier cities, such as Hangzhou, have repeatedly rolled out policies to further ease these restrictions.
The number of cities easing mortgage and resale restrictions has also increased.
Since last year, numerous cities have eased their restrictions on property sales. According to incomplete data from the Zhuge Data Research Center, as of mid-June this year, more than 20 cities—including Zhengzhou, Qingdao, Suzhou, Jinhua, Nanjing, Changzhou, Dongguan, and Xi’an—have relaxed their resale‑restriction policies. Meanwhile, a handful of cities—such as Harbin, Changzhou, Langfang, Quzhou, and Fuqing—have lifted these restrictions altogether, with most of them being third- and fourth-tier cities.
The degree of alignment between restrictive home-purchase policies and their intended objectives has declined.
Administrative and restrictive home‑purchase policies—such as purchase caps, lending restrictions, sales bans, and price controls—were once regarded as the “trump cards” in local governments’ housing‑market‑management toolkits. However, as China’s real estate market enters a new phase, industry insiders generally agree that it is unlikely to replicate the breakneck growth of the past.
At present, many regions are facing mounting downward pressure on the housing market, with sluggish recovery in market confidence and declining transaction activity. Consequently, restrictive home‑purchase policies have become less well‑suited to the principle of tailored measures for each city.
Chen Wenjing, Director of Market Research at the Centaline Property Research Institute, pointed out that, at present, the stabilization of the housing market continues to be influenced and constrained by multiple factors:
First, the macroeconomy is under significant pressure, and household income expectations have yet to show any marked improvement.
Second, prices for both new and existing homes have yet to resume their upward trajectory, and homebuyers continue to expect further declines.
Third, homebuyers remain concerned about the risk of unfinished projects, and the significant debt-servicing pressures facing some property developers are further unsettling market expectations.
In the second half of the year, more cities may lift restrictions to boost market recovery.
Chen Wenjing believes that, in the second half of the year, more cities may gradually ease restrictive policies to help stabilize and revive the market, particularly ordinary second-tier cities as well as third- and fourth-tier cities.
According to data from the CRIC Research Center, in the first half of the year, many localities eased restrictive housing‑purchase policies. Specifically, 14 cities—including Guangzhou and Changsha—relaxed home‑purchase restrictions; more than ten cities, including Hunan Province, Qingdao, and Hefei, loosened mortgage‑loan limits; seven cities, such as Shenzhen and Guiyang, relaxed price caps; and several others, including Zhengzhou and Xiamen, eased resale‑restriction measures.
Looking ahead, CRIC Research Center believes that local real estate regulatory policies are likely to continue easing. Tier‑1 cities, along with strong second‑tier cities such as Hangzhou and Chengdu, may further lift transaction restrictions to support both first‑time homebuyers and those seeking to upgrade their housing.
Tier‑3 and tier‑4 cities may fully lift administrative restrictions on home purchases and ramp up fiscal and tax incentives, such as housing vouchers, home‑purchase subsidies, and reductions or exemptions from deed taxes. With the exception of a few robust tier‑3 cities, the institution believes that other cities could consider completely abolishing purchase‑restriction and loan‑restriction policies.

White Paper: Chinese Enterprises Are Increasingly Gaining Importance in the Automotive Value Chain
On the 28th, the “2023 White Paper on the Competitiveness of Core Enterprises in the Global Automotive Supply Chain” (hereinafter referred to as the “White Paper”) was released at the “2023 Jintai Automotive Forum.” The White Paper argues that Chinese component manufacturers are playing an increasingly important role in today’s automotive value chain.
At the press conference, Xin Ning, President of China Automotive News, the co‑publisher of the White Paper, stated that, driven by the trends of vehicle intelligence, electrification, and connectivity, the automotive industry is undergoing a profound transformation, with supply chains seeking innovation and breakthroughs as they explore new models and pathways.
According to the White Paper, based on revenue data from the 2023 Global Top 100 Automotive Supply Chain companies (hereafter referred to as the “Global Top 100”), Japan accounts for 21 offices, Germany for 17, the United States for 16, and China for 14. The top five companies are Bosch, Denso, ZF, Continental, and Mobis. CATL is the only Chinese company to rank among the top ten in this year’s Global Top 100.
The White Paper indicates that the revenue of China’s Top 100 automotive supply chain companies (hereafter referred to as “China’s Top 100”) is on an upward trend. Specifically, three companies reported component‑business revenues exceeding RMB 100 billion: CATL with RMB 236.6 billion, Huayu Automotive with RMB 149.6 billion, and Weichai Power with RMB 125.27 billion. In total, 39 companies posted component‑business revenues surpassing RMB 10 billion. For the 100th-ranked company in the 2023 China Top 100, revenue stood at RMB 3.245 billion.
Yuan Wenbo, a Global Partner and Vice President for Greater China at Roland Berger—the co‑author of the White Paper—analyzed the data and identified three key trends in the development of China’s automotive components industry in recent years.
First, both the scale and total profits continued to grow in 2022, with the entire auto‑parts sector posting an overall growth rate of 5% and an average profit margin of 6%. Second, new energy and intelligent technologies are accelerating industry development, driving remarkable growth among powertrain and “three‑electric” system companies. Finally, the competitiveness of domestic components is steadily improving: from 2020 to 2022, China’s top 100 component offices recorded a compound annual growth rate of 16%, compared with 9% for overseas players, underscoring China’s clear outperformance relative to the global industry.

Hainan has issued the Guidelines for Fair Competition Review in the Field of Government–Enterprise Cooperation for Investment Promotion.
On June 20, the Hainan Municipal Market Supervision Administration website published the “Notice on Issuing the Guidelines for Fair Competition Review in the Fields of Investment Promotion and Government–Enterprise Cooperation (Trial).”
The “Guidance on Investment Promotion” comprises three chapters and eighteen articles, clearly outlining that the key points of fair‑competition review in investment promotion primarily include whether policy measures impose discriminatory or unreasonable entry‑and‑exit conditions, whether they discriminate against out‑of‑region operators, whether they unlawfully grant preferential treatment to specific operators, and whether they give rise to a monopoly by a single market entity through the conclusion of agreements or other means. The “Guidance on Government‑Enterprise Cooperation” also consists of three chapters and eighteen articles, further specifying the factors to be considered when assessing the reasonableness of criteria for establishing project databases, lists, candidate pools, and qualification registries, as well as the appropriateness of conditions set for tendering or procurement projects.

The State Council has issued 33 measures to advance pilot programs for institutional openness in free trade zones.
The State Council issued the “Notice on Piloting Measures to Align with High International Standards and Advance Institutional Openness in Eligible Free Trade Pilot Zones and Free Trade Ports,” which was made public on June 29. The notice sets forth a total of 33 measures across six key areas.
The “Several Measures” propose to promote innovative development in goods trade, advance the liberalization and facilitation of services trade, streamline temporary entry procedures for business travelers, foster the sound development of digital trade, intensify efforts to optimize the business environment, and strengthen and refine risk‑management and control mechanisms. The measures explicitly support pilot regions in conducting trials for the import of remanufactured products in key industries; except for certain new financial services, if Chinese‑funded financial institutions are permitted to offer a particular new financial service, foreign‑funded financial institutions operating in the pilot regions should likewise be allowed to provide the same service; for senior executives of foreign enterprises planning to establish branches or subsidiaries in the pilot regions, the validity period of their temporary entry permits will be extended to two years; and with respect to the import, distribution, sale, or use of mass‑market software and products incorporating such software, requiring the transfer or acquisition of the relevant software source code owned by enterprises or individuals shall not be imposed as a condition.

Shanghai plans to issue the “Guidelines for Competition Compliance Assessment of Internet Platform Enterprises.”
On June 30, the Shanghai Administration for Market Regulation released the “Guidance on Competition Compliance Assessment for Internet Platform Enterprises” (Draft for Public Comment), with a deadline for submitting feedback set for July 31.
The Guidelines require Internet platform enterprises to, in light of industry trends, characteristics, and patterns, strengthen the establishment of their antitrust compliance management systems and enhance competition‑compliance risk management, with particular attention to competition‑compliance risks related to big data, regulatory frameworks, technology, algorithms, and traffic allocation. During the implementation of a “plan–implement–check–improve” cycle for competition‑compliance management, enterprises are expected to identify areas for improvement based on the operation, monitoring, and measurement of their competition‑compliance framework, put such improvements into practice, and prepare an operational report on competition‑compliance activities. The Guidelines further specify detailed requirements for the preparation and evaluation of these operational reports and include an evaluation form as an appendix.

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 State Administration for Market Regulation plans to issue an antitrust guideline in the field of standard-essential patents.
On June 30, the website of the State Administration for Market Regulation published the “Notice on Public Solicitation of Comments on the Draft Anti-Monopoly Guidelines in the Field of Standard-Essential Patents,” with the deadline for submitting feedback set for July 29.
The Guidelines comprise five chapters and twenty articles, formulated to prevent and prohibit operators from abusing standard‑essential patents to exclude or restrict competition, protect intellectual property rights, enhance economic efficiency, and safeguard consumer interests and the public good. They set forth the criteria for determining monopolistic agreements involving standard‑essential patents, abusive conduct by an entity holding a dominant market position in relation to such patents, and concentrations of undertakings involving standard‑essential patents. In particular, they clarify the circumstances under which unfair high‑price licensing of standard‑essential patents, refusal to license such patents, and tying arrangements involving standard‑essential patents may constitute unlawful conduct.

The National Administration of Financial Regulation has issued Document No. 1, revising the regulatory rating methodology for group finance companies.
On June 26, the National Administration of Financial Regulation publicly released the revised “Regulatory Rating Measures for Corporate Group Finance Companies,” which took effect on June 13, 2023.
The Measures comprise six chapters and twenty-nine articles, covering rating factors, organizational implementation, rating outcomes and their application, and supervisory management. They apply to the regulatory rating of corporate financial institutions that have been in operation for at least one complete accounting year. Regulatory authorities may, pursuant to these Measures, conduct trial ratings for financial companies newly established in the current year. The regulatory rating framework for financial companies encompasses six components—functional positioning, capital management, corporate governance, risk management, information technology management, and group operations and support—and assesses each component from both quantitative and qualitative perspectives. Regulatory rating results are classified into five levels, from 1 to 5, as well as an S‑level; levels 1 through 3 are further subdivided into two tiers, A and B.

Taxation
The policy on additional tax deductions for R&D expenses has been further refined—allowing enterprises to enjoy benefits earlier and thereby boosting their innovation-driven vitality.
The State Taxation Administration recently issued the “Announcement on Optimizing Matters Related to Pre‑filing for the R&D Expense Super‑Deduction Policy,” clarifying that, effective 2023, eligible enterprises may, during the July filing period each year, apply to enjoy the preferential policy of the R&D expense super‑deduction for the first half of the year.
Professor Liu Rong of Southwestern University of Finance and Economics stated that enterprises enjoy greater flexibility in choosing when to avail themselves of the policy: they may opt, based on their specific circumstances, to make advance tax payments in July or October of the current year, or to claim the full benefit during the annual final tax settlement in the following year. “For technology‑focused SMEs and companies facing tight cash flow, the addition of a July filing period enables them to realize the policy’s benefits earlier, bolstering their cash reserves, easing financial pressures, and effectively reducing their burdens.”
Baili Pharmaceutical, a high-tech enterprise in the pharmaceutical and healthcare industry based in Chengdu, Sichuan Province, has seen its financial director, Zhong Shaoquan, remark: “In the first half of this year, the company invested approximately RMB 27 million in R&D. By taking advantage of the tax incentive for additional R&D expense deductions three months ahead of schedule, we’ve secured more working capital, which directly supports our clinical drug development efforts.”
The policy of additional tax deductions for R&D expenses is a targeted preferential measure designed to encourage enterprises to increase their R&D investment, and it falls under base‑type tax incentives in corporate income tax. Simply put, when calculating taxable income for corporate income tax, in addition to deducting the actual amount of R&D expenditures, enterprises can further deduct a specified percentage of those expenses before tax, thereby incentivizing R&D activities. In other words, the greater an enterprise’s R&D spending, the larger the tax relief it receives.
In recent years, the state has focused on innovation-driven development, closely aligning with the needs and expectations of a broad range of market entities, and has made significant strides in refining the policy for additional deductions on R&D expenses. On the one hand, the policy’s intensity has continued to grow, as reflected in higher deduction rates and an expanded scope of eligible entities. On the other hand, the window for benefiting from the policy has been brought forward. In 2021, the State Taxation Administration issued an announcement allowing enterprises to claim the additional R&D expense deduction for the first three quarters when filing their October provisional tax returns; in 2022, this measure was institutionalized and made permanent; and now, building on this foundation, the policy has been further extended to permit such deductions also when filing the July provisional tax return.
The introduction of these optimized measures represents a concrete step taken by the tax authorities to earnestly implement the requirements of thematic education and actively translate theoretical gains into practical outcomes. According to reports, during its preliminary research, the State Taxation Administration gathered feedback from enterprises seeking to adjust the timing for claiming the additional deduction for R&D expenses. In response, it conducted a focused study, coordinated with the Ministry of Finance and the Ministry of Science and Technology, and submitted a formal proposal to the State Council for approval. This led to the formulation of revised measures that allow enterprises to claim the additional R&D expense deduction for the first half of the year when filing their July provisional tax returns. At present, the State Taxation Administration is expediting efforts to refine administrative procedures, upgrade relevant information systems, and organize publicity and guidance activities, ensuring the timely and smooth implementation of this policy.

Extension and Optimization of the Tax Exemption Policy for New Energy Vehicles
In recent years, China’s new‑energy vehicle sector has entered a period of rapid growth. Since 2015, both production and sales have expanded for eight consecutive years, placing the country among the global leaders. However, the industry remains in a transition from policy‑driven to market‑driven dynamics. Key core technologies and critical components still face certain shortcomings, upstream resource supply is relatively weak, infrastructure support is inadequate, risk resilience remains limited, and the sector confronts intense competitive pressures.
To consolidate and sustain China’s competitive edge in the new‑energy vehicle (NEV) industry and accelerate its transition from a major automotive producer to a global automotive powerhouse, the Ministry of Finance, the State Taxation Administration, and the Ministry of Industry and Information Technology have issued the “Notice on Extending and Optimizing the Vehicle Purchase Tax Exemption Policy for New‑Energy Vehicles” (Notice No. 10 of 2023, hereinafter referred to as the “Notice”), in accordance with relevant decisions adopted at the Executive Meeting of the State Council. Officials from the Ministry of Finance and the State Taxation Administration stated that the Notice aims to further leverage the incentive effects of tax policies, encourage all stakeholders to seize development opportunities, promote technological and product innovation, continuously enhance the industry’s core competitiveness, expand NEV consumption, and support the high‑quality development of the NEV sector.
Exemption from or reduction to half the vehicle acquisition tax
The main contents of the Announcement encompass four aspects:
First, vehicle acquisition tax will be exempted for new-energy vehicles purchased between January 1, 2024, and December 31, 2025, with a tax exemption cap of RMB 30,000 per new-energy passenger car. For vehicles purchased between January 1, 2026, and December 31, 2027, the vehicle acquisition tax will be levied at half the standard rate, with a tax reduction cap of RMB 15,000 per new-energy passenger car. Meanwhile, to encourage enterprises to accelerate technological research and development and upgrades, the Ministry of Industry and Information Technology will, based on advances in new-energy vehicle technology, developments in the standards system, and changes in vehicle models, refine the technical requirements for eligibility under the vehicle acquisition tax exemption policy.
Second, the tax base for vehicle acquisition tax on new-energy vehicles sold under the “battery-swap model” has been clarified. Specifically, where the sales revenue of the power battery and that of the new-energy vehicle excluding the power battery are accounted for separately and invoiced accordingly, the tax base for the vehicle acquisition tax shall be determined based on the tax-exclusive price stated on the unified motor-vehicle sales invoice for the vehicle excluding the power battery.
Third, to strengthen and standardize administration, the Ministry of Industry and Information Technology and the State Taxation Administration manage new‑energy vehicle models eligible for reductions or exemptions from the vehicle acquisition tax by issuing the “Catalogue of New‑Energy Vehicle Models Eligible for Reductions or Exemptions from the Vehicle Acquisition Tax” (hereinafter referred to as the “Catalogue”). Vehicle manufacturers are required to affix designated markings on new‑energy vehicles listed in the Catalogue, as well as on eligible battery‑swap‑mode new‑energy vehicles, at the factory‑exit stage. Tax authorities, based on the verified markings and valid supporting documents such as invoices, process the procedures for granting vehicle acquisition tax reductions or exemptions.
Fourth, clear provisions have been established regarding the handling of cases in which vehicle acquisition tax revenue is lost due to the submission of false information or documents.
New-energy vehicles employing the “battery-swap model” that meet the requirements shall be included as taxable entities.
At the vehicle sales stage, purchasers continue to apply for the vehicle acquisition tax exemption using the previously established procedures, with virtually no changes. At the vehicle manufacturing stage, for new-energy vehicles already listed in the Catalog, the manufacturers or importers of such vehicles shall mark “Yes” in the “Meets Conditions for Vehicle Acquisition Tax Exemption” field when uploading the Certificate of Conformity for Complete Motor Vehicles or the Electronic Vehicle Information Form for imported vehicles. Furthermore, for new‑energy vehicles listed in the Catalog that meet the relevant requirements and adopt the battery‑swap mode, the “Is it a Battery‑Swap‑Mode New‑Energy Vehicle?” field must also be marked “Yes.”
To support the innovative development of the battery-swap model for new-energy vehicles, and from a guidance and regulatory perspective, new-energy vehicles employing the battery-swap model that meet relevant technical standards and requirements will be subject to vehicle acquisition tax based on the vehicle’s price excluding the power battery. To accurately determine the taxable base for such vehicles, sellers are required to separately account for the sales revenue of the vehicle without the power battery and issue separate invoices for both the vehicle and the power battery. Where these requirements are met, the taxable base for the vehicle acquisition tax shall be the tax-exclusive price stated on the unified motor vehicle sales invoice obtained by the purchaser at the time of acquiring the vehicle without the power battery.
A tax exemption cap has been set for new-energy passenger vehicles.
The Notice stipulates that vehicle acquisition tax will be exempted for the 2024–2025 period, with a maximum exemption of RMB 30,000 per new-energy passenger vehicle. For example: On February 5, 2024, Mr. Li purchased a new-energy passenger vehicle that meets the tax‑exemption criteria set forth in the Notice. Taking a new-energy passenger vehicle with a sales price of RMB 300,000 (excluding VAT, the same below) as an example, the vehicle acquisition tax rate is 10%, resulting in a tax liability of RMB 30,000 (30 × 10%). Under the exemption policy, the full RMB 30,000 is exempted; since this amount does not exceed the RMB 30,000 cap, Mr. Li is not required to pay any vehicle acquisition tax. Alternatively, consider a new-energy passenger vehicle with a sales price of RMB 500,000. The tax liability would be RMB 50,000 (50 × 10%), while the exemption under the policy amounts to RMB 50,000. Because this exceeds the exemption cap by RMB 20,000, Mr. Li is entitled to an exemption of RMB 30,000 and must pay the remaining RMB 20,000 in vehicle acquisition tax.
The Notice stipulates that, for the 2026–2027 period, the vehicle acquisition tax will be levied at half the standard rate, with a maximum tax reduction of RMB 15,000 per new-energy passenger vehicle. For example: On March 1, 2026, Mr. Zhang purchases a new-energy passenger vehicle that meets the tax‑exemption and reduction criteria set forth in the Notice. Taking a new-energy passenger vehicle with a sales price of RMB 300,000 as an illustration, the vehicle acquisition tax rate is 10%, resulting in a tax liability of RMB 30,000 (300,000 × 10%). Under the halved‑rate policy, the tax reduction amounts to RMB 15,000 (30,000 × 50%), which does not exceed the RMB 15,000 cap; accordingly, Mr. Zhang is entitled to the full RMB 15,000 reduction and must pay RMB 15,000 in vehicle acquisition tax. Alternatively, consider a new-energy passenger vehicle with a sales price of RMB 500,000. The tax liability would be RMB 50,000 (500,000 × 10%), and the tax reduction under the halved‑rate policy would amount to RMB 25,000 (50,000 × 50%). However, since this exceeds the RMB 15,000 cap, Mr. Zhang is eligible for only the maximum reduction of RMB 15,000, leaving him to pay RMB 35,000 in vehicle acquisition tax.

The tax authorities have adopted a range of measures to optimize the tax-related business environment, resulting in nationwide tax and fee reductions, refunds, and deferrals totaling RMB 468.9 billion from January to April.
The tax authorities directly serve tens of millions of enterprises and play a crucial role in optimizing the business environment. At a press conference held by the State Council Information Office on June 14, Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration, stated that the tax authorities have been committed to fostering a market‑oriented, law‑based, and internationally competitive tax business environment. Since the beginning of this year, focusing on the needs of market entities and benchmarking against international best practices, they have implemented a comprehensive package of measures—covering access to preferential policies, streamlined tax filing and payment, and tax enforcement and oversight—to create a favorable tax‑related business climate for high‑quality development.
First, we are enhancing the effective implementation of tax and fee policies to create a business-friendly tax environment that reduces burdens on enterprises. We have proactively carried out the decisions and arrangements made by the CPC Central Committee and the State Council to extend and optimize certain temporary tax and fee preferential policies, ensuring that policy benefits reach eligible entities in a targeted and timely manner. From January to April this year, nationwide measures resulted in new tax and fee reductions, refunds, and deferrals totaling RMB 468.9 billion. To bolster the certainty of policy application, we have leveraged guidance and Q&A tools, developing specialized policy guides tailored to different groups and sectors; so far this year, we have published 41 “ask‑and‑answer” entries on preferential policies. We have also harnessed tax‑related big data to improve the precision of policy outreach, establishing a unified national system of 4,219 tax and fee knowledge tags across nine major categories and four hierarchical levels, enabling precise alignment with taxpayers’ needs—shifting from a “people seeking policies” approach to a “policies finding people” model. This year, we have delivered targeted policy alerts on tax and fee incentives to 209 million taxpayer instances. Furthermore, by utilizing “benefit statements,” we have strengthened taxpayers’ sense of receiving tangible policy benefits; to date, we have issued such statements to 18.92 million medium‑ and large‑sized enterprises, as well as “specialized, refined, distinctive, and innovative” offices.
Second, we are accelerating the intelligent processing of tax and fee matters to create a convenient and efficient tax‑business environment. We have expanded the scope of contactless services and piloted features such as “intelligent pre‑filling” for VAT credit refunds and “no‑form‑submission” for export tax rebates. To date, 96% of tax and fee matters and 99% of tax returns can be handled online, and over 95% of national social security contributions are now processed via online or mobile platforms. We have also piloted the use of digital RMB for tax and fee payments, with 12,000 transactions totaling RMB 25.9 billion this year. In addition, we have introduced innovative taxpayer‑administration interaction services—such as intelligent chatbots and three‑party video consultations—to assist taxpayers in resolving online tax filing and payment issues, providing 1.48 million interactive services since the beginning of the year.
Third, we will enhance the effectiveness of tax enforcement and foster a fair and predictable tax business environment. Administrative enforcement will be more people‑oriented, with non‑coercive measures such as persuasion and education, cautionary interviews, and risk alerts being applied to six categories of tax matters. Enforcement standards will be more consistent, with unified discretionary guidelines for administrative tax penalties adopted in regions including the Yangtze River Delta, the Beijing–Tianjin–Hebei area, Sichuan–Chongqing, and Northeast China, thereby promoting coordinated and standardized enforcement across these areas. Efforts to combat violations will be stepped up, with resolute crackdowns on malicious tax evasion, fraud, and other unlawful acts. From January to May this year, tax authorities nationwide investigated and prosecuted 41,000 taxpayers in violation of the law, recovering tax losses totaling RMB 65.1 billion.
Li Cheng, a professor at the School of Management of Xiamen University and a senior researcher at the China Business Environment Research Center of Xiamen University, points out that a favorable business environment is like sunshine, air, and water—indispensable to market entities. Building a high-quality tax-related business environment is an essential component of this effort and a necessary requirement for supporting high‑quality economic and social development and invigorating market players. As a key economic administration body, the tax authorities have, in recent years, leveraged their tax functions, focused on the needs of market entities, and introduced a series of reform measures in areas such as access to preferential policies, streamlined tax filing and payment, and tax enforcement and oversight. By adopting innovative approaches to meet emerging demands, address new challenges, and deliver tangible results, they have fostered a tax business environment that is more convenient, fairer, and more predictable, playing a vital role in enhancing convenience, bolstering confidence, and stabilizing expectations.
Shen Xinguo stated that, going forward, the tax authorities will continue to thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, proactively address the concerns of market entities, introduce more measures to benefit businesses and facilitate the public, and strive to achieve new accomplishments in advancing high-quality development.

Maintaining a high-pressure, zero-tolerance crackdown to promote law-based tax compliance—tax authorities have publicized 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; and 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 relentlessly and swiftly cracking down on tax‑related violations.
Throughout, the tax authorities have consistently prioritized both the continuous 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 fraudulently obtain tax refunds, while keeping a vigilant eye on emerging trends and challenges. They have maintained an unwavering stance of strict enforcement, emphasizing the deterrent effect of crackdowns, and have worked closely with public security agencies and other relevant departments to deepen joint efforts to combat tax crimes. This collaboration has been further strengthened through enhanced data sharing, joint analysis, and coordinated enforcement actions. At the same time, by improving information exchange across all stages of tax supervision, authorities have been able to conduct joint assessments of criminal networks and carry out targeted operations, concentrating resources on investigating and prosecuting high‑profile, major cases. These efforts have demonstrated the effectiveness of multi‑agency, collaborative law enforcement and joint crackdowns, thereby 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, tax authorities nationwide 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 tax reporting, or failure to declare taxable income, taking swift corrective action where necessary.

LITIGATION & ARBITRATION
The Supreme People’s Court has released the 2022 National Typical Cases in Maritime Adjudication.
In 2022, the national maritime adjudication system, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the spirit of the 20th National Congress of the Communist Party of China and deeply put into practice Xi Jinping’s thought on the rule of law. Closely focusing on the overarching theme of “justice and efficiency,” it fully leveraged the functions and roles of maritime adjudication, providing robust judicial support for the Belt and Road Initiative, high‑level opening-up, and the building of a strong maritime nation. The endogenous driving force behind the high‑quality development of judicial adjudication was further unleashed, while the credibility and influence of maritime justice continued to grow.
July 1, 2023, marked the 30th anniversary of the implementation of the Maritime Law of the People’s Republic of China. On this occasion, in order to fully leverage the exemplary impact of typical cases and highlight the vital role of maritime justice in strengthening marine ecological protection, promoting the development of the marine economy, and safeguarding maritime rights and interests, the Supreme People’s Court has now released the 2022 National Typical Cases in Maritime Adjudication. The ten typical cases released this time exhibit the following three key characteristics:
First, we are committed to establishing China as a preferred venue for resolving international maritime disputes, thereby supporting and safeguarding high‑level opening-up. We proactively recognize and enforce maritime judgments rendered by foreign courts, fostering judicial cooperation and mutual trust between China and countries around the world; we fully respect parties’ choice of arbitration and, in accordance with the law, implement interim measures to preserve evidence and assets, thus creating a judicial environment that supports arbitration; and we leverage the achievements of smart court initiatives to resolve disputes fairly and efficiently, steadily enhancing the credibility and influence of China’s maritime justice system.
Second, fully leverage the functions and roles of maritime judicial adjudication to promote the recovery of international shipping and the development of the marine economy. Strengthen source‑based governance of maritime disputes, resolving mass‑casualty disputes in accordance with the principle of “settling one case to address a whole category,” thereby safeguarding international trade and shipping order; accurately interpret the meaning of internationally standard contract templates, actively apply international practices, and support the sound development of the international shipping market; protect the security of ship financing lease transactions, regulate the order of the shipping finance market, and help optimize the soft environment for shipping development.
Third, we will strengthen judicial protection of the marine environment and safeguard the development of a sound marine ecological civilization. We will support procuratorial organs in filing public-interest lawsuits concerning the marine environment in accordance with the law and further refine the system of marine environmental public-interest litigation with Chinese characteristics. We will crack down rigorously on illegal activities such as unauthorized dredging and extraction of sea sand, resolutely uphold national maritime rights and interests, ensure the safety of the marine ecological environment, and use judicial adjudication to underpin the building of a marine ecological civilization.

The Beijing No. 1 Intermediate People’s Court has released ten landmark bankruptcy cases.
To further leverage the role of judicial big data in bankruptcy adjudication as a guiding indicator and barometer, foster societal consensus, clarify corporate expectations, and bolster business confidence—thereby helping to build a leading business environment in the capital and supporting the overarching goals of the capital’s development—the Beijing No. 1 Intermediate People’s Court convened a press conference on the afternoon of June 20 at the All-China Federation of Industry and Commerce, titled “Promoting Corporate Reform and Innovation to Support High-Quality Development.” At the event, the court reported on its judicial work related to major landmark bankruptcy cases and unveiled ten exemplary bankruptcy cases.
Ma Qiang, Secretary of the Party Group and President of the Beijing No. 1 Intermediate People’s Court, stated that the court has continuously advanced bankruptcy adjudication by upholding core principles while fostering innovation, taking the lead in reform, and setting an exemplary standard. It has successively concluded a number of major bankruptcy cases of nationwide significance. The adjudication of these cases exhibits the following characteristics: they are highly complex and challenging, involving enterprises of enormous scale, and often lack precedents, thereby posing new demands on proactive judicial practice; they engage a diverse array of stakeholders across multiple industries, encompassing large, medium, small, and micro‑enterprises, with both domestic and cross‑border dimensions, reflecting emerging market needs; they affect broad constituencies, spanning multiple corporate tiers and a wide range of entities, while entangled historical issues further complicate matters, giving rise to distinctive patterns of judicial outreach; and, by leveraging landmark cases, the court has established a robust mechanism for handling major bankruptcy matters, which has been extended and applied to similar and related cases, yielding new and tangible results in bankruptcy adjudication.
Regarding the adjudication mechanism for landmark bankruptcy cases, Ma Qiang explained that the Beijing No. 1 Intermediate People’s Court has continuously strengthened the momentum of government–court coordination by establishing a unified, coordinated working framework, enhancing the integrated effectiveness of such collaboration, and exploring breakthroughs into new areas. The court has also bolstered the efficiency of corporate restructuring by proactively developing pre-restructuring mechanisms, applying “sale‑in‑reorganization” as a principle of holistic rescue, and promoting best practices in corporate governance. Furthermore, it has worked to safeguard the rights and interests of all stakeholders by striking a comprehensive balance among creditors’ claims, reinforcing protection for upstream and downstream entities in industrial chains, and ensuring a solid social safety net. In addition, through the issuance of regulatory frameworks covering related‑party enterprises, the appointment of administrators, and the handling of restructuring cases, the court has pioneered new approaches to cross‑border bankruptcy proceedings and actively advanced the standardization of bankruptcy adjudication.

The Chongqing Higher People’s Court has released the tenth batch of typical cases on judicial protection of the private sector.
On June 29, the official WeChat account of the Chongqing Higher People’s Court released the tenth batch of typical cases on judicial protection of the private sector by Chongqing courts.
In this batch of typical cases, the courts have, in accordance with the law, ensured timely payment to small and medium-sized enterprises; appropriately modified preservation measures to help these enterprises overcome difficulties; cracked down on embezzlement by those in positions of trust to safeguard their property rights; facilitated the green transformation and upgrading of traditional industries; standardized corporate governance to ensure normal business operations; and, through payment orders, efficiently protected the legitimate rights and interests of e‑commerce operators, thereby establishing a high‑level model of judicial services for the private sector across Sichuan and Chongqing.

JC Master Law Office
Address: 9th Floor, National Water Resources Building, No. 70 Qingjiang South Road, Nanjing City
Postal code: 210036
Phone: 025-84503333
Fax: 025-84505533
Website: www.jcmaster.com
This legal notice is provided solely for informational purposes and does not constitute legal advice or a legal analysis of any specific case. The transmission of this legal notice does not establish an attorney–client relationship between JC Master Law Office and the user or visitor. JC Master Law Office assumes no responsibility for any third-party content accessible via the internet. If you do not wish to receive this legal notice, please notify us by email at jcm@jcmaster.com.
The copyright in this legal information is owned by JC Master Law Office ©. Without written permission, no organization or individual may reproduce, publish, or cite it in any form.