JC Master Legal News Issue 1067

Key Takeaways for This Issue
The securities regulators of the two jurisdictions held a high-level meeting in Hong Kong.
On June 12, the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong held their 13th high-level meeting in Hong Kong. Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, and Liang Fengyi, Chief Executive of the Securities and Futures Commission of Hong Kong, led the respective departments to attend the meeting.
The Shanghai Stock Exchange plans to revise the “Evaluation Guidelines” and solicit public comments.
To implement the China Securities Regulatory Commission’s Three-Year Action Plan for Enhancing the Quality of Listed Companies (2022–2025) and the Shanghai Stock Exchange’s new round of the Three-Year Action Plan for Improving the Quality of Listed Companies on the Shanghai Market, and to further leverage the role of information disclosure evaluation in enhancing the quality of listed companies’ information disclosure, it is proposed to revise “Self-Regulatory Guidance No. 9 for Listed Companies—Information Disclosure Evaluation.”
The State Administration for Market Regulation has issued new regulations on credit restoration.
The State Administration for Market Regulation has issued the “Provisions on the Management of Credit Repair for Entities Listed on the List of Seriously Illegal and Dishonest Entities and for Publicized Information on Administrative Penalties (Trial).”
The Supreme People’s Court has released the Ten Typical Cases of China’s Anti‑Domestic Violence in 2023.
On June 15, the Supreme People’s Court website published the Ten Typical Cases of Domestic Violence in China (2023).
Finance & Capital Markets
The securities regulators of the two jurisdictions held a high-level meeting in Hong Kong.
On June 12, 2023, the China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong held their 13th high-level meeting in Hong Kong. Fang Xinghai, Vice Chairman of the CSRC, and Leung Fung-yee, Chief Executive of the SFC, led delegations from their respective agencies to attend. To date, the two securities regulators have convened thirteen such high-level meetings, fostering a series of cooperative achievements across markets, institutions, and products, and continuously deepening and broadening regulatory cooperation. At this meeting, both sides exchanged views on the latest developments in the reform, opening-up, and growth of their capital markets, engaged in fruitful consultations on issues including optimizing connectivity mechanisms, promoting collaboration in the derivatives market and asset management sector, and enhancing cross-border regulatory cooperation, and reached positive consensus, thereby advancing bilateral capital market cooperation to higher levels and greater depths.

The China Securities Regulatory Commission held a special Party lecture on the thematic education campaign to study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.
On June 13, in accordance with the CPC Central Committee’s arrangements for carrying out thematic education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Yi Huiman, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, drew on his learning and research conducted since the launch of the campaign to deliver a special Party lecture titled “Uphold Learning to Forge Ideological Loyalty, Enhance Wisdom, Rectify Conduct, and Promote Action, and Accelerate the Development of a Modern Capital Market with Chinese Characteristics.” The lecture focused on how the CSRC system can more effectively study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, advance the path of developing a modern capital market with Chinese characteristics, and better serve the cause of Chinese‑style modernization. Comrade Ye Dongsong, head of the Central Guidance Group No. 33, along with Deputy Head Lu Xi and other comrades, attended the event to provide guidance. Members of the CSRC Party Committee also took part.
Yi Huiman pointed out that Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era consistently keeps pace with the times. By integrating theory with practice, it systematically addresses major questions of our era—such as what kind of socialism with Chinese characteristics we should uphold and develop in the new era, how we should uphold and develop it; what kind of modern socialist power we should build, and how we should build it; and what kind of long‑term ruling Marxist party we should build, and how we should build it—thereby marking a new leap forward in the sinicization and modernization of Marxism. All Party members and cadres within the CSRC system must deeply study and grasp the scientific framework and essential spirit of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, persistently work to deepen, internalize, and translate this thought into concrete actions, and maintain high ideological, political, and practical alignment with the CPC Central Committee with Comrade Xi Jinping at its core. They should earnestly focus on doing their own work in the capital market well, and resolutely uphold the “two establishments” and practice the “two safeguards” through strong actions and tangible results.
Yi Huiman emphasized that a scientific worldview and methodology are the “master key” for studying and solving problems. Party members and cadres across the system must deeply study and grasp the worldview, methodology, and the underlying standpoints, viewpoints, and approaches embedded in Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; they should profoundly understand the rich implications of the “two combinations” and the “six musts,” ensuring that they not only comprehend the words but also their meaning, and that they know not only what is happening but also why it is happening. They should strive to master sound methods of thought and work, and use these to guide theoretical, practical, and institutional innovation in the capital market.
Yi Huiman pointed out that since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has attached great importance to financial work, issuing a series of important instructions on financial reform, development, and stability, and formulating and advancing a host of major policies and initiatives that have guided the high-quality development of the financial sector in the new era. The CSRC system must thoroughly study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th National Congress of the CPC, keeping officely focused on the central goal of Chinese modernization, proactively integrating into the broader landscape of high-quality development, and steadfastly combining the general principles governing capital markets with China’s specific realities and with the fine traditions of Chinese culture, thus unswervingly forging a path of modern capital market development with Chinese characteristics. It is essential to strengthen top-level design, clearly defining the overarching vision, key principles, and target objectives for building a modern capital market with Chinese characteristics, ensuring that all efforts are well coordinated and systematically organized. We must bear in mind the “major interests of the country,” enhance coordination with all relevant stakeholders, and, focusing on priority areas such as supporting high‑level scientific and technological self‑reliance, serving the construction of a modern industrial system, advancing reforms on the investment side, and strengthening capital market regulation, develop a comprehensive package of policies and measures to amplify systemic synergy. We should adhere to a combination of problem‑oriented and goal‑oriented approaches, ensuring the effective implementation of tasks including enhancing the quality of listed companies, regulating and guiding the sound development of capital in accordance with the law, optimizing institutional supervision, promoting the high‑quality development of the Beijing Stock Exchange, balancing openness with security, and reinforcing zero‑tolerance enforcement, so as to achieve early breakthroughs and drive the high‑quality development of the capital market. We must earnestly carry out the institutional reform tasks assigned by the Party and the state, stay true to our core regulatory responsibilities, accelerate the transformation of our regulatory framework, and safeguard the bottom line of preventing systemic financial risks.
Yi Huiman emphasized that building a modern capital market with Chinese characteristics represents a comprehensive test for the CSRC system. Party members and cadres within the system should take the thematic education campaign as an opportunity, summoning the courage of self-revolution and turning the blade inward to earnestly identify shortcomings, pinpoint gaps, and clarify directions. They must highlight political leadership, uphold and strengthen the CPC’s overall leadership over the capital market, and reinforce the political leadership role of Party committees at all levels in setting the course, overseeing the big picture, and ensuring effective implementation, thus serving as faithful executors, proactive implementers, and pragmatic doers of the decisions and arrangements of the CPC Central Committee and the State Council. They should strengthen their sense of responsibility and commitment, cultivate and practice a correct view of performance, break free from rigid mindsets and habitual patterns of behavior, and enhance their capacity for creative execution. Efforts should be focused on improving political acumen, analytical thinking, and practical capabilities, further boosting the effectiveness of regulatory duties. While officely upholding disciplinary and legal red lines, they must deepen the comprehensive and strict governance of the Party across the CSRC system, fostering a clean and upright ecosystem in the capital market. At the same time, they should refine the mechanisms for selecting, cultivating, managing, and utilizing cadres, building a high-caliber contingent of regulators who are loyal, clean, and responsible.
Yi Huiman pointed out that the CPC thematic education campaign within the CSRC system has so far achieved significant interim results. All units and departments are urged to press ahead with renewed vigor, continuing to adhere to the overarching requirements of “studying thought, strengthening Party character, emphasizing practical application, and achieving new accomplishments.” They should remain officely focused on the central tasks of the capital market, steadily advancing all related work—ranging from theoretical study and investigative research to promoting development, conducting self-examination and rectification, establishing sound systems and mechanisms, and carrying out education and rectification of the cadre team—while upholding rigorous standards and strengthening coordinated oversight and guidance. This will ensure that the thematic education campaign across the Commission is completed to a high standard and with high quality, striving to build a model institution that reassures the CPC Central Committee and wins the satisfaction of the people.
The Discipline Inspection and Supervision Group stationed at the China Securities Regulatory Commission, the secretaries of the Party branches of all departments within the Commission, cadres at the department level and above, the heads of each touring guidance team, members of the Party committees of all units across the system, secretaries of Party organizations at all levels, and leading cadres at the department (mid-level) level and above attended either in person or via video link.

The Shenzhen Stock Exchange convened a meeting to elect the new members of its Legal Advisory Committee, reafofficeing its commitment to advancing the rule of law in China’s modern capital market along a path with Chinese characteristics.
Recently, the Shenzhen Stock Exchange convened the inaugural meeting of its Second-term Legal Advisory Committee and a symposium on legal work in the capital market. The 18 committee members—representing securities regulatory authorities, securities arbitration institutions, higher education institutions, research institutes, law offices, securities companies, and investment institutions—engaged in thorough exchanges and discussions, offering constructive advice and recommendations.
The Legal Advisory Committee is an important platform through which the Shenzhen Stock Exchange upholds law-based and regulation‑based governance, thereby advancing the rule of law in the capital market. Its members come from a wide range of backgrounds, combining solid theoretical grounding with practical experience, ensuring broad representativeness. Since its establishment in December 2020, the Committee has consistently focused on cutting‑edge regulatory issues and addressing the needs of oversight, playing a proactive role in supporting policy formulation, guiding regulatory practice, and fostering market consensus, with notable results.
The meeting briefed attendees on the Shenzhen Stock Exchange’s legal‑related work over recent years. First, the Exchange has steadfastly “built the system,” ensuring that its regulatory framework is more scientific and comprehensive. Guided by the registration‑based reform, it has coordinated and advanced key institutional reforms covering issuance and underwriting, trading, mergers and acquisitions, ongoing supervision, and delisting. Focusing on priority areas such as the merger of the two boards, public REITs, and the interconnectivity of depositary receipts, the Exchange has strengthened the development of supporting rules. It has continuously refined the regulatory framework for listed companies, making it both systematic and user‑friendly. At the same time, the Exchange has actively participated in the formulation and amendment of more than ten laws, regulations, and judicial interpretations, including the Securities Law, the Company Law, and the Futures and Derivatives Law, thereby contributing deeply to the rule‑of‑law construction of the capital market. Second, the Exchange has enforced a “zero‑tolerance” policy, cracking down rigorously, precisely, and effectively on violations. It has maintained strict oversight at the gateway to issuance and listing: in 2022, it rejected 16 companies that failed to meet listing criteria or disclosure requirements, and conducted on-site supervision of 52 IPO and other projects to prevent companies with underlying issues from gaining access. The Exchange has resolutely fulfilled its primary responsibility for delisting, mandating the delisting of nearly 40 listed companies over the past three years—ensuring that all entities required to be delisted are indeed delisted. It has imposed severe penalties for financial fraud, misappropriation of funds, and other illegal activities, focusing on the “key few” and intensifying disciplinary measures such as public censure and public designation, further reinforcing a stringent regulatory environment. Third, the Exchange has promoted “transparency,” making frontline supervision more standardized and open. It has explored the establishment of a transparent review mechanism for issuance and listing, ensuring full public disclosure of review standards, procedures, content, processes, and outcomes. Since the full implementation of the registration‑based system, the Exchange has launched the “Three Transparencies and Two Promotions” special campaign, advancing transparent review, transparent supervision, and transparent services. This initiative has enhanced the quality and efficiency of reviews, fostered a culture of integrity, and helped build a transparent, clean, and high‑quality registration‑based system. The Exchange has taken the lead in publicly disclosing its disciplinary standards, clearly delineating red lines, and has largely digitized end‑to‑end processes for share‑agreement transfers and other transactions, enabling real‑time tracking of application progress, full public access to regulatory documents, and broad market oversight. Moreover, it has continually streamlined internal redress mechanisms such as hearings and reviews, providing market participants with ample procedural safeguards and promoting fairness through transparency.
The meeting featured in-depth discussions on how to further leverage the rule of law to support the development of a modern industrial system, ensure the smooth implementation of the comprehensive registration-based IPO system, and continuously enhance the rule-of-law‑based level of frontline regulatory oversight at stock exchanges. Participants put forward numerous constructive suggestions. First, further refine institutional mechanisms governing issuance and listing reviews, pricing, mergers and acquisitions, restructuring, and information disclosure, so as to provide more precise and efficient support for technological innovation, guide the allocation of production factors toward key sectors of the modern industrial system, and foster a virtuous cycle among science and technology, industry, and finance. Second, clarify the boundaries of intermediary institutions’ responsibilities under the registration‑based system, uphold the principle of proportionality between violations and penalties, and promote a reasonable balance of rights and obligations among intermediaries and other market participants, while fully taking into account China’s market conditions and stage of development to strike a balance between maintaining market order and fostering industry growth. Third, strengthen the supply of legal frameworks and enhance regulatory coordination, intensifying efforts to crack down on third parties—such as issuers’ related parties, customers, suppliers, and financial institutions—who engage in financial fraud, with a view to establishing an integrated accountability framework encompassing civil, administrative, and criminal measures. Fourth, further improve the standardization and transparency of exchange operations, continue to regulate discretionary regulatory powers, bolster regulatory openness, and fully safeguard the rights of market participants. At the same time, advance research and refinement of policies on self‑regulatory oversight by exchanges, coupled with judicial intervention, tailored to China’s national context, thereby creating a favorable legal environment for exchanges to fulfill their regulatory duties in accordance with laws and regulations.
A spokesperson for the Shenzhen Stock Exchange stated that building a law-based capital market is a systematic undertaking that requires the concerted efforts of all stakeholders. The Exchange will work together with all market participants to steadfastly follow the path of a modern, Chinese‑style capital market underpinned by the rule of law; consistently apply legal thinking and legal methods to address challenges in market reform and development; fulfill its duties of market organization and regulation within the framework of the law; continuously enhance the rule-of-law orientation of frontline regulatory oversight; effectively safeguard an open, fair, and just market order; protect the legitimate rights and interests of investors; and provide stronger legal safeguards for the development of a modern capital market with Chinese characteristics.

Yi Huiman: Create a coordinated market environment and ecosystem for residents’ asset allocation, and bolster investors’ trust and confidence in the market.
According to the China Securities Regulatory Commission, the Commission’s Party Committee recently held a thematic education program on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, along with a collective study session of the Party Committee’s Theoretical Study Center Group.
Yi Huiman, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, stated that it is essential to officely establish a correct view of political achievements, uphold sound development principles, and, with a sense of responsibility toward the Party’s cause and toward the high-quality development of the capital market, adhere to the inherent laws governing the market and advance work in a steady, step-by-step manner. It is crucial to strike a balanced approach among “stability” and “progress,” development and security, and the immediate and the long term; to stay committed to the original blueprint and to carry out all tasks in a down-to-earth, pragmatic way. We must earnestly implement the people-centered development philosophy, further enhance the functions of the capital market, create a well-coordinated market environment and ecosystem for residents’ asset allocation, and better meet their wealth-management needs. We should officely embrace the “grand investor protection” concept, thoroughly draw on the positive experiences and practices accumulated in recent years in safeguarding investors’ legitimate rights and interests, more fully discharge the statutory duty entrusted to the CSRC under the Securities Law to protect such rights, and significantly improve the quality and effectiveness of investor protection efforts. At the same time, we must resolutely uphold the principles of fairness, justice, and openness in the market and continuously strengthen investors’ trust and confidence in the market.

The Shanghai Stock Exchange plans to revise the “Evaluation Guidelines” and solicit public comments.
According to the SSE’s official website, in order to implement the China Securities Regulatory Commission’s “Three-Year Action Plan for Enhancing the Quality of Listed Companies (2022–2025)” and the SSE’s latest round of the “Three-Year Action Plan for Improving the Quality of Shanghai‑listed Companies,” and to further leverage the role of information disclosure evaluation in enhancing the quality of listed companies’ disclosures, the SSE plans to revise its “Self‑Regulatory Guidance No. 9 for Listed Companies—Information Disclosure Evaluation” (hereinafter referred to as the “Evaluation Guidance”). Public comments are now being solicited, with a deadline for feedback set for June 26, 2023.
According to reports, the Shanghai Stock Exchange’s latest revision of the “Evaluation Guidelines” has focused on enhancing the application of evaluation results, strengthening the alignment of regulatory provisions, and improving the scientific rigor and adaptability of the evaluation indicators. First, it has established a long-term mechanism to bolster the effectiveness of information disclosure. By emphasizing the role of information-disclosure‑related evaluations in enhancing disclosure quality, the revised guidelines introduce more targeted requirements in areas such as ensuring that disclosure content is concise and clear, improving the readability and practical utility of periodic reports, and leveraging disclosure mechanisms to support the stable and sound development of the market.
Second, we will strengthen the application of evaluation results in differentiated regulatory oversight. We will increase support for companies rated Class A, enhance their alignment with activities such as mergers and acquisitions, restructuring, and refinancing, and further reduce their information disclosure costs. At the same time, we will intensify supervision of companies rated Class D, reinforcing compliance guidance for these offices and their key management personnel through measures such as organizing compliance training.
Third, further enhance the scientific rigor and adaptability of the evaluation metrics. On the one hand, we will introduce additional deductions for significant adverse events, penalizing listed companies where there are indications of harm to investors’ legitimate rights and interests. On the other hand, we will strictly define the evaluation criteria for Class A and Class B companies, reinforcing requirements related to market communication and improving investor returns.

A Three-Year Retrospective: The China Securities Association’s 25-Question Survey to Assess the Securities Industry’s Integrity in Professional Conduct
Recently, the Securities Association of China (hereinafter referred to as “SAC”) has launched a survey on securities offices’ compliance with integrity‑based professional conduct. According to reports, the SAC’s preliminary assessment focuses on the organizational structure and mechanism development for managing ethical practices, as well as on instances over the past three years in which employees have been subject to internal disciplinary actions. In addition, the SAC has sought to gather securities offices’ views and recommendations regarding industry‑wide issues and regulatory measures aimed at promoting integrity in the sector.
To further enhance the effectiveness of integrity‑based management for securities professionals, in the first quarter of this year, the relevant research group under the Integrity Committee of the Shenzhen Securities Association conducted an assessment of the quality and efficiency of integrity‑related governance within the securities industry. Among its recommendations were: establishing smooth channels for sharing employee integrity information between regulatory authorities and securities offices, as well as among peers; restricting the free movement of individuals who have violated integrity‑related regulations within the industry; and encouraging securities offices to rigorously record in their integrity information management systems whether their employees comply with laws and regulations and act with honesty and trustworthiness, thereby advancing the development of an industry‑wide integrity‑management framework.
The China Securities Regulatory Commission conducts a research visit on ethical professional conduct.
Specifically, the China Securities Association has issued to securities offices a “Survey Questionnaire on Integrity in Professional Conduct,” which comprises 25 questions. The survey primarily seeks to ascertain whether securities offices have incorporated integrity‑related management objectives and overarching requirements into their articles of association, leadership mechanisms, responsible senior management, lead organizing departments, as well as details such as the corresponding number of staff, and the specific division of responsibilities between compliance management and disciplinary inspection and supervision departments in the area of integrity‑based professional conduct.
In terms of disciplinary accountability, the China Securities Association conducted a three-year retrospective review, extending back to 2021, and required securities offices to disclose the number of employees who had been subject to internal disciplinary measures for violations of relevant regulations issued by the CSRC and the Association. It also carried out surveys to ascertain how securities offices impose varying degrees of sanctions on employees found to have breached rules on ethical professional conduct, along with the corresponding numbers of such cases.
The management practices of securities offices regarding departing employees were also included in this survey questionnaire. According to reports, the China Securities Association will assess whether securities offices maintain dedicated databases or archives to document instances of misconduct—both among current and former employees—that violate regulations on ethical professional conduct.
In terms of institutional development, the China Securities Association will conduct surveys to gather information on the names of securities offices’ integrity‑based compliance management systems, the proportion of integrity‑related performance indicators within their personnel evaluation frameworks, and the number of internal special inspections on integrity conducted by these offices from 2021 to the present.
In the questionnaire, the China Securities Association also gathered securities offices’ views and recommendations on the market ecosystem, industry challenges, and regulatory priorities—such as the issues and characteristics of a culture of integrity in the capital market under the registration-based system; the gaps in integrity‑related governance among regulatory authorities, self‑regulatory organizations, and market participants; and the difficulties encountered by offices in implementing integrity‑focused compliance management, along with lessons learned and best practices.
An Analysis of Violative Conduct Through Five Key Factors
In recent years, regulatory scrutiny of compliance with integrity standards has grown increasingly stringent. According to numerous penalty notices issued by regulators, securities offices are primarily penalized for inadequate internal controls over ethical conduct and insufficient oversight of personnel management in this area. For example, compliance frameworks fail to cover all relevant processes, and during employee onboarding, promotions, and career advancement, due diligence on their adherence to ethical standards is often neglected.
Moreover, in the course of their day-to-day operations, industry professionals have repeatedly crossed the red lines of ethical conduct. For example, investment bankers have illegally disclosed sensitive information to third parties for improper gains; exploited opportunities arising from project‑related advisory services to list companies to make unauthorized investments and acquire equity stakes; and sought illicit benefits through third‑party contractual arrangements, among other practices.
According to the “Report on the Current State of Ethical Conduct in the Securities Industry and Recommendations for Improvement,” released this year by the Integrity Committee of the Shenzhen Securities Association, the frequent occurrence of violations of ethical conduct can be attributed primarily to five factors:
I. The securities industry offers substantial illicit profits and strong incentives, while the costs of past violations have been low.
II. Misaligned industry incentives and distorted performance perceptions among some practitioners;
III. The internal control systems and frameworks for ensuring ethical conduct at some securities offices remain inadequate.
IV. Securities offices have limited internal oversight and disciplinary mechanisms, lacking effective tools for investigation and evidence collection.
V. The construction of the industry’s integrity management system remains inadequate, and its implementation has yielded unsatisfactory results.
Strengthen regulatory oversight and self-regulatory management.
To enhance the framework of integrity‑based professional conduct, the aforementioned report recommends a three‑pronged approach—covering “individual practitioners, internal controls within financial institutions, administrative oversight, and self‑regulatory measures”—to establish an integrated industry‑wide risk‑prevention system for maintaining ethical standards in professional practice.
Specifically, in the areas of administrative oversight and self-regulation: First, it is necessary to refine the industry’s integrity‑management framework by establishing smooth channels for sharing employee‑integrity information among regulatory authorities, securities offices, and peer institutions; to improve procedures for accessing such information; and to restrict the free movement within the industry of individuals who have violated codes of ethical conduct. At the same time, inspections should be intensified to ensure that securities offices comply with the China Securities Industry Association’s Measures on Integrity Management, requiring each office to meticulously, objectively, and accurately record in its integrity‑information management system both information on whether its business units and practitioners adhere to laws and regulations and act with honesty and trustworthiness, as well as any other data that may affect assessments of their integrity, thereby actively advancing the development of an industry‑wide integrity‑management system. Second, guidance on preventing and controlling integrity risks in the sector must be strengthened. It is recommended that regulators enhance their oversight of securities offices’ efforts to manage integrity‑related risks and provide targeted guidance to help these offices elevate the quality of their self‑discipline and integrity‑management practices. Furthermore, securities offices should ensure adequate staffing in relevant departments, incorporate compliance with ethical standards into performance evaluations and personnel‑selection processes, and reinforce institutional mechanisms for monitoring and constraining professional conduct. Industry participants should also be encouraged to further refine risk‑reserve arrangements and deferred‑payment schemes for key positions, setting aside risk reserves from compensation to prevent conflicts of interest that could give rise to integrity risks. Finally, communication channels for complaints and reports should be kept open, with clearly defined procedures for handling such submissions and supporting ancillary mechanisms in place.
With regard to internal controls within operating institutions, the aforementioned report recommends fostering a culture of integrity in professional conduct; continuously refining internal control mechanisms; effectively managing integrity-related risks; and strengthening oversight of key business areas.
With regard to practitioners, the report recommends strengthening their training and education to enhance their awareness of ethical conduct; strictly adhering to established procedures to ensure the rigidity of systems and processes; and reinforcing professional standards while intensifying oversight and supervision.

SASAC: Central SOEs are to use listed companies as platforms for mergers and acquisitions and restructuring.
On the 14th, the State-owned Assets Supervision and Administration Commission of the State Council convened a special meeting on enhancing the quality of listed companies and advancing mergers and acquisitions and restructuring among central enterprises. The meeting called on central enterprises to embrace their new positioning and shoulder their renewed mission, fully leveraging the decisive role of the market in resource allocation. By using listed companies as platforms, they are to carry out M&A and restructuring initiatives that bolster core competitiveness and strengthen core functions. At the same time, it is imperative to further heighten a sense of responsibility and urgency, focus on key tasks for improving the quality of listed companies, and adopt more pragmatic and effective measures to reinforce fundamentals and solidify basic capabilities. This will provide robust support for central enterprises to achieve high-quality development and play an even more prominent role in shaping the new development paradigm.
The meeting noted that, in recent years, central enterprises have seized the opportunity presented by the deepening reform of the capital market to proactively leverage mergers and acquisitions and restructuring as tools for optimizing and refining their asset and business portfolios, thereby enhancing the efficiency of state‑owned resource allocation and achieving positive results.
According to the “Report on the High-Quality Development of Central Enterprises (2022),” released in November 2022 by the Research Center of the State-owned Assets Supervision and Administration Commission, since the 19th National Congress of the Communist Party of China, the number of listed companies controlled by central enterprises has grown steadily, increasing from approximately 400 to nearly 450. In 2021, central enterprises completed a total of 21 initial public offerings (IPOs) on the A-share market, raising RMB 101.26 billion—both the number of IPOs and the amount of capital raised reaching new highs in the past decade. For listed platforms that are outside the core business, lack competitive advantages, or are performing poorly, some enterprises have actively revitalized them through measures such as transferring controlling stakes, restructuring their portfolios, or voluntarily delisting and relisting, thereby achieving renewal and upgrading.
In terms of optimizing industrial layout, the role of listed platforms has been effectively leveraged. Since the 19th National Congress of the Communist Party of China, central enterprises have cumulatively injected nearly RMB 650 billion worth of high-quality assets into their controlled listed companies, with numerous major projects being implemented one after another. At the same time, they have actively utilized these listing platforms to raise capital in support of the development of their core businesses, raising over RMB 800 billion through equity financing and approximately RMB 3 trillion through the issuance of various bonds and debt‑financing instruments over the past five years.
According to the “Work Plan for Enhancing the Quality of Listed Companies Controlled by Central Enterprises,” issued by the State-owned Assets Supervision and Administration Commission in May 2022, all central enterprises are required, within three years, to adopt tailored measures and focus their efforts precisely, with the aim of fostering a group of flagship listed companies that possess strong core competitiveness and significant market influence, as well as cultivating a cohort of specialized, industry-leading listed companies distinguished by clear professional strengths and outstanding quality and brand reputation.
At the meeting, responsible officials from relevant departments of the China Securities Regulatory Commission briefed attendees on recent developments in M&A and restructuring activities involving listed companies controlled by central state-owned enterprises, and, from the perspective of capital market regulation, articulated expectations and recommendations for further enhancing quality and efficiency and strengthening these companies through such transactions.

State Administration of Foreign Exchange: In May, China’s foreign exchange market continued to maintain a basic balance between supply and demand.
According to the State Administration of Foreign Exchange on June 15, the agency recently released data for May 2023 on banks’ foreign-exchange settlement and sales, as well as banks’ foreign‑related receipts and payments on behalf of clients. Wang Chunying, Deputy Director and Spokesperson of the State Administration of Foreign Exchange, addressed questions regarding the foreign‑exchange balance-of-payments situation in May 2023.
Q: What were the key features of China’s foreign exchange balance of payments in May 2023?
Answer: China’s foreign exchange market continued to maintain a broadly balanced supply-and-demand dynamic. In May, both banks’ net foreign-exchange settlement and sales, as well as the cross-border receipts and payments of non-bank sectors—including enterprises and individuals—recorded surpluses, amounting to US$3.3 billion and US$1.9 billion, respectively. Taking other supply-and-demand factors into account, the domestic foreign-exchange market remained broadly balanced.
Market expectations remained stable, and foreign-exchange trading was rational and orderly. In May, the settlement rate—defined as the ratio of customers’ foreign‑exchange sales to banks to their foreign‑currency earnings—stood at 72%, virtually unchanged from the previous month. Market participants’ willingness to settle foreign exchange continued to hover near a one‑year high, reflecting a generally rational trading pattern characterized by “settling on the upside.” Meanwhile, the sales rate—measured as the ratio of customers’ foreign‑exchange purchases from banks to their foreign‑currency expenditures—was 70.4%, down 0.7 percentage points from the prior month, with market participants’ appetite for purchasing foreign currency remaining broadly steady.
Cross-border capital flows through major channels remained broadly stable. On the current account, the goods trade surplus expanded by 23% month-on-month in May, continuing to underpin the overall stability of cross-border capital flows; meanwhile, the services trade deficit widened, largely reflecting the gradual resumption of cross-border travel by residents. On the capital account, net inflows of foreign direct investment capital into China persisted, foreign investment in the domestic bond market continued to strengthen, and outbound direct investment and overseas securities investments by domestic entities remained steady and well‑ordered.
Looking ahead, as macro policies are implemented proactively and in a coordinated manner, China’s economy is expected to continue its recovery and improve, thereby further bolstering the country’s foreign-exchange market. With the monetary‑tightening cycles in major advanced economies nearing their end, the U.S. dollar’s strength is unlikely to persist, and associated spillover effects will gradually diminish. At the same time, China’s foreign-exchange market is exhibiting enhanced resilience, with a markedly improved capacity to adapt to changes in the external environment, suggesting that cross‑border capital flows are likely to remain stable and orderly.

Commercial & Corporate
Four departments have launched a special campaign on labor employment titled “Identify Risks, Strengthen Consultation, Ensure Payment, and Promote Harmony.”
On June 13, the website of the Ministry of Human Resources and Social Security published the “Notice on Launching the Special Campaign ‘Identify Risks, Strengthen Consultation, Ensure Payment, and Promote Harmony’ in Labor Employment.”
The Notice clarifies that, from June to December 2023, the National Tripartite Coordination Mechanism for Labor Relations will launch a nationwide special campaign titled “Identify Risks, Strengthen Consultation, Ensure Payment, and Promote Harmony” in labor employment. The campaign will focus on providing centralized guidance for initiating collective bargaining offers, promoting wage‑related collective consultations tailored to different enterprise categories, promptly urging enterprises to appropriately address and resolve underlying risks of wage arrears at the grassroots level, and safeguarding the safety bottom line by preventing systemic or regional labor‑relation risks. The Notice also requires tripartite coordination mechanisms at all levels to comprehensively review and identify potential risks of wage arrears, actively encourage and support enterprises and trade unions in carrying out “offer‑initiation activities,” help enterprises make full use of business‑friendly policies, assist them in regaining vitality, and support measures to stabilize and expand employment.
Shanghai: Strengthening Clusters of “Specialized, Refined, Distinctive, and Innovative” Enterprises to Drive High-Quality Development of the Manufacturing Sector
On June 15, the Shanghai Municipal People’s Government website released the “Shanghai Three-Year Action Plan for Promoting High-Quality Development of the Manufacturing Sector (2023–2025),” outlining 22 key tasks across six priority areas.
The Action Plan sets forth the goal of consolidating and upgrading key pillar industries. It aims to develop four trillion‑yuan‑scale industrial clusters—electronic information, life and health, automobiles, and high‑end equipment—and two 500‑billion‑yuan‑scale clusters—advanced materials and fashion consumer goods. The plan also seeks to strengthen clusters of “specialized, refined, distinctive, and innovative” enterprises by implementing a dedicated cultivation program to enhance the competitiveness of SMEs. By the end of the period, the city will have 10,000 municipal-level SRDI enterprises, 1,000 national-level SRDI “Little Giant” offices, and 50 manufacturing single‑item champions—both companies and products—and strive to establish approximately 10 national‑level specialized industrial clusters. In addition, the Action Plan calls for deepening the application of the industrial internet to drive digital transformation, building 30 industry‑specific benchmark platforms, progressively nurturing 40 “industrial‑empowerment chain leader” enterprises, and accelerating innovative applications of the industrial metaverse. It further promotes energy conservation and carbon reduction in key sectors, implements the Industrial Carbon Peak Action Plan, and launches the “1% per Year” energy‑saving and carbon‑reduction initiative, with the aim of achieving an average annual energy‑use reduction of 1%.

The State Administration for Market Regulation has launched a 100-day campaign to identify and rectify safety hazards in special equipment at chemical enterprises.
On June 16, the website of the State Administration for Market Regulation published the “Notice on Launching a ‘100-Day Intensive Campaign’ to Identify and Rectify Safety Hazards in Special Equipment at Chemical Enterprises.”
The Notice clarifies that the State Administration for Market Regulation has decided to launch, effective immediately, a 100-day intensive campaign nationwide to identify and address safety hazards associated with special‑purpose equipment at chemical enterprises. It requires all such enterprises to prioritize the “key few”—including principal persons in charge, chief safety officers, and safety personnel—strictly implement the “daily control, weekly inspection, monthly coordination” system as mandated, enforce job‑specific safety responsibilities, strengthen risk analysis and assessment for key areas, critical equipment, and crucial operational links, establish a “Special‑Purpose Equipment Safety Risk Control Checklist,” promptly repair, upgrade, or replace aging equipment or equipment posing potential risks, and fully uphold the primary safety responsibility of the equipment‑using entities.

The State Administration for Market Regulation has issued new regulations on credit restoration.
To encourage and support market entities in self-correcting and rebuilding their creditworthiness, and to foster a favorable business environment, the State Administration for Market Regulation recently issued the “Provisions on the Management of Credit Restoration for Entities Listed on the List of Seriously Illegal and Dishonest Entities and for Publicized Information on Administrative Penalties (Trial)” (hereinafter referred to as the “Provisions”).
The Regulations establish and improve the credit‑repair management mechanism primarily in three key areas: First, they uphold compliance with laws and regulations, ensuring that credit‑repair activities are conducted strictly in accordance with relevant standards, procedures, and time limits. Second, adhering to the principle of “whoever makes the determination shall carry out the repair,” they clarify the division of responsibilities among the relevant departments and bureaus under the General Administration, thereby refining the working mechanism. Third, by issuing operational guidelines and strengthening information‑technology infrastructure, they provide efficient and convenient services to business entities seeking credit‑repair.
At present, the State Administration for Market Regulation has processed credit‑repair applications submitted by business entities in accordance with the Regulations, and has published on its website a Credit‑Repair Guide, along with sample forms for credit‑repair applications, including the Application for Credit Repair, the Commitment to Integrity, and the Conofficeation of Delivery Address. These materials provide guidance to business entities seeking credit repair, helping them rebuild their credit standing and enhance both their creditworthiness and market competitiveness.

The deployment of the artificial intelligence industry is accelerating, as the Ministry of Industry and Information Technology launches its 2023 initiatives to enhance quality and build brands in the industrial and information technology sectors.
On June 15, the website of the Ministry of Industry and Information Technology published the “Notice on Launching the 2023 Work for Enhancing Quality and Building Brands in the Industrial and Information Technology Sectors.”
The Notice outlines 16 key tasks across five priority areas, calling for measures to encourage manufacturing enterprises to strive for excellence in quality, deepen the digital application of quality management, and enhance the reliability of flagship products in key industries. Focusing on critical sectors such as machinery, electronics, and automobiles, it supports specialized institutions in strengthening research on foundational theories and applied technologies—including accelerated testing and reliability simulation—and in improving their capabilities in reliability‑related technical services. In addition, a special initiative will be launched to empower small and medium-sized enterprises through quality standards and branding, thereby bolstering their quality assurance capacities and elevating overall quality levels, and driving quality improvements across priority industries.

Five departments have launched the 2023 “New Energy Vehicles to the Countryside” campaign.
On June 15, the website of the Ministry of Industry and Information Technology released the “Notice on Launching the 2023 New Energy Vehicle to Rural Areas Campaign.”
The Notice specifies that, from June to December, five government departments will launch the 2023 “New Energy Vehicles to the Countryside” campaign under the theme “Green, Low-Carbon, Smart, and Safe—Charging Up Automotive Consumption and Adding Green to Rural Revitalization.” The initiative will adopt a hybrid format combining offline events with online platforms. Offline activities will primarily include a launch ceremony, a series of touring exhibitions in key regions, and demonstration projects in distinctive areas, complemented by locally organized initiatives. Meanwhile, online efforts will see e‑commerce and internet platforms, in coordination with on‑site events, establish dedicated digital promotion channels and host virtual sales promotions, livestreamed vehicle sales, and other online activities, ensuring full participation and sustained engagement throughout the campaign and fostering seamless integration between offline and online components.

Shenzhen plans to introduce measures to promote market-based fee structures for commercial dispute mediation.
On June 15, the Shenzhen Justice Bureau published on its website a notice soliciting public comments on the “Measures for Promoting Market-Based Fee Structures in Commercial Dispute Mediation (Draft for Comments),” with the deadline for submitting feedback set for June 28.
The Measures comprise fifteen articles, covering such matters as the scope of fees, eligibility for fee‑charging services, fee‑charging principles, submission of supporting documentation, fee composition, billing methods, cost‑sharing arrangements, judicial conofficeation, property preservation, refund of fees, mediation subsidies, disciplinary measures for coercive fee collection, the industry’s integrity system, and measures to provide support and foster development. The Measures primarily stipulate that commercial mediation organizations may, in accordance with applicable laws and regulations, charge mediation service fees when mediating disputes arising in commercial sectors such as trade, investment, finance, transportation, real estate, intellectual property, technology transfer, and construction projects. Such fees shall include remuneration paid to mediators, as well as reasonable expenses incurred in the course of mediation activities, including accommodation, travel, venue rental, translation, institutional operating costs, and other legitimate expenditures.

The State Administration for Market Regulation plans to issue the Interim Rules on the Public Disclosure of Complaint Information in Market Supervision.
On June 15, the website of the State Administration for Market Regulation published an announcement soliciting public comments on the “Interim Rules on the Public Disclosure of Complaint Information in Market Supervision and Administration (Draft for Comments).” The deadline for submitting feedback is July 15.
The Regulations comprise 23 articles and stipulate that complaint information—including the consumer’s subjective statements at the time of filing and the outcomes of administrative mediation reached on a voluntary basis—does not constitute negative credit information such as administrative penalty records, entries on the List of Abnormal Operations, or inclusion on the List of Seriously Dishonest Entities. Public disclosure of complaint information shall be preceded by the consumer’s prior consent. Specifically, complaint information will not be made public in cases where the complaint is deemed inadmissible pursuant to Article 15 of the Measures for Handling Complaints and Reports; where the consumer and the operator have already reached a settlement through the national 12315 platform’s ODR mechanism; or where the complaint does not relate to the purchase or use of goods, or the receipt of services, for personal consumption purposes.

MIIT: Cultivate a number of national-level smart photovoltaic demonstration enterprises and projects.
On the 14th, Yang Xudong, Deputy Director-General of the Electronic Information Department of the Ministry of Industry and Information Technology, stated that the ministry will collaborate with relevant departments to launch diversified pilot and demonstration projects for smart photovoltaics, fostering a number of national-level demonstration enterprises and projects in this field. It will also encourage PV companies to partner with offices in transportation, construction, agriculture and rural development, and energy sectors to explore scalable and replicable models for smart PV applications.
Yang Xudong made this statement at the Smart Photovoltaic Industry Development Exchange Meeting held in Kunming that day. He also indicated that the national industry‑finance cooperation platform would be leveraged to encourage financial and investment institutions to step up their support. By tapping into relevant central and local channels, efforts will be made to promote the intensive integration and coordinated development of resources, thereby supporting technological advancement in the smart photovoltaic sector and the establishment of public service platforms.
Since the beginning of this year, the “new three” — photovoltaics, lithium‑ion batteries, and new‑energy vehicles — have emerged as new growth drivers for China’s exports. According to the latest data from the Ministry of Industry and Information Technology, in March and April, the nationwide export value of photovoltaic products exceeded US$10.7 billion, up 29.3% year on year; cumulatively, from January to April, exports surpassed US$19.3 billion, a year-on-year increase of 18.9%.
“With policy support and the concerted efforts of the industry, China’s photovoltaic sector has maintained its position as the world’s largest in both production capacity and market size for many consecutive years, while its technological capabilities remain globally leading,” said Yang Xudong. He added that next-generation information technologies—such as 5G communications, big data, the industrial internet, and artificial intelligence—are increasingly integrating with the photovoltaic industry, effectively elevating levels of intelligent manufacturing, smart operations and maintenance, and intelligent grid dispatch. Systematic solutions for multi‑sector applications continue to be innovated and refined, and pilot and demonstration projects and enterprises in the smart PV field are playing an ever‑stronger role in driving progress.
Yang Xudong stated that efforts will be further intensified to strengthen organizational coordination and policy alignment, continuously deepen the coordination mechanism for the development of the smart photovoltaic industry, and enhance the integration of policy planning. The business environment for the photovoltaic sector will continue to be optimized, with accelerated publication of the “Comprehensive Standardization Technical System for the Solar Photovoltaic Industry” and ongoing work on the formulation and revision of key standards, such as those governing photovoltaic cell dimensions. Furthermore, initiatives to promote both the international expansion of China’s photovoltaic industry and the attraction of foreign investment and technology will be expedited, while international cooperation in areas such as talent, technology, and standards will be encouraged.

Taxation
The State Taxation Administration has launched a program for young officials to conduct on-the-ground, field-based research at the grassroots level.
Recently, the State Taxation Administration convened a mobilization meeting for its young officials to conduct on-the-ground, field‑based research, outlining specific arrangements for the initiative. The event aims to encourage young cadres to make full use of investigative research—a time‑honored tool—by gaining a deep understanding of realities, accumulating practical experience, and honing their capabilities at the grassroots level, thereby consciously translating the Party’s innovative theories into concrete actions that advance the development of the tax sector.
The key to investigation and research lies in going deep into the field to gain a thorough understanding of the actual situation. According to reports, in line with the State Taxation Administration Party Committee’s arrangements for thematic education, the General Office of the SAT has issued a special notice titled “Notice on Organizing the 2023 Grassroots Stationing and Field Research Activity for Young Cadres within the SAT,” encouraging young cadres to immerse themselves in reality and tackle pressing issues with dedication. Under this notice, the stationing and field research initiative is divided into two approaches: experiential research and personalized research. Experiential research encompasses three areas—tax and fee services, tax-source management, and inspection and case handling—while personalized research is coordinated by each department and bureau of the SAT, tailored to local conditions and aligned with priority reform tasks, to organize grassroots stationing and field research among their own young cadres.
During the on-site research period, young cadres will, in phases and by groups, immerse themselves in frontline units such as tax service halls, tax-source management sub‑bureaus (offices), and inter‑district inspection bureaus, gaining hands-on experience across the entire process of tax and fee services, tax-source management, and inspection and case handling. On the one hand, they will adopt a problem‑oriented approach, soliciting feedback from taxpayers, payers, and frontline tax officials to identify and bring to light concrete issues and leads. On the other hand, focusing on the research agenda, they will promptly analyze and address the problems and suggestions gathered during the fieldwork, ensuring that the theoretical gains from thematic education are translated into practical application. This will enable them to integrate learning, reflection, and action, align knowledge with conviction and practice, continuously enhance their capacity to fulfill their duties, and better advance tax modernization in support of Chinese‑style modernization.
The mobilization meeting outlined the arrangements for the first batch of “Tax and Fee Service” experience activities. Starting June 12, 61 young officials will be deployed to the front lines of grassroots tax administration to conduct a month-long research, study, and practical training program. Prior to the fieldwork, in response to the most pressing concerns of taxpayers and payers and aligned with the key reform and development priorities of current tax administration, ten thematic research topics were made available for the young officials to select from. Upon completion of the research, the outcomes will be shared through forums and other platforms, demonstrating how these young officials have translated their findings into concrete results that address taxpayer and payer needs and advance tax‑administration work.
A responsible official from the State Taxation Administration stated that, through this research initiative, young cadres have been encouraged to gain an in-depth understanding of the current state of grassroots tax administration and the needs and expectations of taxpayers and payers. By applying what they have learned, reflected upon, and conceived during their investigations to practical work, they are able to address real‑world challenges at the frontline and put forward valuable, constructive recommendations, thereby strengthening their capacity for pragmatic action and honing a robust, professional work style.

State Taxation Administration: Over the past decade, a total of 620 measures have been introduced to benefit businesses and facilitate taxpayers.
At the State Council’s regular policy briefing held on June 16, Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration, stated that over the past decade, tax authorities have introduced a total of 620 measures to benefit businesses and facilitate taxpayers. Taxpayers and payers have widely reported that these efforts have continuously improved the tax-related business environment and driven four major transformations in tax and fee services.
According to the briefing, the four shifts include: first, a transition from primarily offline services to a balanced approach that integrates both online and offline channels. The scope of “non-contact” services has been expanded to 233 items, covering all major tax filing and payment matters. Corporate social security contributions are now fully handled online, while individual social security payments are largely available via mobile apps. Across the country, the “Non-Resident Cross-Border Tax Services” scenario has been simultaneously launched on electronic tax platforms; cross-provincial remote electronic tax payments have been promoted, enabling taxpayers to pay taxes across provinces without leaving home. This year, 5,566 cross-border tax payments totaling RMB 7.05 billion have been processed. Additionally, this year, deficiency‑based processing will be extended to 13 types of tax‑related documents, and a notification‑and‑commitment system will be implemented for six tax certification matters, further reducing the need to submit supporting documentation.
Second, the focus is shifting from consultation‑based services to demand‑driven, proactive service delivery. Leveraging the electronic tax bureau, the system automatically sends notifications on credit‑offset tax refunds and export tax rebates, gradually enabling taxpayers to file for refunds online. In addition, it proactively provides guidance on tax filing deadlines, system operations, and key issues or challenges, further streamlining tax administration and payment processes.
Third, we are shifting the focus from primarily providing standardized services to equally emphasizing both standardized and personalized services. Building on robust standardized offerings, we are strengthening intelligent analysis of taxpayers’ filing habits and service needs, offering personalized responses such as “We Guess What You’re Looking For” and “Frequently Asked Questions.” We also provide one-stop, end-to-end services for vulnerable groups, including seniors and persons with disabilities. Leveraging tax‑related big data analytics, we precisely match upstream and downstream enterprises, helping 2,982 businesses this year to effectively facilitate purchases and sales totaling approximately RMB 7.5 billion.
Fourth, we are shifting the focus from procedural services to rights‑based services. We have established a rights‑based review system for tax‑related normative documents, improved mechanisms for addressing taxpayers’ service‑related concerns, and institutionalized routine measures to resolve the issues that matter most to taxpayers. In addition, we have refined the tax credit restoration mechanism; this year, 1.48 million enterprises have successfully had their tax credit ratings restored or upgraded.
Going forward, the tax authorities will remain committed to putting the people first and upholding fundamental principles while fostering innovation. They will focus on addressing the pressing concerns, difficulties, and expectations of taxpayers and payers, and continue to roll out new measures. By leveraging smart technologies, they will drive the iterative enhancement of convenient tax filing and payment services, further elevating the precision, intelligence, and personalization of tax and fee administration. Moreover, they will integrate rights‑based services throughout the entire lifecycle of market entities, better delivering tangible results and alleviating public concerns, thereby fostering a favorable tax‑related business environment that supports high‑quality development.

Tax authorities are adopting a multi-pronged approach to optimize the tax-related business environment.
From January to April, nationwide tax and fee reductions, refunds, and deferrals totaled RMB 468.9 billion.
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‑related 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 effectiveness of tax and fee policies to create a business-friendly tax environment that reduces burdens on enterprises. We have actively implemented the decisions and arrangements of 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 an additional 468.9 billion yuan in tax and fee reductions, refunds, and deferrals. 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 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 notifications to 209 million taxpayer instances. Furthermore, by utilizing “benefit statements,” we have strengthened taxpayers’ sense of receiving tangible policy advantages; to date, we have issued such statements to 18.92 million medium‑ and large‑sized enterprises, as well as those classified as “specialized, refined, distinctive, and innovative.”
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 online and mobile channels account for more than 95% of national social security contributions. 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 help taxpayers resolve 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: uniform discretionary guidelines for administrative tax penalties have been established in regions including the Yangtze River Delta, the Beijing–Tianjin–Hebei area, Sichuan–Chongqing, and Northeast China, promoting coordinated and harmonized enforcement across these areas. Efforts to combat violations will be stepped up, with resolute crackdowns on malicious tax evasion, fraud, and other unlawful practices. 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 vitality. As a key economic management authority, 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 administration and payment, and tax enforcement and oversight. By adopting innovative approaches to meet emerging demands, address new challenges, and achieve 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.

The substantive regulations on corporate income tax for key industries in the Shanghai Lingang New Area have been officially promulgated.
On June 13, the Shanghai Municipal Tax Service Bureau, the Shanghai Municipal Finance Bureau, and two other departments jointly issued the “Notice on Issues Related to Substantive Production or R&D Activities of Key Industry Enterprises in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone,” which took effect on January 1, 2023.
The Notice applies to corporate entities registered in the New Area and seeking eligibility for the corporate income tax preferential treatment designated for key industries of the New Area. Substantive production or R&D activities conducted within the New Area are defined as those in which an enterprise maintains fixed premises for production and operations, a stable workforce, and the requisite hardware and software infrastructure, and carries out relevant business activities on that basis. In accordance with the requirements set forth in Shanghai Finance Document No. 12 [2020], when submitting to the Management Committee of the Lingang New Area of the Shanghai Pilot Free Trade Zone the application materials for the corporate income tax preferential treatment for key industries of the New Area as stipulated in Finance and Tax Document No. 38 [2020], enterprises shall concurrently submit the “Self‑Assessment Commitment Form for Substantive Production or R&D Activities.”

LITIGATION & ARBITRATION
The Supreme People’s Court has released the Ten Typical Cases of China’s Anti‑Domestic Violence in 2023.
On June 15, the Supreme People’s Court website published the Ten Typical Cases of Domestic Violence in China (2023).
This batch of typical cases includes four criminal cases, three cases involving personal safety protection orders, and three divorce disputes. In Case 2, the court clarified that if a woman subjected to domestic violence kills her abuser out of unbearable suffering, such conduct may be classified as intentional homicide with “relatively minor circumstances.” In Case 3, the court held that disciplining one’s children is not a justification for committing domestic violence; when domestic violence against a child results in death on the spot, it should be prosecuted as intentional injury. In Case 4, the court ruled that stopping ongoing domestic violence constitutes legitimate self‑defense under criminal law and thus entails no criminal liability.

The Ministry of Justice has released the “2022 Statistical Analysis of Lawyers and Grassroots Legal Services,” revealing that the number of practicing lawyers nationwide has exceeded 650,000.
Recently, the Ministry of Justice released the “2022 Statistical Analysis of Lawyers and Grassroots Legal Services.” According to the data, as of the end of 2022, there were over 651,600 practicing lawyers nationwide and more than 38,600 law offices. Additionally, there were over 13,000 grassroots legal service institutions and more than 56,000 grassroots legal service workers across the country.
Compared with 2021 statistics, the number of practicing lawyers nationwide increased by 76,800 in 2022, a year-on-year rise of over 13%. Twenty-three provinces, autonomous regions, and municipalities have more than 10,000 lawyers; eight provinces and municipalities—Guangdong, Beijing, Jiangsu, Shanghai, Shandong, Zhejiang, Sichuan, and Henan—have more than 30,000 lawyers, with Henan entering the “30,000+” bracket for the first time. Nationwide, over 2,100 new law offices were established, and the number of law offices with 100 or more lawyers reached 500, an increase of more than 20%.
Statistical data show that lawyers’ participation in state and political affairs has been further strengthened. By the end of 2022, a total of 12,017 lawyers held positions as deputies to people’s congresses or members of Chinese People’s Political Consultative Conferences at various levels—4,219 serving as deputies to people’s congresses at all levels, 7,067 as members of CPPCC committees at all levels, and 731 as delegates to Party congresses at various levels. Drawing on their professional expertise and institutional roles, the legal profession has contributed its wisdom and strength to advancing the central tasks and serving the overall national interest, actively engaging in the great endeavor of governing the country according to law in all respects, and promoting high-quality economic and social development.

The High People’s Courts of Sichuan and Chongqing jointly released an Administrative Adjudication White Paper and a collection of typical administrative litigation cases.
To comprehensively implement the spirit of the 20th National Congress of the Communist Party of China, deeply apply Xi Jinping’s Thought on the Rule of Law, and vigorously advance law-based collaboration and coordinated efforts in building the Chengdu–Chongqing Twin-City Economic Circle, thereby jointly creating a distinctive model for judicial cooperation, on June 9, the Sichuan Provincial Higher People’s Court and the Chongqing Municipal Higher People’s Court held a press conference via video link, jointly releasing an administrative adjudication white paper and a collection of typical administrative litigation cases.
Wang Zhongwei, Deputy Secretary of the Party Group and Vice President of the Chongqing Higher People’s Court, stated that in 2022, courts across the city received 12,290 new administrative litigation cases, a year-on-year decrease of 22.08%; and 5,164 new non-litigious administrative enforcement review cases, down 50.49% from the previous year. Courts throughout the city concluded 13,582 administrative litigation cases, a year-on-year decline of 6.47%, with a case closure rate of 89.26%, up 6.04 percentage points compared with the previous year; they also concluded 5,352 non-litigious administrative enforcement cases, a year-on-year drop of 48.37%.
Wang Zhongwei stated that, in aligning with the overarching goals of the central authorities and focusing on safeguarding economic and social development, the city’s courts have closely addressed systemic issues identified in the adjudication of administrative cases involving “delegation, regulation, and service” reform, rural collective land expropriation, and housing expropriation on state-owned land. By doing so, they have encouraged relevant administrative agencies to issue administrative regulations and normative documents, thereby providing policy guidance for administrative law enforcement and the resolution of administrative disputes. The courts have handled 4,040 administrative cases—such as those concerning collective land expropriation and urban housing demolition—in a lawful and prudent manner, facilitating the smooth implementation of key infrastructure projects and major initiatives. Additionally, they have properly adjudicated 1,008 administrative cases related to business environment‑relevant matters—including government function transformation, market access, and administrative agreements—thereby contributing to the building of a rule-of-law‑based business environment.
In upholding the principle of justice for the people and vigorously safeguarding the legitimate rights and interests of the public, the city’s courts have rigorously applied the conditions for filing administrative lawsuits, continuously streamlining channels for citizens to seek judicial redress. They have steadily expanded both the depth and breadth of protections for the rights of administrative counterparts, successfully resolving 452 major and complex administrative disputes through non-litigation means. By adjudicating cases in a lawful and efficient manner, they have continually enhanced the effectiveness of rights protection. Several key indicators—such as the first-instance mediation-and-dismissal rate and the rate of remand for retrial of final judgments—rank among the highest nationwide.
In extending the functions of administrative adjudication and vigorously promoting the building of a law-based government, courts across the city have actively participated in 392 sessions of consultation and deliberation on local legislative initiatives, the drafting of normative documents, and the formulation of major administrative decisions, thereby preventing irrational administrative disputes at their source. Taking the lead nationwide, the city has organized joint training programs for government and judicial bodies, fostering a unified understanding of administrative enforcement and judicial principles. Efforts to encourage heads of administrative agencies to appear in court have been intensified, with an attendance rate of 83.2 percent; moreover, there is a gradual shift from merely “showing up” to “speaking out” in court. All 15 district-level courts have issued annual Administrative Adjudication White Papers, and the Municipal Higher People’s Court, for the first time, simultaneously distributed these white papers to the principal leaders of the “four leading groups” in each district and county, as well as to resident deputies and committee members, thereby communicating information on administrative litigation cases, offering recommendations for standardizing administrative enforcement, and providing guidance to administrative agencies on lawful governance. The Municipal Higher People’s Court also circulates minutes of its Administrative Adjudication Judges’ Conference to the defendant administrative agencies and relevant administrative departments, using them to guide agencies in addressing specific cases where they have lost and in regulating particular categories of administrative conduct. Leveraging the “All‑Chongqing Digital Intelligent Court,” the courts have conducted in-depth analyses of issues related to lawful administration identified through administrative adjudication, producing more than ten high‑quality research reports that serve as valuable references for decision‑making in the construction of a law‑based government.
In implementing the “Fengqiao Experience” for the new era and striving to resolve administrative disputes, the Municipal Higher People’s Court, in collaboration with the Municipal People’s Procuratorate and the Municipal Justice Bureau, issued the “Opinions on Coordinating Efforts to Substantively Resolve Administrative Disputes,” thereby pioneering, at the provincial level, a comprehensive, tripartite governance mechanism that integrates judicial, administrative, and procuratorial efforts. This mechanism covers the entire dispute‑resolution process—before, during, and after litigation—and extends upstream to preventive measures. A regular cooperative framework between the courts and procuratorates has been established to address administrative disputes, prompting the Third Intermediate People’s Court and the Third Branch of the Municipal People’s Procuratorate to jointly formulate guiding principles. The practices adopted under this centralized jurisdiction for substantively resolving administrative disputes have received high praise from the Supreme People’s Court. Courts across all districts and counties have actively promoted the establishment of administrative dispute‑resolution centers or the refinement of collaborative mechanisms for handling such disputes. Furthermore, the courts have intensified their use of judicial recommendations: throughout the city, 155 such recommendations were sent to administrative agencies, with 143 responses received, yielding a response rate of 92.26%. The approach of “implementing the Fengqiao Experience in the new era and pursuing the substantive resolution of administrative disputes” was shared as a best practice at the Sixth National Conference on Administrative Adjudication.
In addition, courts across the city have advanced judicial reform and focused on refining and innovating trial mechanisms. They have promoted the streamlined handling of administrative cases by applying simplified procedures: intermediate and primary-level courts in the city adjudicated 2,004 administrative cases under such procedures, accounting for 24.53% of all first-instance administrative cases filed during the same period. The city has steadily piloted reforms to clarify the functional roles of courts at four levels, systematically implementing measures such as devolving jurisdiction over “four categories of cases,” adopting a “downward referral–upward review” and “upward referral–downward review” approach for special cases, and optimizing the retrial review process, thereby aligning case‑level jurisdiction with court‑level competence. Furthermore, designated and cross‑jurisdictional arrangements have been improved and refined, effectively mitigating the “home‑court advantage” phenomenon in administrative litigation.
Liu Lanping, a full-time member of the Adjudication Committee of the Chongqing Higher People’s Court, released the 2022 list of typical administrative litigation cases in Chongqing. Wang Xiao, a member of the Chongqing Municipal Committee of the Chinese People’s Political Consultative Conference and a supply-chain specialist in the Logistics Department of Changan Ford Motor Company, along with representatives from central media outlets stationed in Chongqing and major local media, attended the press conference.
Su Fu, Chief Judge of the Administrative Adjudication Division of the Municipal Higher People’s Court, answers questions from reporters.
Question: Today’s press conference mentioned “substantive resolution of administrative disputes.” Could you please explain the Chongqing Higher People’s Court’s key measures for advancing the substantive resolution of administrative disputes?
Answer: Chief Justice Zhang Jun of the Supreme People’s Court has pointed out that when ordinary citizens bring cases to the courts, they seek to resolve their problems, not merely to go through formal procedures. At present and for the foreseeable future, the Chongqing Higher People’s Court will guide courts throughout the city to earnestly strengthen efforts to achieve substantive resolution of administrative disputes, effectively addressing the issues of high appeal rates, high applications for retrial, and low rates of acceptance of judgments and cessation of litigation, so that the people may more fully experience the tangible benefits of administrative adjudication.
First, leverage external resources to strengthen coordination between government and the courts. Implement the “Opinions on Jointly Promoting the Substantive Resolution of Administrative Disputes,” jointly issued by the Municipal Higher People’s Court, the Municipal People’s Procuratorate, and the Justice Bureau, and encourage all districts and counties, as well as municipal administrative departments where administrative disputes frequently arise, to comprehensively establish administrative dispute resolution centers or mechanisms for collaborative dispute resolution, ensuring that these mechanisms are effectively put into practice. Continue to organize joint training sessions involving government, courts, and procuratorates, hold regular joint meetings between government and judicial bodies, and promote the alignment of administrative enforcement and judicial practices. Improve the participation of heads of administrative agencies in court proceedings, strengthen the issuance of judicial recommendations, and guide administrative agencies to proactively resolve administrative disputes.
Second, we will strengthen our internal capabilities and enhance the quality and effectiveness of dispute resolution. We will promote the typification of dispute‑resolution approaches, distinguishing among case types, the underlying causes of disputes, and whether and to what extent the administrative agency being sued exercises discretionary authority, thereby rendering tailored administrative judgments aimed at preventing disputes at their source and achieving their genuine resolution. Furthermore, we will advance the substantive resolution of administrative disputes throughout the entire process—before, during, and after litigation—fully leveraging the functions of administrative adjudication to establish a comprehensive mechanism for addressing administrative disputes. This mechanism will focus on screening, mediation, clarification, adjudication, and post‑litigation follow‑up, implementing layered filtering of conflicts to ensure a thorough and effective resolution at every stage.
Third, we focus on addressing issues at their source and promoting source‑level governance. We actively participate in the consultation and deliberation processes for local regulations, administrative legislation, normative documents, and major administrative decisions, offering compliance‑oriented recommendations to prevent irrational administrative disputes from arising in the first place. We regularly share with relevant departments and agencies information on administrative agencies’ losses in litigation and cases where enforcement has been denied, thereby ensuring that each judgment contributes to standardizing practices across a broader scope. Leveraging the “All‑Chongqing Digital Intelligent Court” platform, we are exploring the integration of judicial big data from administrative adjudication into the digital government’s public data system, advancing data sharing and interoperability, and facilitating the seamless exchange of case information. This enables us to produce high‑quality policy‑advisory reports, supporting Party and government decision‑making as well as social governance through intelligent services.

The Zhejiang High People’s Court has, for the first time, released its report on financial adjudication and simultaneously published ten landmark cases.
On June 14, the Zhejiang High People’s Court convened a press conference on financial adjudication across the province, at which it unveiled for the first time the “Zhejiang Courts’ Report on Financial Adjudication” and released ten landmark cases in the field of financial litigation.
The Report summarizes the basic situation and data of financial adjudication by Zhejiang’s courts over the past five years, highlighting key characteristics such as the high proportion of private lending cases and relatively limited litigation disputes in financial loan and credit card matters. It also offers a brief outlook on future measures. The ten typical cases released in this batch cover a range of case types, including disputes over securities trading agency contracts, liability disputes arising from false statements in securities, disputes over conofficeation of stock rights, contract‑based agency disputes, property insurance contract disputes, and financial loan contract disputes. In Case No. 1, the court clarified that financial institutions have a statutory obligation to establish and maintain sound systems for customer identification and the retention of customer identity information, emphasized the need to balance compliance with anti‑money‑laundering obligations and the protection of customers’ legitimate rights and interests, and further specified the appropriate scope within which financial institutions may require customers to cooperate with anti‑money‑laundering efforts.

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