JC Master Legal News Issue 1066

Key Takeaways for This Issue
The SSE STAR 50 ETF options have been listed smoothly.
On June 5, 2023, the listing ceremony for the STAR 50 ETF options was successfully held at the Shanghai Stock Exchange.
Yi Huiman: We will do our utmost to ensure that listed companies provide investors with truthful and transparent information, and we will resolutely crack down on illegal activities such as insider trading and market manipulation.
On June 8, Yi Huiman, Chairman of the China Securities Regulatory Commission, addressed the 14th Lujiazui Forum (600663), emphasizing the need to steadfastly advance the development of a modern capital market with Chinese characteristics and to better support China’s path to modernization. He underscored the importance of promoting coordinated development between investment and financing to better meet the diversified financial needs of households.
The Supreme People’s Procuratorate and the China Coast Guard have jointly issued a set of typical cases involving illegal sand mining at sea.
On June 8, the Supreme People’s Procuratorate’s official WeChat account issued the “Notice on the Issuance of Typical Cases Involving the Handling of Crimes Related to Illegal Sand Mining at Sea.”
The Supreme People’s Procuratorate has released 10 typical cases to further advance the handling of public interest litigation cases arising from the Central Environmental Protection Inspection.
To further advance the handling of public-interest litigation cases arising from the central ecological and environmental protection inspection, the Supreme People’s Procuratorate has released ten typical cases demonstrating coordinated efforts to implement rectification measures following the inspection. These cases address issues such as the remediation of pollution from hazardous waste, industrial wastewater, air quality, and heavy metals; ecological restoration of agricultural land and nature reserves; the crackdown on illegal mining; and the standardized management of urban solid waste.
Finance & Capital Markets
The SSE STAR 50 ETF options have been listed smoothly.
On June 5, 2023, the listing ceremony for the STAR 50 ETF options was successfully held at the Shanghai Stock Exchange. Qiu Yong, Secretary of the Party Committee and Chairman of the Shanghai Stock Exchange, Xie Dong, Vice Mayor of Shanghai, and Zhang Wangjun, Director of the First Department of Market Supervision of the China Securities Regulatory Commission, delivered remarks at the ceremony. Leaders and guests from the CSRC system, relevant departments of the Shanghai municipal government, representatives of STAR Market‑listed companies, and related market institutions attended the event, jointly witnessing this significant milestone in the Shanghai Stock Exchange’s equity options market.
Chairman Qiu Yong stated that the launch of CSI STAR 50 ETF options represents a crucial step in refining the STAR Market’s product lineup, better addressing investors’ risk-management needs, attracting more medium- and long-term capital to the STAR Market, and enabling the market to more fully fulfill its role in serving “hard‑tech” enterprises. Under the leadership of the China Securities Regulatory Commission, the Shanghai Stock Exchange will comprehensively implement the CPC Central Committee and the State Council’s strategic plans for the capital market, taking the full implementation of the registration‑based reform as the driving force. Upholding the principles of staying true to fundamentals while pursuing innovation and making progress steadily, the Exchange will accelerate the development of a modern capital market with Chinese characteristics, thereby making an even greater contribution to promoting high‑quality economic growth and building Shanghai into an international financial center.
Vice Mayor Xie Dong stated that the STAR Market has steadily enhanced its inclusiveness in supporting technological innovation, with its magnetic‑attracting effect continuing to grow, the “hard tech” component becoming increasingly prominent, and its role as a testing ground becoming ever more evident. As a result, it is playing an increasingly important role in underpinning Shanghai’s high‑quality economic and social development. The launch of options on the STAR 50 ETF represents a key measure for implementing the CPC Central Committee and the State Council’s decisions and arrangements to advance the development of Shanghai as an international financial center and to support Pudong New Area’s high‑level reform and opening‑up. It is hoped that the introduction of STAR 50 ETF options will further channel capital into the field of scientific and technological innovation, fostering two‑way synergy between Shanghai’s international financial center and its science‑and‑technology innovation hub, and driving their coordinated development.
Director Zhang Wangjun pointed out that, over the past three-plus years since the establishment of the STAR Market and the launch of the pilot registration-based system, the STAR Market has made steady progress thanks to the concerted efforts of all stakeholders, with its role as a “testing ground” for reform fully realized. He expressed confidence that the listing of the STAR 50 ETF options will better meet investors’ diversified trading and risk-management needs, further boost the STAR Market’s vitality and efficiency, and more effectively support the capital market in fostering technological self-reliance and strength. Looking ahead, the China Securities Regulatory Commission will continue to refine the regulatory framework for ETF options, guide exchanges in strengthening operational management and surveillance, and continually improve and optimize risk‑control mechanisms to promote the stable and sound development of the ETF options market.
Based on the full-day trading activity on the inaugural day of the STAR 50 ETF options, overall trading remained stable and largely in line with expectations. A total of 144 contracts were officially listed, encompassing both call and put options across four expiration months—June, July, September, and December 2023—and nine strike price levels. Total daily volume reached 309,900 contracts, with 171,500 call options and 138,400 put options; premium turnover amounted to RMB 79 million, with a notional value of RMB 3.442 billion, and open interest stood at 161,100 contracts. Overall, on its first day of trading, the STAR 50 ETF options were priced reasonably, the market operated smoothly, and investor participation was rational.

Yi Huiman: We will do our utmost to ensure that listed companies provide investors with truthful and transparent information, and we will resolutely crack down on illegal activities such as insider trading and market manipulation.
The current international economic and financial landscape is complex and volatile. Some economies are experiencing high inflation, elevated interest rates, mounting debt, and sluggish growth, while global economic expansion remains unstable and uncertainty has markedly increased. China’s economy is showing signs of recovery and improvement; however, its endogenous growth momentum remains weak, and advancing high-quality development will continue to require overcoming numerous difficulties and challenges.
On June 8, Yi Huiman, Chairman of the China Securities Regulatory Commission, addressed the 14th Lujiazui Forum (600663), emphasizing the need to steadfastly advance the development of a modern capital market with Chinese characteristics and to better support China’s path to modernization. He underscored the importance of promoting coordinated development between investment and financing to better meet the diversified financial needs of households.
In recent years, Chinese households’ wealth has continued to grow, and the structure of asset allocation has become increasingly diversified, placing higher demands on the capital market’s ability to enhance its service capabilities. Objectively speaking, the capital market is highly sensitive to macroeconomic conditions, industry policies, and the performance of individual offices; its price movements reflect the combined influence of fundamentals, policy factors, liquidity dynamics, market sentiment, and the external environment.
Yi Huiman stated that the CSRC will, in line with its statutory functions, uphold a market‑centric approach and respect market principles, officely bear in mind its fundamental duty to safeguard the legitimate rights and interests of investors, and advance investment‑financing reforms in a coordinated manner, thereby fostering a well‑aligned market environment and ecosystem for residents’ asset allocation.
First, we are fully committed to providing investors with listed companies that are genuine and transparent. According to reports, the combined operating revenue of listed companies now accounts for 60% of GDP, while the total profits of real‑economy listed offices represent roughly 50% of the total profits of large-scale industrial enterprises. Last year, the total amount of dividends and cash payouts by listed companies exceeded RMB 2 trillion for the first time.
Going forward, the China Securities Regulatory Commission will earnestly implement the new three-year action plan to enhance the quality of listed companies. Working in concert with relevant parties, it will focus on refining a long-term, comprehensive oversight mechanism, continuously improving the quality of information disclosure, maintaining a high-pressure enforcement stance, and rigorously punishing financial fraud and illegal appropriation of funds by major shareholders. These efforts will help listed companies strengthen their governance, competitiveness, innovation capacity, risk resilience, and ability to deliver returns, thereby solidifying the intrinsic foundations of a valuation system with Chinese characteristics.
Second, we must steadfastly strengthen long-term and value‑oriented investing. Yi Huiman pointed out that, drawing on the experience of mature global markets, long‑term, patient capital—such as pension funds and insurance funds—helps to mitigate short‑term market volatility, deliver sustained returns, and foster a virtuous cycle with the capital markets. Over the past decade, China’s social security fund has achieved an average annual investment return exceeding 8%, which serves as a compelling illustration.
Recently, stock market volatility has increased, and sector rotation has accelerated, prompting growing discussions on quantitative trading, market fairness, short-term speculative capital flows, and the responsibilities of industry institutions. The China Securities Regulatory Commission attaches great importance to capital market oversight and will continue to strengthen monitoring and regulation of market trading activities. It will closely track and analyze emerging trading practices such as quantitative trading, resolutely crack down on illegal activities like insider trading and market manipulation, and effectively safeguard a sound and healthy market order and ecosystem.
At the same time, it emphasized the need for industry institutions to bear in mind the principle of “faithfully fulfilling the duties entrusted by clients,” remain customer‑centric, maintain steadfast resolve, strengthen their core competencies, continuously enhance their professional capabilities and service standards, refine long‑term performance‑evaluation frameworks, and proactively cultivate an industry culture and investment ethos that better reflect the spirit of our times. By delivering solid, sustained results, they can deliver value to investors and ensure that the industry’s own development and the growth of client value advance in tandem.
Third, we have consistently prioritized fostering a dynamic balance between financing and investment. The financing and investment sides are two inseparable facets of the capital market’s functions, mutually reinforcing one another. In recent years, while ensuring the steady and normalized issuance of initial public offerings (IPOs) and secondary financings, we have also worked closely with relevant parties to deepen reforms on the investment side, adopting a range of measures to strengthen the investment capacity of professional institutions. At present, the total assets under management of public mutual funds exceed RMB 27 trillion, and the share of A‑share free‑float market capitalization held by various professional institutions has increased by 5 percentage points compared with the beginning of 2019.
Going forward, we will continue to vigorously develop equity‑oriented funds, boost the overall scale and optimize the structure of the public fund industry, support the steady growth of securities, fund, futures, and private‑placement asset‑management products, and guide private securities investment funds toward sound and sustainable development. We will further encourage various types of medium- and long‑term capital to increase their allocation to equity assets, while strengthening cross‑sectoral coordination and refining supporting systems and mechanisms in areas such as taxation and accounting. By addressing key pain points and bottlenecks, we will create a more favorable institutional environment for all categories of institutional investors.

Four analysts at China Merchants Securities have received warning letters, making brokerage research reports a “hard-hit area” for regulatory penalties.
On June 8, the Shenzhen Securities Regulatory Bureau issued a decision to impose a warning letter on four analysts, stating that, as securities analysts at China Merchants Securities Co., Ltd. (600999), the analysts’ research report titled “Offense and Defense Intertwined, Awaiting Dawn—February 2022 Views and Allocation Recommendations for A‑Shares” contained imprecise wording. Furthermore, the report failed to provide adequate disclosure regarding the methods used to forecast A‑share market trends, the analytical rationale employed, and the prior research findings cited.
As a result, China Merchants Securities also received a warning letter from the Shenzhen Securities Regulatory Bureau, which pointed out that the office’s securities research reporting business suffers from an imperfect market‑impact assessment mechanism, insufficient evaluation of the market influence of certain research reports, and inadequate tiered review and approval procedures. Furthermore, internal controls over analyst field‑research activities, client services, and public statements remain inadequate. In addition, some research reports were prepared without due diligence, exhibiting issues such as imprecise wording, failure to cite sources, improper disclosure of data origins, and non‑standard authorship practices.
Coincidentally, on the same day, the Guangdong Securities Regulatory Bureau also issued a warning letter to Yuekai Securities and one of its analysts, highlighting multiple issues in the office’s research‑reporting business. These included deficiencies in business management, such as the failure to establish a media‑monitoring mechanism, inadequate compliance reviews for conflicts of interest, the omission of reporting certain media‑interview content to the compliance department, insufficient internal review of some stocks’ inclusion in the coverage universe, and the absence of specific guidelines for independent research that is not client‑service‑oriented or for joint research that carries client‑service characteristics. Additionally, some research reports contained imprecise forecasts of listed companies’ financial data.
In fact, the brokerage analysts recently subject to regulatory penalties are not limited to China Merchants Securities and Yuekai Securities; other offices—including Southwest Securities (600369), Sinolink Securities (000166), Shengang Securities, Nomura Orient, and Minsheng Securities—have also received relevant warning letters.
On June 6, the Chongqing Securities Regulatory Bureau issued warning letters to Southwest Securities and two of its analysts, citing multiple compliance deficiencies in the quality of the company’s research reports: first, certain reports contained imprudent views and insufficient supporting evidence; second, some reports failed to clearly disclose data sources and included inaccuracies; third, several investment‑value research reports exhibited inconsistencies between analysis and conclusions, imprudent earnings forecasts, descriptions that did not align with the facts, and inadequate quantitative risk disclosures; and fourth, in some cases, valuation model working papers were not uploaded during quality‑control reviews.
Among the sanctioned personnel, two analysts were primarily implicated in issues such as inadequate research report quality and operating without proper certification.
Going back to May 30, analysts at First Capital Securities also received a warning letter from the Beijing Securities Regulatory Bureau over issues with their research reports. According to the relevant announcement, the reports contained cited data without source attribution; certain working papers were missing from the management system, and the review process included only valuation models, with no other supporting documentation; moreover, some sections of the reports exhibited internal inconsistencies; and the selection of comparable companies was inadequate, among other concerns.
Earlier, on May 25 alone, the Shanghai Securities Regulatory Bureau issued five warning letters, also targeting the poor quality of securities offices’ research reports.
On specific issues, the regulatory notice indicated that research reports authored by analysts at SW Securities exhibited such shortcomings as exaggerated headlines and an inability to verify the authenticity of certain information sources; research reports signed by analysts at Shengang Securities likewise suffered from a lack of verifiable sourcing for some information; reports signed by analysts at Nomura Orient International Securities were found to have insufficient supporting rationale for their analytical conclusions; and research reports signed by analysts at Minsheng Securities similarly displayed inadequate justification for their conclusions and failed to ensure compliance in their information‑sourcing practices.
In this regard, some industry observers believe that the series of penalties imposed on research‑reporting activities stems from earlier regulatory special inspections targeting securities offices’ research businesses. Moreover, the more than ten fines already issued likely do not represent the full extent of the crackdown; additional sanctions may soon be handed down to other brokerage offices and relevant analysts.
Some market participants also note that certain relatively specific forecasts or detailed content appearing in brokerage research reports typically originate from the listed companies themselves, with analysts often serving as mere conduits for the companies’ messaging. While this practice is standard industry procedure, it does carry the risk of incorporating inaccurate information from the listed companies into the reports.

Publicly offered REITs are seeing a long-awaited rebound, with industry insiders noting that valuations have now become more rational.
Recently, several fund managers and original equity holders have jointly issued announcements to initiate plans to increase their holdings of fund shares, sending a positive signal. On June 7, China Communications Investment and China Communications Second Navigation Bureau announced that they intend to use their own or self-raised funds to increase their stakes in the China State Construction Engineering Corporation (601800) REIT by up to 34.2 million units; meanwhile, Zhongguancun Development Group (000931) disclosed arrangements for subsequent share‑buying activities. In addition to the original equity holders, fund managers and their affiliated entities have also stepped in to purchase their own shares: AVIC Fund and CCB Capital have both announced that they will use proprietary capital to boost their holdings in the AVIC Jingneng Photovoltaic REIT and the CCB Zhongguancun REIT, with total investment not exceeding RMB 80 million.
Publicly offered REITs, which had been on a steady downward trend, staged a long-awaited rebound on June 7. By the close of trading that day, 23 out of the 27 listed public REITs ended higher, with an average gain of 1.14%, and four REITs posted gains exceeding 3%. Prior to this, public REITs had been caught in a confluence of headwinds—underwhelming fundamentals, concentrated selling by institutional investors, and weakening intraday liquidity—and had been locked in a broad-based decline since February. Notably, the CSI REITs Index has already accumulated nearly a 20% drop year-to-date, with nine products now trading below their issue prices.
Following a sharp correction in the secondary market, several institutional investors have noted that public‑offering REITs are now trading at more rational valuations. According to estimates by CICC, in 2023 the weighted average cash distribution rate (annualized) projected by fund managers stands at 7.0%, while the P/NAV ratio (price-to-net asset value) as of end-May was 1.04—down from 1.08 at the end of April. Both the property‑ownership and operating‑rights P/NAV ratios have fallen below one standard deviation from their historical averages, mirroring levels seen at the market’s inception two years ago. CICC believes that current REIT valuations have become more rational, with the allocation attractiveness of certain assets becoming increasingly evident.
Li Sheng, fund manager of the Fuguocai Shouchuang Water REIT, also pointed out that, as secondary‑market prices decline and fundamentals gradually improve, the investment appeal of certain REIT products is becoming increasingly evident. He advises investors to adopt a long‑term perspective when evaluating REITs, thoroughly understand the operational dynamics and underlying fundamentals of their underlying assets, and avoid blindly chasing gains or cutting losses.
“Drawing on the development trajectories of mature REITs markets overseas, we have also witnessed an early phase characterized by relatively small market capitalization and heightened volatility. Over the long term, public‑offering REITs offer a favorable risk‑return profile and strong allocation value, and investors should focus on core factors such as the underlying assets’ profitability and the management capabilities of both the fund manager and the asset‑management operator,” said Mo Yifan, Head of Administration in the Infrastructure and Real Estate Investment Department at China Asset Management Co., Ltd.

Financial measures to boost consumption go beyond simply “lowering prices.”
The financial sector has also joined the “618” shopping festival. Recently, several commercial banks have cut consumer loan interest rates and launched credit-card spending promotions offering discounts on purchases above a certain threshold; for some major state-owned banks, consumer loan rates have fallen as low as 3.7%. At the same time, concerns in the market have grown, with much of the debate centering on the potential “arbitrage risks” these measures may conceal.
At present, appropriately expanding consumer credit plays a positive role in boosting households’ willingness to consume and broadening domestic demand. In this process, bank lending—accounting for the largest share of indirect financing within the financial system—has significant potential. Among these, consumer loans serve as a “special‑operations force,” primarily addressing consumers’ small‑amount, short‑term liquidity needs across all aspects of daily life, from clothing and food to housing and transportation; they are often referred to as “working capital” or “emergency funds.”
However, it is important to note that financial measures to stimulate consumption are not simply about “cutting prices”; they constitute a comprehensive, systemic effort. Prices serve as signals for the allocation of resources in the market, and lowering borrowing costs can indeed help expand loan demand and ease the financial burden on consumers. Yet the original intent of such measures is not merely to “get people to spend,” but rather to leverage appropriate levels of credit to restore households’ willingness to consume, strengthen their purchasing power, and improve their consumption conditions—thereby enabling consumption to fully play its fundamental role in driving economic growth. Accordingly, beyond price reductions, financial institutions must also invest in diversifying products, enhancing service quality, and safeguarding the rights and interests of financial consumers.
To leverage finance to boost consumption, it is essential to align with genuine user needs—encouraging people to use financial products because they are “useful,” rather than simply because they are “cheap.” To this end, financial institutions should build on their existing offerings by further expanding and deepening their credit‑based services, with a particular focus on small‑value, high‑frequency sectors such as home renovation, dining, travel, and department stores and supermarkets. Although these areas may seem modest and far less lucrative than mortgage or auto loans in terms of individual loan sizes, they are closely tied to the quality of everyday life. For financial institutions, these “small‑ticket” segments offer distinct advantages: first, their sheer volume can offset the relatively low per‑loan value; when viewed holistically, the overall returns can be quite substantial—a case of “volume compensating for price.” Second, they help strengthen customer stickiness and foster the accumulation of routine funds, thereby enabling financial institutions to stabilize and grow their client base.
To leverage finance to boost consumption, it is essential to reach consumers efficiently, making financial services readily accessible rather than requiring deliberate effort. Compared with high-frequency spending scenarios, financial services tend to be low‑frequency. In other words, unless consumers actively seek them out, financial products and services are unlikely to integrate naturally into the purchasing process. However, this very pain point can also present a significant market opportunity. Moving forward, financial institutions should adopt a more internet‑centric mindset, prioritize channel development, and either embed financial services within diverse consumption and payment ecosystems or build their own platforms to bring merchants together, offering consumers one‑stop solutions that eliminate the need for borrowers to first secure financing before shopping.
While finance can boost consumption, it is equally important to prevent well-intentioned measures from being misused. At present, concerns about arbitrage risks are widespread in the market. The root cause lies in the stabilization of the bond market and the subsequent rebound in yields on bank wealth-management products; yields on certain fixed-income instruments have already climbed above 4%, and some banks’ large‑denomination certificates of deposit also offer rates exceeding 4%. By contrast, consumer loan rates at banks generally remain below 4%, creating an arbitrage opportunity. Financial regulators and financial institutions must rigorously monitor the flow of consumer loans and strictly scrutinize any illicit channeling of funds into investment‑management schemes, the stock market, or the real estate sector. For borrowers, two key considerations deserve particular attention: first, borrowing must be lawful and compliant—avoid any attempts to exploit loopholes, as such actions will incur corresponding liabilities; second, borrowing should be prudent and适度, steering clear of blind or excessive indebtedness to safeguard one’s financial health and legitimate rights.

National Administration of Financial Regulation: China’s financial sector is operating steadily overall, with risks generally under control.
On the morning of June 8, the 14th Lujiazui Forum opened in Shanghai, featuring seven plenary sessions and three “Pujiang Night Talks.”
The theme of this year’s forum is “Global Financial Openness and Cooperation: A New Engine for Economic Recovery.” Participants will discuss how to strengthen financial cooperation among countries and regions, bolster confidence in development, support the high-quality growth of the real economy, and promote global economic recovery and financial stability.
At the forum, Li Yunze, Director of the National Administration of Financial Regulation, stated that China has established the world’s largest banking system and the second-largest insurance, stock, and bond markets, and has also taken a leading position globally in inclusive finance, thereby providing robust support for the long-term, stable, and sound development of the economy and society.
Li Yunze, Director of the National Administration of Financial Regulation: The fundamental trend of China’s economy remaining on a long-term upward trajectory will not change, nor will its position as a major engine of global economic growth. This constitutes our strongest support and safeguard for preventing and defusing risks. At present, China’s financial sector is operating steadily overall, with risks generally under control, and we are fully equipped, confident, and capable of officely holding the line against systemic financial risks.
Li Yunze stated that strengthening and improving modern financial regulation is a key priority in the current financial sector. China will resolutely eliminate regulatory gaps and blind spots, enhance coordination between central and local regulators, continue to address disorderly practices in the financial market, impose severe penalties on serious violations of laws and regulations, and effectively safeguard the legitimate rights and interests of financial consumers.

Li Yunze of the National Administration of Financial Regulation: Shanghai’s Reinsurance “International Board” will officially launch.
On the 8th, at the opening ceremony of the Lujiazui Forum, the National Administration of Financial Regulation and the Shanghai Municipal Government jointly released the “Detailed Implementation Rules for Accelerating the Development of the Shanghai International Reinsurance Center,” marking the official launch of Shanghai’s international reinsurance platform.
The Shanghai Reinsurance “International Board” is advancing the transformation and upgrading of China’s reinsurance market—from “unidirectional opening” to “two-way opening”—by establishing Chinese regulations and standards. It seeks to deepen participation in global reinsurance industry cooperation, offer a Chinese solution for global risk‑management and financial governance, and help safeguard a diversified and stable international risk‑protection framework and financial‑cooperation relationships. The official launch of the Shanghai Reinsurance “International Board” also marks another significant step forward in building Shanghai into an international reinsurance hub.

This year, the number of newly launched public mutual funds has surpassed 500, and the net asset value of public funds has successfully exceeded RMB 26 trillion.
Recently, Huaxia Juying Youxuan Three-Month Holding Hybrid Fund, Quanguo Siyuan Three-Year Holding Hybrid Fund, and China Merchants CSI All-Index Software ETF Feeder Fund have successively announced their establishment, signaling that public mutual funds are set to once again increase their allocations in these sectors. As of June 6, the number of newly launched funds this year has surpassed 500, with total issued shares exceeding 420 billion.
Several industry insiders noted that, although new fund launches have slowed compared with the same period last year, overall issuance remains on an upward trajectory. Moreover, from the perspective of institutional allocations, products across various categories are being deployed, with each office placing particular emphasis on distinct investment themes.
For three consecutive months, the number of newly launched funds has exceeded one hundred.
Since the beginning of this year, the overall size of public mutual funds has maintained a steady yet progressive trend. Specifically, in January, the total number of public mutual funds stood at 10,530, with aggregate shares totaling 23.81 trillion and net asset value reaching RMB 25.79 trillion. By March, the number of funds had increased to 10,700, with total shares rising to 24.52 trillion and net asset value surging to RMB 26.38 trillion, surpassing the RMB 26 trillion mark. As of June 6 (the same applies hereafter), the total number of public mutual funds had grown to 10,890, with aggregate shares amounting to 24.49 trillion and net asset value reaching RMB 26.53 trillion, reflecting a continued upward trajectory.
Looking at new fund launches this year, as of June 6, based on the funds’ establishment dates, a total of 508 new funds have been launched, with aggregate issuance reaching 425.215 billion shares. Among these, equity funds accounted for 121 launches, or 23.82%, with 53.333 billion shares issued; hybrid funds numbered 170, representing 33.46% and totaling 97.287 billion shares; and bond funds totaled 130, or 25.59%, with 253.026 billion shares issued. Overall, bond‑type products remain the dominant force among newly launched funds this year.
From the perspective of monthly issuance trends, the number of newly launched funds in March, April, and May all exceeded 100. However, in terms of total shares issued, only March surpassed 100 billion shares, reaching 144.269 billion; by contrast, although February saw just 75 new funds, its total share issuance amounted to 88.422 billion.
However, by comparison, institutions’ enthusiasm for launching new funds this year has declined relative to the same period last year. According to Wind data, 693 funds were launched during the same period last year, with total issuance reaching 679.554 billion shares—254.339 billion shares more than in the corresponding period this year. Specifically, equity funds numbered 127 and raised 40.9 billion shares; hybrid funds totaled 285, raising 164.443 billion shares; and bond funds reached 202, with 442.884 billion shares issued.
A representative from China Trustee Prudential Fund stated that new fund launches this year have declined compared with last year and are exhibiting new trends, such as a rise in the number of “balanced” and “growth-oriented” products, as well as an increase in the share of funds with lock-up periods.
The total number of index funds is approaching 800.
According to available data, among newly launched products this year, index funds have increasingly become a key focus for institutional investors. Wind data show that as of June 6, ETF shares have risen by 232.304 billion since the start of the year, up 16.06% from the beginning of the year, reaching 1.68 trillion shares; total assets under management have increased by RMB 76.307 billion, a 4.71% rise from the start of the year, totaling RMB 1.7 trillion. However, in terms of trading activity, average daily turnover has declined by RMB 15.588 billion, down 13.61% from the beginning of the year, to RMB 98.942 billion.
Within the year, 42 new index funds were launched, bringing the total to 794—just one step away from the 800‑fund milestone. Among them, the sector with the largest increase in assets under management is healthcare, currently tracked by nine funds; the theme with the biggest growth is the CSI Healthcare Index, followed by three funds; the index underlying the largest asset‑growth is the Hang Seng Tech Index, tracked by ten funds; and the highest‑returning index is the Animation & Gaming Index, which has surged 103.26% year-to-date, with three funds tracking it.
Although the pace of new fund launches has cooled this year, institutional investors remain broadly optimistic about various sectors. Yang Yu, a fund manager at China Asset Management, noted that the new-energy sector has once again entered a period of heightened volatility. From a cyclical perspective, industry sentiment over the past quarter fell short of expectations, primarily because, following a decline in lithium prices, the supply chain adopted a “destocking” strategy. With lithium prices recently stabilizing more strongly than anticipated, the pressure on midstream companies to continue destocking has eased, and battery manufacturers are gradually building up inventories—both developments poised to further bolster demand across the value chain. As a result, he remains bullish on the sector’s outlook for the second half of the year.
A representative from Everbright Bosera Fund stated that the outlook for equity assets has shifted to neutral‑to‑bullish. As of the end of May, from a relative valuation perspective, the equity‑bond value‑for‑money ratio has rebounded to above the 70th percentile, further enhancing the attractiveness of high‑quality equities. Over the longer term, the equity market’s heightened sensitivity to positive catalysts is likely to accentuate its characteristic near‑term lows, which in itself serves as a strong signal that market sentiment is poised to identify a turning point.
Notably, as many as 198 funds are currently being offered. By category, equity‑oriented hybrid funds account for the largest share, with 128 offerings, followed by index funds, which number 23. In terms of target fundraising volumes, 23 funds have set a cap of 8 billion units, while another 5 have capped at 7 billion, 8 at 6 billion, and 20 at 5 billion; in total, more than 140 funds have target fundraising levels below 5 billion units.
In addition, there are currently 65 fund products that have been issued but are still pending approval, and 556 products awaiting approval. These offerings cover virtually all major categories, including equity, hybrid, bond, and index funds.

Commercial & Corporate
The Shenzhen Corporate Compliance Association has been approved for establishment, becoming the nation’s first specialized association dedicated to corporate compliance.
On June 6, according to an official WeChat post by the Qianhai Administration of Shenzhen, the Shenzhen Corporate Compliance Association—the nation’s first professional association dedicated to corporate compliance, under the supervision of the Shenzhen Municipal Justice Bureau—has officially been approved for establishment.
The association’s inaugural cohort comprises 166 founding members, including major state-owned and private enterprises such as Shenzhen Investment Holdings Co., Ltd., Guosen Securities Co., Ltd., Shenzhen Trading Group Co., Ltd., Tencent Technology (Shenzhen) Co., Ltd., ZTE Corporation, and Xinwangda Electronics Co., Ltd., as well as prominent institutions like the Qianhai Belt and Road Legal Services Federation of Shenzhen, Shenzhen University, the Shenzhen National Commercial Certification Center, the Pengcheng Institute of Legal Compliance of Shenzhen, Lianzhou International Credit Rating Co., Ltd., the Shenzhen Institute for Compliance Management of Multinational Enterprises, Huashang Lin Li Li (Qianhai) Associated Law Office, Jiade Xin Law Office, JC Master Tai (Shenzhen) Law Office, and KPMG Consulting (China) Co., Ltd. – Shenzhen Branch, along with universities, research institutes, and specialized professional organizations. The association will take the lead in piloting the development of occupational standards for corporate compliance officers, drafting local qualification criteria for corporate compliance professionals, establishing an education and training framework for compliance talent, and setting up multiple specialized committees covering areas such as data protection, trade, intellectual property, antitrust, and anti‑money laundering.

The Shanghai Cyberspace Administration has released an excerpt of the “Guidance on Filing Standard Contracts for the Cross-Border Transfer of Personal Information.”
On June 7, the Shanghai Cyberspace Administration issued the “Notice on Filing Standard Contracts for the Cross-Border Transfer of Personal Information.”
The Notice clarifies that personal information processors headquartered in Shanghai shall prepare the required documentation in accordance with the filing requirements set forth in the “Guidance on Filing Standard Contracts for the Cross-Border Transfer of Personal Information (Version 1.0).” Such materials primarily include the Unified Social Credit Code certificate, the legal representative’s identification, the authorized agent’s identification, the agent’s power of attorney, a letter of commitment, the standard contract for the cross-border transfer of personal information, and the personal information protection impact assessment report. Personal information processors must, within ten working days from the effective date of the standard contract, file with the Shanghai Municipal Cyberspace Administration by submitting written documents together with electronic copies of the supporting materials.

The coverage of the housing provident fund system has further expanded.
The “2022 Annual Report on the National Housing Provident Fund,” jointly released on the 8th by the Ministry of Housing and Urban–Rural Development, the Ministry of Finance, and the People’s Bank of China, shows that last year the fund’s various operations remained stable. Housing provident fund contributions totaled RMB 3.193505 trillion, with 67.8263 million individuals withdrawing RMB 2.136327 trillion, and 2.4775 million individual housing loans amounting to RMB 1.184185 trillion being issued.
The report indicates that the coverage of the housing provident fund system has continued to expand. Throughout the year, 4.5272 million employers made actual contributions, and 169.7957 million employees were covered, representing increases of 8.80% and 3.31%, respectively, compared with the previous year. Additionally, 752,200 new employer accounts were opened, along with 19.8544 million new employee accounts. Employees from urban private enterprises and similar entities accounted for more than half of all newly enrolled participants and their share has been steadily rising; among the newly enrolled employees, those from urban private enterprises and other urban enterprises, foreign-invested enterprises, privately-run non‑enterprise entities, and other types of organizations together comprised 76.02%.
More high-frequency housing provident fund services have been made available through interprovincial one-stop processing. Throughout the year, three additional high‑frequency services were added to the interprovincial one‑stop platform, bringing the total to 11. Local authorities have established 3,423 dedicated offline service windows and 1,043 online service portals for these cross‑province transactions. During the year, online applications for housing provident fund contributions, make‑up payments, and early partial repayments of housing provident fund loans reached 84.14 million, 4.63 million, and 2.52 million, respectively.

Localized innovation is driving the global expansion of new-energy vehicles.
In the new‑energy vehicle sector, China has not only remained the world’s largest producer and consumer for eight consecutive years but has also emerged in recent years as the leading global exporter. The accelerated international expansion of new‑energy vehicles is becoming a new hallmark of “Made in China.”
Clothing, furniture, and home appliances were once known as China’s “traditional three major export categories.” According to data from the General Administration of Customs, in the first quarter of 2023, exports of newly competitive manufacturing products performed exceptionally well. The combined exports of electric passenger vehicles, lithium batteries, and solar cells—collectively referred to as the “new three major exports”—rose by 66.9%, with year-on-year growth exceeding RMB 100 billion, boosting overall export growth by 2 percentage points. Meanwhile, data from the China Association of Automobile Manufacturers show that in the first four months of 2023, new-energy vehicle exports reached 348,000 units, a 170% year-on-year increase—more than half of the 679,000 units exported for all of 2022. In April alone, exports surged by 840% compared with the same month last year. At present, China’s new-energy vehicles are sold across all six continents.
In 2022, China surpassed Germany to become the world’s second-largest automobile exporter; in the first quarter of 2023, it overtook Japan in export volume and is poised to claim the title of the world’s largest auto exporter this year. New‑energy vehicles (NEVs) have undoubtedly played a pivotal role, offering China a rare opportunity to leapfrog ahead on a new track. Backed by an ultra‑large domestic market and a fully integrated industrial system, and bolstered by national strategic planning and concerted efforts by enterprises, Chinese automakers now lead the NEV race, with their research and development in intelligent technologies and related applications at the forefront globally. As flagship products embodying cutting‑edge technology, high value added, and green transformation, the rapid growth of NEV exports reflects the steady progress of China’s manufacturing sector toward higher‑end, smarter, and greener production under supply‑side structural reform.
However, building cars is a marathon. The journey of China’s new‑energy vehicles into the global market is far from smooth; it is fraught with challenges and uncertainties. In the development of China’s new‑energy vehicle industry, we enjoy significant advantages in certain areas, such as power batteries. Yet we must also recognize that critical gaps remain in others—particularly in operating systems and automotive chips—components that are essential to establishing a robust ecosystem for intelligent electric vehicles. Only by intensifying innovation, ramping up R&D investment, and swiftly addressing weaknesses in our industrial and supply chains can we consolidate and expand our competitive edge, ensuring that Chinese new‑energy vehicles gain even greater acceptance overseas.
China’s overseas footprint for new-energy vehicles continues to expand, thanks in no small part to supportive policies and logistics infrastructure. In recent years, addressing the key challenges of exporting NEVs, both central and local authorities have introduced a series of significant measures to help automakers actively tap into international markets. Whether through upgrading infrastructure, enhancing transport capacity, or bolstering fiscal, tax, and financial support, these efforts have yielded tangible results. With the full implementation of the RCEP, the deepening of the Belt and Road Initiative, and the signing and entry into force of an increasing number of bilateral and multilateral free-trade agreements, trade facilitation has improved markedly—factors that will powerfully propel China’s NEV industry as it sets sail on the global stage.
As Chinese automakers expand into overseas markets, they face numerous challenges, including cultural and legal differences, exchange-rate risks, and shifting international relations. This compels them not only to conduct in-depth market research but also to accelerate the development of global marketing and after-sales service networks, while ensuring robust data security and personal privacy protection. At the same time, vehicle manufacturers, battery suppliers, and component offices must prioritize resource integration, collaborate to “go global,” and jointly build localized supply chains abroad. In short, the success or failure of China’s new‑energy vehicle industry in overseas markets hinges on how effectively it leverages localization. To this end, companies venturing abroad should both anticipate and address potential obstacles and embrace opportunities with confidence.

The deployment of the artificial intelligence industry is accelerating.
At present, the new wave of technological transformation driven by artificial intelligence (AI) is accelerating, and disruptive technologies emerging in areas such as general-purpose AI are profoundly reshaping production and lifestyles. Against this backdrop, regions across the country are actively developing their AI industries to seize the initiative in this rapidly evolving landscape.
Experts believe that emerging industries such as artificial intelligence represent the forefront of technological innovation and industrial transformation, serving as critical areas for fostering new growth drivers and securing competitive advantages, thereby helping to sustain steady economic expansion. At the same time, it is essential to avoid a rush to invest and redundant infrastructure development.
Supportive policies have been rolled out in rapid succession.
At last year’s Central Economic Work Conference, it was proposed to accelerate the development of a modern industrial system and to expedite the research, development, and application of cutting-edge technologies such as artificial intelligence. Since the beginning of this year, numerous localities have introduced policies and formulated strategic plans in the field of artificial intelligence.
On May 31, Shenzhen issued the “Shenzhen Action Plan for Accelerating High-Quality Development and High-Level Applications of Artificial Intelligence (2023–2024),” concurrently releasing the first batch of “City + AI” application scenario listings. The city has also established a coordinated AI fund portfolio totaling RMB 100 billion, striving to build itself into a national pilot zone for next-generation AI innovation and development and a national demonstration zone for AI innovation and application, with the aim of becoming a leading AI‑driven city.
Beijing recently unveiled two AI‑related support policies: the “Implementation Plan for Accelerating the Development of Beijing as a Globally Influential Hub for AI Innovation (2023–2025)” and the “Several Measures to Promote the Innovative Development of General Artificial Intelligence in Beijing.” From the perspective of encouraging and guiding industry growth, these measures address common needs for innovative development, further coordinate resources, and comprehensively advance the establishment of an independent AI technology system and the evolution of a robust industrial ecosystem.
Recently, the Shanghai Municipal Development and Reform Commission issued the “Several Policy Measures to Further Strengthen Support for the Development of Private Investment in Shanghai,” which proposes fully leveraging the guiding role of special programs such as the Artificial Intelligence Innovation and Development Initiative to encourage private enterprises to actively participate in the construction of AI‑related infrastructure, including data platforms and computing power. The policy also calls for advancing “demand‑side supplementation” reforms, enabling universities, research institutions, and state-owned enterprises to access data storage and computing resources financed by private investment through government procurement, leasing, and other mechanisms. Additionally, it will provide science and technology innovation vouchers to help private offices rent computing and storage resources, and promote the use of privately invested dedicated computing capacity by government agencies to support specialized applications such as large‑scale semantic learning, the metaverse, and spatiotemporal base maps.
Beyond the first-tier cities, many regions are leveraging their data‑driven advantages to position the artificial intelligence industry as a key engine for economic growth. Li Gang, Deputy Director of the Guizhou Provincial Big Data Development Administration, stated that Guizhou will accelerate efforts to enhance computing‑power services, promote the high‑quality allocation and efficient delivery of public data resources, foster the deep integration of AI technologies with economic and social development, drive innovation in AI application scenarios, and explore new pathways for industrial transformation and upgrading as well as comprehensive digital development.
Development has a realistic foundation.
The development of artificial intelligence hinges on three key elements: computing power, algorithms, and data. Ensuring an ample supply of computing power is the cornerstone of AI advancement. Data show that Beijing, Guangdong, Zhejiang, Shanghai, and other regions boast the largest number of large-scale AI models and have recorded the highest volume of AI server purchases over the past three years, demonstrating a strong correlation. Moreover, many localities are deploying public‑cloud computing resources to meet the rapidly growing demand for AI‑specific computational capacity.
Zhao Zhiyun, Party Secretary and Director of the China Science and Technology Information Institute, stated that large-scale artificial intelligence models are driving a new wave of global AI technological advancement, with a surge of innovative research and cutting-edge products emerging. China’s earlier strategic initiatives in the AI field have laid a solid foundation for the development of large models. With concerted efforts from government, industry, academia, and research institutions, the country has established a systematic R&D capability spanning theoretical methodologies and both software and hardware technologies, resulting in robust and rapid progress in large‑model research and development.
“Shenzhen has been proactively developing its artificial intelligence sector from an early stage, and has initially established a development landscape characterized by a well‑integrated industrial chain, a concentration of high‑end resources, deep technological integration, and the gradual rollout of AI applications,” said Li Xiang, a researcher at the Center for 21st Century China Studies at Harbin Institute of Technology (Shenzhen).
Driven by emerging artificial intelligence technologies and new application scenarios, the intelligent connected vehicle industry is flourishing in Shenzhen. Yang Hong, Chairman and President of Shenzhen Hangsheng Electronics Co., Ltd., believes that continuous advances in smart technologies are accelerating the transformation of the automotive sector. In recent years, Hangsheng Electronics has launched a series of intelligent cockpit solutions, aiming to deliver safer, higher‑quality mobility experiences for the industry.
Focus on key priorities to achieve breakthroughs.
Large‑model technology is driving a quantum leap in artificial intelligence, and there remains vast room for continued innovation in the years ahead. According to Zhao Zhiyun, China’s high‑quality economic and social development provides abundant application scenarios and a robust data foundation for large‑model innovation, endowing AI with tremendous potential in the country. At the same time, as regions roll out their AI strategies, they should carefully factor in local characteristics and comparative advantages, focus on priority areas and distinctive strengths, and steer clear of resource waste stemming from redundant infrastructure and project duplication.
Li Xiang stated that artificial intelligence is a multidisciplinary field that requires comprehensive, integrated, and innovative development—spanning from the technological foundation to practical applications. Shenzhen’s newly released action plan makes clear that the AI industry will not only focus on advancing key core technologies and priority sectors but will also expand application scenarios and strengthen innovation capacity. With the implementation of a series of policy measures, Shenzhen’s AI ecosystem will continue to mature, becoming a vital engine for driving high-quality growth across all industries and thereby fostering new economic models, enhanced quality of life, and innovative governance approaches in the intelligent era.
Zheng Wenxian, Vice President of Shenzhen Yuntian Lifly Technology Co., Ltd., stated that over the years, the company has focused on “algorithm‑to‑chip integration” and “edge‑cloud collaboration,” developing a full‑stack platform encompassing IoT‑based perception and aggregation, algorithm‑driven services, and knowledge‑graph construction, thereby establishing an intelligent, synergistic framework for digital cities. This year, the company has established a preparatory task force for large‑scale models, aiming to build multi‑scenario, multi‑industry large models to provide an algorithmic foundation that supports the expansion of industry applications and the scaled, industrialized development of artificial intelligence.
Under the implementation plan, Beijing will launch a series of cutting-edge projects to set new benchmarks in technological innovation; advance a wave of domestic substitution initiatives, achieving breakthroughs in key technologies; establish robust industrial clusters to elevate the city’s industrial capabilities; cultivate model demonstration projects to drive the adoption of new applications through scenario‑based empowerment; and foster a world‑class innovation ecosystem, yielding tangible results in ecosystem development. By leveraging this “Five New” framework, Beijing will accelerate its efforts to become a globally influential hub for AI innovation, thereby providing strong support for the development of the Beijing International Science and Technology Innovation Center.

Seizing Opportunities and Tackling Challenges: Storage Vendors Accelerate Technological Innovation
Since last year, sluggish demand in the consumer electronics sector and declining memory chip prices have weighed heavily on the financial performance of major memory manufacturers. Amid these risks and challenges, A-share‑listed memory companies are seizing growth opportunities, accelerating R&D investment, and strengthening their competitive edge.
Supply and demand conditions have yet to improve in the first quarter.
Under the influence of multiple factors, downstream end‑market demand in the semiconductor industry has remained sluggish since 2022, with particularly high inventory levels across the memory‑chip supply chain, drawing widespread market attention. Moreover, judging from the first‑quarter 2023 results of major memory manufacturers, the supply‑demand balance in the semiconductor memory sector has yet to show any significant improvement.
On the international front, Samsung Electronics’ financial report shows that its first-quarter revenue fell 18% year over year, with net profit at KRW 1.58 trillion—down 86% from the same period last year. Notably, the Device Solutions (DS) division, which oversees Samsung’s chip business, posted an operating loss of KRW 4.58 trillion. Another major South Korean memory giant, SK Hynix, also failed to reverse its losses in the first quarter, reporting revenue of KRW 5 trillion—a 58% year-over-year decline—and a net loss of approximately KRW 2.59 trillion, marking its second consecutive quarterly loss. Meanwhile, U.S.-based memory maker Micron delivered lackluster results: its fiscal second-quarter earnings report for the year ending March 2, 2023, revealed quarterly revenue of US$3.69 billion, down 53% year over year, and a net loss of US$2.31 billion.
Amid a broadly weak market environment, in the first quarter of this year, A-share companies such as Jiangbolong and Biwin Storage—both primarily engaged in high-capacity storage—failed to deliver results that exceeded market expectations. Specifically, Jiangbolong reported first-quarter revenue of RMB 1.482 billion, down 36.42% year over year, with a net loss attributable to shareholders of RMB 281 million; Biwin Storage posted revenue of RMB 425 million, a 39.41% year-over-year decline, and a net loss attributable to shareholders of RMB 126 million.
Companies are actively ramping up R&D and innovation.
Market participants generally believe that, in 2023, as demand recovers and supply-side capacity cuts take effect, the supply‑demand balance is likely to improve, potentially bringing an end to the semiconductor memory industry’s cyclical downturn and even sparking a modest rebound. On the demand side, with the economy continuing to recover, global consumer electronics demand is expected to show quarter‑over‑quarter improvement in the second half of 2023. On the supply side, at the end of 2022, major players such as Micron and SK Hynix significantly scaled back capital expenditures, which should further enhance the memory market’s supply‑demand dynamics.
“At present, domestically produced DRAM and NAND flash chips account for less than 5% of the market share, but their growth prospects are promising,” industry analysts note. China has been the world’s largest semiconductor consumer market for many years, and, coupled with the broader trend toward domestic substitution in the sector, local memory‑R&D and packaging‑testing companies are poised to seize significant development opportunities.
Against this backdrop, major storage manufacturers are ramping up their R&D and innovation efforts. Domestic storage players such as Jiangbolong and Biwin Storage are poised to seize the significant opportunities presented by localization, leveraging an innovation-driven strategy to further deepen their integrated R&D‑packaging‑testing ecosystem and bolster the domestic storage industry’s expansion into the global market.
Annual report data show that in 2022, Jiangbolong’s R&D expenditure totaled RMB 356 million, up 10.41% year over year. By the end of 2022, the company had obtained 470 patents, 81 software copyrights, and 5 integrated circuit layout designs, with its efforts primarily focused on officeware algorithm development, system‑in‑package (SiP) design, storage‑chip testing algorithms, and the development of storage application technologies. Meanwhile, Biwin Storage invested RMB 126 million in R&D in 2022, a year-on-year increase of 18.27%. As of the end of 2022, the company held a total of 242 domestic and international patents and 4 software copyrights, including 37 invention patents, 131 utility‑model patents, and 74 design patents, covering key stages across its R&D and manufacturing processes—such as storage‑solution development, advanced packaging and testing, and test‑equipment R&D—among other core technologies.
With sustained, substantial R&D investment, domestic storage manufacturers have seen their product competitiveness steadily strengthen and their market share gradually expand. Jiangbo Long is one of the few Chinese companies that owns globally recognized consumer‑grade storage brands. Its brand Lexar positions itself as an international premium consumer‑storage brand, enjoying a strong reputation in photography, audiovisual applications, and high‑end consumer storage scenarios such as outdoor‑sports equipment. Lexar’s USB flash drives, memory cards, and SSDs also hold leading global market shares.
Biwin Storage is a leading domestic brand with a top‑tier market share. Its memory products have been integrated into the supply chains of numerous industry‑leading customers, including smart‑device manufacturers such as Google, Facebook, BBK, Transsion Holdings, TCL, Skyworth, iFLYTEK, and Foxconn; PC and server makers like Lenovo, Tongfang, and Baode; telecom‑equipment providers including ZTE, Zhaochi, Chaoge, Hemiao, and Jiulian; as well as industry‑specific and connected‑car clients such as StarNet Ruijie, Jiangsu Guoguang, G7 IoT, and Ruiming Technology. Moreover, Biwin holds significant market shares across multiple niche segments.

Platform performance is surging, as China’s tourism industry experiences a robust recovery.
On June 8, Ctrip Group released its first-quarter financial results for this year, marking the completion of quarterly earnings reports from China’s two leading online travel platforms. Specifically, Ctrip Group reported net revenue of RMB 9.2 billion, up 124% year over year; Tongcheng Travel posted revenue of RMB 2.59 billion, a 50.5% increase compared with the same period last year. On the profitability front, Ctrip Group turned sharply profitable, with net profit rising to RMB 3.4 billion, while Tongcheng Travel reported adjusted net profit of RMB 500 million, up 105.6% year over year.
According to executives at relevant companies, the rapid growth of both domestic and outbound tourism in the first quarter of this year underscores the resilience of China’s steadily expanding economy. The robust rebound during this year’s May Day holiday further highlights a surge in travel enthusiasm, bolstering market confidence in the country’s tourism sector once again.
Core metric repair
With the optimization and adjustment of China’s COVID-19 prevention and control policies, the domestic tourism market has entered a new phase.
According to data released by the Ministry of Culture and Tourism, in the first quarter, China’s total domestic tourist trips reached 1.216 billion, up 46.5% year on year, while domestic tourism revenue totaled RMB 1.3 trillion, an increase of 69.5% over the same period. The recovery in national tourism revenue has been markedly faster than that of tourist numbers, reflecting a new trend toward higher‑end consumption in mass tourism.
As a result, the online travel platform’s core businesses posted a strong rebound. In the first quarter of this year, Ctrip Group’s accommodation booking revenue reached RMB 3.5 billion, up 140% year over year; transportation ticketing revenue totaled RMB 4.2 billion, up 150% year over year; leisure travel revenue stood at RMB 386 million, up 211% year over year; and corporate travel management revenue reached RMB 445 million, up 100% year over year. Focusing on the domestic market, Ctrip Group’s domestic local hotel bookings in the first quarter grew by 150% compared with the same period in 2019.
During the same period, Tongcheng Travel’s transportation ticketing revenue rose 35.9% year over year to a record RMB 1.383 billion, with air ticket bookings increasing by more than 35% compared with the same period in 2019. Accommodation revenue surged 53.6% year over year to a new high of RMB 834 million, with hotel room nights reaching an all-time peak—up over 130% from the same period in 2019.
Centered on “core competencies,” online travel platforms each emphasize different priorities. Since the beginning of this year, leveraging its one-stop travel service ecosystem, Ctrip Group’s “Travel Marketing Hub” has continued to operate efficiently, co‑creating incremental value with partners as the market recovers. In the first quarter, the number of newly partnered hotels under Ctrip Group’s “Joint Membership Program” increased by nearly 60% year over year; cumulatively, it has driven over 20 million in‑store service users to member‑matched hotels and helped them cut marketing costs by nearly RMB 40 million. Through cross‑marketing and targeted recommendations for flights and hotels, Ctrip Group has more than doubled the growth in new customers for its hotel partners, more than tripled the increase in booking volume, and more than quintupled the rise in transaction value, all compared with the same period last year.
Tongcheng Travel continued to make strong strides in its membership business. In the first quarter of this year, the company’s user base kept expanding, hitting yet another all-time high. Specifically, its average monthly active users (MAU) reached 290 million, up 16.9% year over year and 43.6% compared with the same period in 2019. Meanwhile, its average monthly paying users (MPU) totaled 41.4 million, a 30.6% year-over-year increase and a 79.2% rise versus the same period in 2019. Notably, approximately 68.7% of new paying users on Tongcheng Travel’s WeChat platform came from non‑first-tier cities in China. As of March 31, registered users residing in non‑first-tier Chinese cities accounted for about 86.6% of the company’s total registered user base. During the same period, Tongcheng Travel’s average monthly paying users reached 41.4 million, up 30.6% year over year and 79.2% compared with the same period in 2019.
Will continue the growth momentum.
Building on the strong recovery momentum from the first quarter, the robust performance of the tourism market during the May Day holiday has also laid a solid foundation for second-quarter results.
During the May Day holiday, Ctrip Group’s platform saw average daily domestic hotel bookings surge by more than 70%, while domestic flight bookings increased by 25%. Overseas hotel and flight bookings recovered to roughly 80% and 60%, respectively, of 2019 levels. In many popular destinations, bookings fully rebounded to 2019 levels over the holiday period. Meanwhile, upcoming summer‑season bookings are also showing strong momentum. Ctrip Group’s executive team remains confident about this year’s summer travel market.
Tongcheng Travel also posted impressive growth. During the May Day holiday, its hotel room nights and flight bookings increased by more than 150% and 30%, respectively, compared with the same period in 2019.
Looking ahead to future market performance, Tongcheng Travel’s management remains optimistic about the long-term prospects of China’s tourism industry. Tourism‑related infrastructure is set to improve significantly, particularly in lower‑tier markets, which will expand supply and enhance convenience for travelers. Over the past few years, China’s tourism sector has demonstrated remarkable resilience amid challenging conditions. Consumer habits have also undergone a fundamental shift, with short‑distance trips and local vacations gaining increasing popularity—trends that the company believes will continue to fuel additional growth in the industry.

Taxation
In the first five months of this year, a total of 6.435 million tax-related business entities were newly registered nationwide.
According to data from the State Taxation Administration, from May 2023, 1.522 million business entities—hereinafter referred to as “newly established tax‑related business entities”—completed new tax‑type registration, invoice acquisition, and tax filing and payment procedures with the tax authorities, representing a year-on-year increase of 24.9%.
By type, in May, enterprises and individual business households registered 691,000 and 817,000 new entities, up 27.1% and 33.7% year on year, respectively. By sector, the number of newly established tax‑paying business entities in the primary, secondary, and tertiary industries stood at 45,000, 173,000, and 1.304 million, respectively, representing year‑on‑year increases of 27.5%, 15.3%, and 26.2%. By industry, among the 20 industrial categories, 17 recorded positive year‑on‑year growth in the number of new tax‑paying business entities; notably, the scientific and technical services, leasing and business services, and culture, sports, and entertainment sectors posted robust expansion, with year‑on‑year increases of 118%, 51.7%, and 50.2%, respectively. Manufacturing saw a year‑on‑year rise of 7.6%. By economic sector, the private sector accounted for 1.509 million new tax‑paying business entities, up 25% year on year; the foreign‑invested sector registered 3,000 new entities, an increase of 52.9%; and the state‑owned and collective sectors added 10,000 new entities, up 16.1%. By region, the eastern, central, and western regions recorded 754,000, 363,000, and 405,000 new tax‑paying business entities, respectively, reflecting year‑on‑year growth rates of 45.1%, 2.3%, and 17.9%.
In the first five months of 2023, the country registered a total of 6.435 million new tax‑related business entities, up 15.5% year on year. As of the end of May, the nationwide total of tax‑related business entities stood at 86.92 million, an increase of 7.5% compared with the same period last year.
Officials from relevant departments and bureaus of the State Taxation Administration stated that, as part of the in-depth thematic education campaign to study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the tax authorities will further refine their working mechanisms, conduct thorough investigations and research, strengthen performance evaluation and accountability, and optimize implementation measures. This will ensure the high-quality and efficient delivery of all tax and fee preferential policies and facilitative measures for tax filing and payment, thereby better stimulating the vitality of various market entities, bolstering expectations and boosting confidence, and making greater positive contributions to sustaining the economic recovery and improvement, and to achieving both effective quality enhancement and reasonable quantitative growth.

Creating high-quality tax-related academic research
Supporting the modernization of taxation to better serve Chinese-style modernization.
— The Special Symposium on the “Annual Review of Academic Research” in the Field of Taxation Was Held in Beijing
Recently, a special symposium on the “Annual Review of Academic Research” in the field of taxation, co-hosted by the Tax Science Research Institute of the State Taxation Administration and China Tax Magazine, was held in Beijing. The symposium systematically summarized the academic research achievements in taxation for 2022 and facilitated discussions and exchanges on topics such as improving the quality of the “Annual Review of Academic Research” and deepening tax-related academic research. Rao Lixin, Member of the Party Committee and Deputy Director-General of the State Taxation Administration, attended the symposium and delivered a speech.
In 2020, the China Taxation Magazine launched the compilation of its “Annual Academic Research Review” and published a series of thematic reviews, systematically summarizing and reflecting on the tax research achievements of the past year while identifying promising directions for future research. This initiative has become an authoritative source of critical information in the field of taxation for both academia and practice. This year marks the third consecutive year that the magazine has organized the release of the “Annual Academic Research Review” and hosted related symposiums.
During the exchange and seminar, Rao Lixin stated that the 2022 Annual Review of Academic Research, organized into six thematic sections, systematically examined, from multiple perspectives, the key theoretical issues and pressing practical concerns that dominated China’s tax‑related academic discourse over the past year. Building on this analysis, the review offered critical commentary and future outlooks, with its reach and influence continuing to expand. He emphasized that, going forward, tax‑related research and publishing should remain officely guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, seizing the opportunity presented by the thematic education campaign on studying and implementing this thought to further ground themselves in the rich soil of contemporary China’s tax reform and development. By staying at the forefront of the times, upholding a people‑centered stance, and forging a tax knowledge system and discourse uniquely rooted in Chinese characteristics, these efforts will be dedicated to advancing the modernization of the tax governance system and governance capacity.
The contributing experts—Gu Cheng, Jiang Zhen, Tian Zhiwei, Zhai Jiguang, Li Ping, and He Yang—provided brief overviews of the “Annual Review of Academic Research.” Experts including Fan Liming, former president of Shandong University; Ma Haitao, president of Central University of Finance and Economics; Guo Qingwang, professor at Renmin University of China; Zhang Shouwen, professor at Peking University; Feng Qiaobin, deputy director of the Department of Macroeconomic Research at the Development Research Center of the State Council; and Li Xuhong, chair of the Academic Committee at the National Accounting Institute in Beijing, unanimously agreed that the “Review” has become a truly distinguished feature in the field of fiscal and tax research, offering significant value as a reference for scholarly inquiry, a guide for learning, and a source of inspiration for further exploration.
The meeting was chaired by Li Bengui, Deputy Director of the Institute of Taxation Science. Zhang Tiexun, President of the China Tax Magazine, provided an overview of the 2022 “Review” and outlined the magazine’s efforts to enhance the quality and effectiveness of its publicity through its “four journals, one platform, and one channel” strategy. Officials from the State Taxation Administration’s Tax Publicity Center, representatives from the China Tax Magazine, and several fiscal and tax experts attended the meeting.

China will extend and refine the policy of exempting new-energy vehicles from vehicle acquisition tax.
At its executive meeting held on June 2, the State Council deliberated policy measures to promote the high-quality development of the new-energy vehicle industry. To further unlock the consumption potential of new-energy vehicles, the meeting proposed extending and refining the policy of exempting or reducing the vehicle acquisition tax for such vehicles.
New energy vehicles represent the primary direction for the transformation and upgrading of the automotive industry, with vast potential for growth.
In recent years, China’s new‑energy vehicle industry has experienced robust growth. According to data from the China Association of Automobile Manufacturers, from January to April this year, production and sales of new‑energy vehicles reached 2.291 million and 2.222 million units, respectively—up 42.8% year on year—and their market share stood at 27%. Meanwhile, exports of new‑energy vehicles totaled 348,000 units, a year‑on‑year increase of 170%.
The meeting emphasized the need to consolidate and expand China’s competitive advantages in new‑energy vehicle development, further optimize industrial planning, and intensify research and development efforts on critical core technologies in key areas such as power‑battery systems, next‑generation chassis architectures, and intelligent driving platforms. It also called for coordinated utilization of domestic and international resources, the establishment of a robust power‑battery recycling and reuse system, the creation of an integrated “vehicle‑energy‑road‑cloud” industrial ecosystem, and the enhancement of the entire industry chain’s capacity for independent control and its level of green development.
“Technological innovation is the core competitive advantage driving development,” said Cui Dongshu, Secretary-General of the Passenger Car Market Information Joint Association. In recent years, China has achieved remarkable progress in the new‑energy vehicle sector; however, further efforts are needed to master critical core technologies, and continued investment is required in areas such as charging infrastructure development and the R&D of small and micro electric vehicles.
Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, stated that, based on overall automotive data since the beginning of this year, China’s new‑energy vehicle industry has demonstrated steady growth, with both its supply capacity and supply quality continuously improving, making it a key pillar in stabilizing the industrial sector.
Industry insiders note that the sector generally expects the new‑energy vehicle market to maintain strong growth, with China’s NEV production and sales likely to reach new record highs this year. At the same time, however, it is important to recognize that consumer confidence in automobile purchases remains weak, and the full potential of auto consumption has yet to be unlocked.
In this regard, the meeting noted that it is necessary to extend and refine the policy of exempting new-energy vehicles from vehicle acquisition tax, build a high-quality charging infrastructure network, further stabilize market expectations, improve the consumer environment, and unlock greater potential in new-energy vehicle consumption.
“The new measures are expected to provide a significant boost to the development of the new‑energy vehicle industry over the next few years,” said Cui Dongshu. He added that the phasing out of subsidies has had a considerable impact on the sector, as consumers are highly sensitive to pricing and taxation. Extending and refining the policy of exempting new‑energy vehicles from vehicle purchase tax will further unlock their consumption potential while fostering the industry’s sustainable and steady growth.

The State Administration for Market Regulation has publicly disclosed ten typical cases of illegal advertising involving “miracle doctors” and “miracle medicines.”
On June 8, the website of the State Administration for Market Regulation published ten typical cases of illegal advertising involving “miracle doctors” and “miracle medicines,” focusing on key areas of public concern such as medical services, pharmaceuticals, medical devices, and health foods. The campaign aims to rectify and eliminate unlawful practices in commercial advertising, including impersonating experts or renowned physicians for promotional purposes, publishing unreviewed drug advertisements, fabricating or exaggerating the efficacy of health foods, and falsely claiming that ordinary foods can treat diseases.
In an investigation conducted by the Shenzhen Market Supervision Administration of Guangdong Province into advertising violations committed by Shenzhen Qi’aimi Electronics Co., Ltd., the authorities found that, during the manufacture of its audio‑storytelling devices, the company embedded pharmaceutical audio advertisements provided by certain customers. These advertisements had not obtained the legally required approval documents and contained numerous claims exaggerating therapeutic effects and making guaranteed promises regarding treatment outcomes. In addition, the company was also found to have produced products that failed to display the product name, the manufacturer’s name and address, or the applicable product standard number. The market supervision authorities imposed a total fine and confiscation of RMB 1.1868 million for these two violations.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate and the China Coast Guard have jointly issued a set of typical cases involving illegal sand mining at sea.
On June 8, the Supreme People’s Procuratorate’s official WeChat account issued the “Notice on the Issuance of Typical Cases Involving the Handling of Crimes Related to Illegal Sand Mining at Sea.”
This batch of released typical cases comprises five instances. In Case No. 1, the defendants jointly invested in purchasing a transport vessel with the intent to profit by engaging in the trade of sea sand. Subsequently, the defendant Wang Mouming coordinated in advance with illegal sand‑mining operators to arrange the purchase of sea sand, directing the crew to navigate the vessel on five separate occasions to waters near the mouth of the Minjiang River in Fujian to acquire sea sand, which was then transported to Changshu, Jiangsu, for sale. The defendant Wang Moumou, acting as the captain, upon receiving geographic coordinates and a high‑frequency call sign from Wang Mouming, contacted the illegal sand‑mining party to transfer the sea sand between vessels. The court held that where an individual, prior to the act, communicates with criminals engaged in illegal sea‑sand extraction regarding the time, location, price, and method of the transaction, and either directs or personally operates a transport vessel to proceed to the designated waters to directly receive the sand via ship‑to‑ship transfer and subsequently transport and sell it, such conduct constitutes pre‑meditated collusion and shall be prosecuted and punished as the crime of illegal mining.

The Supreme People’s Procuratorate has released 10 typical cases to further advance the handling of public interest litigation cases arising from the Central Environmental Protection Inspection.
To further advance the handling of public-interest litigation cases arising from the Central Environmental Protection Inspection, the Supreme People’s Procuratorate has released ten typical cases demonstrating coordinated efforts to implement rectification measures following the inspection. These cases address issues such as the remediation of pollution from hazardous waste, industrial wastewater, air quality, and heavy metals; ecological restoration of agricultural land and nature reserves; the crackdown on illegal mining; and the standardized management of urban solid waste.
According to the head of the Eighth Procuratorial Office of the Supreme People’s Procuratorate, the Central Environmental Protection Inspection is a major reform initiative and institutional arrangement personally planned, deployed, and advanced by General Secretary Xi Jinping. The Measures for Rectification Work in Response to the Central Environmental Protection Inspection explicitly stipulate that, with respect to ecological and environmental damage issues referred by the inspection, procuratorial organs may, in accordance with the law, initiate public interest litigation. Under the unified deployment of the Supreme People’s Procuratorate, procuratorial organs nationwide have focused on the problems identified during the inspection, fully leveraging the supervisory, supportive, and complementary role of public interest litigation to hold those who violate the law accountable for ecological and environmental damage; at the same time, they have urged administrative agencies entrusted with regulatory responsibilities to perform their duties in compliance with the law, thereby ensuring that inspection‑related rectifications are effectively implemented through the rule of law.
According to reports, procuratorial organs at all levels have treated public-interest litigation cases arising from the central ecological and environmental protection inspection as a top-priority initiative, focusing on key issues and proactively fulfilling their duties in accordance with the law. As of December 2022, they had filed and handled 2,982 such cases, including 100 civil public-interest lawsuits that sought approximately RMB 800 million in compensation for environmental damage from polluting enterprises and individuals. Additionally, 2,715 administrative public-interest litigation cases were initiated, and 1,790 pre-litigation prosecutorial recommendations were issued, helping to ensure comprehensive and thorough rectification of identified problems. Furthermore, procuratorial organs at all levels supported relevant authorities in conducting 84 rounds of consultations on ecological and environmental damage compensation, resulting in settlement agreements totaling over RMB 1.3 billion.

The Supreme People’s Court has released the typical cases of environmental and resource adjudication by people’s courts for 2022.
On June 5, 2023, the Supreme People’s Court held a press conference to release the “China Environmental and Resource Adjudication (2022)” report along with selected typical cases, as well as the “China Environmental Justice Development Report (2022).” Yang Linping, Vice President of the Supreme People’s Court; Lü Zhongmei, Vice Chairperson of the Environmental Protection and Resource Conservation Committee of the National People’s Congress; and Liu Zhumei, Chief Judge of the Environmental and Resource Adjudication Tribunal of the Supreme People’s Court, attended the event and fielded questions. The press conference was chaired by Li Guangyu, Spokesperson of the Supreme People’s Court.
To comprehensively showcase the achievements of the people’s courts in 2022 in implementing Xi Jinping’s Thought on Ecological Civilization and Xi Jinping’s Thought on the Rule of Law, to summarize experience in environmental and resource adjudication, to strengthen guidance on similar cases, and to promote a continuous enhancement of environmental and rule-of-law awareness across society, the Supreme People’s Court carefully selected 10 representative and exemplary cases from over 400 submissions received from courts nationwide. These cases not only broadly cover various environmental elements and types of disputes but also highlight the latest developments, innovative measures, and distinctive features of environmental and resource adjudication. They have been designated as the 2022 Typical Cases and were released concurrently with the Annual Report on Environmental and Resource Adjudication in China. The main content and salient features of this batch of cases are as follows:
First, we remain committed to serving the overall national interest and continue to support the harmonious coexistence of humanity and nature. The cases released this time cover a wide range of areas, including green and low-carbon development, environmental pollution prevention and control, ecological conservation, efforts to achieve carbon peak and carbon neutrality, resource exploration and utilization, climate change response, as well as environmental governance and related services. These cases fully demonstrate that the people’s courts have comprehensively, accurately, and thoroughly implemented the new development philosophy, closely aligned their environmental and resource adjudication with the overarching priorities of the Party and the state, and provided robust judicial support for building a modern society in which humanity and nature coexist in harmony.
As in Case Eight, to ensure the effective resolution of issues—identified by the Central Environmental Protection Inspection—related to unauthorized dam construction that jeopardizes wildlife habitats, the people’s courts have adopted a proactive judicial approach, fulfilled their duties with responsibility, strengthened communication and coordination with all relevant parties, and provided clear guidance on legal matters and procedural steps. This facilitated the administrative authorities and the tortfeasor in reaching a compensation agreement, which was subsequently conofficeed by the court upon application. Following the case, timely follow-up visits were conducted to monitor the tortfeasor’s full compliance with the agreement, thereby effectively restoring the ecological environment. In Case Four, the defendant illegally mined within the core zone of the Giant Panda National Park, causing a mine collapse and inflicting severe damage to the ecosystem. The people’s court, in accordance with the law, prosecuted the defendant for the crime of damaging natural protected areas—added under Amendment XI to the Criminal Law—thereby effectively safeguarding the ecological integrity and biodiversity of the national park.
Second, we have upheld the strictest rule of law and continued to strengthen judicial protection of the ecological environment. The cases released this time cover various types of environmental and resource-related litigation, including criminal, civil, administrative, and public-interest lawsuits; among them, criminal cases and criminal‑related civil public‑interest lawsuits account for more than half. People’s courts have adopted a office and resolute approach, imposing lawful penalties on offenses such as environmental pollution, illegal mining, destruction of nature reserves, and falsification of ecological‑environmental monitoring data, thereby contributing to the decisive battle against pollution and safeguarding and improving the living environment in both urban and rural areas. In implementing the principles of “the polluter pays” and comprehensive compensation, we have accurately determined the legal liabilities borne by offenders in accordance with the law, further strengthening judicial protection of the ecological environment.
As in Case One, the defendant entity, an environmental‑protection and remediation company, not only failed to fulfill its principal responsibilities but also illegally employed a “COD removal agent” to interfere with automated environmental monitoring equipment and evade regulatory oversight, thereby becoming a source of pollution. In response, the people’s court exercised elevated jurisdiction in accordance with the law, and the presidents of both the court and the procuratorate presided over the trial together, demonstrating a office commitment and sense of responsibility to combat environmental pollution crimes and safeguard the public’s environmental rights. In Case Five, the defendant illegally excavated substantial quantities of sand and gravel, and, in an effort to conceal their wrongdoing, backfilled the site with large amounts of construction waste and household garbage, causing dual harm to the ecological environment. The people’s court applied the principle of comprehensive accountability, employing both criminal and civil legal measures to ensure that those who damage environmental resources bear appropriate legal liability, thereby effectively reinforcing the judicial safeguards for protecting mineral resources and ecological security. In Case Three, the defendant entity repeatedly issued numerous false testing reports for multiple polluting enterprises over an extended period. The people’s court rigorously pursued criminal liability against the entity, its responsible supervisors, and directly liable personnel, thereby vigorously advancing efforts to address illegal and criminal conduct by third‑party environmental service providers and to establish a standardized, orderly, and fair market for environmental monitoring services.
Third, we have adhered to a holistic and balanced approach, continuously fostering coordination between ecological and environmental protection and the safeguarding of legitimate rights and interests. People’s courts have actively implemented the development philosophy centered on the people, striving to address the public’s growing and more sophisticated demands for environmental justice through judicial rulings, thereby helping to alleviate pressing environmental issues that have drawn widespread concern and ensuring the right of the people to live and develop in a healthy, comfortable, and aesthetically pleasing environment. In accordance with the law, we have supervised and supported administrative authorities in enforcing environmental laws and regulations, protected the legitimate rights and interests of both the public and business entities, as well as the public interest in the environment, and worked in concert to advance both environmental protection and the protection of rights and interests.
As in Case Seven, the people’s courts have actively implemented the green principles of the Civil Code, guided by the concept of green development, and adhered to the approach of “restructuring alongside environmental remediation,” thereby guiding restructured enterprises to carry out environmental compliance measures. By balancing corporate rights, creditors’ interests, and public environmental welfare, the courts have legally recognized pollution‑remediation costs as common‑benefit debts, encouraged the inclusion of environmentally sound operational plans and environmental commitments in restructuring agreements, and facilitated enterprises’ green, low‑carbon transformation and revitalization. In Case Ten, the people’s courts, through judicial adjudication, have lawfully supervised administrative agencies in fulfilling their regulatory duties and taken concrete measures to address longstanding issues—such as the unauthorized open‑air accumulation of waste encroaching on land adjacent to cemeteries and martyrs’ memorial parks—problems that have drawn strong public concern, thus safeguarding the dignity of heroes and martyrs and respecting the public’s sentiments of remembrance and mourning. In Case Nine, the people’s courts have both upheld the principle of ecological priority and ensured lawful protection of property rights, while also respecting the administrative authorities’ initial discretion, thereby exercising legal oversight over the performance of official duties and protecting the legitimate rights and interests of administrative counterparts.
Fourth, we have remained committed to upholding fundamental principles while fostering innovation, ensuring the timely and effective restoration of the ecological environment. People’s courts have implemented the restorative justice approach, applying traditional civil and commercial legal systems and principles to environmental and resource adjudication, thereby enriching judicial guidelines and guaranteeing the fulfillment of environmental restoration obligations. Building on the use of restorative measures such as stock enhancement and release, replanting and greening, and labor‑based compensation, we have further explored diversified alternative methods of ecological and environmental restoration, offering a range of remedial options tailored to different types of natural environments and ecosystems, thus supporting systematic and comprehensive governance of the ecological environment.
As in Case Six, the defendant entity had long been illegally discharging industrial wastewater into a tributary of the Yangtze River. Its shareholders transferred the company’s assets, leaving only RMB 18,000 on the books after the case came to light, rendering it unable to meet its environmental tort liabilities or fulfill its restoration obligations. The people’s court upheld the principle of ecological priority and applied the doctrine of piercing the corporate veil in the field of environmental torts, holding shareholders who had abused the separate legal personality of the company and the limited liability of shareholders jointly liable for the defendant entity’s environmental tort debts. While rigorously enforcing environmental tort liability, this approach maximized redress for the public interest in the damaged river basin. In Case Two, during the adjudication of a criminal case involving illegal fishing, the people’s court took into account both sentencing discretion and the fulfillment of ecological restoration obligations. With the goal of restoring, through off-site measures, ecological service functions of different types but equal value, the court guided the defendant to fulfill its restoration obligations by completing prescribed environmental public-interest activities during the probation period.
Going forward, the people’s courts will continue to thoroughly implement Xi Jinping Thought on Ecological Civilization and Xi Jinping Thought on the Rule of Law, uphold proactive judicial practices, ensure both fairness and efficiency, and adjudicate all types of environmental and resource cases in accordance with the law. They will intensify research on the legal application in novel, difficult, and complex cases, strengthen guidance on similar cases, and further leverage the exemplary and instructive role of typical cases, thereby providing robust judicial guidance for environmental justice and advancing the rule of law in ecological and environmental protection through higher‑quality, more vivid case studies.

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