JC Master Legal News Issue 1065

Key Takeaways for This Issue
Promoting High-Level Opening-Up of the Capital Market and Sharing Investment Opportunities in China’s Modern Capital Market—The Shenzhen Stock Exchange Hosts the 2023 Global Investors Conference
On June 1, the 2023 Global Investors Conference, hosted by the Shenzhen Stock Exchange, was officially held in Shenzhen. With the theme “New Investment Opportunities in China’s Modern Capital Market,” the event brought together more than 300 representatives from domestic and international investment institutions, intermediary offices, and listed companies.
The Ministry of Public Security has issued a notice to further strengthen efforts to combat and prevent securities-related crimes.
The Ministry of Public Security has issued a notice requiring public security organs nationwide to take the full implementation of the stock issuance registration system as an opportunity to proactively adapt to new circumstances and developments, earnestly strengthen their sense of responsibility and mission, further intensify efforts to combat and prevent securities-related crimes, and make every effort to ensure the smooth rollout of the stock issuance registration system, effectively safeguard the order of the capital market, and robustly protect the interests of investors.
The Supreme People’s Procuratorate has released the “White Paper on Procuratorial Work Involving Minors (2022).”
On June 1, the Supreme People’s Procuratorate released the “White Paper on Procuratorial Work Involving Minors (2022),” which for the first time disclosed how the procuratorial organs have strengthened the integrated performance of their four major areas of prosecutorial work and deepened comprehensive and holistic judicial protection for minors.
The Supreme People’s Court and the All-China Women’s Federation have released typical cases of judicial assistance for safeguarding the rights and interests of minors.
On the morning of May 29, 2023, the Supreme People’s Court held a press conference and, in collaboration with the All-China Women’s Federation, released a selection of exemplary cases of judicial assistance for safeguarding the rights and interests of minors.
Finance & Capital Markets
The Shenzhen Component Index, the ChiNext Index, the Shenzhen 100 Index, and other core Shenzhen Stock Exchange indices have adjusted their constituent stocks.
On May 29, the Shenzhen Stock Exchange (hereinafter referred to as the SZSE) and its wholly owned subsidiary, Shenzhen Securities Information Co., Ltd. (hereinafter referred to as SZSE Information), issued an announcement stating that, in accordance with the index compilation rules and taking into account factors such as the market capitalization representativeness, securities liquidity, and operational compliance of Shenzhen‑listed companies, they will conduct a regular constituent adjustment for the SZSE Component Index, the ChiNext Index, and the SZSE 100 Index (hereinafter collectively referred to as the Shenzhen Market Core Indices). This adjustment will take effect officially on June 12, 2023.
The Shenzhen Stock Exchange and Shenzhen Securities Information Co., Ltd. are actively developing a core index system for the Shenzhen market, providing multi‑dimensional insights into the distinctive strengths of Shenzhen‑listed companies, thereby better supporting high‑level scientific and technological self‑reliance and driving high‑quality economic development. Following this adjustment, the proportion of listed companies in the core indices that belong to strategic emerging industries and key sectors has steadily increased, with particularly strong performance, further enhancing the indices’ ability to accurately reflect market dynamics.
SZSE Component Index: A multi-dimensional indicator reflecting the sound fundamentals of the Shenzhen market and its role in enhancing the quality and efficiency of the real economy.
The Shenzhen Component Index is the benchmark index for the Shenzhen Stock Exchange. This quarter, 11 constituent stocks will be replaced, with five companies from the Main Board and six from the ChiNext Board added. In the latest index constituents, 23 companies have been listed for two years or less. Based on the adjusted constituent weights, as of April 30, 2023, the Shenzhen Component Index covers 64% of the total market capitalization of A‑shares on the Shenzhen Stock Exchange: the Main Board accounts for 351 constituents, representing 70% of the weight, while the ChiNext Board comprises 149 constituents, accounting for 30% of the weight.
The Shenzhen Component Index is the benchmark index with the highest weighting of manufacturing in China’s stock market. Following this adjustment, the manufacturing sector now accounts for 73% of the index’s constituent weights, further enhancing its ability to reflect the real economy. The strategic emerging industries comprise 69% of the index’s constituents, while the three priority areas—advanced manufacturing, the digital economy, and green, low‑carbon development—account for 65%, demonstrating a clear trend toward cluster‑based growth. State‑owned enterprises make up 27% of the index’s constituents, contributing 36% of its total operating revenue and 31% of its net profit, underscoring their pivotal role. Private enterprises represent 56% of the index, with their operating revenue and net profit growing by 28% and 30%, respectively, year over year in 2022, reflecting steady overall growth.
ChiNext Index: The advantages of strategic emerging industry clusters are becoming increasingly evident, and green, low-carbon industries have developed into sizable, distinctive sectors.
The ChiNext Index serves as both a benchmark for the ChiNext market and an investment target, with a pronounced edge in innovation and growth. Particularly since the launch of the ChiNext reform and the pilot implementation of the registration-based IPO system nearly three years ago, the index has continuously infused fresh vitality into the market, while the clustering effect of strategic emerging industries within the index has become increasingly evident. This round of adjustments will replace 10 constituent stocks; following the changes, 17 companies are now subject to the registration-based system, accounting for 5.6% of the index’s weighting. High-tech enterprises comprise 94% of the weighting, strategic emerging industries account for 91%, and the three key priority sectors—advanced manufacturing, the digital economy, and green, low-carbon development—make up 83% of the weighting.
According to the 2022 annual report data, the latest cohort of sample companies continued to ramp up their R&D investments, with an average R&D intensity of 9.2% and an average of 223 patents per company. Return on equity reached 16%, operating revenue grew 41% year over year, and net profit increased 33% year over year, underscoring strong growth and robust profitability. Among them, sample companies in green industries such as new-energy vehicles, new energy, and energy conservation and environmental protection demonstrated particularly vigorous momentum, posting year-over-year net-profit growth rates of 83%, 77%, and 37%, respectively.
SZSE 100: Focusing on large-cap blue-chip stocks while highlighting innovative features, the index underscores the strong leading‑stock effect among Shenzhen’s core assets.
The Shenzhen 100 Index was launched in 2003 and has now been in operation for its twentieth anniversary. Positioned as a benchmark for large-cap blue-chip stocks and emphasizing innovation, it serves as a key indicator of China’s leading innovative enterprises. In this round of adjustments, two constituent stocks will be replaced; following the changes, strategic emerging industries will account for 72% of the index, with the three priority areas—advanced manufacturing, the digital economy, and green, low-carbon development—comprising 68%.
The SZSE 100 Index brings together the core assets of the Shenzhen market. According to 2022 annual reports, among the constituents of the latest index, 61 companies ranked first in operating revenue within their respective sub‑sectors, and 65 ranked first in net profit within their sub‑sectors. The SZSE 100 constituents continue a strong dividend tradition: in 2022, 92 companies distributed dividends, with total cash payouts exceeding RMB 199 billion—accounting for 47% of the entire Shenzhen market—and 85 of these companies have maintained dividend payments for three consecutive years. Furthermore, the SZSE 100 constituents have consistently set an example in advancing sustainable development, with overall ESG performance at a leading level in the A‑share market. According to the CSI ESG ratings, 92 companies achieved a medium‑to‑high rating (BBB) or above, including 21 that earned the highest rating (AAA).
Promoting High-Level Opening-Up of the Capital Market and Sharing Investment Opportunities in China’s Modern Capital Market—The Shenzhen Stock Exchange Hosts the 2023 Global Investors Conference
On June 1, the 2023 Global Investors Conference, hosted by the Shenzhen Stock Exchange, was officially held in Shenzhen. The conference was themed “New Investment Opportunities in China’s Modern Capital Market with Chinese Characteristics.” Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission; Zhang Xin, Vice Governor of Guangdong Province; Chen Huaping, Chairman of the Shenzhen Stock Exchange; and Zeng Pai, Member of the Standing Committee of the Shenzhen Municipal Party Committee, attended the opening ceremony and delivered remarks. More than 300 representatives from domestic and international investment institutions, intermediary agencies, and listed companies participated on-site.
Fang Xinghai, on behalf of the China Securities Regulatory Commission, extended warm congratulations on the successful convening of the conference. He emphasized that building a modern capital market with Chinese characteristics is an essential component of advancing Chinese‑style modernization. Such a market will inevitably be one of two‑way openness—welcoming global investors with open arms and providing robust support for domestic enterprises as they go global. The CSRC is committed to deepening capital market reforms and refining institutional frameworks, continuously enhancing the market’s functions, fostering a cohort of high‑quality listed companies that reflect high‑quality development, and expanding high‑level, institutionally driven opening-up. It welcomes qualified international financial institutions and investors to seize opportunities to scale up their investments and business operations in China, thereby sharing in the dividends of China’s sound and stable economic growth. The CSRC also looks forward to continuing to engage in extensive, multi‑tiered, and multifaceted exchanges and cooperation with all stakeholders, working together to build an efficient and inclusive global capital market that injects greater innovation and stability into world economic development.
Zhang Xin pointed out that Guangdong is a major economic, financial, and capital‑market province nationwide. In recent years, a large number of Guangdong‑based enterprises have leveraged the capital markets to enhance their competitiveness and become a core engine for the province’s high‑quality economic development. This conference provides an excellent platform for international investors and financial institutions to gain insight into China’s economic growth and unlock the investment potential of its capital markets. He expressed the hope that all participants will make full use of this platform to continuously improve the efficiency with which the capital markets serve the real economy. Guangdong will actively engage in advancing the reform and opening up of the capital markets, fully support the Shenzhen Stock Exchange in building a world‑class exchange distinguished by its focus on high‑quality, innovative capital, foster a market‑oriented, law‑based, and internationally aligned business environment, and develop a higher‑quality, more efficient financial services system. By deepening exchanges and cooperation with global investors and financial institutions, Guangdong aims to inject strong momentum into national economic growth.
Zeng Pai stated that Shenzhen is China’s earliest, best‑developed, and most influential special economic zone, as well as a major economic and financial hub and one of the primary birthplaces of China’s capital market. At present, Shenzhen’s development is benefiting from significant strategic opportunities, including the dual‑zone drive, the convergence of dual zones, and the demonstration effect of the dual reforms. This conference has conveyed to the world China’s confidence and resolve in opening its capital market to the outside world, further strengthening Shenzhen’s cooperation with global investors and financial institutions, and helping the city become an economically vibrant metropolis of greater global influence and a modern international metropolis. Shenzhen welcomes investors from around the globe to come invest, start businesses, and pursue collaborative development.
Chen Huaping, on behalf of the Shenzhen Stock Exchange, extended a warm welcome to the leaders and guests in attendance. He noted that, in recent years, under the leadership of the China Securities Regulatory Commission, the Shenzhen Stock Exchange has earnestly embraced the concept of sustainable development, refined and enhanced its multi-tiered market system, continuously expanded its range of investment and financing products, steadily elevated its level of international openness, and made solid progress across all fronts of reform, development, and stability. These efforts have helped accelerate the reallocation of resources toward technological innovation, while actively supporting the establishment of a new development paradigm and high-quality growth. Looking ahead, the Shenzhen Stock Exchange will remain committed to serving high-quality development, focusing on further improving its institutional and product frameworks. By leveraging efficient regulatory oversight as a key driver, it will promote more standardized and transparent market operations. With the goal of fostering mutually beneficial cooperation and win-win outcomes, the Exchange will continue to advance high-level opening-up, striving to build a world-class exchange distinguished by its status as a premier hub for innovative capital. In doing so, it will help create an enabling environment for global investors to participate in China’s capital markets and share in the new opportunities brought by China’s development.
The Global Investors Conference is a key initiative of the Shenzhen Stock Exchange to advance high‑level opening-up. Since 2020, it has been held annually for four consecutive years, serving as a bridge for mutual learning and exchange between domestic and international markets. This year’s conference drew broad participation from overseas institutions; compared with last year, the number of participating foreign entities increased further, and the range of institutional types was expanded. Over two days, the event featured nearly 30 keynote speeches and roundtable discussions centered on four major themes—China’s capital market opening-up, the development of the Guangdong–Hong Kong–Macao Greater Bay Area and connectivity mechanisms, sustainable finance and ESG investing, and fund and index investing—providing an up-close, comprehensive view of China’s capital market.

The number of companies listed on the Beijing Stock Exchange is approaching 200, with systemic reform measures currently under consideration.
The Beijing Stock Exchange is experiencing rapid growth. As of June 1, the exchange had 199 listed companies, bringing together a cohort of high-quality, innovation-driven small and medium-sized enterprises, among which more than 40% are national-level “Little Giant” offices specializing in niche markets. On average, each listed company on the Beijing Stock Exchange has raised RMB 200 million, with total fundraising reaching approximately RMB 40 billion.
According to reports, regulatory authorities are urgently consolidating the opinions and suggestions put forward by various stakeholders during the research process, working to develop a comprehensive and systematic plan to foster the high-quality development of the Beijing Stock Exchange and advance its reform and growth. Zhu Haibin, General Manager of the Beijing Stock Exchange Research Center at Kaiyuan Securities, believes that as the exchange’s reforms continue to deepen and investor interest rises, liquidity will improve, creating greater potential for revaluation among large-cap, high‑weight, undervalued companies.
The number of listed companies is approaching 200.
As of June 1, the number of listed companies on the Beijing Stock Exchange had reached 199, with 37 new listings added so far this year—more than double the figure for the same period last year.
The speed of listing is one of the North Exchange’s most celebrated strengths. Li Yongchun, Deputy General Manager of the Beijing Stock Exchange, has publicly stated that the exchange has established a direct‑link review mechanism, seamlessly integrating market cultivation, listing review, corporate supervision, and IPO approval into a single end‑to‑end process. This approach enables centralized management of promising companies, further enhancing listing efficiency. Currently, the average time from application acceptance to board approval stands at 133 days, with the shortest turnaround reaching just 37 days.
An investment banking professional at a securities office stated that, for a company seeking to list on the Beijing Stock Exchange, as long as it aligns with the exchange’s mission of serving “specialized, refined, distinctive, and innovative” enterprises and innovative small- and medium-sized offices, demonstrates strong growth potential, and—despite its current modest scale—boasts sound fundamentals, high levels of corporate governance, robust information-disclosure practices, and compliance with requirements for truthfulness, accuracy, and completeness, the entire process—from passing the Listing Committee review and obtaining registration approval to completing the issuance and listing—can be significantly expedited, provided there are no material irregularities following the review and inquiry phase.
IPO Acceleration
At present, the Beijing Stock Exchange is advancing its “Leading‑Edge Initiative,” refining its institutional frameworks and operational procedures, and enhancing its services to enable high‑quality enterprises to go public more quickly and achieve stronger growth. As a result, a number of benchmark companies—exemplary in areas such as innovation, corporate governance, and sound business practices—have chosen to list on the exchange.
Sui Qiang, General Manager of the Beijing Stock Exchange, stated recently at the Fifth Xicheng District Corporate Listing Themed Exchange Event that the next step will be to focus on earlier‑stage, smaller, and more innovative enterprises, strike a balanced approach between quantity and quality, refine the admission framework for issuance and listing, further enhance efficiency, clarify market expectations, and reduce the costs of going public, thereby enabling high‑quality, innovation‑driven SMEs to access the Beijing Stock Exchange more effectively and swiftly.
“It is foreseeable that the Beijing Stock Exchange will continue to enhance its listing efficiency,” said Chang Chunlin, founder and partner of Beijing Livi Investment Management Co., Ltd. He added that the BSE is rapidly advancing toward the goal of “improving quality and expanding volume,” has already begun to generate economies of scale, and is increasingly attractive and compelling to small and medium-sized enterprises.
As the regulatory framework continues to improve, the Beijing Stock Exchange has repeatedly broken records for the speed of listings, underpinned by a robust pipeline of prospective companies and a steady stream of high-quality enterprises. As of June 1, the total number of companies listed on the New Third Board stood at 6,468, including 1,794 in the Innovation Layer and 4,674 in the Basic Layer. Many offices in the Innovation Layer are actively preparing to list on the Beijing Stock Exchange. According to Zhu Haibin, the exchange enjoys an ample pool of pre‑listing candidates, and as mechanisms such as margin trading and securities lending, market‑making rules, and the comprehensive registration system become more stable and refined, both the quantity and quality of newly listed securities are expected to improve.
Regulators are mulling over reform measures.
As the Beijing Stock Exchange continues to grow and mature, market participants have increasingly focused on its valuation and liquidity. According to Sui Qiang, the exchange’s overall valuation remains relatively low, prompting “smart money” to flock to the BSE in search of new investment opportunities and undervalued assets. In addition, a fresh cohort of high‑performing, cutting‑edge innovative companies has recently listed on the exchange; though still small in scale, they have won broad market recognition. It is precisely these types of enterprises that are injecting fresh vitality into the BSE’s operations, as “strong companies naturally attract attention.”
Public mutual funds have been actively exploring investment opportunities in the Beijing Stock Exchange market. Since April, four Beijing Stock Exchange 50 Index Funds have been launched one after another, with total initial offerings exceeding RMB 1 billion. Meanwhile, several fund management companies, including SWLM Fund and Yinhua Fund, have announced that their funds are now eligible to invest in stocks listed on the Beijing Stock Exchange.
“With improvements in subsequent market liquidity and other factors, the overall valuation levels of companies listed on the Beijing Stock Exchange may have further room to recover,” said Zhu Haibin. He added that the market generally expects Beijing Stock Exchange liquidity to improve as reforms continue to advance and investor attention rises.
In light of the relatively weak liquidity among small- and mid-cap companies, Sui Qiang stated that the exchange will advance innovations in trading mechanisms, explore expanding the scope of hybrid market-making and margin‑and‑short‑selling activities, and continuously refine the investor base by increasing the number of participants, thereby enhancing trading efficiency and facilitating deal execution. The exchange will also optimize its issuance and underwriting framework, with a focus on fostering balanced development between the primary and secondary markets. By coordinating and refining pricing and allocation mechanisms, adhering to market‑oriented and rule‑based principles, and fully respecting market dynamics and established trading practices, the exchange aims to cultivate a healthy ecosystem for new‑share offerings.
In addition, the Beijing Stock Exchange will further optimize its market‑development ecosystem. It will continue to refine its issuance and underwriting mechanisms, improve the pricing framework for new offerings, and enhance the allocation system for newly listed shares, thereby raising the level of market‑based operations. The Exchange will also study and clarify implementation standards for inclusive finance aimed at innovative small and medium‑sized enterprises, strengthen positive incentives for securities offices and fund management companies to participate in the Beijing Stock Exchange, and better leverage the role of intermediary institutions.

The Ministry of Public Security has issued a notice to further strengthen efforts to combat and prevent securities-related crimes.
Recently, the Ministry of Public Security issued a notice requiring public security organs nationwide to earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council. Seizing the opportunity presented by the full implementation of the stock issuance registration system, they are to proactively adapt to new circumstances and developments, officely strengthen their sense of responsibility and mission, further intensify efforts to combat and prevent securities-related crimes, and do everything possible to ensure the smooth rollout of the registration-based stock issuance system, effectively safeguard the order of the capital market, and robustly protect the interests of investors.
The notice requires that all relevant functions be fully leveraged to rigorously crack down on securities‑related crimes in accordance with the law. It calls for strengthened research and analysis, so that, in light of the new characteristics emerging in securities crimes following the full implementation of the stock issuance registration system, enforcement strategies and priorities can be promptly adjusted. With respect to fraudulent issuance of securities, a zero‑tolerance approach must be maintained, with investigations pursued to the fullest extent; particular emphasis should be placed on intensifying efforts against suspected criminal conduct by controlling shareholders and de facto controllers. For offenses involving the unlawful disclosure or failure to disclose material information, a strict “zero‑tolerance” stance must be upheld to effectively safeguard market order. As for intermediary institutions that collude in financial fraud, provide false certification documents, or issue materially inaccurate attestations, enhanced efforts are needed to identify, refer, and investigate such violations, ensuring both the punishment of principal offenders and the prosecution of accomplices. Regarding breaches of fiduciary duty that harm the interests of listed companies, swift investigation, thorough inquiry, and prompt disposition are imperative to protect those interests in accordance with the law. For unauthorized issuance of stocks, corporate bonds, or enterprise bonds, organizers and related intermediaries must be prosecuted in accordance with the law. In light of the evolving landscape under the registration system, illegal activities such as defrauding state funds and special science‑and‑technology funds, as well as infringement of trade secrets, must also be vigorously addressed. With respect to telecom and cyber fraud, including “virtual‑platform” scams, perpetrated under the guise of the stock issuance registration system, while maintaining a office crackdown, it is essential to continuously enhance early‑warning and interception capabilities, establish a comprehensive, wide‑ranging anti‑fraud publicity framework, and effectively strengthen investors’ awareness and resilience against fraud. A strong sense of vigilance and adherence to bottom‑line thinking must be officely instilled, with active cooperation with regulatory authorities to prevent and mitigate risks, thereby effectively safeguarding the security and stability of the capital market.
The notice requires comprehensively strengthening professionalization to effectively enhance the efficiency of efforts to combat securities‑related crimes. It calls for bolstering overall coordination, expanding talent pools, and conducting targeted training and education to continuously build core capabilities in this area. Innovative investigative methods should be employed, a specialized prevention‑and‑prosecution system should be explored, and an integrated enforcement mechanism should be refined to enable end‑to‑end crackdowns on securities‑related offenses. Furthermore, the linkage between administrative and criminal enforcement must be improved, with enhanced communication and collaboration among relevant authorities; through special campaigns and joint oversight, a number of landmark cases should be investigated and prosecuted in accordance with the law, thereby sending a strong deterrent signal. Finally, enforcement against cases involving refusal or obstruction of securities‑related administrative law enforcement must be stepped up in line with the law, safeguarding the integrity and authority of such administrative actions.
The notice requires strict, standardized, impartial, and civilized law enforcement to better protect the legitimate rights and interests of market participants in accordance with the law. Focusing on optimizing a market‑oriented, rule‑of‑law‑based, and internationally competitive business environment, it calls for the consistent implementation of a criminal justice policy that balances severity with leniency—severely cracking down on all types of crime to uphold market order while minimizing disruption to enterprises’ normal production and operations. It further mandates rigorous adherence to statutory provisions on jurisdiction, precise application of criminal coercive measures, and robust protection of the lawful rights and interests of all parties involved. In light of the practical needs of various capital market entities regarding listing and financing, public security administrative services must be further improved by streamlining and optimizing service procedures to enhance efficiency. Moreover, the public should be fully informed about the measures and policies adopted by public security organs to combat securities‑related crimes, standardize law enforcement, and support enterprise development, thereby improving the effectiveness of legal education and raising awareness among listed companies, public companies, and their managers regarding risk prevention, lawful operations, and sound corporate governance, thus ensuring the high‑quality development of the capital market in the new era.

CSRC: Since the beginning of this year, foreign capital has continued to flow into A-shares.
On the 1st, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, stated that since the beginning of this year, foreign capital has continued to flow into A-shares, with net inflows via Stock Connect reaching RMB 170 billion from January to May. Over the past five years, the market value of ChiNext stocks held by foreign investors through QFII/RQFII (Qualified Foreign Institutional Investors/Renminbi Qualified Foreign Institutional Investors) and Shenzhen Stock Connect has increased by more than 11-fold.
Fang Xinghai made the above remarks at the 2023 Global Investors Conference held here.
Fang Xinghai stated that, benefiting from the continued expansion and ongoing improvement in the quality of China’s economy, the Chinese capital market has grown into the world’s second-largest, boasting the largest and most actively trading investor base globally. Moreover, the fact that China operates in a different economic cycle than overseas markets, coupled with the distinct correlation patterns between Chinese assets and those of other markets, underscores the investment appeal of Chinese assets within global portfolios.
According to data from the China Securities Regulatory Commission, in 2022, 428 companies were newly listed on the A-share market, maintaining a normalized issuance process and providing investors with new investment opportunities. Meanwhile, the shareholding ratios and trading proportions of professional institutional investors—both domestic and overseas—have been steadily increasing.
“With the implementation of the registration-based reform, the number of A-share listed companies has grown significantly, now exceeding 5,000, and their combined market capitalization has surpassed RMB 85 trillion. Meanwhile, markets for bonds, funds, REITs, indices, futures, and derivatives have developed steadily and at a rapid pace, offering global investors one-stop, diversified investment options,” said Fang Xinghai.
He stated that, in 2022, A-share listed companies maintained resilient growth across the board. Notably, technology‑focused listed offices exhibited robust growth and substantial R&D investment, with revenue for high‑tech manufacturing listed companies rising by 14.6% and their R&D intensity reaching 6.71%.
“An increasing number of A-share listed companies are proactively embracing the concept of green development, with more than 1,700 offices independently preparing and publishing ESG (Environmental, Social, and Governance) reports for 2022—a significant year-on-year increase—thereby better meeting the ESG investment needs of international investors,” said Fang Xinghai.

The CSRC is advancing the full implementation of the stock issuance registration system.
Wang Jianjun, Vice Chairman of the China Securities Regulatory Commission, stated at the Annual Meeting of the China Listed Companies Association and the 2023 China Listed Companies Summit that efforts should be made to deepen and solidify the full implementation of the stock issuance registration system, rigorously control market access, continuously enhance the system’s adaptability, and steer market resources more heavily toward science and technology innovation enterprises, thereby better supporting the nation’s innovation-driven development strategy.
Wang Jianjun stated that the number and quality of listed companies have both improved, thereby consolidating the foundation for the stable and sound development of the capital market. It is essential to advance the full implementation of the stock issuance registration system in a thorough and pragmatic manner, rigorously control market access, continuously enhance the adaptability of institutional frameworks, and steer market resources more heavily toward science-and‑technology‑innovation enterprises, so as to better support the national strategy of innovation-driven development. Furthermore, we will refine institutional arrangements such as mergers and acquisitions, restructuring, and equity‑based incentive schemes to help high‑quality listed companies grow stronger and more competitive.

In the first five months, exchange‑traded bond market financing exceeded RMB 2 trillion, and the share of issuances by high‑quality entities is expected to rise further.
Since the beginning of this year, amid reasonably ample liquidity, issuance in the exchange‑traded bond market has continued to rebound. According to data from Tonghuashun iFinD, in the first five months of 2023, the exchange‑traded bond market issued a total of RMB 2.34 trillion (including corporate bonds and asset‑backed securities), up 20.5% year on year.
Experts note that, since the beginning of this year, the scale of bond issuance in the exchange‑traded market has expanded. This trend reflects not only ample and well‑balanced market liquidity, but also rising investor demand for bond allocations and a weak economic recovery. Full‑year issuance is expected to maintain a moderate growth trajectory, with the share of issuances by high‑quality entities continuing to rise.
The share of short-term debt financing has increased.
“This year, the bond market has expanded for several reasons. Recently, with three-year and five-year deposit rates broadly cut below 3%, investor demand for bonds has risen, supporting a rally in the bond market. Moreover, influenced by the strategy of “large banks extending loans while smaller banks buy bonds,” the rebound in wealth-management product assets has also helped expand the overall size of the bond market. From a macro perspective, weak expectations for economic recovery—driven by insufficient global demand for commodities—has further bolstered the bond market by boosting risk appetite,” said Hu Hengsong, Deputy General Manager of Caida Securities.
Alongside an increase in issuance volume, bond yields this year have risen compared with the same period last year. Taking AAA-rated issuers as an example, the average coupon rate for the first five months of this year stood at 3.625%, up from 3.4% in the corresponding period last year.
“Bond issuance rates have risen somewhat, primarily because, amid the redemption-driven pressure at the end of last year, borrowing costs at the start of this year remained relatively high. However, financing costs have since declined noticeably,” said Mingming, Chief Economist at CITIC Securities.
From the perspective of bond maturities, the share of short-term bond issuance has increased year-to-date. Short-term bonds with maturities of one year or less totaled RMB 364.365 billion, accounting for 15.56%, compared with RMB 258.611 billion, or 13.31%, during the same period last year.
In response, an investor remarked: “As China’s economy recovers, investors are likely to favor equity investments, which is why short-term bonds are currently more attractive. For issuers, raising capital through short-term bonds is also relatively easier. By the fourth quarter, with China’s economy expected to stabilize and rebound, the bond market may reach an inflection point.”
The issuance volume of state-owned enterprises increased by 37.46% year on year.
From the perspective of corporate characteristics, the growth in exchange‑listed bond financing this year has been driven primarily by state‑owned enterprises. According to data from Tonghuashun iFinD, in the first five months, SOEs issued RMB 1.63 trillion in the exchange‑traded bond market, a year‑on‑year increase of 37.46%.
From an industry perspective, the financial sector continues to account for the largest issuance volume, with a year-to-date total of RMB 726.355 billion, representing 31.02% of the market. Supported by favorable policies, the construction and real estate sectors have also seen robust growth in issuance, reaching RMB 632.019 billion and RMB 162.846 billion, respectively, up 48.99% and 30.31% year over year.
Mingming stated that, since the beginning of this year, the financial sector has continued to face strong demand for capital replenishment. Meanwhile, the construction industry is closely linked to numerous local government financing platforms; on the basis of ensuring rollover of maturing debt, some high-quality LGFVs have still been able to secure additional bond‑financing quotas. In the real estate sector, the growth in bond issuance reflects a structural market dynamic, with central and state-owned enterprises accounting for the vast majority of financing.
Specialized bond types such as science-and‑technology innovation corporate bonds (commonly referred to as “Sci‑Tech Bonds”), rural revitalization bonds, and green bonds are key instruments through which exchanges provide financing to support major national strategies, including technological innovation, rural revitalization, and green development. According to data from Tonghuashun iFinD, in the first five months of this year, exchange‑listed bond issuances totaled RMB 18.2835 billion for rural revitalization bonds, RMB 74.822 billion for green bonds, and RMB 74.53 billion for Sci‑Tech Bonds. Notably, the issuance volume of rural revitalization bonds surged, increasing by 134% year over year.
Commenting on this year’s trends in exchange‑traded bond financing, Mingming notes that the exchange bond market has seen both an increase in issuance volume and an improvement in its structural composition. He expects the market to maintain a moderate growth trajectory for the full year, while the share of issuances by high‑quality entities is likely to rise further.

The State Council has issued guidelines to strengthen routine oversight of the use of medical security funds.
On May 30, the Chinese Government Website released the “Opinions on Strengthening Routine Supervision of the Use of Medical Security Funds.”
The “Implementation Opinions” comprise five key areas, mandating the reinforcement of regulatory responsibilities at the administrative level, review and inspection duties of medical insurance service agencies, self‑management accountability of designated medical institutions, supervisory responsibilities of industry authorities, and local government oversight within their jurisdictions. They call for the institutionalization of routine unannounced inspections, targeted special campaigns, day‑to‑day supervision, intelligent monitoring, and public oversight, while also requiring the refinement of regulatory systems and mechanisms, inter‑departmental collaborative oversight frameworks, and the establishment of robust credit‑management systems, cross‑regional oversight mechanisms for out-of‑area medical care, and procedures for handling major issues.

Commercial & Corporate
Ministry of Commerce: Promote high-standard implementation by RCEP member states and further advance the development of RCEP mechanisms and cooperation.
According to the Ministry of Commerce’s website on June 2, the Regional Comprehensive Economic Partnership (RCEP) officially entered into force for the Philippines, marking its full entry into force for all 15 signatory countries.
An official from the Department of International Affairs of the Ministry of Commerce stated that, taking the full entry into force of the RCEP for all signatory countries as an opportunity, the Ministry will continue to ensure the high-quality implementation of all RCEP-related measures, guide local governments, industries, and enterprises to align more closely with the opportunities presented by the agreement, fully capitalize on its policy benefits, and further leverage the agreement’s positive role in fostering cooperation across industrial and supply chains and advancing high-quality development.
The official stated that, first, local governments, industries, and enterprises will continue to be guided in implementing and making full use of the agreement. Local authorities will be instructed to effectively carry out the “Guiding Opinions on High-Quality Implementation of the RCEP,” seize the opportunities presented by the agreement’s gradual liberalization process, and progressively and comprehensively unlock its economic benefits. Furthermore, specialized RCEP training will be intensified; building on the 13 sessions already held over the past two years, targeted programs will be deepened across specific sectors—including petrochemicals, mechanical and electrical equipment, light industry and textiles, and automobiles—to strengthen supply chain stability and resilience. Local governments and industry associations are encouraged to organize more refined, tailored training initiatives, helping enterprises fully understand and capitalize on the policy dividends offered by the agreement.
Second, we will continuously enhance the quality of public services and promote the replication and wider application of best practices in implementing the agreement. Building on the earlier optimization of the China Free Trade Zone Service Network, we will keep providing enterprises with policy advice and Q&A support related to the RCEP. We will encourage and support localities in tailoring their approaches to regional conditions and delivering enterprise‑oriented services through diverse channels, offering comprehensive solutions for the implementation of free trade agreements. We will also conduct regular monitoring and assessments of challenges encountered during implementation, distill and document successful experiences and innovative practices from across the country in areas such as aligning with the RCEP, improving the business environment, and fostering trade and investment cooperation, and develop replicable, scalable, and actionable model cases for leveraging the RCEP, thereby steadily raising both the utilization rate and the effectiveness of the agreement.
Third, we will promote high‑level compliance by member states and deepen the development of RCEP mechanisms and cooperation. Working together with all members, we will continue to ensure the full implementation of RCEP commitments on tariff reductions, liberalization of trade in services, and investment opening-up, and fully honor our obligations under the agreement’s rules on trade and investment facilitation. We will facilitate the regular convening of RCEP ministerial meetings and joint committee sessions, oversee and advance the high‑quality implementation of the agreement, support the establishment of an RCEP secretariat, and strengthen RCEP economic and technical cooperation. We will actively promote the harmonization and alignment of product and service standards among members, pragmatically advance regional mutual recognition of conformity assessment, and create more favorable conditions for the high‑quality implementation of RCEP, thereby enabling localities and enterprises to integrate more fully into the RCEP market and achieve mutually beneficial outcomes and shared development at a higher level.

In May, China’s manufacturing PMI stood at 48.8%.
On May 31, the Service Industry Survey Center of the National Bureau of Statistics and the China Federation of Logistics & Purchasing released data showing that in May, China’s manufacturing Purchasing Managers’ Index (PMI) stood at 48.8%, down 0.4 percentage points from the previous month.
“In May, the manufacturing PMI remained in contraction territory. Among the 21 industries surveyed, 11 posted PMIs in expansionary territory, indicating a certain degree of divergence in industry conditions,” said Zhao Qinghe, a senior statistician at the National Bureau of Statistics’ Service Industry Survey Center.
Statistical data indicate a moderation on both the production and demand sides. In May, the production index and the new orders index stood at 49.6% and 48.3%, respectively—down 0.6 and 0.5 percentage points from the previous month—and both remained in contraction territory, reflecting continued weakness in manufacturing market demand and constrained capacity utilization among enterprises.
The PMI for large enterprises rose to the threshold level. In May, the PMI for large enterprises stood at 50%, up 0.7 percentage points from the previous month. Specifically, the production index and the new orders index were 51.5% and 50.3%, respectively—increases of 1.4 and 1.3 percentage points from the prior month—indicating synchronized expansion in both output and demand. Meanwhile, the PMIs for medium- and small-sized enterprises were 47.6% and 47.9%, down 1.6 and 1.1 percentage points, respectively, reflecting continued weak business conditions among these offices.
Business conditions in several key sectors have shown some improvement. In May, the PMIs for the equipment manufacturing, high-tech manufacturing, and consumer goods industries stood at 50.4%, 50.5%, and 50.8%, respectively—up 0.3, 1.2, and 1 percentage point from the previous month—indicating varying degrees of expansion compared with the prior month.
Business confidence remains broadly stable. In May, the index of expectations for production and business activities stood at 54.1%, up 0.2 percentage points from the same period last year, reflecting generally steady operations and sustained optimism among enterprises regarding the near-term outlook for industry development.

Beijing has issued 21 measures to promote the innovative development of general artificial intelligence.
On May 30, the Beijing Municipal Government website published the “Notice on Issuing the ‘Several Measures of Beijing Municipality to Promote the Innovative Development of General Artificial Intelligence.’”
The “Several Measures” comprise five key areas and 21 specific actions, calling for enhanced capabilities in the coordinated provision of computing power and high-quality data resources, the systematic development of a general-purpose AI technology framework—including large-scale models—, the promotion of innovative applications of general-purpose AI technologies, and the exploration of an inclusive yet prudent regulatory environment. The measures propose efficiently advancing the construction of new computing‑infrastructure facilities, aggregating high‑quality foundational training datasets, and accelerating the establishment of the Beijing Artificial Intelligence Public Computing Center and the Beijing Digital Economy Computing Center in Haidian and Chaoyang Districts, thereby building a scalable capacity for cutting‑edge computing power to support the research and development of large language models with hundreds of billions of parameters, large vision models, multimodal large models, large scientific‑computing models, large‑scale fine‑grained neural network simulation models, and brain‑inspired neural networks.

The Ministry of Industry and Information Technology plans to issue 775 industry standards and 101 recommended national standard project proposals.
On May 31, the website of the Ministry of Industry and Information Technology published a notice soliciting public comments on 775 industry standards, seven foreign-language versions of industry standards, and 101 proposed recommended national standards, including the “General Technical Requirements for Cloud-Network Convergence in 5G Private Networks.” The deadline for submitting feedback is June 30.
The industry standards proposed for formulation or revision in this batch primarily include: “General Specification for Single‑LCD Projectors,” “User Experience Metrics and Evaluation Methods for Real‑Time Interactive Virtual Reality (VR) Applications,” “AR 3D Modeling Data Acquisition Method for Indoor Scenes Based on Smart Terminals,” “Guideline for Artificial Intelligence Model Management,” “Technical Requirements and Test Methods for Machine Learning Platforms Targeting Structured Data—Part 1: Functional Requirements,” “Technical Requirements for an AI‑Driven Cognitive Reasoning Framework,” and “Technical Requirements for Open Consortium Blockchains Aimed at Telecommunications Operators,” among others. The recommended national standards slated for formulation or revision mainly comprise: “Semiconductor Devices—Mechanical and Climatic Test Methods—Part 9: Marking Durability,” “Semiconductor Integrated Circuits—Interface Specification for Embedded Non‑Volatile Memory,” and “General Specification for Lithium‑Ion Batteries and Battery Packs Used in Power Energy Storage,” among others.

Continuously promote the optimization of the steel industry structure.
At a recent press conference hosted by the China Iron and Steel Association, participants noted that China’s steel industry continues to grapple with several challenges, including steel supply outpacing consumption growth, year-on-year increases in corporate inventories, a marked decline in industry profits, and rapidly rising accounts receivable. How to effectively address these issues warrants close attention from all stakeholders.
At present, China’s steel industry is gradually reversing last year’s sluggish demand, with both apparent crude steel consumption and the operating revenue of key surveyed steel enterprises posting year-on-year growth. Meanwhile, the pace of steel supply expansion has outstripped the recovery in market demand, leading to sustained downward pressure on steel prices. With upstream raw material and fuel prices remaining at relatively high levels, the profitability of steel companies still requires improvement.
This situation has arisen primarily because economic activity has picked up markedly, with the first-quarter PMI returning to expansionary territory. Coupled with speculative capital in the futures market, steelmakers have become somewhat optimistic about the recovery of downstream demand, while overlooking the underlying realities of economic dynamics. However, at this stage, the improvement in China’s economy is largely cyclical and driven by restorative factors; endogenous growth momentum remains weak. Consequently, neither the real estate sector, nor the pace of infrastructure project implementation, nor the production rhythm of the manufacturing industry is likely to experience a sudden, sharp acceleration. As a result, supply in the steel market is expanding significantly faster than demand is recovering. This rapid supply-side expansion could, in the short term, create tangible inventory pressures and erode market expectations for a sustained demand rebound, thereby undermining the industry’s prospects for continued recovery.
From a data perspective, crude steel output in the first quarter increased by 6.1% year on year, with average daily crude steel production at historically high levels, and inventory levels at key enterprises remaining above those of the same period last year across all months. Given the sheer scale of China’s crude steel production, the capacity expansion observed since the beginning of the year has provided strong support to prices for metallurgical raw materials and fuels. Operating costs at key surveyed steel companies rose 5.90% year on year, outpacing revenue growth by 3.66 percentage points. As inventories have built up, the liquidity of steel offices’ assets has declined, and accounts receivable have also risen markedly compared with the same period last year. This suggests that steel producers’ capacity‑expansion potential remains constrained, and resource allocations for R&D and technological upgrades will be limited to some extent.
However, since April, as the effects of measures to expand domestic demand and stabilize foreign trade have begun to emerge, signs of a recovery in downstream demand have been steadily strengthening: in April, the value added of the equipment manufacturing sector rose 13.2% year on year, accelerating by 5.3 percentage points from the previous month; retail sales in the home appliance market turned positive on a year-on-year basis; and the automotive industry’s business confidence continued to improve, with cumulative production and sales for the first four months shifting from negative to positive growth, including a 76.5% year-on-year increase in exports. These encouraging indicators suggest that a rebound in the steel industry is within reach.
On this basis, we must remain confident: on the one hand, we should manage the pace of steel supply at the aggregate level, ensuring a dynamic balance between supply and demand in the steel market; on the other hand, structurally speaking, the recovery of the steel industry should not be equated with a mere rebound in output. Instead, we must comprehensively and accurately embrace the sector’s development imperatives—namely, high‑endization, intelligentization, and green transformation—integrating the resumption of supply with technological upgrading and structural adjustment. With consolidation and restructuring as key levers, we will continue to optimize the industrial structure and raise industry concentration. Guided by scientific and technological innovation, we will steadily enhance product quality and process standards as well as our capacity for green development. Leveraging digital transformation, we will further improve corporate governance and cost‑control capabilities, fostering co‑construction, co‑governance, and shared benefits across the steel industry and its upstream and downstream sectors, thereby continuously elevating the industry’s level of smart manufacturing.

Two departments jointly implement the Metrology Partnership Program for Small and Medium-sized Enterprises.
On May 29, the Chinese Government Website published the “Notice on Implementing the Metrology Partnership Program for Small and Medium-sized Enterprises.”
The Notice sets out a plan to guide 100 large enterprises by 2025 in spearheading the implementation of metrology partnership programs for small and medium-sized enterprises, and outlines five key tasks: first, to intensify technical assistance in metrology for enterprises; second, to strengthen joint research and development on metrological technologies and the application of resulting innovations; third, to promote the sharing of metrological resources and capabilities among enterprises; fourth, to bolster technical support for green and low‑carbon initiatives; and fifth, to advance the training and deployment of metrology professionals within enterprises. The Notice further specifies that it will encourage the establishment of a “green channel” for administrative approvals related to metrology for SMEs, and, for manufacturers of measuring instruments and institutions engaged in the development and production of standard substances seeking type approval or calibration certification, it will seek to minimize approval timelines to the greatest extent possible.

The Ministry of Industry and Information Technology is launching the 2023 National SME Service Month campaign.
On May 26, the website of the Ministry of Industry and Information Technology released the “Notice on Launching the 2023 National SME Service Month Campaign.”
The Notice clarifies that, under the theme of “empowering with intelligence, value, and capability,” it will leverage the pivotal roles of public service institutions for SMEs at the national, provincial, municipal, and county levels, as well as key demonstration platforms for SME public services. It will organize a series of service initiatives—centered on the special campaigns to empower SMEs with scientific and technological achievements, enhance their value through quality standards and branding, and advance their digital transformation—to support the tiered cultivation of high‑quality SMEs and stimulate the emergence of more innovative SMEs, specialized, refined, distinctive, and novel SMEs, and “little giant” enterprises that are specialized, refined, distinctive, and novel. The activities will primarily include interpretive training, supply‑demand matchmaking, and assessment and diagnostic services.

With strong policy support and numerous companies deeply invested in the sector, the pediatric pharmaceutical industry has entered a golden period of transformation and development.
Recently, the Department of Drug Policy and Essential Medicines at the National Health Commission released the “Fourth List of Recommended Pediatric Drugs Encouraged for Research and Development.” The list includes 29 medications, such as vosoritide, pentamidine, nitazoxanide, gemtuzumab ozogamicin, anifrolumab, and clofarabine. These drugs are pediatric medicines that have not yet been registered or approved for marketing in mainland China and are urgently needed in clinical practice. Previously, three batches of recommended lists had been published, totaling 105 pharmaceutical products.
Industry insiders note that, in recent years, China has introduced a series of supportive policies to encourage pharmaceutical companies to strengthen R&D and production of pediatric medicines. These measures aim to enhance the quality and efficiency of innovative drugs while curbing redundant generic competition. The approval process for innovative drugs has been accelerated, with innovative products adopting a “price‑for‑volume” strategy and being included in the national reimbursement drug list through price‑negotiation, thereby accelerating their commercialization. Pediatric drug manufacturers are continuously bolstering R&D and innovation, improving product quality, and expanding their portfolios. As a result, China’s pediatric pharmaceutical sector has entered a golden period of transformation and high‑quality development.
Pediatric medications are relatively scarce.
According to data from the Pharmaceutical Chamber of the All-China Federation of Industry and Commerce, among more than 6,000 pharmaceutical manufacturers in China, fewer than a dozen specialize in pediatric medicines, and just over 30 companies have dedicated pediatric‑medicine production units. Data from the Beijing Capital Institute of Pediatrics indicate that the ratio of pediatric‑specific dosage forms to existing drug formulations is 1:59, with 90% of medications lacking age‑appropriate pediatric formulations. When clinical needs for pediatric medications remain unmet, clinicians often resort to substituting adult‑strength drugs; dosing frequently involves administering half a tablet, a quarter of a tablet, or even an eighth of a tablet, leading to imprecise dosing that may result in treatment failure or adverse effects due to overdosing. Moreover, there is a severe shortage of pediatric‑appropriate dosage forms and strengths, particularly for younger children and newborns.
In recent years, the proportion of children among the ill population has been steadily rising, and both the prevalence and the rate of medical visits among children have shown an upward trend, directly driving increased demand for pediatric medications. However, despite children accounting for 17.5% of China’s total population, pediatric drugs represent only 5% of the domestic pharmaceutical market, highlighting a severe supply–demand imbalance. Consequently, the market for pediatric medicines is vast, with significant potential for future growth.
A package of policies provides support.
In recent years, the National Medical Products Administration has actively advanced reforms to the priority review and approval system for pediatric drugs, accelerating their market access. According to data released by the NMPA on May 31, from January to May this year, 34 pediatric medicines have been approved for marketing—exceeding the number approved during the same period last year. These approvals cover areas such as rare pediatric diseases, common and frequently occurring childhood conditions, and critical pediatric illnesses. Over the past three years (2019–2022), a total of 158 clinically urgently needed pediatric drugs have received marketing authorization.
On May 10, the National Teleconference on Pharmaceutical Administration in the Health Sector was held in Beijing. The meeting comprehensively outlined key tasks for 2023, emphasizing the need to strengthen the drug supply‑guarantee system as the central focus, while highlighting clinical value and patient‑centered needs. Priority areas include essential medicines, shortage drugs, pediatric medicines, drug‑use monitoring, and comprehensive clinical evaluations, with the aim of advancing high‑quality development of drug supply‑guarantee efforts.
Recently, the National Health Commission has taken the lead in developing a National List of Shortage Drugs and a Key Monitoring List of Clinically Essential but Easily Shortaged Medications, which includes 30 pediatric combination drugs. The National Reimbursement Drug List currently covers approximately 600 pediatric medicines, spanning therapeutic areas such as oncology, thereby largely meeting the needs of insured children.
The National Health Commission stated that, in the next phase, when revising the National Essential Medicines List in accordance with laws and regulations, it will give full consideration to the clinical characteristics of pediatric medicines, appropriately adjust the range of drug products and dosage forms, optimize the product portfolio, and refine supporting policies to better meet children’s essential medication needs.
Enterprises are stepping up their R&D efforts.
A research report released by Huatong Securities International indicates that, as the government and society place increasing emphasis on pediatric medications and a series of favorable policies continue to drive progress, the pediatric drug market is expected to maintain strong growth momentum in the years ahead.
According to data from Yaozhi Network, in 2020 the global pediatric pharmaceutical market reached US$105.2 billion, with a compound annual growth rate of 4.5% from 2015 to 2020. In its report “Global Pediatric Pharmaceutical Industry Research and Investment Opportunities,” Meibai Capital projects that the global pediatric pharmaceutical market will grow to US$141 billion by 2025. North America remains the largest regional market for pediatric drugs, followed closely by China. Currently, growth in the pediatric pharmaceutical sector is primarily driven by the Asia-Pacific region, led by China, which is expected to capture an increasingly significant share of the market in the years ahead.
From the perspective of R&D companies, in addition to established leaders in pediatric medicines such as Huludawa, Jichuan Pharmaceutical, Jianmin Group, and Daining Pharmaceutical, offices like Hengrui Medicine and Yiling Pharmaceutical are expanding the pediatric indications for their existing products. Meanwhile, a new wave of biopharmaceutical companies is entering the field in various capacities, including Tianjing Biologics, Xianweida Biologics, AikobaiFa, Weisheng Pharmaceutical, and Baitai Biologics.
According to data from Tonghuashun IFind, as of now, there are 20 A-share listed companies classified as pediatric‑drug concept stocks. Some pharmaceutical offices have indicated that in 2023 they will increase R&D investment in pediatric medicines and further focus on their core businesses. In its 2022 annual report, Huatada Yin stated that in 2023 it will place a strong emphasis on pediatric drugs and the health sector, deepen its strategic positioning in the children’s health industry, and expand and extend its industrial value chain.
According to Yabao Pharmaceutical’s 2022 annual report, in 2023 the company’s R&D center will actively implement the strategy of “pediatrics first, generic‑drug supplementation, and innovative‑drug investment” across its R&D portfolio. In the pediatric segment, the focus will be on challenging generic drugs, improved‑new‑drug candidates, and exclusive traditional Chinese medicine products; meanwhile, leveraging the favorable policy window for TCM, the company will rapidly expand its pipeline of new TCM offerings. For innovative drugs, resources will be concentrated on advancing key projects, building robust intellectual‑property protection barriers, and achieving breakthroughs as soon as possible. As for specialized medical nutrition, aligned with the “pediatrics first” strategy and integrating both generics and innovations, the company will develop a comprehensive portfolio of pediatric specialized medical nutrition products and a complementary line of pediatric tonifying formulations.

Taxation
How effective have tax relief measures been? What new initiatives will be introduced to make tax services more convenient? — The State Taxation Administration responds to recent hot‑button tax issues.
Taxes serve as a barometer of economic performance. Since the beginning of this year, how have various tax and fee relief policies eased the burden on businesses? What new measures will be introduced to make tax filing and payment more convenient? And how can we better regulate the tax‑related economic order to ensure that policy benefits do not end up in the pockets of unlawful actors? On the 26th, the State Taxation Administration held a press conference to address recent hot‑button tax issues.
In the first four months, new tax and fee reductions, refunds, and deferrals totaled 468.9 billion yuan.
Rong Hailou, Director-General of the Revenue Planning and Accounting Department of the State Taxation Administration, stated that from January to April this year, nationwide tax and fee reductions, refunds, and deferrals totaled RMB 468.9 billion. Of this amount, RMB 308.3 billion stemmed from two rounds of extended, optimized, and innovative tax and fee preferential policies, while another RMB 160.6 billion resulted from other measures, such as value-added tax credit refunds, thereby significantly easing the burden on market entities.
Rong Hailou stated that, specifically, taxpayers and payers in the private sector—including private enterprises and individual business households—have benefited from new tax and fee reductions, refunds, and deferrals totaling over RMB 339.3 billion, accounting for more than 70 percent of the overall benefit. Among the various sectors of the private economy, manufacturing and wholesale and retail trade account for the largest share, with cumulative new tax and fee reductions, refunds, and deferrals amounting to RMB 162.9 billion, or 48 percent. Among the different types of entities in the private sector, small and micro businesses have received the most favorable treatment, with cumulative new tax and fee reductions, refunds, and deferrals totaling RMB 195.8 billion, representing 57.7 percent of the total.
Dai Shiyou, Director-General of the Policy and Regulations Department of the State Taxation Administration, stated that, focusing on the key issues of concern to taxpayers and payers, the tax authorities promptly collate and issue policy guidelines, produce policy‑explanation videos such as “Tax Lecture” series, and swiftly upgrade and refine the tax collection and administration information system. They also proactively solicit advice and identify needs, streamline information‑feedback mechanisms with grassroots tax authorities, and ensure the precise and efficient implementation of all tax and fee preferential policies.
The “Convenient Tax Services Spring Breeze Campaign” will introduce an additional 19 measures.
Since the beginning of this year, the tax authorities have taken the thematic education campaign as an opportunity to roll out three batches of 62 taxpayer-friendly measures, helping ensure the thorough and precise implementation of tax and fee preferential policies and continuously enhancing the convenience of tax filing and payment. Shen Xinguo, Director-General of the Taxpayer Services Department of the State Taxation Administration, stated that, in order to better deliver tangible results and address public concerns, the tax authorities will soon introduce a fourth batch of 19 measures under this year’s “Spring Breeze Action” for Convenient Tax Services.
Shen Xinguo further explained that, for example, to address the tax‑filing and payment needs of cross‑border operators, measures have been introduced, such as enhancing tax‑policy information services related to the Belt and Road Initiative and continuously updating the Investment Tax Guide for taxpayers expanding overseas. Meanwhile, in response to taxpayers’ and payers’ demands for reducing data‑entry burdens and improving the online tax‑service experience, four innovative service initiatives have been launched, including “Bilingual Cross‑Border Tax Services for Non‑Residents,” a pilot program for intelligent business start‑ups, a pilot scheme for simplified conofficeation‑based filing, and a trial allowing high‑credit taxpayers to issue invoices on an as‑needed basis.
Shen Xinguo stated that, since the beginning of this year, the tax authorities have organized a variety of tax‑related publicity and guidance activities. Starting in March, they launched a pilot program for video‑based Q&A sessions, holding more than 300 such sessions and responding to a total of 21,300 inquiries. At the same time, in collaboration with the All-China Federation of Industry and Commerce, they have carried out the “Spring Rain Nurtures Seedlings” special campaign for the third consecutive year, providing small and micro‑businesses with tax and fee policy support and innovative service measures. With regard to social insurance premium payments, the authorities have implemented an online “one‑stop” service and an offline “one‑hall joint processing” model for social insurance administration and payment. To date, 26 provinces and municipalities have introduced the online “one‑stop” service for these functions.
Continuously crack down on all types of tax-related illegal activities.
While ensuring that all preferential policies are promptly and effectively delivered to eligible taxpayers and implemented with meticulous attention to detail, the tax authorities are also focusing on high-risk industries and key sectors, resolutely cracking down on all types of tax evasion, fraud, and other illegal tax‑related activities in accordance with the law.
“From January to April this year, tax inspection authorities nationwide legally investigated and dealt with 31,600 taxpayers in violation of the law, recovering tax losses totaling 52.8 billion yuan and effectively safeguarding the order of the tax‑related economy,” said Huang Yun, spokesperson for the State Taxation Administration.
Huang Yun stated that the tax authorities remain committed to rigorously investigating and severely cracking down on serious violations such as “fake enterprises,” “fake exports,” and “false declarations.” From January to April this year, nationwide investigations, verifications, and inspections identified 1.406 million falsely issued invoices, recovering RMB 3.735 billion in lost export tax rebates. In addition, focusing on key sectors, the authorities have pursued tax evasion and avoidance in accordance with the law. Since the beginning of this year, they have investigated and prosecuted several enterprises that exploited measures such as the additional deduction for R&D expenses to evade taxes. Meanwhile, in high‑risk industries—particularly pharmaceuticals and agricultural products—where false invoicing is prevalent, 890 leads related to such cases have been shared, and illegal intermediaries assisting taxpayers in tax evasion have been duly investigated and dealt with in accordance with the law.
Huang Yun stated that, going forward, the tax authorities will further enhance their capabilities in risk identification and precision enforcement, continuously deepen the multi‑agency joint enforcement mechanism, and effectively leverage the functions of tax inspections to combat tax‑related violations, safeguard tax revenue security, and advance tax governance.

In the first four months, new tax and fee reductions, refunds, and deferrals totaled RMB 468.9 billion.
Further stimulate the vitality of all types of market entities.
On May 26, the State Taxation Administration held its regular press conference, announcing that from January to April, nationwide tax and fee reductions, refunds, and deferrals totaled RMB 468.9 billion. Of this amount, RMB 308.3 billion stemmed from two rounds of extended, optimized, and innovative tax and fee preferential policies, while another RMB 160.6 billion resulted from measures such as value-added tax credit refunds, effectively easing the burden on various market entities and further boosting their vitality.
By policy, the measure exempting small-scale taxpayers with monthly sales of RMB 100,000 or less from value-added tax generated an additional tax reduction of RMB 103.8 billion, benefiting 22.11 million taxpayers; the policy reducing the tax rate for small-scale taxpayers from 3% to 1% resulted in an additional tax cut of RMB 40 billion, benefiting 4.83 million taxpayers; the continued implementation of the temporary reduction in unemployment insurance contribution rates led to an additional cost reduction of RMB 52.1 billion, benefiting 14.34 million payers; the policy lowering income tax for small and micro enterprises produced an additional tax relief of RMB 47.3 billion, benefiting 4.12 million taxpayers; and the exemption of vehicle acquisition tax for new-energy vehicles generated an additional tax reduction of RMB 29 billion, benefiting buyers of 1.66 million vehicles.
By economic sector, taxpayers and payers in the private sector—including private enterprises and individual business households—received over RMB 339.3 billion in additional tax and fee reductions, refunds, and deferrals, accounting for more than 70 percent of the total and enjoying the greatest benefits. Among the various industries within the private sector, manufacturing and wholesale and retail trade accounted for the largest share, with cumulative new tax and fee reductions, refunds, and deferrals totaling RMB 162.9 billion, or 48 percent. Among the different types of entities in the private sector, small and micro businesses received the most favorable treatment, with cumulative new tax and fee reductions, refunds, and deferrals amounting to RMB 195.8 billion, representing 57.7 percent of the total.

Tax big data shows that China’s efforts to build a unified national market are characterized by “three strong trends.”
China is building a nationwide unified market that is efficient and well‑regulated, fosters fair competition, and is fully open. According to tax‑related big data released on the 26th by the State Taxation Administration, the development of this unified national market is characterized by three key trends: heightened interprovincial trade linkages; stronger allocation of innovation and information‑related factors; and an enhanced role in supporting transportation and logistics.
Tax‑related big data boasts advantages such as timeliness, broad coverage, and fine granularity, enabling it to reflect and compare macroeconomic trends in a timely, objective, and relatively comprehensive manner. At a press conference held in Beijing on the 26th, Rong Hailou, Director of the Revenue Planning and Accounting Department of the State Taxation Administration, stated that, based on tax‑related big data, the Administration has analyzed the progress of building a unified national market since 2017, identifying three distinct characteristics.
— Interprovincial trade linkages have strengthened, further highlighting the advantages of a unified national market. According to VAT invoice data, from 2017 to 2022, nationwide interprovincial trade sales grew at an average annual rate of 12.8%, outpacing the overall national sales growth rate by one percentage point. The share of interprovincial trade sales in total sales rose from 38.2% to 39.8%, an increase of 1.6 percentage points. From January 1 to May 20, 2023, interprovincial trade accounted for 39.6% of total sales, remaining at a relatively high level.
— Innovation and the allocation of information‑related factors have strengthened, with pronounced spillover effects in key regions. VAT invoice data show that from 2017 to 2022, nationwide interprovincial sales of technology services grew at an average annual rate of 28%. From January 1 to May 20 this year, such interprovincial sales increased by 29.7% year on year. As two major international centers for science and innovation, Beijing and Shanghai accounted for 23.6% and 16%, respectively, of the national total of interprovincial technology‑service sales in 2022; over the 2017–2022 period, their respective average annual growth rates were 22.1% and 24.2%.
From 2017 to 2022, nationwide interprovincial sales of information services grew at an average annual rate of 22%. From January 1 to May 20 this year, such sales increased by 21.4% year on year. Rong Hailou stated that the spillover effects of factors such as technological innovation and information technology have been steadily strengthening, with Beijing and Shanghai—two major centers of science and technology—exerting a pronounced radiating and driving influence.
— The supporting role of transportation and logistics has strengthened, and the modern circulation system has been steadily improved. According to VAT invoice data, from 2017 to 2022, the national transportation and logistics sector recorded an average annual revenue growth rate of 15.2%, outpacing the overall national revenue growth rate by 3.4 percentage points. In particular, multimodal transport and freight forwarding, as well as the postal and express delivery sectors, posted average annual revenue growth rates of 21.6% and 23.2%, respectively—significantly faster than the sector’s overall growth rate. Meanwhile, interprovincial trade within the national transportation and logistics industry expanded at an average annual rate of 17.2%, 2 percentage points higher than the sector’s overall revenue growth, underscoring the rapid expansion of cross‑provincial trade in this field.

LITIGATION & ARBITRATION
The Supreme People’s Procuratorate has released the “White Paper on Procuratorial Work Involving Minors (2022).”
Strengthen the integrated performance of duties across the “Four Major Prosecutorial Functions” to deliver a comprehensive approach to safeguarding the rights and interests of minors.
On June 1, the Supreme People’s Procuratorate released the “White Paper on Procuratorial Work Involving Minors (2022)” (hereinafter referred to as the White Paper), which, for the first time, disclosed how the procuratorial organs have strengthened the integrated performance of their duties across the “four major areas of procuratorial work” and deepened comprehensive and holistic judicial protection for minors.
The white paper analyzes and summarizes data on case handling in the “four major areas of procuratorial work” involving minors, reports on related work submitted to the Standing Committee of the National People’s Congress, efforts to strengthen two-way protection, measures to enhance integrated performance of duties, initiatives to promote the comprehensive implementation of the “sixfold protection” framework, strategies for improving the effectiveness of legal education and publicity, progress in advancing professionalization and standardization, and advances in theoretical research. It also identifies cases, exemplary practices, and innovative mechanisms that have had a significant impact on procuratorial work and judicial protection for minors.
The white paper indicates that, from 2020 to 2022, based on the procuratorial organs’ handling of arrest reviews and prosecution reviews involving juvenile criminal suspects, juvenile crime has generally been on the rise; the proportion of offenses committed by younger juveniles has increased; cases involving the crime of assisting information network criminal activities have risen markedly; the share of drug-related offenses among juveniles has continued to decline; the number of incidents of school bullying and violent crimes has kept falling; and the recidivism rate among juveniles has steadily decreased.
The white paper also indicates that the overall number of crimes harming minors has declined, yet sexual assault cases continue to rise. The number of offenses involving the organization of minors to engage in activities that violate public order has increased, and crimes against minors under the age of 14 have likewise shown an upward trend. Nationwide, 2,053 “one-stop” inquiry and assistance workspaces for minor victims have been established. Prosecutorial authorities have strengthened diversified, comprehensive support for minor victims: in 2022, they provided assistance to 17,000 minors, disbursed 220 million yuan in relief funds, conducted psychological counseling and assessments for 10,000 individuals, facilitated residential placement for 3,593 persons, and helped 2,858 minors return to school.
The white paper reveals that in 2022, procuratorial organs, in handling cases involving minors, implemented the “Supervisory Order for Guardianship” mechanism to specifically urge and guide guardians to conscientiously and effectively fulfill their custodial duties. A total of 57,425 such orders were issued, an increase of 197.1% year on year. In addition, procuratorial organs handled 3,368 support‑prosecution cases involving minors—excluding those related to the supervision of parental custody—covering matters such as recovery of child support and ensuring school enrollment and retention.
The white paper notes that procuratorial organs, in response to the new requirements of juvenile justice protection in the new era, have fully leveraged the advantages of centralized and unified handling of juvenile-related cases, delivering a comprehensive package of measures to safeguard minors’ rights and interests. They have striven to foster a synergistic “chemical reaction” among the four major areas of prosecutorial functions pertaining to minors, thereby maximizing the protection of minors’ legitimate rights and interests. In 2022, a total of 9,700 public interest litigation cases involving the protection of minors were filed, with 3,217 such cases—accounting for 32.4% of all filings—initiated after identifying relevant leads in criminal cases involving minors.
This year, the procuratorial organs will carry out in-depth thematic education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully apply Xi Jinping’s thought on the rule of law, thoroughly implement the spirit of the 20th National Congress of the Communist Party of China, earnestly implement the CPC Central Committee’s Opinions on Strengthening Legal Supervision by Procuratorial Organs in the New Era, further act on the review comments of the Standing Committee of the National People’s Congress, and deeply uphold the principle of “what is most beneficial to minors.” They will adhere to the goal of handling every case with high quality and efficiency, exercise criminal, civil, administrative, and public interest litigation functions in a centralized and unified manner in accordance with the law, strive to make prosecutorial judicial protection more substantive and effective, promote the comprehensive and practical implementation of the “sixfold protection” encompassing family, school, society, cyberspace, government, and the judiciary, and advance the modernization of procuratorial work involving minors, thereby providing stronger support and safeguards for their safe and healthy growth.

Tianjin Courts Release Typical Cases on the Protection of Minors’ Rights and Interests
On June 1, the official WeChat account of the Tianjin Higher People’s Court released five typical cases involving the protection of minors’ legitimate rights and interests.
This batch of typical cases addresses issues such as blocking app-based youth modes, online fraud targeting minors, failure by commercial amusement venues to fulfill their duty to ensure safety, disputes over custody relationships, and the appointment of guardians. In Case No. 1, Tencent’s “Tencent Video” and “Tencent NOW Live” apps feature a “Youth Mode,” offering high-quality content suitable for minors, restricting social and consumption functions like top-ups, chart‑ranking, and virtual gifting, and implementing anti‑addiction mechanisms. Meanwhile, the defendant, a Beijing‑based company operating the “Ad‑Removal Tool” app, promoted the “automatic closure of the Youth Mode pop‑up” as one of its “premium member privileges,” and used the lure of “limited‑time free access” to encourage users to enable an “accessibility permission.” Ultimately, the app bypassed or blocked the entry pop‑ups for the Youth Mode on multiple online audio‑video platforms on behalf of users, prompting Tencent to file a lawsuit alleging unfair competition. The court ruled that the Beijing company’s app constituted unfair competition and ordered it to pay Tencent RMB 3 million in damages.

The Shanghai Higher People’s Court has released ten landmark cases and exemplary instances of judicial protection for minors.
Recently, the Shanghai Higher People’s Court released ten exemplary cases and incidents in the field of judicial protection for minors, identifying key areas of focus within juvenile litigation and the broader framework of minor‑related protection. By fully leveraging the comprehensive adjudication mechanism for juvenile cases, vigorously promoting the principles of minor protection, continuously innovating protective measures, and comprehensively coordinating all stakeholders, the court is ensuring the healthy growth and development of minors.

The Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Ecology and Environment have jointly released typical cases of severe legal punishment for crimes involving environmental pollution by hazardous waste.
On May 29, the Supreme People’s Procuratorate, the Ministry of Public Security, and the Ministry of Ecology and Environment jointly released seven typical cases of crimes involving the illegal disposal of hazardous waste that severely pollute the environment. For four consecutive years, the three departments have jointly launched special campaigns to crack down on environmental violations and crimes related to hazardous waste, as well as on the falsification of automatic monitoring data by key pollutant‑discharging entities, strengthening inter‑agency coordination and maintaining a sustained high‑pressure stance against such offenses. The joint release of these typical cases underscores the determination and tangible results achieved by law enforcement and judicial authorities in working together to rigorously prosecute, in accordance with the law, illegal discharge, dumping, and disposal of hazardous waste, as well as the falsification of automatic monitoring data on pollutant emissions by key discharging units.
The seven cases released this time focus on the common characteristics of environmental pollution crimes in key areas, taking frequently occurring sectors and stages as entry points. By summarizing and analyzing the typical significance of each case, the aim is to enhance law enforcement and case-handling standards, thereby effectively cracking down on environmental crimes involving hazardous waste.
Going forward, the three departments will remain steadfast in their commitment—maintaining the same direction and unwavering intensity—and will press ahead with the special campaign to combat environmental crimes and illegal activities involving hazardous waste, as well as fraudulent manipulation of automatic monitoring data by key polluting entities. They will deepen enforcement efforts, broaden their scope, and sustain a high-pressure approach to cracking down on environmental offenses in priority areas. By rigorously applying the strictest systems and the most robust rule of law, they will resolutely safeguard the ecological environment and work together to protect our green mountains and clear waters.

The Supreme People’s Court and the All-China Women’s Federation have released typical cases of judicial assistance for safeguarding the rights and interests of minors.
On the morning of May 29, 2023, the Supreme People’s Court held a press conference and jointly released with the All-China Women’s Federation a set of typical cases on judicial assistance for safeguarding the rights and interests of minors. Attending the conference were Kong Ling, Director of the Compensation Office of the Supreme People’s Court; Li Yueyang, Deputy Director of the Rights and Interests Department of the All-China Women’s Federation; Wang Guoxian, Deputy Director of the Compensation Office of the Supreme People’s Court; and Su Ge, Deputy Director of the Compensation Office of the Supreme People’s Court. The event was chaired by Wang Bin, Deputy Director of the News Bureau of the Supreme People’s Court.
On the occasion of International Children’s Day, the Supreme People’s Court and the All-China Women’s Federation jointly released to the public ten exemplary cases of judicial assistance for safeguarding the rights and interests of minors.
The healthy growth of children and adolescents is vital to the happiness and peace of countless families, to social harmony and stability, and to the future of our country and the hope of our nation. Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has attached great importance to, shown deep care for, and actively fostered the healthy development of children and adolescents. General Secretary Xi Jinping has emphasized that “the whole of society must understand, respect, care for, and serve children and adolescents, providing them with a favorable social environment.” The report to the 20th National Congress of the CPC explicitly calls for improving the social security system and safeguarding the legitimate rights and interests of women and children.
People’s courts and the All-China Women’s Federation have consistently attached great importance to safeguarding the rights and interests of minors, continuously strengthening comprehensive protection for children and adolescents in the course of judicial assistance. On the one hand, when providing assistance to minors, people’s courts expedite case processing and intensify support measures, disbursing relief funds to help them swiftly overcome their immediate hardships—providing “immediate relief.” On the other hand, they work closely with local women’s federations to offer “long-term assistance,” helping children and adolescents resolve issues related to school registration, coordinating tuition reductions or exemptions, assisting with applications for subsistence allowances, connecting them with specialized agencies for psychological counseling, and conducting regular follow-up visits. Through these efforts, they strive to create a positive, caring environment, enabling minors to emerge from adversity and embrace a brighter future.
General Secretary Xi Jinping has repeatedly emphasized that “one case is worth more than a dozen documents.” Laws and policies must be implemented through concrete cases, and fairness and justice must be demonstrated in each specific instance. The Supreme People’s Court has consistently attached great importance to, and fully leveraged, the role of typical cases in providing normative guidance and public education. To encourage the entire society to show concern and support for minors whose lives have been plunged into dire straits due to unlawful harm, and to guide people’s courts at all levels in further improving judicial assistance and extended assistance for minors, we have carefully selected ten exemplary cases from those concluded by courts across the country in recent years and are now making them publicly available.
The ten cases released this time represent the first-ever joint thematic publication by the Supreme People’s Court and the All-China Women’s Federation. These cases cover major categories of assistance, including relief for criminal victims, support for child‑support claims, and compensation for damages arising from road traffic accidents. They include exemplary instances of close collaboration between the people’s courts and women’s federations in establishing a diversified assistance mechanism that combines financial aid with comprehensive, multi‑dimensional support; cases in which the people’s courts have demonstrated a sense of responsibility, pioneering institutional innovation through practical initiatives; and vivid examples of targeted assistance provided by the courts to vulnerable minors. Collectively, these cases underscore the Party and the state’s commitment to safeguarding the healthy development of minors, reflect the special care extended by the people’s courts and all sectors of society, and highlight the essential role of judicial assistance in providing urgent relief and addressing pressing needs, while also advancing the goal of strengthening the protection of the right to subsistence. At the same time, they offer model precedents for handling similar cases.
People’s courts at all levels will take this release of case examples as an opportunity to strengthen assistance and support for minors, proactively expand the scope of judicial relief, and continuously promote the coordination and improvement of systems integrating judicial relief, social assistance, and charitable aid. It is hoped that the entire society will pay greater attention to and provide stronger support for the people’s courts’ judicial relief efforts, thereby further fostering a shared understanding and collective commitment to caring for, protecting, respecting, and serving minors.
On the new journey of building a modern socialist country in all respects, the people’s courts will remain committed to a development philosophy centered on the people, further enhance the quality of judicial assistance, and strive to ensure that the public experiences fairness, justice, and the warmth of the judiciary in every case of judicial assistance, thereby making new and greater contributions to the building of a law-based China.

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