JC Master Legal News Issue 1063

Key Takeaways for This Issue
The National Administration of Financial Regulation has officially been unveiled.
On the morning of May 18, the National Administration of Financial Regulation was officially unveiled at No. 15 Jinan Street in Beijing, marking a significant step in China’s latest round of institutional reforms in the financial regulatory sector.
Backroom dealings, suspected transfer of benefits, pronounced liquidity risks, and significant risks to the public… The regulatory notice highlights five typical issues.
Recently, the Shenzhen Securities Regulatory Bureau issued its third regulatory briefing of the year on private equity funds in Shenzhen, emphasizing that private securities investment funds are strictly prohibited from engaging in any illegal or non-compliant bond‑trading activities.
Two administrative measures in the power sector have undergone revision.
On the 19th, the National Development and Reform Commission published on its official website the “Measures for Demand-Side Management of Electricity (Draft for Public Comment)” and the “Measures for Managing Electric Power Load (Draft for Public Comment),” inviting public input. The revision of these two key regulatory frameworks in the power sector aims to align with the requirements of building a new‑type energy system, strengthen energy and electricity security, and promote the efficient and intensive use of resources.
Jiangsu’s first Internet Court was officially inaugurated in Suzhou.
On the morning of May 18, the Suzhou Internet Court was officially inaugurated, marking a new chapter in the specialized adjudication of internet-related cases. Approved by the Supreme People’s Court, it is the province’s first-ever Internet Court and will exercise centralized jurisdiction over specific first-instance internet cases within Suzhou that are ordinarily within the purview of the basic-level people’s courts.
Finance & Capital Markets
The Shenzhen Stock Exchange and China Electronics Corporation have signed a strategic cooperation agreement.
Joint services contribute to the establishment of a new development paradigm and support high-quality development.
On May 15, the Shenzhen Stock Exchange (hereinafter referred to as the SZSE) and China Electronics Corporation (hereinafter referred to as China Electronics) signed a new strategic cooperation agreement, building on their comprehensive deepening of strategic collaboration in 2015. Chen Huaping, Secretary of the Party Committee and Chairman of the SZSE, and Zeng Yi, Secretary of the Party Leadership Group and Chairman of China Electronics, witnessed the signing and attended a symposium.
China Electronics Corporation is the cradle of China’s indigenous electronics industry and a centrally administered state-owned enterprise whose core business revolves around the cyber‑information sector. Proactively aligning with national strategies, China Electronics continuously optimizes its industrial structure. Centered on three key missions—leveraging digital technologies to modernize the national governance system and governance capabilities, fostering high‑quality development of the digital economy, and safeguarding national cybersecurity—it vigorously advances priority areas such as the computing industry, integrated circuits, cybersecurity, data applications, and advanced electronic technologies, thereby building a core strategic scientific and technological force for the nation’s cyber‑information endeavors.
In recent years, the Shenzhen Stock Exchange has resolutely implemented the important instructions and directives of General Secretary Xi Jinping on the capital market, as well as the major decisions and deployments of the CPC Central Committee and the State Council. It has attached great importance to supporting state‑owned enterprise and state‑asset reform, consistently prioritizing support for high‑level scientific and technological self‑reliance and strength. By fully leveraging the dual‑tiered market structure of the Main Board and the ChiNext, the Exchange has taken concerted action across five key areas—establishing long‑term mechanisms, deepening cultivation and development, improving foundational systems, driving quality‑oriented transformation, and enhancing connectivity and services—to help all types of market entities grow and strengthen through the capital market, thereby actively contributing to high‑level scientific and technological self‑reliance and the building of a modern industrial system. To date, the Shenzhen Stock Exchange has established strategic cooperative relationships with 31 central state‑owned enterprises.
The Shenzhen Stock Exchange’s function of optimizing resource allocation is highly aligned with the industrial development characteristics of China Electronics Corporation, and the two parties have maintained a strong cooperative relationship, yielding substantial results in their earlier collaborations. China Electronics currently has seven listed companies on the Shenzhen Stock Exchange. Building on this existing partnership, the renewed agreement places a strong emphasis on high-quality development, highlighting targeted support for key national strategic priorities and areas of urgent need. It will foster comprehensive cooperation across multiple domains—including corporate IPO preparation, quality enhancement, access to diversified financing channels, the establishment of industry‑finance service platforms, the promotion of specialized restructuring and integration, and technology and information‑technology services—thereby pooling complementary strengths, achieving mutual benefits, and further strengthening the nation’s strategic scientific and technological capabilities in the cyberspace and information sector, thus better serving the strategies of building a cyber power and a digital China.
Going forward, the Shenzhen Stock Exchange will officely adhere to the overarching requirements of thematic education, continue to thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, proactively align with and serve national development strategies, earnestly carry out the CSRC’s new‑round initiatives to enhance the quality of listed companies, strengthen capital market functions, and boost direct financing capacity. The Exchange will also launch targeted action plans, comprehensively support the high‑quality development of central state‑owned enterprises listed in Shenzhen, remain committed to serving scientific and technological innovation, and introduce more innovative products focused on key areas such as advanced manufacturing, the digital economy, and green, low‑carbon development. In doing so, it will provide robust support for all types of listed entities to enhance their core competitiveness and actively contribute to optimizing the layout and restructuring of the state‑owned economy.

Report: China’s asset management industry is expected to reach RMB 275 trillion by 2030.
On the 19th, China Everbright Wealth Management, in collaboration with Boston Consulting, released the “China Asset Management Market Report (2022–2023)” in Beijing, noting that 2022 marked a year of profound transformation for the global asset management industry. Under the new cycle, amid multiple shocks—including inflation and a reversal in interest rates, capital repatriation amid deglobalization, and the ongoing escalation of financial market risk events—the global asset management sector faces heightened risks of further “reset” and “reshuffling.”
How should the industry respond? Where is China’s asset management market headed?
The report shows that in 2022, all major asset classes worldwide declined, with equities and bonds both suffering sharp losses, leading to a substantial contraction in the global asset management market. The total size fell from USD 112 trillion in 2021 to USD 98 trillion, a decline of 13%. By contrast, China’s asset management market maintained stability, posting growth of RMB 1 trillion to reach RMB 133.8 trillion—once again hitting a record high—though its growth rate slowed compared with 2021.
The report interprets that, in 2022, China’s wealth management companies, public mutual funds, insurance asset managers, and private equity funds—though experiencing a deceleration in growth—continued to outperform relative to other sub‑sectors following the implementation of the new asset‑management regulations, maintaining leadership in both scale and growth rate. Furthermore, it is worth noting that among institutional investors, pension funds sustained rapid expansion, with the formal rollout of the third‑pillar pension insurance system injecting substantial long-term incremental capital.
Looking ahead to the industry’s future trajectory, the report concludes that, compared with global markets, China’s economy continues to grow. Amid frequent disruptions triggered by a global market cycle reversal, China remains relatively stable. Over the medium to long term, China’s asset management market remains on an upward trend, with annualized growth expected to hover around 9%, and the total market size projected to reach RMB 275 trillion by 2030.
The report notes that Chinese asset management institutions will need to swiftly identify and capitalize on five well-defined structural opportunities emerging in the years ahead by strengthening their capabilities. These include: first, new sources of capital; second, new products and instruments; third, multi‑asset solution‑oriented offerings; fourth, fresh opportunities arising from shifts in cyclical factors; and fifth, new prospects driven by technological advancement.
At the press conference, China Everbright Bank President Wang Zhiheng also emphasized that the asset management industry must fully support the establishment of a new development paradigm, helping to expand domestic demand and advance supply-side structural reform. Furthermore, in delivering meticulous services to clients, the industry should remain customer‑centric, uphold the principle of “putting investors’ interests first,” and assist households in increasing their property‑related income while preserving and enhancing the value of their wealth.

The National Administration of Financial Regulation has officially been unveiled.
On the morning of May 18, the National Administration of Financial Regulation was officially unveiled at No. 15 Jinan Street, Beijing. This marks a significant step in China’s latest round of institutional reforms in the financial regulatory sector. Under the “Plan for Reform of Party and State Institutions,” the National Administration of Financial Regulation has been established to assume unified oversight of the financial sector—excluding the securities industry—while strengthening institutional, conduct‑based, functional,穿透式 (penetrative), and ongoing supervision. It will also coordinate efforts to protect the rights and interests of financial consumers, enhance risk management and prevention as well as risk response and resolution, and enforce compliance with laws and regulations through lawful investigations and enforcement actions. The Administration operates as a directly affiliated institution of the State Council.

Financing demand in the real economy is picking up, but banks show limited willingness to raise lending rates.
On May 15, the People’s Bank of China announced that, to ensure reasonably ample liquidity in the banking system, it conducted a medium-term lending facility (MLF) operation totaling RMB 125 billion, with a winning rate of 2.75%, unchanged from the previous level. This week, RMB 100 billion of MLF is set to mature.
Excess rollovers of the Medium-term Lending Facility (MLF) for six consecutive months.
The central bank has been renewing MLF operations at an over‑subscribed level for six consecutive months. In December last year, and in January, February, March, April, and May this year, it carried out MLF operations totaling RMB 150 billion, RMB 79 billion, RMB 199 billion, RMB 281 billion, RMB 20 billion, and RMB 25 billion, respectively—each time with a modest increase in the amount rolled over. The last time the central bank adjusted the MLF rate was in August last year, when both the MLF and reverse‑repo winning rates were cut by 10 basis points; since then, it has kept policy rates unchanged.
Earlier, the central bank’s April financial data fell short of market expectations. Starting in April, several small and medium-sized banks, along with joint-stock banks, began gradually lowering deposit rates, while the self-regulated caps on agreed‑deposit and call‑deposit rates were adjusted on May 15. Market participants are closely watching whether policy interest rates will be cut this time.
Credit data for the first four months showed strong performance.
A research report by Everbright Securities points out that the Medium-term Lending Facility (MLF) rate is a policy rate set by the central bank and serves to guide market interest rates, rather than the other way around. The yields on 1-year large-denomination certificates of deposit and 10-year government bonds generally fluctuate around the MLF rate as their central anchor. While market rates may occasionally dip slightly below the policy rate, such “below” levels do not necessarily signal an MLF rate cut. Under the current circumstances, there remains a degree of segmentation between the deposit market and the money and bond markets. To advance the marketization of deposit rates and ease pressure on funding costs, financial institutions have lowered interest rates on certain deposits; however, this does not constitute a sufficient condition for an MLF rate cut.
Orient Credit Rating has released its latest view, noting that, with the economic recovery now clearly underway, there is little need to cut policy interest rates at this time—this is the primary reason why the May Medium-term Lending Facility (MLF) rate remained unchanged. Specifically, driven by a rebound in household consumption and resilient investment in infrastructure and manufacturing, the macroeconomy has been on a recovery trajectory since the beginning of the year. Although the April manufacturing Purchasing Managers’ Index (PMI) slipped back into contractionary territory due to a high base effect, seasonal volatility, and the transition of recovery momentum, service-sector activity has stayed robust, and the economy as a whole continues to experience a relatively rapid recovery. The office expects second-quarter GDP growth to rise further to around 8.0% year-on-year. Going forward, policy will focus on consolidating the foundations of the economic recovery by sustaining strong growth in infrastructure investment, vigorously boosting consumer demand, and stepping up support for the real estate sector.
Zhou Maohua, a macro researcher at the Financial Markets Department of China Everbright Bank, pointed out that the Medium-term Lending Facility (MLF) was renewed at the same rate with an increased volume, slightly exceeding market expectations. This was mainly driven by robust credit data in the first four months, particularly the continued expansion of medium- and long-term corporate loans, which suggests that current interest rates remain broadly within an appropriate range. At the same time, in recent years, some banks have faced mounting pressure on their net interest margins, with certain institutions seeing their margins fall below critical thresholds. Meanwhile, new household lending in April remained weak, reflecting a slower-than-expected recovery in domestic consumption and the property sector; however, this has not altered the overall trend of a rebound in domestic demand. Accordingly, the central bank is expected to continue monitoring macroeconomic developments closely.
Industry analysts expect the May LPR rate to remain largely unchanged.
Many industry insiders believe that the month’s Loan Prime Rate (LPR), set to be released next week, is highly likely to remain unchanged. On the one hand, the Medium-term Lending Facility (MLF) policy rate has been held steady; on the other, banks face significant pressure on their net interest margins, while credit demand from the real economy is picking up. As a result, banks currently lack strong incentives to adjust their add‑on spreads. Going forward, the central bank may deploy reserve requirement ratio cuts—particularly targeted reductions—and structural monetary tools to encourage financial institutions to make effective use of the market‑based deposit‑rate adjustment mechanism, thereby further coordinating efforts to deliver greater cost savings to the real economy, especially in vulnerable sectors and key emerging areas, thus boosting the vitality of market entities and accelerating the rebalancing of consumption and domestic demand.

Foreign-funded banks participated in the first day of trading under the Northbound Swap Connect.
To foster the coordinated development of the financial derivatives markets in Mainland China and Hong Kong, the mutual access cooperation between the Hong Kong and Mainland interest rate swap markets—known as “Swap Connect”—was officially launched on the 15th, with “Northbound Swap Connect” being rolled out initially. Citibank (China) Co., Ltd., as one of the first batch of quoting banks under the Northbound Swap Connect, completed its inaugural transaction with overseas investors on the same day.
On the same day, multiple member banks of Standard Chartered Group located in Mainland China, Hong Kong, and London, UK, fully participated in the inaugural trading session of the Northbound Swap Connect. Among them, Standard Chartered Bank (China) Limited (Standard Chartered China), as one of the first batch of quoting parties under the Northbound Swap Connect, provided quotations for RMB interest rate swap transactions in the mainland China interbank financial derivatives market to overseas investors. Standard Chartered Bank (UK), as one of five banks authorized to offer client‑clearing services under the Swap Connect, delivered client‑clearing support for international investors’ derivative trades executed via the Swap Connect. Meanwhile, Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Hong Kong), as an early investor in the Northbound Swap Connect, also took part in the day’s initial trading.
According to reports, the “Northbound Swap Connect” provides overseas investors with a convenient channel to participate in China’s onshore RMB interest rate swap market. Through overseas electronic trading platforms, these investors can directly request quotes from onshore quoting banks and execute trades. On the trade date, the Shanghai Clearing House and the Hong Kong Off‑Exchange Clearing Corporation (OTCC) will effect contract substitution between domestic and foreign counterparties, after which the transactions enter central clearing.
Industry insiders note that RMB interest rate swaps, as the most important and largest‑scale derivative in the RMB interest rate market, serve as a key tool for both domestic and international investors to manage RMB interest rate risk. With the launch of “Swap Connect,” China’s onshore interest rate swap market is expected to attract an increasing number of overseas investors.
Yang Ji, Deputy President of Citibank (China) Co., Ltd. and General Manager of the Global Markets Division, stated: “‘Swap Connect’ represents another successful initiative in the ongoing collaboration between mainland China and Hong Kong to enhance the interconnectivity of their financial infrastructures, following the launch of ‘Bond Connect.’ It holds significant importance for fostering the development of China’s domestic financial derivatives market and for building a high-standard framework of financial openness. Citibank China will leverage Citigroup’s cross-border capabilities to contribute to the growth of China’s financial markets.”
Yang Jing, Deputy CEO of Standard Chartered China and General Manager of the Financial Markets Division, believes that “Swap Connect” marks a milestone in the further opening-up of China’s bond market and financial derivatives market. It will strengthen the product foundation for China’s financial markets’ international engagement, provide overseas investors with more sophisticated and convenient risk-management tools for participating in the Chinese bond market, and bolster their confidence in deeper involvement in both the Chinese bond and financial derivatives markets.
Fan Mingxi, Deputy Head of China at UBS Global Markets, stated that “Swap Connect” is a groundbreaking institutional arrangement for derivatives under the mutual market access framework. It represents another significant step in opening up China’s financial derivatives market and complements the new derivatives regime under the QFII (Qualified Foreign Institutional Investor) framework. With the launch of Swap Connect, overseas institutional investors will gain more convenient access to China’s onshore derivatives market, which boasts far greater liquidity than the offshore market, enabling them to better manage their positions and more effectively position themselves in the Chinese market.
“For overseas investors already active in China’s bond market—such as foreign bond funds, sovereign wealth funds, and insurance companies—as well as financial institutions like UBS that serve these investors, the launch of ‘Swap Connect’ will encourage them to engage more vigorously in China’s bond market, which is the world’s second-largest,” said Fan Mingxi.

Backroom dealings, suspected transfer of benefits, pronounced liquidity risks, and significant risks to the public… The regulatory notice highlights five typical issues.
Recently, the Shenzhen Securities Regulatory Bureau issued its third regulatory briefing of the year on private equity funds in Shenzhen, emphasizing that private securities investment funds are strictly prohibited from engaging in any illegal or non-compliant bond‑trading activities.
In its notice, the regulator stated that, during routine oversight, the Shenzhen Securities Regulatory Bureau discovered that certain private equity offices were publicly promoting and marketing private securities investment funds to a large number of elderly investors. These funds purchased, at par value, substantial positions in single‑issue, low‑credit‑quality bonds designated by third parties, including securities office employees, thereby exposing significant liquidity risks and systemic risks involving a broad investor base. The bureau also highlighted five typical issues, including excessively concentrated holdings of low‑credit‑quality bonds, opaque operational practices, and suspected transfer of benefits.
The Shenzhen Securities Regulatory Bureau also cautions that bond investments may entail credit risk and liquidity risk, and urges private fund investors to strengthen their awareness of self-protection and risk management.
Recently, the Shenzhen Securities Regulatory Bureau issued a notice outlining five typical issues related to bond trading by securities‑focused private equity funds.
First, there is the practice of highly concentrated investors taking over low‑quality corporate bonds. Certain private‑placement offices have raised substantial funds from individual investors and heavily invested in a single low‑credit‑rating bond, with maturity mismatches between the funding pool and the underlying assets, which can easily transmit bond credit risk and liquidity risk to retail investors.
Second, the transactions were conducted behind closed doors, raising suspicions of improper trading. The counterparties to the private‑equity offices’ purchases of credit bonds were designated by the bond issuers or related securities professionals, rather than being determined through a market‑based inquiry process. Moreover, these transactions consistently involved buying bonds at par value, thereby decoupling them from their fair market prices and undermining the normal trading order and price‑discovery mechanisms of the bond market.
Third, there are allegations of unfair treatment of investors. Certain private‑placement institutions purchased a single bond in tranches at its face value; at the time of purchase, the bond’s fair value was significantly below its face value, resulting in a sustained erosion of the fund’s net asset value as calculated on a fair‑value basis and leading to substantial disparities in the yield to maturity between early‑stage and later‑stage investors.
Fourth, there are allegations of illicit benefit transfers in violation of regulations on ethical professional conduct. Certain private‑fund industry practitioners have used this scheme to purchase low‑credit‑quality corporate bonds, thereby helping the issuers to roll over and issue additional bonds, or assisting some securities professionals in securing underwriting mandates for these issuers’ new bond offerings, thus giving rise to issues of benefit transfer and breaches of ethical standards.
Fifth, there are allegations of unauthorized public solicitation and related issues. During the fundraising phase, certain private equity offices used WeChat official accounts to publicly promote their private funds to individual investors under the guise of “fixed-income investments,” failing to comply with the prescribed procedures for verifying qualified investor status. The scheme involved a large number of individual investors, particularly a significant proportion of elderly investors, and, throughout the fund’s operation and management, the offices failed to disclose the net asset value per unit as stipulated in the fund’s contractual agreements.
Several institutions have already been penalized for violations in bond investments, and regulators are urging securities‑focused private equity funds to strengthen their investment and trading risk controls.
Notably, just recently, a securities‑focused private equity office was fined by regulators for violations in bond investments.
Recently, the Asset Management Association of China issued a preliminary notice of disciplinary action against senior executives of Shenzhen Xueshan Fund Management Co., Ltd. (hereinafter referred to as Xueshan Fund), imposing a public reprimand and suspending the acceptance of its private‑fund product filings for six months. At the same time, it also issued a public reprimand to Huang Xi, the head of compliance and risk control at the office. The underlying reason is that the institution engaged in multiple violations, including breaches related to bond investments.
Under this disciplinary action, Xueshan Fund violated the principle of professional management. First, it entered into a Business Cooperation Agreement with Shanghai Axing Investment Management Co., Ltd., whereby an affiliate of the bond issuer subscribed for shares in Shanghai Axing’s products, and these products ultimately invested in designated bonds through Xueshan Fund’s managed funds. Second, in May 2019, Xueshan Fund signed an Investment Cooperation Agreement with Zhuzhou Xinlushong Industrial Development Group Co., Ltd., stipulating that a designated third party would subscribe to the “Xueshan Xiatong No. 7 Private Securities Investment Fund,” which would then purchase specified bonds.
Regulatory authorities have determined that these practices fail to meet the requirements for professional management by private fund managers and also violate the relevant provisions of the Guidelines on Internal Controls for Private Fund Managers.
In its notice, the Shenzhen Securities Regulatory Bureau requires all private‑fund management institutions within its jurisdiction to strictly comply with investor suitability requirements, strengthen risk controls over investment and trading activities of private securities investment funds, fairly safeguard investors’ legitimate rights and interests, uphold the ethical standards of industry practitioners, and jointly uphold the orderly and compliant operation of the private securities investment fund sector.
Specifically: first, uphold the private‑placement nature of private funds—private fund managers and their sales entities must not directly or indirectly circumvent the requirement that private placements remain non‑public; second, ensure compliant operations—private fund managers may not use claims such as “fixed‑income investment” or “zero risk” to explicitly or implicitly assure investors that the bonds they invest in are free from default risk, and must rigorously disclose risks; third, adopt a prudent investment approach; fourth, treat all investors fairly; and fifth, maintain integrity in professional conduct.
Regulators also remind investors to accurately assess investment risks: private‑placement bond funds are not “risk‑free” and do not guarantee either principal or returns. Should a bond default occur, there is a risk of losing part or even all of the invested principal. Second, investors should prudently evaluate their own risk tolerance, gain a thorough understanding of the investment scope and risk profile of private‑placement funds, and complete a comprehensive risk‑tolerance assessment to select funds that align with their individual risk capacity. Third, investors should exercise due diligence in choosing a private‑placement fund manager, carefully evaluating the manager’s qualifications based on factors such as years of experience, integrity records, past performance of managed products, investment style, and the investment manager’s professional background.

Commercial & Corporate
Report: A New Development Paradigm in the Real Estate Industry Is Gradually Taking Shape
On the 18th, the China Index Academy released its “2023 Research Report on the Top 10 Listed Real Estate Companies in China,” which showed that in 2022, the total asset size of listed real estate companies contracted. Notably, the industry-wide balance-sheet reduction was driven primarily by private-sector developers, while state-owned central enterprises maintained stable asset scales, and local state-owned enterprises expanded against the trend.
On the same day, the “2023 Research Results Release Conference for China’s Listed Real Estate Companies and the 21st Industry–City Integration Investment and Financing Conference” was held, co-hosted by the China Enterprise Evaluation Association, the Real Estate Research Institute of Tsinghua University, and the Beijing Zhongzhi Information Technology Research Institute, and organized by the China Real Estate TOP 10 Research Group of the Beijing Zhongzhi Information Technology Research Institute.
The report notes that, against the backdrop of a deep adjustment in the real estate market, listed property developers have entered a phase of balance-sheet contraction. These companies have proactively scaled back their investment portfolios, leading to a decline in year-end inventory levels. Affected by weaker sales and tighter access to financing, their cash holdings have declined for two consecutive years. At the same time, by intensifying collaborative partnerships to expand equity‑based investments and moderately increasing their holdings of income‑generating properties, they are aligning with the demands of the new stage of real estate development and driving a steady reduction in total asset size.
Specifically, the average total assets of real estate companies listed on the Shanghai and Shenzhen stock exchanges stood at RMB 140.93 billion, down 5.4% year on year, with the growth rate decelerating by 9.6 percentage points compared to the previous year. Meanwhile, the average total assets of mainland Chinese real estate companies listed in Hong Kong amounted to RMB 240.76 billion, a 5.8% decline from the prior year, with the growth rate falling by 12.6 percentage points year over year.
Notably, the supportive role of local state-owned enterprises is becoming increasingly evident. In 2022, the average total assets of local SOEs stood at RMB 100.23 billion, up 4.5% year on year—outpacing other types of listed property developers and demonstrating robust counter-cyclical resilience. Overall, private offices that previously sustained rapid growth are now moderating their pace, while central SOEs and local SOEs have exhibited strong operational sustainability, continuing to advance steadily even amid adverse economic cycles. A new landscape for the industry is gradually taking shape.
As the industry as a whole undergoes a profound adjustment, both the profitability and liquidity of listed real estate companies have come under pressure. In 2022, revenue for listed real estate offices turned downward, with more than one-third reporting losses; among Shanghai and Shenzhen‑listed companies, the asset‑liability ratio—excluding advance receipts—slightly declined, while that of mainland Chinese issuers listed in Hong Kong edged up.
The report notes that the momentum for further expansion in the new‑home market is waning, while corporate differentiation continues to deepen. Competition among listed real estate companies is set to enter an era of differentiated strategies, with those offices boasting strong fundamentals and competitive advantages in their core business segments poised to unlock greater enterprise value.
The report concludes that the effects of the ongoing optimization of real estate policies in 2022 are beginning to materialize. Listed property developers must adopt a dual‑pronged approach: internally, they should align with cyclical adjustments to refine their financial structures, maintain robust debt‑servicing capacity, and build risk buffers; externally, they should fully leverage policy support, capitalize on their competitive strengths, seize favorable financing windows to replenish capital, and use policy tools to optimize their balance sheets, thereby proactively preparing for the industry’s new cycle.

At the end of the first quarter, the non-performing loan ratio of China’s commercial banks fell to 1.62%.
Data released on the 19th by the National Administration of Financial Regulation show that, as of the end of the first quarter, the balance of non-performing loans at China’s commercial banks stood at RMB 3.1 trillion, up RMB 134.1 billion from the end of the previous quarter; the non-performing loan ratio was 1.62%, down 0.01 percentage points from the end of the previous quarter.
In the first quarter, the quality of commercial banks’ credit assets remained broadly stable. Data show that at the end of the quarter, the balance of performing loans at commercial banks stood at RMB 189.4 trillion.
In terms of serving the real economy, at the end of the first quarter, banking financial institutions’ outstanding loans to small and micro enterprises totaled RMB 64.5 trillion, of which inclusive small and micro enterprise loans with a single‑borrower credit limit of RMB 10 million or less amounted to RMB 25.9 trillion, up 25.8% year on year. Outstanding loans to the manufacturing sector stood at RMB 29.6 trillion, an increase of 20.8% year on year.

Surpassing Japan in Exports: China’s Automotive Industry Takes the Lead on a New Path
Recently, China’s automobile export data were released: in the first quarter, its export volume surpassed Japan’s, and in April, auto exports continued to grow. Foreign media predict that China will overtake Japan this year and become the world’s largest automobile exporter.
Industry insiders attribute the sharp rise in China’s auto exports to the booming electric‑vehicle sector. As the automotive industry undergoes its energy transition, China has successfully established a world‑leading EV industrial cluster and remains at the forefront globally in areas such as vehicle intelligence and connectivity. Moreover, the allure of the world’s largest auto market has prompted leading international automakers to accelerate their strategic realignment in China, deepen their presence in the Chinese market, and draw on China’s experience.
“This speed is ‘unbelievable!’”
According to statistics from the China Association of Automobile Manufacturers, in the first quarter of this year, domestic automakers exported 994,000 vehicles, a year-on-year increase of 70.6%, surpassing Japan’s 954,000 units. The latest data show that in April, exports reached 376,000 vehicles, up 170% year on year. Among them, new-energy vehicles—including battery electric and plug-in hybrid models—accounted for 100,000 units, marking a 28.6% month-on-month rise and an 840% year-on-year surge, maintaining strong momentum.
The Financial Times recently reported that Chinese electric‑vehicle manufacturers dominate the domestic market while aggressively expanding overseas. In 2022, China’s automobile exports surpassed those of Germany, and this year China is set to overtake Japan to become the world’s largest auto exporter.
Brad Setser, a senior fellow at the Council on Foreign Relations, a U.S. foreign policy think tank, commented on Twitter that this has unfolded at a pace so rapid it’s almost hard to believe.
The U.S. network CBS recently reported that China’s automobile exports have surged by more than 50% in just the past two years, placing China alongside Japan, Germany, and the United States at the forefront of global auto exporters.
Speaking about Chinese electric‑vehicle manufacturers taking the lead by shifting gears, Visiting Professor Tsuguo Nobe of Nagoya University in Japan noted that, first and foremost, China set its sights on becoming a global automotive powerhouse some two decades ago. Rather than seeking to catch up with advanced nations like Europe, the United States, and Japan in the internal‑combustion‑engine sector, China early on focused squarely on the electric‑vehicle field.
Secondly, China has attracted foreign automakers to establish production facilities within its borders and has refined its policies on foreign investment in the automotive sector—for instance, by inviting Tesla to set up operations in Shanghai, thereby gaining insights into the concepts and business models of smart electric vehicles. Moreover, domestic offices such as CATL have long since invested in the manufacturing of power batteries and other key components, fostering the emergence of a robust electric‑vehicle industry cluster. China’s vast market size also provides a significant competitive advantage for the development of the EV sector.
“The era of electric vehicles has begun.”
Some industry experts and analysts believe that, thanks to its early start, China not only leads in vehicle electrification but also boasts strong international competitiveness in areas such as connectivity and intelligent driver-assistance systems. Chinese electric‑vehicle brands have driven transformative change across the entire sector, leaving foreign companies far behind.
According to AFP, electric-vehicle expert Elliott Richards said this year’s Shanghai Auto Show has demonstrated that Chinese brands “can compete with all traditional automakers across the board—performance, quality, comfort; there’s nothing they can’t do.” He added, “I believe this auto show marks the end of the internal-combustion-engine era and the dawn of the electric-vehicle age.”
Ferdinand Dudenhöffer, a renowned German automotive expert and director of the Duisburg Automotive Research Center, recently stated that China is an indispensable and pivotal force in the automotive industry’s transition to new energy. From automotive batteries to software and semiconductors, Chinese companies’ technologies are among the world’s most advanced. European automakers need to learn from their Chinese counterparts, and only through concerted cooperation between China and Europe can both sides achieve mutual benefit.
Düdenhöfer believes that Chinese brands hold a dominant position in the electric‑vehicle and automotive‑software sectors. “Chinese automakers are steadily expanding into the European market, already wielding significant influence in Eastern European countries and enjoying a solid foothold in the United Kingdom; now they’re making their way into Germany as well.”
In its February issue this year, MIT Technology Review noted that China has successfully built a world‑leading electric‑vehicle industry, a momentum that shows no sign of slowing and which “already enjoys certain structural advantages.” China’s dominant position in the EV sector helps it emerge as one of the global leaders in climate‑change policy, while also enabling the country to curb air pollution, reduce its reliance on imported oil, and support post‑financial‑crisis economic recovery.
The article quotes Mazzocco, a senior fellow at the Center for Strategic and International Studies, as saying that China’s experience demonstrates that electric vehicles can serve as an opportunity for developing countries to leapfrog over developed nations.
China’s Opportunities, China’s Experience
According to the International Energy Agency’s recently released “Global Electric Vehicle Outlook 2023,” China leads the world in electric vehicle sales, with 60 percent of global EV sales taking place in the country last year and more than half of all EVs sold worldwide now in China. As China’s market potential continues to unfold and new consumer demand keeps emerging, international automakers are eager not to miss out on the opportunities presented by China’s growth.
Christoph Münzer, Chairman of the Baden Industrial Enterprises Economic Association in Germany, stated that China’s vast and thriving market is brimming with vitality, attracting German automotive giants such as Mercedes-Benz, Volkswagen, and BMW to establish a strong foothold there. These companies are committed to harmonious development with the Chinese market, deepening mutual understanding and trust with their Chinese partners, and working together to achieve shared prosperity. With its rapidly growing market, cutting-edge technologies at the forefront of the global automotive industry, and a consumer base eager to embrace innovation, German automakers look forward to sustaining their momentum in China.
Fabian Brandt, a partner at Oliver Wyman’s Munich office and head of the Global Automotive and Manufacturing Practice, noted that Chinese consumers place greater emphasis on the “mobility” symbolized by new‑energy vehicles than their European counterparts, a preference that is also reflected in shifting aesthetic expectations for vehicle exteriors and interiors. He believes that domestic Chinese automakers are proactively responding to market demand by introducing innovative new‑model designs, whereas some foreign brands have, paradoxically, scaled back on aspects that matter most to Chinese consumers—explaining why their sales performance in the Chinese market has fallen short of expectations.
Toshihiro Mibe, president of Japan’s Honda Motor Co., recently told Japanese media that Chinese automakers have made groundbreaking advances in the software-defined vehicle space—“beyond our imagination.” He stated bluntly, “We are already falling behind.”
At a recent interview in Tokyo, Toyota Motor Corporation’s newly appointed president, Koji Sato, stated that China’s automotive market is a global leader in areas such as electrification and intelligent technologies, and that Toyota can learn a great deal from it. For Toyota, its activities in the Chinese market are crucial to driving the company’s transformation.
Industry insiders believe that China’s new‑energy vehicle sector has entered a phase of full‑scale market‑driven expansion. However, domestic NEV brands also face increasingly fierce competition. The profitability, independent innovation capacity, and overall competitiveness of the domestic NEV industry chain still require further improvement.

Two administrative measures in the power sector have undergone revision.
On the 19th, the National Development and Reform Commission published on its official website the “Measures for Demand-Side Management of Electricity (Draft for Public Comment)” and the “Measures for Managing Electric Power Load (Draft for Public Comment),” inviting public input. According to reports, the revisions to these two key regulatory frameworks in the electricity sector aim to align with the requirements of building a new‑type energy system, strengthen energy and power security, and promote the efficient and intensive use of resources.
Demand-side management in the power sector refers to the comprehensive implementation of feasible technical, economic, and managerial measures at the electricity consumption stage—such as demand response, energy conservation, electric‑energy substitution, green electricity use, smart grid applications, and orderly electricity consumption—to promote carbon reduction, improve efficiency, and lower energy consumption within the power system.
China issued two versions of the Measures for Demand-Side Management of Electricity in 2010 and 2017, respectively. According to an official from the Operations Bureau of the National Development and Reform Commission, the newly released “Measures for Demand-Side Management of Electricity (Draft for Public Comment)” introduces new provisions on demand response, revises and refines the principles governing the implementation of orderly electricity use, expands and enhances content related to energy conservation and green electricity consumption, and further promotes the intelligent management of electricity consumption.
Professor Zeng Ming of North China Electric Power University analyzes that, with the rapid development of the economy and society, residential electricity demand continues to rise. During peak periods—particularly in summer heatwaves and winter cold waves—electricity demand exhibits pronounced spikes. Any imbalance between supply and demand can jeopardize grid security and stability and place additional economic burdens on society. Against the backdrop of the “dual carbon” goals, new generating capacity is increasingly being added from renewable sources such as wind and solar power, which suffer from limited output stability and adjustability. By implementing demand‑side management, peak loads can be curtailed, thereby enhancing grid reliability and improving energy efficiency.
The “Measures for the Administration of Power Load (Draft for Public Comment)” was revised and formulated on the basis of the “Measures for the Administration of Ordered Electricity Use” issued in 2011. According to the introduction, by regulating, controlling, and optimizing the operation of power loads, it is possible to better ensure the safe and stable operation of the power grid, maintain orderly electricity supply and consumption, promote the integration of new energy sources, enhance energy efficiency, and also guarantee that, under extreme conditions, the energy needs of the general public and key users remain unaffected.

MIIT: The overall production and operations of small and medium-sized enterprises continue to show a recovery trend.
At a policy briefing held at the Ministry of Industry and Information Technology on the 19th, Vice Minister Xu Xiaolan stated that, according to MIIT surveys and big‑data monitoring, in March, the procurement and sales indices for small and medium-sized enterprises (SMEs) rebounded for the second consecutive month. Overall, SME production and operations continue to show a recovery trend.
Xu Xiaolan stated that, in response to the shocks and challenges posed by multiple factors, a series of policies to support enterprises have been introduced from the central to local levels, enabling the vast majority of small and medium-sized enterprises to rise to the occasion and forge ahead. Since the beginning of this year, the overall performance of SMEs has remained on a recovery trajectory, with expectations for further improvement. Among them, specialized, refined, distinctive, and innovative SMEs with strong innovation capabilities have delivered particularly outstanding results. Notably, in March, the revenue profit margins of “Little Giant” enterprises and other specialized, refined, distinctive, and innovative SMEs stood at 9.6% and 7.0%, respectively, underscoring their robust resilience.
Xu Xiaolan stated that the foundation for the stabilization and recovery of small and medium-sized enterprises remains fragile, and that support measures must be further strengthened to effectively address the challenges they face, thereby enhancing their overall competitiveness, capacity for scientific and technological innovation, and level of industrial-chain integration.
Recently, the Ministry of Industry and Information Technology, in coordination with relevant departments, launched two special initiatives: one to empower small and medium-sized enterprises (SMEs) through scientific and technological achievements, and another to enhance their competitiveness and development capacity via quality, standards, and branding. The former emphasizes the deep integration of industrial and innovation chains, deploying a series of key tasks across critical stages such as the generation and aggregation of scientific and technological成果, precise matching between supply and demand, and services for the commercialization of these成果. The latter seeks to bolster SMEs’ competitiveness and growth potential by improving quality, setting standards, and building strong brands.
Xu Xiaolan stated that the Ministry of Industry and Information Technology will remain officely oriented toward the needs of small and medium-sized enterprises, further strengthening policies that benefit businesses, fostering a business-friendly environment, providing targeted services, driving innovation to bolster enterprises, and cultivating talent to invigorate them, thereby promoting the high-quality development of SMEs.

The “Land Use Control Indicators for Photovoltaic Power Generation Projects” will come into effect in August.
The Ministry of Natural Resources recently issued an announcement stating that the “Land Use Control Indicators for Photovoltaic Power Generation Projects” (hereinafter referred to as the “Indicators”) have been approved by the National Technical Committee for Standardization of Natural Resources and Territorial Spatial Planning and will take effect on August 1 of this year.
The Ministry of Natural Resources has formulated and issued this industry standard to regulate the land use for photovoltaic power‑generation project construction, implement the requirements set forth at the 20th National Congress of the Communist Party of China to “implement a comprehensive conservation strategy and promote the economical and intensive use of all types of resources,” and further advance the major strategic decisions of the CPC Central Committee and the State Council on achieving carbon peak and carbon neutrality.
The “Indicators” specify the overall land-use indicators for photovoltaic power‑generation projects, as well as the land-use indicators for photovoltaic arrays, substations and operation‑and‑management centers, collector lines, and on‑site access roads. The overall land‑use indicator for a photovoltaic power‑generation project is determined based on the module’s overall area efficiency, the latitude of the installation site, the local topographic zone category, the array’s installation and arrangement configuration, and the specific step‑up voltage level.
The “Guidelines” apply to new, renovated, and expanded ground‑mounted photovoltaic power generation projects that utilize construction land and unutilized land, and they set forth the principles for project land use: protecting arable land, conserving land, and coordinating land allocation.

Taxation
Promoting Action Through Learning: Demonstrating Tax Authorities’ Commitment in the “Convenience‑for‑the‑People” Initiative
Tax authorities across the country have launched in-depth “Spring Breeze Action for Convenient Tax Services,” ensuring that thematic education yields tangible results.
Since the central authorities launched the thematic education campaign to study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Party Committee of the State Taxation Administration has officely grasped the overarching requirements of “studying ideology, strengthening Party character, emphasizing practical application, and achieving new accomplishments,” embedding the principle of serving the people throughout its work. Through in-depth study and thorough understanding, as well as meticulous investigation and research, the administration has demonstrated a spirit of pragmatism and responsibility, striving to make progress and forge ahead. By vigorously carrying out the “Spring Breeze Action” to facilitate tax services, it has introduced concrete measures and policies that benefit the public, taking taxpayer and payer satisfaction as the fundamental criterion and gold standard, and continuously enhancing the quality and efficiency of tax filing and payment services.
To date, the State Taxation Administration has rolled out 62 taxpayer‑friendly measures in three batches, aiming to enhance the quality of response to taxpayer requests, improve the efficiency of policy implementation, elevate the standard of refined services, accelerate smart tax administration, streamline and upgrade processes, and strengthen the standardization of law enforcement. Across the national tax system, all levels are working in concert and with unified momentum, and these service initiatives are steadily being put into practice and delivering tangible results.
Adhere to a problem-oriented approach.
Ensure that “response to appeals” runs throughout the entire process.
Tackle problems head-on, learn with problems in mind, and make improvements by addressing them.
As they deepen the implementation of thematic education, tax authorities across the country have remained problem‑oriented, fully embraced the call to “intensify investigation and research,” and integrated measures such as “walking through processes to gather feedback” into the “Spring Breeze Action.” By pinpointing the pressing concerns, difficulties, and expectations of taxpayers and payers, and by identifying the pain points, bottlenecks, and challenges in tax administration and payment, they are ensuring that the “Spring Breeze Action” better reflects public sentiment and wins greater public support.
The Jilin Provincial Tax Service Bureau is advancing the “Tax-Business Coordination” initiative, collaborating with the Provincial Federation of Industry and Commerce to launch a joint outreach campaign titled “Visiting Enterprises to Swiftly Resolve Challenges.” The bureau has conducted field surveys among private enterprises and chambers of commerce based in Jilin, gaining insights into the most pressing issues confronting businesses—particularly private offices—in their production and operations, and promptly helping them overcome these obstacles.
The Heilongjiang Provincial Tax Service Bureau has earnestly implemented the “Principal Takes the Lead in Process‑Based Review” initiative. By personally handling tax matters, engaging agents to do so, and accompanying taxpayers through their transactions, the bureau has identified service gaps. Through on‑the‑ground visits to gather feedback and suggestions, it has transformed its “problem list” into a “satisfaction list” for business entities.
The Fujian Provincial Tax Service Bureau has established a provincial–city expert‑sharing mechanism and an interdepartmental collaborative framework through its “Tax‑Joy Studio,” further enhancing high‑quality government services characterized by swift response to taxpayer requests, rapid resolution of complex issues, and coordinated governance. Since the beginning of this year, it has addressed 2,730 taxpayer and payer inquiries, handled 180 cross‑departmental coordination cases, and provided dedicated support for A‑rated taxpayers on 277 occasions.
The Tax Service Bureau of the Xinjiang Uygur Autonomous Region is closely monitoring the construction of key projects and, in collaboration with departments including the Development and Reform Commission and the Housing and Urban–Rural Development Department, has established a “Pomegranate Seed” mechanism for enterprise assistance and joint consultation. This mechanism enables precise analysis of the tax and fee needs of enterprises involved in priority projects. Across the region, 159 teams have created personalized growth profiles for 5,407 enterprises designated as key project beneficiaries, while also refining a problem-solving framework that ensures rapid responses to business requests, continuous optimization of service strategies, and timely alerts on tax-related risks.
The Hebei Provincial Tax Service has directed leading cadres at all levels to conduct on-site visits and field research, with a particular focus on the numerous challenges faced by export enterprises in resuming production and operations following the pandemic. It has streamlined channels for collecting feedback through the “Speak Up via QR Code” platform, ensuring swift responses to taxpayers’ and payers’ concerns and making every effort to stabilize foreign trade.
The Anhui Provincial Tax Service Bureau, leveraging the “Tax‑Enterprise Direct Interaction Platform” and the “Smart Follow‑Up Cloud Platform,” has established a “Rapid Response Center for Tax and Fee Appeals.” It has put in place a three‑tier follow‑up mechanism at the provincial, city, and county levels, implementing one‑stop acceptance and closed‑loop management to comprehensively collect tax and fee-related appeals and identify existing shortcomings.
The Inner Mongolia Autonomous Region Tax Service Bureau has launched a targeted outreach campaign—“Delivering Policies, Soliciting Needs, Resolving Difficulties, and Promoting Development”—to benefit businesses and the public. Through on-site visits and exchanges, the bureau disseminates tax and fee policies, provides guidance on system operations, gathers feedback and suggestions, addresses taxpayers’ and payers’ concerns, and effectively tackles pressing issues, longstanding bottlenecks, and challenges in tax reform and development.
The Henan Provincial Tax Service Bureau has actively launched the “Ten Thousand People Assist Ten Thousand Enterprises” initiative, conducting in-depth policy briefings at enterprises, gathering their concerns, and providing targeted support to help them overcome difficulties. The bureau has visited and served 5,245 enterprises, received 273 enterprise‑related issues, and resolved all of them. As a result, the rates of timely case acceptance, on‑time resolution, and customer satisfaction have all reached 100 percent.
Precisely implement policies.
Enable “tax and fee benefits” to be delivered directly and enjoyed promptly.
During his inspection tour of Guangdong, General Secretary Xi Jinping emphasized that the fundamental criterion for evaluating the effectiveness of thematic education should be whether the people are satisfied or not. He called for effectively addressing the most pressing, direct, and practical concerns of the people, ensuring that measures to improve people’s livelihoods are implemented in a down-to-earth manner, initiatives to win the people’s hearts are carried out with meticulous care, and actions that reflect public opinion are executed with utmost diligence, so that the fruits of modernization benefit all the people more extensively and equitably.
In line with the objectives and requirements of the thematic education campaign, the tax authorities have continuously enhanced their capacity to serve the public. They have made the implementation of tax and fee preferential policies a key focus of in-depth investigations and studies, further strengthening the targeted delivery of these policies, and consistently improving outreach and guidance on them, ensuring that taxpayers and payers are well-informed about the policies, understand how to apply them, and can fully benefit from them. To date, tax and fee preferential policies have been precisely delivered to taxpayers and payers a cumulative total of 152 million times.
The Qingdao Municipal Tax Service has established taxpayer and payer profiles by industry, type, and size, enabling targeted policy dissemination and real-time monitoring of recipients’ read status. For those who fail to review the information promptly, a “second reminder” is triggered, thereby shifting from a “question‑and‑answer” approach to a proactive, “pre‑emptive delivery and instant access upon request” model.
The Guangxi Zhuang Autonomous Region Tax Service has further advanced the initiative of “proactively reaching out” to taxpayers, tailoring tax and fee preferential policies to each business entity. By taking into account the scope of operations, enterprise classification, and actual business conditions of various market players, and aligning these with the specific provisions of relevant tax and fee incentives, the tax authorities have developed a customized “one‑enterprise‑one‑policy” catalog of benefits. These are then targetedly delivered to taxpayers and widely publicized, enabling businesses to comprehensively understand and fully leverage the tax and fee preferential measures available to them.
The Jiangxi Provincial Tax Service Bureau has been vigorously advancing the implementation of corporate income tax policies supporting technological innovation. It has proactively engaged with science and technology authorities, optimized its online filing system, and ensured that taxpayers receive timely pop-up notifications during the filing period to facilitate the accurate completion of applications for preferential policies. Leveraging a micro‑electronic interactive platform and a targeted dissemination platform for tax and fee preferential policies, the bureau has systematically identified eligible taxpayers and delivered tailored policy information.
To help individual business operators fully understand the relevant policies, the Zhejiang Provincial Tax Service Bureau has aligned its outreach efforts with the annual individual income tax settlement period. It has categorized these operators into three tiers—low, medium, and high—based on their operating income, and tailored tax‑related communication to each group’s specific needs. This targeted approach ensures that policy benefits are precisely delivered to the wallets of individual business households.
The Hunan Provincial Tax Service Bureau has established a “one‑enterprise, one‑policy” approach, creating individualized dossiers for key industries within its jurisdiction—such as construction machinery and aerospace manufacturing. By focusing on the specific concerns and challenges faced by these enterprises, the bureau has implemented targeted measures, systematically categorized issues, and promptly disseminated the latest tax and fee policies. This ensures that the comprehensive package of tax and fee incentives reaches advanced manufacturing offices via the “spring breeze” of convenient tax services, thereby supporting their growth and development.
The Dalian Municipal Tax Service Bureau has deepened its use of tax big data, conducting “in-depth” analyses of citywide tax and fee service hotline data to identify taxpayers’ and payers’ latent needs for tax and fee incentives. Based on these analytical findings, the bureau promptly breaks down tasks and delivers personalized, precision‑targeted services through centralized training, symposiums, and on-site guidance, thereby enhancing the effectiveness and impact of policy implementation.
Upgrade Online Services
Ensuring “convenient processing” is truly implemented.
In recent days, tax authorities across the country, as they carry out thematic education on studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, have consistently upheld the principle that “what taxpayers and payers hope for is precisely what tax officials strive to deliver.” They have continuously refined tax and fee‑related service approaches, upgraded precision‑oriented services—particularly online offerings—and worked to ensure that taxpayers and payers not only find it easy to access services (whether in person or online), enjoy a pleasant experience (on screen or over the phone), and receive courteous communication, but also feel that their matters are handled efficiently and effectively.
The Beijing Municipal Tax Service Bureau, in collaboration with the Municipal Commission of Economy and Information Technology and other departments, has facilitated the seamless integration of the Electronic Tax Bureau with the “Jingtong” service mini‑program on the government service platform. As a result, 14 social security fee‑related services have been launched, enabling taxpayers across the city to handle, in a one‑stop manner via the “Jingtong” mini‑program on Alipay and Baidu, tasks such as paying social security contributions for urban and rural residents and flexibly employed individuals, querying contribution records, and printing relevant certificates.
The Jiangsu Provincial Tax Service Bureau has consistently encouraged leading cadres to step into frontline roles to experience operational processes, agency staff to take on grassroots duties to gain first-hand insights, and tax officials to assume the perspective of taxpayers and payers. By carefully selecting key issues of particular concern to taxpayers and payers, the bureau conducts targeted research, focuses on taxpayer needs, and leverages tax‑related blockchain technology in conjunction with real estate registration and tax‑filing procedures. A pilot program for real estate registration and tax services has been launched, making it more convenient for the public to complete their transactions.
The Ningbo Municipal Tax Service Bureau is actively promoting the use of digital RMB for tax and fee payments. By leveraging “digital currency plus taxation” across multiple application scenarios, it has expanded diversified payment options. Taxpayers who have established corporate digital RMB wallets can simply sign a tripartite agreement through the electronic tax bureau to complete digital RMB‑based tax payments. This solution has already been widely adopted in areas such as value-added tax and individual income tax, with total tax and fee payments made via digital RMB exceeding RMB 2 billion citywide.
The Xiamen Municipal Tax Service Bureau has launched an interactive taxpayer‑service platform, offering 24/7 intelligent automated support as well as personalized human assistance from its operations team. It has also established the “Red Tax Think Tank,” a panel of Party-member experts, which leverages end-to-end online interaction and screen‑sharing capabilities to swiftly and accurately identify the core issues behind taxpayers’ and payers’ inquiries, helping resolve 26,000 challenging cases.
The Guangdong Provincial Tax Service and the Shenzhen Municipal Tax Service have launched the “Greater Bay Area One-Stop Service,” pioneering the establishment of service demonstration zones in Shenzhen, Guangzhou, Zhuhai, and Huizhou. By integrating channels such as the electronic tax bureau, self-service tax systems, and remote tax‑filing platforms, they provide cross‑regional taxpayers in the Greater Bay Area with one‑stop taxpayer‑administration interaction services, including remote tax filing, co‑screen assistance, and online consultations. To date, the first batch has enabled “one‑stop” processing for 57 types of tax‑related services.
The Wuhan Municipal Tax Service Bureau has launched the “Scenario-Based Tax Services—Smart and Precise Tax Guidance” innovation project. Leveraging electronic tools such as intelligent tax‑guidance displays and tablet‑based experience screens in tax service halls, the bureau has consolidated 49 individual services into five distinct scenarios—such as “I Want to Request Issuance of an Invoice” and “I Want to Make a Change”—to enable taxpayers and payers to select services on demand. By harnessing big data to identify their needs and create precise user profiles, the initiative delivers a more comprehensive, detailed, and convenient scenario‑based tax‑service chain.
The tax authorities have integrated the thematic education campaign with the implementation of the CPC Central Committee’s decisions and arrangements, officely anchoring themselves to set goals and tasks, studying deeply, benchmarking rigorously, and acting with unwavering commitment. By emphasizing problem‑oriented approaches and focusing on tangible results, they have continued to roll out preferential policies and refine service‑and‑management measures, transforming the enthusiasm for learning and work sparked by the campaign into a powerful driving force for overcoming difficulties and pursuing innovation and entrepreneurship. Upholding the principle of learning, comparing, inspecting, and rectifying in parallel, they are working to address the urgent, difficult, and pressing concerns of the people, ensuring that initiatives that improve livelihoods, win public trust, and align with popular aspirations truly resonate with the masses. In doing so, they remain committed to putting the people at the center and delivering a compelling response to the call of this thematic education campaign.

In the first quarter, exemptions from the vehicle acquisition tax for new-energy vehicles exceeded RMB 21.2 billion.
According to data recently released by the State Taxation Administration, in the first quarter of this year, a total of 1.257 million new-energy vehicles nationwide benefited from policy incentives, up 17.5% year on year; tax exemptions on the purchase of new-energy vehicles amounted to RMB 21.24 billion, an increase of 36% compared with the same period last year.
From a price‑segment perspective, among new‑energy vehicles eligible for the tax‑exemption policy, models priced between RMB 100,000 and RMB 200,000 (inclusive) accounted for 48.5% of sales, up 14.2 percentage points year over year; models in the RMB 200,000–RMB 500,000 range (inclusive) made up 31.3%, an increase of 6.1 percentage points compared with the same period last year, reflecting a clear trend toward higher‑end consumption. In terms of buyer type, residential purchases of new‑energy vehicles rose 15.5% year over year, accounting for 82.7% of total new‑energy vehicle sales, while corporate purchases grew 28.7%, representing 17.3% of the market. Among corporate buyers, sectors such as car rental, taxi services, and public passenger transport led the way in acquiring new‑energy vehicles; in particular, car‑rental and taxi‑service offices increased their purchases by 68.1% and 10.9%, respectively, year over year, signaling an accelerated pace of electrification in the public‑sector vehicle fleet.
According to officials from relevant departments of the State Taxation Administration, since 2014, the state has implemented a policy exempting new‑energy vehicles from vehicle acquisition tax. In September 2022, this policy was extended for the third time, remaining in effect until December 31, 2023, thereby stabilizing public expectations and boosting market confidence. This measure is of great significance for advancing China’s strategic transition in transportation and energy and for promoting high‑quality development of the country’s automotive industry. The tax authorities will continue to closely monitor the implementation of the policy, strengthen publicity and guidance, and work with relevant departments to ensure that preferential measures are effectively put into practice and meticulously carried out, thus maximizing their impact.

Reducing Burdens, Fostering Innovation, and Stabilizing Expectations: An Observation on the Implementation of Tax and Fee Preferential Policies
Data show that in the first quarter, nationwide tax and fee reductions, refunds, and deferrals totaled RMB 367.98 billion, playing a crucial role in sustaining the improvement of economic performance.
Building on a series of tax and fee reduction policies implemented in recent years, what are the key features of this year’s tax and fee preferential measures, and how do businesses perceive them?
Maintain policy continuity and continue to reduce the burden on businesses.
Multiple CNC machine tools operate nonstop, and automotive components forged at high temperatures are conveyed off the line one by one via conveyor belts… In the production workshop of Tongxin Precision Forging Co., Ltd. in Yidu City, Hubei Province, the assembly lines run smoothly and efficiently. In the first quarter of this year, the company’s exports posted a substantial increase.
“We have proactively expanded into the automotive non‑engine parts segment, continuously enhancing our products’ global competitiveness. Last year, the company’s export volume approached US$20 million, and we expect this year’s exports to reach US$25 million,” said Wang Changhong, the company’s head.
The positive momentum of Tongxin Precision Forging would not have been possible without the robust support of tax and fee policies. “In the first quarter of this year, the company benefited from export tax rebates totaling RMB 5.18 million. Since 2021, we have received over RMB 30 million in export tax rebates, and we have also availed ourselves of a range of other tax and fee incentives, including income tax breaks—measures that have both eased our financial burden and bolstered our growth,” said Wang Changhong.
In recent years, thanks to a series of tax and fee reduction policies, the share of tax revenue in China’s GDP has declined from around 17% in 2018 to 13.8% in 2022.
According to a survey conducted by the Finance Bureau of Linyi City, Shandong Province, among a sample of enterprises, tax and fee preferential policies have effectively eased financial pressures on businesses and played a positive role in helping them overcome difficulties and stabilizing their expectations.
The income tax policies for small and micro enterprises and individual business households have been refined and improved, the temporary reduction in workers’ compensation insurance rates has been extended, and the preferential policy on urban land use tax for land used by logistics enterprises for bulk commodity storage facilities has been maintained… Since the beginning of this year, a number of tax and fee relief measures that have delivered tangible results have been continued and further enhanced.
“This year, the tax and fee preferential policies that have been extended and further refined have maintained policy continuity and stability, thereby further anchoring business expectations and bolstering enterprises’ confidence in their development,” said Li Xuhong, a professor at the National Accounting Institute in Beijing.
Enhance policy precision to support enterprises’ innovation and development.
Filling, die-cutting, labeling, boxing, and packaging—within the digital workshop of Huaxi Biotechnology Co., Ltd. in Jinan, Shandong Province, automated production lines spanning both internal and external packaging processes are operating smoothly and efficiently.
“Only with core technologies can we achieve core competitiveness. We remain committed to ramping up R&D investment; our independently developed microbial fermentation process delivers lower costs and higher product purity, which has helped us capture market share. Our hyaluronic acid products now hold a significant share of the global market,” said Luan Yizheng, Deputy General Manager and Chief Financial Officer of Bloomage Biotechnology.
In Luan Yizheng’s view, one key reason why Huaxi Biologics has consistently made substantial investments in recent years is the array of tax and fee‑relief policies introduced by the state. “Among these, the policy on additional deductions for R&D expenses has been continuously refined and optimized, giving enterprises greater confidence to innovate.”
In recent years, the Ministry of Finance, in coordination with relevant departments, has continuously refined the policy on additional tax deductions for R&D expenses. This year, the policy has been further optimized: the pre-tax additional deduction rate for eligible enterprises in designated industries has been raised from 75% to 100%, and this measure will be implemented as a permanent institutional arrangement.
“This time, we have aligned the policy on additional tax deductions for R&D expenses with that applied to manufacturing and technology‑focused small and medium‑sized enterprises, extending it to other eligible industries. This move further strengthens support for scientific and technological innovation and will continue to stimulate the innovative vitality of market entities,” said Li Xuhong.
High-tech enterprises are subject to the corporate income tax at a reduced rate of 15%; preferential corporate income tax policies have been implemented for integrated circuit and software companies; the refund of outstanding input VAT credits has been expanded in manufacturing and other sectors; and tax incentives have been introduced to encourage enterprises to invest in basic research…
Through the concerted efforts of the Ministry of Finance and relevant departments, a comprehensive tax‑incentive framework covering every stage of the enterprise innovation process has been gradually put in place. With broad coverage and substantial benefits, it provides stronger support for enterprises as they pursue new‑driven growth.
Promote the effective implementation of policies to ensure that tax and fee concessions benefit businesses.
Enabling enterprises to fully benefit from policy incentives and ensuring the effective implementation of these policies is of paramount importance. Since the beginning of this year, local authorities have promptly clarified the relevant policy provisions and operational procedures, while proactively rolling out a range of measures to officely advance the delivery and execution of tax and fee reduction policies.
Hubei Province recently issued the “Policy on Further Serving Market Entities and Promoting Steady Economic Development,” which stipulates the full implementation of the state’s package of tax and fee support measures. For broadly applicable policies such as reductions and exemptions on the “six taxes and two fees,” the province will strengthen monitoring of their execution to ensure timely delivery of benefits.
By proactively planning and deploying measures, improving working mechanisms, enhancing publicity and services, and closely monitoring implementation, Shandong Province has been working to refine its systems, strengthen support, and optimize service delivery, thereby ensuring the swift and effective rollout of tax and fee preferential policies.
“The finance and taxation authorities of Jinan City have visited our company on multiple occasions, conducting a comprehensive analysis of our tax-related needs, providing guidance, resolving challenges, and developing tailored, “one‑company‑one‑plan” service solutions,” said Zhuo Changli, Chairman of Jinan Yangguang Dajie Service Co., Ltd.
At present, localities are adopting a range of measures to ensure that the savings—real money—are smoothly and securely pocketed.
“We promptly analyze the impact of tax and fee reduction policies on local fiscal operations, continue to refine and improve the direct allocation mechanism for fiscal funds, strengthen the coordinated management of fiscal resources, enhance monitoring of budget execution and treasury fund flows, and establish a sound long-term mechanism to ensure adequate financial capacity at the county level. These measures bolster the fiscal capacity of cities and counties to implement tax and fee reductions, thereby fully safeguarding the stability of grassroots finances and the broader economic and social landscape,” said Xia Shenglin, Director of the Regulations and Tax Policy Division of the Hubei Provincial Department of Finance.
“The implementation of tax and fee preferential policies will further stabilize expectations, bolster confidence, and help achieve an overall improvement in economic performance,” said Wei Yan, Deputy Director-General of the Tax Policy Department of the Ministry of Finance. He added that, going forward, the authorities will continue to take into account both the need for economic structural adjustment and the imperative of supporting businesses and alleviating their difficulties, focusing on the key tasks of Chinese‑style modernization. Efforts will be stepped up to enhance the precision of policy measures, with particular emphasis on high‑quality development in the manufacturing sector and the accelerated implementation of the innovation‑driven development strategy, so as to strengthen policy support and promote high‑quality economic growth.

LITIGATION & ARBITRATION
The Supreme People’s Court has released ten typical cases of proactive judicial practice by the people’s courts.
On May 19, the Supreme People’s Court website published typical cases of proactive judicial enforcement, covering issues such as ensuring the delivery of pre-sold housing, property preservation, asset management contract disputes, corporate revitalization, and the removal of timber from forestland.
In Case No. 1, a real estate company in Kunshan was embroiled in numerous disputes involving the sale of commercial properties, mortgage loans on projects under construction, private lending, debt-for-property swaps, and unpaid construction fees, with total liabilities exceeding RMB 700 million and severe conflicts among creditors’ rights. Relying on the “enforcement‑bankruptcy integration” mechanism, the court initiated bankruptcy proceedings, subsequently reinstated the company’s business license, and converted the liquidation process into reorganization. Approximately RMB 200 million in investment was secured to repay debts and resume construction. Following the infusion of capital, the company successfully completed its reorganization, fully satisfying mortgage claims, priority claims for construction payments, and employee wage arrears, while also resuming construction of the commercial‑residential building at issue. This case marks Jiangsu Province’s first instance in which a business license was restored and bankruptcy reorganization was concluded within the framework of the “enforcement‑to‑bankruptcy” procedure.

The Supreme People’s Procuratorate has issued typical cases of judicial assistance for similar cases empowered by big data.
Recently, the Supreme People’s Procuratorate released the first batch of typical cases of judicial assistance for similar cases empowered by big data, summarizing the experiences and practices of grassroots procuratorates in establishing big-data models for judicial assistance. This initiative aims to promote information sharing and two-way coordination between judicial and social assistance systems, leveraging a “digital revolution” to drive high-quality, efficient development of procuratorial work related to complaints and appeals.
This batch comprises five cases, as follows: the People’s Procuratorate of Guanyun County, Jiangsu Province, has leveraged a physical platform for judicial assistance to support rural revitalization, developing a big‑data model to enhance case‑specific assistance; the People’s Procuratorate of Yueqing City, Zhejiang Province, has constructed a multi‑stakeholder, interconnected big‑data model for judicial assistance, thereby empowering case‑specific aid; the People’s Procuratorate of Pan’an County, Zhejiang Province, has relied on a “one‑stop” judicial assistance platform to build a big‑data model that strengthens assistance in similar cases; the People’s Procuratorate of Shan County, Shandong Province, has utilized a judicial assistance lead‑screening application platform to develop a big‑data model that supports case‑specific assistance; and the People’s Procuratorate of Weidu District, Xuchang City, Henan Province, has established a big‑data model for judicial assistance in cases involving violations of personal rights, thereby enhancing assistance in related matters.
This year, as part of the initiatives to deepen efforts under the campaigns “Focusing on Women in Difficult Circumstances and Strengthening Specialized Judicial Assistance” and “Judicial Assistance to Support the Comprehensive Advancement of Rural Revitalization,” procuratorial organs across the country have reviewed past judicial assistance cases. Leveraging the National Procuratorial Business Application System and local big‑data resources, they have harnessed big data to identify assistance leads and enhance efficiency, ensuring the timely detection of such leads and promoting coordinated progress between judicial and social assistance.
In response to challenges such as the difficulty of identifying leads for judicial assistance, the limited diversity of assistance channels, and the lack of uniform standards, some local procuratorial organs have actively explored the development of multi‑stakeholder, data‑driven models for judicial assistance. These models aggregate and analyze case‑specific data on personal injury cases—such as intentional injury and traffic accidents—as well as cases involving substantial property losses, support‑related matters concerning alimony, child support, and upbringing expenses, and petition cases involving legal or litigation issues. By distilling actionable rules from this analysis, they have shifted the identification of assistance leads from manual screening to intelligent automated detection and transformed the processing of assistance applications from individualized requests to systematic, category‑based outreach. Moreover, leveraging big‑data analytics, these efforts have proactively promoted the seamless integration of judicial and social assistance, creating a synergistic effect across different assistance policies while enabling more proactive participation in social governance, with notably positive outcomes.

Jiangsu’s first Internet Court was officially inaugurated in Suzhou.
On the morning of May 18, the Suzhou Internet Court was officially inaugurated, marking a new chapter in the specialized adjudication of internet-related cases. Approved by the Supreme People’s Court, it is the province’s first-ever Internet Court and will exercise centralized jurisdiction over specific first-instance internet cases within the jurisdiction of Suzhou that are normally handled by grassroots people’s courts. Xia Daohu, Secretary of the Party Group and President of the Jiangsu Provincial Higher People’s Court, and Huang Aijun, Deputy Secretary of the Suzhou Municipal Party Committee and Secretary of the Political and Legal Affairs Commission, jointly unveiled the plaque for the Suzhou Internet Court.
At the event, Sun Xiaozeng, a member of the Party Leadership Group and Director of the Political Department of the Jiangsu Provincial Higher People’s Court, read out the relevant approval. On January 16 this year, the Supreme People’s Court approved the establishment, within the Suzhou High-Tech Zone (Huqiu District) People’s Court, of a specialized adjudicatory body—the Suzhou Internet Court. The court will exercise centralized jurisdiction over contract disputes and product liability disputes arising from contracts concluded through e‑commerce platforms or from the performance of online shopping contracts within the entire administrative area of Suzhou; disputes over online service contracts where both the conclusion and performance occur entirely on the internet; disputes concerning the ownership and transactions of data and virtual property rights; personality‑rights disputes and property‑damage compensation claims arising from infringements of others’ personal or property rights committed online; labor disputes involving new forms of employment under the internet platform economy; disputes relating to the rights and obligations under the Personal Information Protection Law of the People’s Republic of China; as well as other internet‑related civil cases assigned to it by higher courts.
At present, Suzhou is accelerating its comprehensive digital transformation across economic and social spheres. The Suzhou Internet Court will remain guided by political principles, uphold the court’s guiding principle of “cloud-based case handling and adjudication, integrating litigation with good governance,” and apply internet‑centric thinking and approaches to advance the concept of proactive judicial practice. Centered on the themes of “fairness and efficiency,” it will strive to deliver a higher standard of digital justice, while rigorously advancing all aspects of the court’s development and institutional building. The court will continue to innovate its internet‑based adjudication mechanisms, strengthen the professionalization of internet‑related trials, refine rules governing online judgments, and promote the rule of law in cyberspace governance. In doing so, it aims to provide the public with inclusive, equitable, convenient, efficient, intelligent, and precise internet‑based judicial services, thereby supporting the high‑quality development of Suzhou’s digital economy through high‑caliber internet‑enabled justice.
During the event, the Suzhou Internet Court simultaneously launched its “1+4+10+N” internet litigation platform and the “Yunzhi” internet litigation mechanism. Moving forward, the Suzhou Internet Court will continue to refine and expand the adoption of this platform and mechanism, striving to better serve the public, enhance the quality and efficiency of internet‑based justice, and strengthen governance in cyberspace, with the aim of establishing a distinctive brand for internet courts.
Wang Liming, a first‑level professor at the Law School of Renmin University of China; He Fan, head of the Office of the Leading Group for Judicial Reform of the Supreme People’s Court and deputy director of the Bureau of International Cooperation; and Cai Shaogang, president of the Suzhou Intermediate People’s Court, attended the event.

First-instance verdict delivered in the case of the young girl’s fatal fall from an elevator in Hangzhou; the nanny sentenced to one year of probation and two years’ imprisonment.
On May 18, the Hangzhou court delivered its first-instance verdict in the case of the young girl who fell to her death in an elevator. The People’s Court of Gongshu District, Hangzhou, convicted the defendant, Wu Xiufang, of causing death by negligence and sentenced her to one year of imprisonment, suspended for two years.
The defendant, Wu Xiufang, had worked as a nanny for many years. On June 8, 2022, she was hired through an introduction to work in the household of Chen Moujiang and Zhao Mou, where she was assigned full-time to care for the couple’s young daughter, the victim, Chen Moumou. At approximately 8:00 p.m. on June 14, 2022, Wu Xiufang took Chen Moumou by elevator down to the first floor. Upon reaching the first floor, Wu Xiufang noticed that Chen Moumou was touching the elevator panel and stepped forward to stop her, warning, “It could be dangerous” and instructing her to “follow Auntie.” She then exited the elevator on her own; however, Chen Moumou did not follow. Wu Xiufang attempted to calm Chen Moumou and pressed the elevator buttons in an effort to reopen the doors. After remaining stationary for about 30 seconds, the elevator automatically resumed its upward motion. Chen Moumou exited the elevator onto the eighth-floor corridor, climbed onto the windowsill of that corridor, and fell to the second-floor landing. Subsequently, Chen Moumou died later that day despite emergency medical efforts, due to traumatic brain injury and hemorrhagic shock. The court held that, as a full-time nanny entrusted with the care of a young child, Wu Xiufang bore a duty of care to safeguard the child’s life and health. However, she failed to take appropriate measures—such as holding the elevator doors open to allow the child to exit first or ensuring the child’s safe departure by holding her hand or carrying her—to prevent the incident. Instead, she left the elevator herself, leaving the child alone inside, which ultimately led to the child exiting the elevator unattended and climbing out the window, resulting in her fatal fall. Accordingly, her conduct should be classified as negligent homicide. Taking into account objective factors such as the low height of the windowsill and the absence of fall‑prevention devices, as well as Wu Xiufang’s actions—namely, her attempt to use a scooter to block the closing elevator doors upon discovering that the victim had not yet exited and that the doors were about to close, followed by verbal reassurance outside the elevator and pressing the buttons in an effort to reopen the doors, and finally her participation in searching for the child—the court determined that the circumstances of the offense were relatively minor. In view of Wu Xiufang’s post‑offense admission of guilt and remorse, her lack of prior criminal record or adverse history, and the fact that imposing a suspended sentence would not have a significant adverse impact on the community where she resides, the court deemed it appropriate to grant her a suspended sentence. Accordingly, the court rendered the aforementioned judgment.

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