JC Master Legal News Issue 1057

Key Takeaways for This Issue

The first two publicly offered REITs focused on new-energy infrastructure have been listed on the Shanghai Stock Exchange.
On the morning of March 29, the first two publicly offered REITs focused on new‑energy infrastructure were listed on the Shanghai Stock Exchange. This marks a significant breakthrough in expanding the scope of infrastructure REITs to include new‑energy assets, further extending the pilot program into the new‑energy sector.
The China Banking and Insurance Regulatory Commission has mandated that insurance institutions conduct self-assessments and rectify any non-compliance in their internet marketing and promotional activities.
The China Banking and Insurance Regulatory Commission has issued the “Notice on Conducting Self‑Inspection and Rectification of Compliance in Internet Marketing and Publicity by Sales Personnel of Insurance Institutions” (hereinafter referred to as the “Notice”), deciding to launch, effective April 3, 2023, a three-month self‑inspection and rectification campaign targeting compliance in internet marketing and publicity activities conducted by sales personnel of insurance institutions.
A range of tax and fee preferential policies will be extended and refined, with policy dividends helping to stabilize expectations and boost confidence.
This year’s Government Work Report proposes to refine tax and fee preferential policies, ensuring that existing measures—such as tax and fee reductions, tax refunds, and tax payment deferrals—are either extended where appropriate or further optimized.
The Supreme People’s Procuratorate has released typical cases of public interest litigation concerning the protection of personal information.
The Supreme People’s Procuratorate has released a batch of typical cases involving public interest litigation on personal information protection, aiming to take the spirit of the 20th National Congress of the Communist Party of China as its guiding principle. It calls on procuratorial organs at all levels responsible for public interest litigation to elevate their political awareness and regard handling such cases as a pragmatic measure to implement Xi Jinping’s thought on the rule of law and to serve Chinese‑style modernization, thereby effectively supervising and ensuring the uniform and correct application of the Personal Information Protection Law.
The nation’s first case involving a full-chain crackdown on the infringement of citizens’ parking information has concluded with a first-instance verdict.
On March 24, the People’s Court of Gulou District, Nanjing, held a public trial for the nation’s first case involving the full‑chain crackdown on the infringement of citizens’ parking information, and rendered an on‑the‑spot verdict: Defendant Huang was convicted of the crime of infringing upon citizens’ personal information and sentenced to four years and eleven months’ imprisonment, together with a fine of RMB 1.2 million; Defendant Li was convicted of the same crime and sentenced to three years and three months’ imprisonment, together with a fine of RMB 250,000. The illegal proceeds obtained by Defendants Huang and Li were confiscated and turned over to the state treasury, and the tools used in committing the offense were also confiscated.

Finance & Capital Markets
The first two publicly offered REITs focused on new-energy infrastructure have been listed on the Shanghai Stock Exchange.
On the morning of March 29, 2023, the first two publicly offered renewable‑energy infrastructure REITs were listed on the Shanghai Stock Exchange. This marks a significant breakthrough in expanding the scope of infrastructure REITs to encompass new categories of infrastructure assets, with the pilot program now extending into the renewable‑energy sector. The original sponsors of the two public REITs, representatives from the State-owned Assets Supervision and Administration Commission of the State Council, the Beijing Municipal SASAC, the Bond Department of the China Securities Regulatory Commission, and the Shanghai Stock Exchange all attended the listing ceremony.
The two new‑energy REITs listed this time are the CITIC Securities‑SDIC New Energy REIT and the AVIC‑Jingneng Photovoltaic REIT, with underlying assets consisting of offshore wind‑power and photovoltaic‑power projects, respectively. On their first day of trading, both REITs saw stable secondary‑market activity, opening at prices 0.91% and 10.39% above their issue prices; by the close, their share prices had risen 1.94% and 12.37%, respectively, compared with the issue price.
Since the launch of the infrastructure REITs pilot program, thanks to the concerted efforts of all stakeholders, the REITs market framework has steadily matured, gradually forging a development path that draws on the experience and principles of mature markets while remaining well-suited to China’s national conditions. To date, the Shanghai Stock Exchange has listed 18 publicly offered REITs, with a combined market capitalization exceeding RMB 70 billion. The proceeds from these offerings have leveraged over RMB 320 billion in additional investment, covering a diverse range of asset classes—including toll roads, industrial parks, wastewater treatment, warehousing and logistics, affordable rental housing, and new energy—thereby generating significant scale and demonstration effects.
An official from the Bond Department of the China Securities Regulatory Commission stated that the listing of the first batch of public‑offering REITs backed by new‑energy infrastructure represents a concrete measure to implement the major decisions and arrangements adopted at the 20th National Congress of the Communist Party of China. This initiative will help energy enterprises unlock the value of existing assets, expand effective investment in the new‑energy sector, foster a virtuous cycle of investment and financing, and support China’s green transition of its energy structure. The CSRC will work closely with the National Development and Reform Commission and all relevant market participants to ensure the full implementation of the “Twelve Measures for Further Normalizing REIT Issuance,” steadily advance the development of a multi‑tiered REITs market, and better serve the establishment of a new development paradigm and high‑quality economic growth.
Going forward, the Shanghai Stock Exchange will thoroughly implement the spirit of the 20th National Congress of the Communist Party of China and the Central Economic Work Conference, fulfill the tasks and requirements set forth at the Two Sessions, and, in accordance with the China Securities Regulatory Commission’s Notice on Further Promoting the Regular Issuance of Real Estate Investment Trusts (REITs) in the Infrastructure Sector, steadily expand the REITs market, further increase the share of direct financing, and contribute to the establishment of a new development paradigm, thereby supporting national strategies and the high-quality development of the real economy.

The National Administration of Financial Regulation has released its 2023 budget, projecting the deployment of approximately 2,000 inspection teams to bank institutions.
On March 28, the website of the China Banking and Insurance Regulatory Commission published the “2023 Departmental Budget of the National Administration of Financial Regulation (CBIRC).”
The Budget indicates that the National Administration of Financial Regulation (CBIRC) and its subordinate agencies at all levels have a 2023 revenue and expenditure budget totaling RMB 106,308.187 million. Under the enforcement and case-handling expenditure category, the general public budget allocation for 2023 is set at RMB 83.1553 million, with an estimated workload of approximately 290,000 person‑days for on-site inspections related to enforcement and case handling. Specifically, this includes RMB 43.6 million for special inspections of banking institutions, expected to dispatch about 2,000 inspection teams to conduct roughly 2,500 inspections; RMB 26.7 million for special inspections of non‑banking institutions, with an anticipated deployment of approximately 800 inspection teams to carry out around 800 inspections; and RMB 12.8553 million for addressing major risk events and cases, projected to oversee approximately 23 cases and conduct regulatory oversight of about 40 cases.

The China Banking and Insurance Regulatory Commission has mandated that insurance institutions conduct self-assessments and rectify any non-compliance in their internet marketing and promotional activities.
Recently, the China Banking and Insurance Regulatory Commission issued the “Notice on Conducting Self-Inspection and Rectification of Compliance in Internet Marketing and Publicity by Sales Personnel of Insurance Institutions” (hereinafter referred to as the “Notice”), deciding to launch, effective April 3, 2023, a three-month self-inspection and rectification campaign targeting compliance in internet marketing and publicity activities conducted by sales personnel of insurance institutions.
Both institutions and sales personnel are required to conduct self-inspections and implement corrective measures.
This self‑inspection and rectification effort covers a broad scope, extending to all entities—from insurance institutions to individual sales personnel. Specifically, insurance institutions encompass insurance companies, professional insurance agencies, and insurance brokerage offices; with legal entities serving as the primary responsible parties, branch offices at all levels have been tasked with conducting a comprehensive review and assessment of the compliance of their sales personnel in online marketing and promotional activities. Sales personnel include all individuals engaged in insurance sales by insurance companies—namely, individual insurance agents, employees involved in sales, dispatched workers, and part‑time staff—as well as agency practitioners employed by professional insurance agencies and brokerage practitioners working for insurance brokerage offices.
The self‑inspection scope covers all aspects of internet marketing. The Notice requires institutions at all levels to assess and verify the establishment and implementation of relevant management systems and accountability mechanisms, including whether they have put in place procedures for vetting sales personnel’s qualifications, providing training, conducting content reviews, and managing their conduct in internet marketing; whether they have established a compliance‑commitment system and related mechanisms for sales personnel’s internet marketing activities; whether they require sales personnel to register their social media accounts and disclose details of their marketing materials; and whether they have adequately monitored and managed sales personnel’s social media accounts, among other matters.
Industry insiders note that the Measures for the Supervision of Internet Insurance Business explicitly stipulate that internet insurance must be conducted by licensed entities. This self‑inspection and rectification campaign underscores the need for insurance institutions and sales personnel to ensure compliance in their online marketing and promotional activities, addresses “unlicensed operations” and the resulting misleading sales practices, and further standardizes the development of the internet insurance market.
Investigate ten categories of violations by sales personnel.
Meanwhile, the Notice mandates a review to identify ten categories of violations involving sales personnel disseminating information through self-media platforms.
Specifically, these include: first, publishing product descriptions, sales policies, and marketing activities that have not been uniformly prepared by the institution; second, disseminating content—such as corporate branding, insurance services, or promotional messaging—that has not been approved or authorized by the company; third, making unlawful promises of returns or guarantees of loss‑sharing, or offering policyholders rebates or other benefits beyond those stipulated in the insurance contract; fourth, engaging in false statements or misleading descriptions, one‑sided promotions, or exaggerated claims; fifth, using language in published materials that could easily be confused with financial products such as bank wealth management products, mutual funds, or bonds; sixth, presenting one‑sided comparisons of insurance product prices or simplistic rankings; seventh, providing misleading interpretations of regulatory policies, or using—directly or indirectly—the names or images of regulatory authorities or their staff for commercial promotion; eighth, publishing recruitment advertisements without the company’s prior authorization; ninth, independently organizing, arranging, or commissioning others to conduct online marketing and publicity through methods such as forwarding information, providing consultations, or answering questions; and tenth, posting non‑compliant information in WeChat groups or other online chat platforms.
In recent years, the internet has become a key channel for the commercial promotion of insurance products and services. However, some insurance institutions have failed to adequately oversee their sales personnel’s online marketing and promotional activities, leading to frequent instances of misleading advertising.
The aforementioned industry insider believes that sales misrepresentation has long been one of the persistent problems plaguing the insurance sector and a major source of consumer complaints, with such practices becoming even more misleading through online channels. The Notice, by reinforcing the principal responsibility of insurance institutions, regulates the content of internet-based marketing and promotional activities conducted by sales personnel, thereby helping to prevent sales misrepresentation, uphold market order, and safeguard consumers’ legitimate rights and interests.
It should be noted that the aforementioned self-media platforms include, but are not limited to, WeChat Moments, WeChat Official Accounts, WeChat Video Channels, Douyin videos, Kuaishou videos, Weibo posts, Xiaohongshu notes, and Toutiao articles.
Thoroughly rectify the issues.
The Notice requires thorough rectification of issues identified through self‑inspections. First, immediate corrective action: insurance institutions must promptly halt and rectify any non‑compliant promotional practices uncovered during self‑examination. Second, enforce accountability: for cases resulting in serious consequences or infringing upon consumers’ legitimate rights and interests, disciplinary measures and penalties shall be imposed in accordance with laws, regulations, and internal rules, and relevant personnel shall be held accountable. Third, improve systems and mechanisms: in response to systemic or recurring problems detected during self‑inspections, institutions should draw broader lessons, establish binding policies and management frameworks, and strengthen compliance training as well as regular inspections and oversight. The first two tasks must be completed by June 15, while the third should be expedited through timely project initiation and implementation. In addition, the Notice mandates a comprehensive summary of the self‑inspection and rectification efforts, culminating in a dedicated report to be submitted to the regulatory authorities by June 30, 2023.
The China Banking and Insurance Regulatory Commission stated that insurance institutions should take this self-inspection as an opportunity to establish review mechanisms and implement requirements related to the protection of financial consumers’ rights and interests. They should strive to improve their sales personnel management systems, strengthen compliance training for sales staff on online marketing and promotional activities, and put in place sound daily monitoring mechanisms for such activities.

The Shenzhen Stock Exchange Answers Questions from the Press on Launching the “Three Sunshines and Two Promotions” Special Campaign
Fully implementing the stock issuance registration system is a major reform of overarching significance for the capital market, and an important measure to further improve the market’s foundational institutions, enhance its functions, optimize the business environment, and better support technological innovation. To ensure the smooth rollout of this reform, the Shenzhen Stock Exchange has kept the reform objectives officely in mind, earnestly shouldered its principal responsibility for implementation, and launched a focused special campaign titled “Three Sunshines and Two Promotions.” The campaign aims primarily to deepen transparent review, transparent regulation, and transparent services; to boost the quality and efficiency of the review process; to strengthen a culture of integrity; and to build a registration system that is transparent, clean, and of high quality. Recently, relevant officials from the Shenzhen Stock Exchange answered questions from reporters regarding this special initiative.
Q: This year’s Government Work Report once again emphasized “advancing the reform of the stock issuance registration system.” At present, the full implementation of the stock issuance registration system is at a critical stage. In the course of this reform, how will the Shenzhen Stock Exchange ensure its steady and sustained progress, and better support technological innovation and promote high-quality development?
Answer: The comprehensive implementation of the stock issuance registration system is a major task entrusted to the capital market by the CPC Central Committee and the State Council, and it serves as the pivotal project driving this round of deepened, all‑round reform of the capital market. In earnestly implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the spirit of the 20th National Congress of the CPC, the Shenzhen Stock Exchange has rigorously followed the guiding principles of the national Two Sessions and the work arrangements set forth at the CSRC’s system‑wide work conference. Adhering to the guiding principles of the comprehensive registration system and the requirements for regulatory transformation, the Exchange has upheld the approach of “opening up reform” and “opening up review,” adopting a multi‑pronged, coordinated strategy to build a transparent, clean, and high‑quality registration system that better supports technological innovation and contributes to high‑quality development.
At its core, the registration‑based reform seeks to empower the market with decision‑making authority while strengthening both market‑driven and rule‑of‑law constraints. Since the ChiNext reform and the pilot implementation of the registration system, the Shenzhen Stock Exchange, under the unified leadership of the China Securities Regulatory Commission (CSRC) and the oversight and guidance of the CSRC’s Discipline Inspection and Supervision Group, has prioritized returning decision‑making power to the market. Centering on information disclosure, it has vigorously promoted an open, transparent, and predictable review process throughout the issuance and listing cycle, and has pioneered a fully transparent issuance and listing review mechanism. These efforts have yielded tangible results, accumulating valuable experience for the steady advancement of the registration‑based reform. Specifically, the Exchange has adhered to the principle of “full transparency,” conducting more than 700 in‑depth meetings with companies undergoing initial public offering reviews, promptly addressing concerns raised by issuers and intermediary institutions, providing clear guidance, and setting forth explicit requirements. It has also streamlined end‑to‑end public disclosure, making review standards, procedures, content, processes, and outcomes publicly available, and releasing to the market detailed FAQs covering over 200 common issues, thereby enabling issuers and intermediaries to conduct prior checks and prepare their filings effectively. Furthermore, the Exchange has diversified its channels for public disclosure, launching the pioneering “ChiNext Registration‑Based Issuance and Listing Review Updates,” developing the “SZSE Service” mobile app and an information‑disclosure website, and building a fully electronic, intelligent, and traceable review system, all of which have ensured the smooth and orderly conduct of review work. Under the registration‑based regime, the ChiNext market has welcomed more than 420 newly listed companies, enhancing its inclusiveness. With a strong emphasis on innovation and growth—particularly in advanced manufacturing, the digital economy, and green, low‑carbon sectors—the ChiNext has emerged as one of the fastest‑growing emerging markets worldwide.
Following the full implementation of the registration-based system, the issuance review regime has been further refined, the review processes have been optimized, review responsibilities have been clarified, and market functions have been strengthened. Consequently, the entire review process must become more open and transparent, review quality and efficiency must continue to improve, and oversight must be tightened to ensure rigorous control over the quality of market access. Drawing extensively on the experience gained from the ChiNext reform and the pilot registration‑based system, the Shenzhen Stock Exchange, in response to the new landscape of reform and development, has launched a special campaign titled “Three Forms of Transparency and Two Promotions.” The campaign focuses on deepening transparent review, transparent regulation, and transparent services, with the direct objectives of enhancing the quality and effectiveness of reviews and fostering a culture of integrity.
The “Three Sunshines and Two Promotions” special campaign is a key initiative for further enhancing transparency in the registration‑based system. It represents an important measure to optimize services and improve work style, as well as a vital effort to build an integrity‑driven registration system and foster a culture of integrity. Centered on the review, regulatory, and service stages, the campaign comprises more than 20 specific measures and is structured around three interrelated “Sunshine Projects,” forming an organic whole. First, we are launching the Sunshine Review Project to continuously enhance the transparency and predictability of the review process. We will further dispel any aura of secrecy surrounding review work, deepen the implementation of the “see all that should be seen” principle, and strengthen full‑process transparency—before, during, and after review. We will refine the pre‑communication mechanism, streamline procedures for pre‑filing consultations with issuers and intermediary institutions, and clarify requirements for responding to such communications; improve the quality and efficiency of communication throughout the review process by establishing a tiered handling framework for complex or difficult issues; optimize review‑timing standards to provide clearer expectations; simplify and refine the list of key review concerns to facilitate proactive preparation by market participants; increase the openness of review criteria by categorizing and detailing review guidelines; and publicly disclose typical cases, providing detailed explanations of the rationale behind review opinions. Second, we are implementing the Sunshine Regulatory Project to rigorously ensure the quality of information disclosure. We will ensure that power operates in the open, fully disclose self‑regulatory rules, enhance the scientific rigor of the regulatory framework, and boost the transparency of regulatory provisions. We will further subject review inquiries to public market oversight, maintaining consistent review standards. We will also refine regulatory standards and procedures, improve the daily regulatory operations manual, and strengthen the standardization of regulatory practices. In addition, we will increase the transparency of routine review and regulatory measures, regularly publishing details of disciplinary actions and on‑site supervisory activities to bolster public trust and deter misconduct. At the same time, we will explore ways to further optimize the issuance and listing review mechanisms, guiding social resources toward priority sectors supported by national policies, thereby better supporting technology‑innovation enterprises and companies in strategic emerging industries seeking to go public. Third, we are rolling out the Sunshine Service Project to enhance the sense of gain and satisfaction among all market participants. Transparency is the foundation of market confidence. The Shenzhen Stock Exchange will introduce a Sunshine Service Card, publicly disclosing service contact numbers, supervision hotlines, service offerings, and commitments to integrity. We will establish a service‑follow‑up system, conducting telephone callbacks to monitor service quality; refine market service standards, prioritize key service areas, and improve service records; and advance the “one‑stop online” approach to business services, unifying user platforms to achieve greater interoperability across various services.
To ensure the effective implementation of the “Three Transparency Initiatives”—promoting quality through transparency and fostering integrity through openness—the Shenzhen Stock Exchange, in line with the requirements of the registration‑based reform, continues to identify gaps and strengthen its internal capabilities. Centered on the goal of “two enhancements,” it has formulated specific work plans and refined supporting measures. First, it is advancing the improvement of review quality and efficiency. The Exchange has developed and implemented a work plan titled “Dual Enhancement of Review Quality and Efficiency,” focusing on making review inquiries more significant and targeted, officely safeguarding the entry threshold, and orienting efforts toward enhancing the usefulness and practicality of investor decision‑making. It has streamlined and optimized the content of review inquiries, urged issuers and intermediary institutions to improve the quality of information disclosure, and enhanced the conciseness, readability, and investment‑decision‑making effectiveness of offering prospectuses and other disclosures. By concentrating on key issues throughout the review process, the Exchange conducts targeted special quality‑control initiatives, leveraging high‑quality oversight and checks to ensure high‑standard reviews. Second, it is strengthening a culture of integrity. The Exchange continues to fully accept supervision and inspection by the Party Committee of the China Securities Regulatory Commission, proactively welcomes on‑site oversight from the Commission’s resident discipline inspection and supervision team, and has formulated and implemented a work plan to “Build an Integrity‑Driven Registration System.” It rigorously reinforces both internal and external oversight, harnessing the combined strength of a multi‑tiered supervisory framework; strengthens oversight of critical positions and personnel; clarifies codes of conduct encompassing the “three prohibitions” and the “eight bans”; regularly conducts integrity education, integrity talks, and integrity warnings; strictly enforces the registration‑reporting system; and further refines the requirements of the “firewall” mechanism. Moreover, it intensifies oversight of key areas and critical stages, deepens the integration of supervisory measures across the entire process, conducts regular risk assessments, carries out targeted special inspections, and ensures that any identified issues are investigated and addressed with utmost seriousness. Finally, it enhances industry‑wide integrity regulation, imposes stricter penalties for “hunting” practices, and takes stringent regulatory and disciplinary actions against improper conduct such as interference with the review process, thereby establishing a deterrent effect of “termination upon detection.” By reinforcing institutional, disciplinary, and cultural safeguards, the Exchange is fostering a clean and upright market environment conducive to the full implementation of the registration‑based system, enabling market participants to conduct business in a straightforward, trustworthy manner—without seeking favors or relying on personal connections.
Building a transparent, clean, and high‑quality registration system is a systematic undertaking that requires all market participants to pool their efforts in driving reform. The Shenzhen Stock Exchange will work together with all market stakeholders to resolutely implement the decisions and arrangements of the CPC Central Committee and the work requirements of the CPC Commission for Discipline Inspection and Supervision of the China Securities Regulatory Commission, steadfastly accept the robust oversight of the Commission’s resident discipline inspection and supervision team, and officely pursue the path of developing a modern capital market with Chinese characteristics. We will seek progress while maintaining stability, uphold fundamental principles while fostering innovation, and take on responsibilities and deliver results, using concrete and tangible reform outcomes to support scientific and technological self‑reliance and strength, and to advance high‑quality economic development.

Postal Savings Bank of China has completed a 45-billion-yuan private placement, injecting new momentum into its efforts to support the real economy.
On March 29, China Postal Savings Bank announced that it had completed a non-public offering of A-shares, raising approximately RMB 45 billion, which was subscribed by China Mobile Communications Group Co., Ltd.
The announcement indicates that the number of shares issued in this non‑public offering is 6,777,108,433, all of which were subscribed through a private placement to designated investors. The total proceeds raised amounted to RMB 44,999,999,995.12, and the subscription was made by China Mobile. Following completion of the offering, China Mobile will hold 6.83% of Postal Savings Bank of China’s total share capital, subject to a five‑year lock‑up period. The newly issued shares were registered, custodied, and placed under lock‑up with the Shanghai Branch of China Securities Depository & Clearing Corporation Limited on March 28, 2023.
According to the announcement, after deducting issuance expenses directly related to this non‑public offering, all proceeds will be used to replenish Postal Savings Bank of China’s core Tier 1 capital. Market analysts note that, upon receipt of the funds, this move will be of great significance for the bank in sustaining steady business growth, enhancing profitability and risk resilience, and better supporting the development of the real economy.
According to reports, Postal Savings Bank of China operates nearly 40,000 branches and serves over 650 million individual customers. Positioned to support agriculture, rural areas, and farmers; urban and rural residents; and small and medium-sized enterprises, the bank is committed to serving the most dynamic segments of China’s economy during its transformation, making it one of China’s leading large-scale retail banks. Meanwhile, China Mobile is a global telecommunications operator with the largest network scale, the largest customer base, and industry‑leading profitability and brand value, ranking among the top companies by market capitalization, and boasting more than 900 million mobile subscribers. With shared mission commitments, robust resource endowments, a solid foundation for cooperation, and broad prospects for development, the two entities will engage in deep collaboration, jointly advancing into the fintech sector, synergistically leveraging technology to promote inclusive finance and rural revitalization, and actively building a “telecommunications + finance” ecosystem. By exploring new models and pathways in implementing national strategies, enhancing the quality and efficiency of financial services, and delivering integrated customer solutions, they aim to make positive contributions to rural revitalization and the pursuit of common prosperity, ensuring that urban and rural residents alike share in the benefits of development.
As a young, large state-owned commercial bank, Postal Savings Bank of China boasts strong asset quality and significant growth potential. Public data show that over the past five years, its net profit has posted a compound annual growth rate of 12.54%, markedly outpacing industry peers; its annualized weighted average return on equity (ROE) stands at 19.30%, well above comparable benchmarks. In recent years, the bank has maintained a dividend payout ratio of around 30%, placing it among the industry leaders. Fitch and Moody’s have assigned A+ and A1 ratings, respectively—consistent with China’s sovereign rating—while S&P Global has given it an A rating, and S&P Ratings Services has awarded it an AAAspc rating, all with stable outlooks. In 2022, in The Banker magazine’s “Top 1,000 World Banks” ranking, Postal Savings Bank of China ranked 13th in Tier 1 capital.
It is reported that, going forward, Postal Savings Bank of China will deepen its transformation and development and strengthen its capabilities, accelerating the building of a first‑class, large‑scale retail bank. By implementing national strategies, supporting the real economy, and enhancing people’s well‑being, the bank will continue to expand its growth prospects and fulfill its responsibilities as a major state‑owned commercial bank by serving and integrating into the broader economic and social development agenda.

Document No. 1 of the China Banking and Insurance Regulatory Commission: The reform of trust business classification will be launched in June this year.
According to a March 24 announcement on the website of the China Banking and Insurance Regulatory Commission, the Commission recently issued the “Notice on Standardizing the Classification of Trust Business by Trust Companies,” which will take effect on June 1, 2023.
The Notice consists of four parts. First, it clarifies the overall requirements. Second, it sets out the classification criteria and specific requirements for trust business, dividing such business into three major categories—asset service trusts, asset management trusts, and public‑interest and charitable trusts—and further sub‑categorizing each major category. Third, it reinforces the principal responsibility of trust companies, requiring them to adhere strictly to the new classification standards, clearly define the boundaries of their trust activities, improve internal management systems and control mechanisms, conduct regular reviews, and impose rigorous accountability, thereby ensuring that all trust business is conducted in compliance with the new classification framework. Fourth, it strengthens regulatory guidance.

Draft amendments to the Futures Regulatory Measures seek to expand the business scope of futures companies and raise entry barriers.
The China Securities Regulatory Commission has revised the Measures for the Supervision and Administration of Futures Companies, resulting in the draft Measures for the Supervision and Administration of Futures Companies, which is now open for public comment. The deadline for submitting feedback is April 23, 2023.
This revision, first, appropriately expands the scope of business activities for futures companies in accordance with the law. Following the amendment to the Measures, futures companies, upon approval, will be authorized to engage in futures brokerage (including overseas futures brokerage), futures trading advisory services, futures market-making, margin financing, proprietary trading, derivatives trading, asset management, and other related businesses. Second, the entry barriers for these business lines have been moderately raised. Third, day-to-day regulatory oversight of futures companies has been continuously strengthened. Futures companies may, in compliance with applicable regulations, provide financing or guarantees to eligible subsidiaries, while being prohibited from extending financing to shareholders, ultimate controllers, or other entities.

Commercial & Corporate
China is comprehensively advancing the reform of “transfer of real estate with outstanding mortgages.”
Real estate such as mortgaged properties can now be transferred directly with the mortgage in place, without first repaying the loan—this is a key component of China’s recently introduced reform on “mortgage‑in‑place transfers” of real estate.
Recently, China’s Ministry of Natural Resources, in conjunction with the China Banking and Insurance Regulatory Commission, issued the “Notice on Coordinating Efforts to Provide Convenient, Business‑Friendly Services for Real Estate Transfers with Outstanding Mortgages.” The notice emphasizes deepening cooperation between real estate registration authorities and financial institutions to facilitate and benefit businesses, and to jointly implement real estate transfer procedures conducted while the property remains under mortgage.
“Transfer of real estate with existing mortgage” refers to a procedure, as stipulated in the Civil Code of the People’s Republic of China, whereby, upon the sale and transfer of mortgaged real estate, the parties may complete the transfer, re‑mortgage, and obtain a new loan without first repaying the prior mortgage or canceling the existing mortgage right, thereby ensuring seamless integration between real estate registration and mortgage financing.
Before the implementation of the “transfer with mortgage” policy for real estate, businesses and individuals faced a cumbersome and time‑consuming process when transferring mortgaged properties. They had to first raise funds to repay their loans and cancel the existing mortgage registration, then proceed with the transfer of ownership, apply for a new loan, and register the new mortgage—resulting in high transaction costs and lengthy procedures.
On the 30th, Zhao Yan, Deputy Director of the Bureau of Natural Resource Rights Conofficeation and Registration at the Ministry of Natural Resources, stated that following the “transfer with mortgage” reform, the time required for real estate transactions can be significantly shortened, while transaction complexity and costs are reduced. For example, after Jinan introduced the “transfer with mortgage” reform, processing times were cut by nearly 10 working days, with most cases now completed in about two working days. The average transaction cost per deal has dropped from roughly RMB 12,000 to below RMB 1,000.
Zhao Yan stated that, by strengthening coordination between registration and financial services, the nationwide implementation of “transfer of real estate with existing mortgages” can, on the one hand, reduce institutional transaction costs, and on the other, safeguard the rights and interests of all parties—buyers, sellers, mortgagors, and mortgagees—thereby meeting the needs of businesses and the public for high‑quality, efficient protection of property rights. This initiative is not only a key reform measure to optimize the business environment in the real estate registration sector but also a step to support high‑quality economic and social development.
According to reports, at present, more than 100 prefecture-level cities across 15 provinces nationwide have implemented the “transfer of real estate with existing mortgage,” processing over 13,000 transactions. Among them, Tianjin, Shanxi, Shandong, Jiangsu, Zhejiang, Fujian, and Hubei have already rolled out the program on a province-wide scale.
In practice, three main “transfer with mortgage” processing models have emerged: the combined‑mortgage model, the segmented‑mortgage model, and the mortgage‑change model. The notice requires local authorities to determine the most appropriate model based on their specific circumstances and to continuously refine and expand it through ongoing implementation.

The State Administration for Market Regulation has approved the release of a batch of important national standards.
On March 29, according to the website of the State Administration for Market Regulation, the Standards Committee of the Administration recently approved and released a batch of important national standards covering areas such as consumption upgrading, industrial manufacturing, smart city development, the service sector, social credit, and government transparency.
In the industrial manufacturing sector, the State Administration for Market Regulation has issued standards and testing requirements covering in‑cabin air quality for long‑distance passenger buses, performance of heavy‑duty vehicle tires, rolling resistance tests for industrial vehicle tires, indoor abrasion‑testing criteria for passenger car tires used on wet and icy/snowy road surfaces, and material selection guidelines for pharmaceutical machinery—standards that hold significant relevance for vehicle manufacturers, automotive component producers, and pharmaceutical companies. In the realm of smart city development, the Administration has released a standard for intelligent parking, further promoting the interconnection and interoperability of parking information and helping to alleviate urban parking challenges. Additionally, a number of national standards have been published in areas such as agricultural products, information technology, cybersecurity, and financial services.

The Ministry of Industry and Information Technology plans to issue the “Guidance on Building the National Automotive Chip Standards System (2023 Edition).”
On March 28, the website of the Ministry of Industry and Information Technology published the “Public Call for Comments on the ‘Guidance on Building a National Automotive Chip Standards System (2023 Edition)’ (Draft for Public Comment),” with the deadline for submitting feedback set for April 28.
The Guidelines clearly state that, based on the current state of automotive‑chip technology, industry application needs, and future development trends, a phased approach will be adopted to establish an automotive‑chip standards system tailored to China’s technological and industrial requirements while ensuring alignment with international standards. The scope of this standards system encompasses integrated circuits, discrete devices, sensors, optoelectronic components, and related modules used in automobiles. The technical framework takes “automotive chip application scenarios” as its horizontal starting point, covering five major areas: powertrain systems, chassis systems, body systems, cabin systems, and intelligent driving. Extending upward from these scenarios, it defines specific technical specifications and test methods for automotive chips, organized into three categories according to their content: foundational and general standards, product and technology application standards, and compatibility‑testing standards. Together, these three categories achieve full coverage of technical standards—spanning device, module, system, and vehicle‑level integration—for critical automotive chips across diverse application scenarios.

Downward pressure on first-home mortgage rates and faster loan disbursements are boosting expectations in the real estate market.
At present, the real estate market is witnessing a series of positive developments. On the one hand, mortgage rates and down-payment requirements for first-time homebuyers have been lowered in many regions, leading to a marked narrowing of the decline in sales. On the other hand, the financing environment for real estate offices continues to improve, and the drop in real estate development investment has also narrowed.
Further unleash demand
Unleashing pent-up demand for both rigid and improved housing is a key measure to promote the healthy, sustainable development of the real estate sector. Lowering mortgage interest rates and down-payment requirements will help further stimulate market demand.
Data show that in March this year, the average rate for first‑home mortgages across 100 cities tracked by Beike was 4.02%, down slightly by 2 basis points from the previous month; the average rate for second‑home mortgages stood at 4.91%, unchanged from the prior month. In terms of the magnitude of rate cuts, mortgage rates in third- and fourth‑tier cities posted the largest year‑on‑year declines, with first‑home and second‑home rates falling by 140 and 75 basis points, respectively.
“As of the end of December 2022, the average interest rate on newly issued personal housing loans had fallen by approximately 140 basis points compared with the end of the previous year. With the exception of a few hot-spot cities, the minimum down-payment ratios in the vast majority of cities have already reached the national floor,” said Pan Gongsheng, Deputy Governor of the People’s Bank of China. He added that, from the demand side, implementing tailored policies for each city and continuing to guide both real interest rates and down-payment ratios lower will better support both first-time homebuyer and housing‑upgrade demand.
Meanwhile, banks have also accelerated the pace of loan disbursement. Data show that in March, the average mortgage‑approval cycle across 100 cities tracked by Beike was 21 days, seven days shorter than the previous month. “For banks, residential mortgage loans remain high‑quality assets,” said Zeng Gang, director of the Shanghai Financial & Development Laboratory. He added that commercial banks enjoyed relatively ample lending capacity in the first quarter, which to some extent helped speed up loan approvals.
“Driven by a series of policies, the real estate market has seen some positive developments, most notably a marked narrowing in the decline of sales,” said Fu Linghui, Director-General of the Department of Comprehensive National Economic Statistics at the National Bureau of Statistics. In the first two months of this year, commercial housing sales area fell 3.6% year on year, with the decline narrowing by 20.7 percentage points.
Repairing supply-side expectations
On the supply side, too, a number of positive developments have emerged. Data show that in the first two months, real estate development investment fell 5.7% year on year, with the decline narrowing by 4.3 percentage points compared to 2022; funds received by real estate developers decreased by 15.2%, with the drop easing by 10.7 percentage points; and the real estate development prosperity index stood at 94.67 in February, up from January.
“At present, China’s economy is showing signs of stabilizing and rebounding, with positive expectations that should help narrow the decline in real estate investment,” said Lou Feipeng, a researcher at the Postal Savings Bank of China. He added that, to improve financing for real estate offices, financial regulators have introduced a series of policy measures, deploying a three-pronged approach—credit, bonds, and equity financing—to continuously ease the funding pressures faced by property developers.
Since last year, financial regulators have introduced 16 policy measures to support the stable and healthy development of the real estate market, and have continued to ensure these policies are refined and effectively implemented. At present, financial authorities are rolling out four initiatives—“asset revitalization,” “liability rollover,” “equity replenishment,” and “expectation enhancement”—to fully implement the plan aimed at improving the balance sheets of high-quality property developers. Meanwhile, efforts are underway to ease excessive risk aversion among financial institutions and encourage them to provide normal financing. Data show that in January this year, new real estate development loans exceeded RMB 370 billion, an increase of RMB 220 billion year on year.
In addition to an improved financing environment, credit risks in the real estate sector have also eased. “We believe that the previous trend of risk contagion among property developers has been brought under control, and their liquidity has improved markedly,” said Hu Gang, Vice President of China CITIC Bank. According to the bank’s 2022 annual report released recently, as of the end of December 2022, asset quality in the real estate and construction sectors continued to improve, with non‑performing loan balances in these two industries declining by RMB 1.789 billion and RMB 1.251 billion, respectively, compared with year‑end 2021.
“Despite some improvement in the financing environment, property developers—particularly private ones—remain reluctant to initiate new construction projects,” said Wen Bin, Chief Economist at China Minsheng Bank. He added that real estate development investment growth is likely to remain volatile as it recovers. Lou Feipeng noted that the primary reason for this situation is still‑weak developer expectations, underscoring the need for a comprehensive policy mix to stabilize and bolster those expectations.
Boosting confidence remains key.
In February this year, new-home sales prices in first-tier cities rose 0.2% month-on-month, the same increase as the previous month; second-hand home sales prices increased 0.7% month-on-month, with the pace of growth expanding by 0.3 percentage points compared to the prior month.
“At present, both the pace of recovery and market sentiment in the existing-home market are slightly stronger than in the new-home market,” said Wen Bin. Overall, the sustainability of this market rebound remains to be seen.
“Secondhand homes carry lower uncertainty, with demand driven by homebuyers’ expectations and rigid housing needs. By contrast, new homes are subject to greater uncertainty; earlier delays in the timely delivery of some properties have dampened buyer sentiment,” said Zeng Gang.
Luo Yifei, chief statistician of the Investment Department at the National Bureau of Statistics, stated that it is essential to continue unleashing both rigid and improvement‑type housing demand in the real estate market, intensify efforts to ensure the timely delivery of pre‑sold homes, and gradually restore market confidence. “Last year, the policy aimed at guaranteeing home delivery played a crucial role in safeguarding people’s livelihoods,” said Fu Linghui. At present, regulatory authorities have launched a 350 billion yuan special-purpose loan for ensuring home delivery, established a 200 billion yuan loan support program for such projects, and a 100 billion yuan loan support program for rental housing. They have also guided financial institutions to facilitate industry restructuring and mergers and acquisitions, thereby accelerating the market‑based resolution of risks.
“Right now, the most critical factors are market confidence and shifts on the demand side—especially changes in new-home sales,” said Hu Gang. New‑home sales refer to developers selling newly built properties directly to individual buyers; a recovery in this segment signals improved cash flow for property offices, helping to ease funding pressures and mitigate risks. “In real estate transactions, while conditions vary across regions, overall, new‑home sales account for a substantial share of the market. A rebound in new‑home sales points to strengthening demand and carries important implications for assessing the trajectory of the housing market,” added Lou Feipeng.
“The recent reserve requirement ratio cut by the central bank will increase medium- and long-term lendable funds, helping to boost financial institutions’ willingness to support property developers’ financing and meet their legitimate funding needs,” said Wen Bin. He added that the RRR cut will inject low-cost liquidity and also facilitate support for both first-time homebuyer and upgrade‑type housing demand through differentiated mortgage rates.
“At present, it is still necessary to further stabilize expectations for growth in household incomes,” said Zeng Gang. For households, mortgage debt is a long-term liability, and their willingness to spend and their ability to service that debt depend on stable employment and rising incomes. Therefore, it is essential to increase urban and rural residents’ incomes through multiple channels while maintaining overall price stability.

China National Petroleum Corporation is accelerating the coordinated development of its oil, gas, and new energy businesses, putting them on a fast track.
On March 29, China National Petroleum Corporation (hereinafter referred to as “CNPC”) announced its 2022 operating results. Its core businesses delivered strong performance, with coordinated efforts to advance both oil and gas operations and new energy initiatives. The oil, gas, and new energy segment generated an operating profit of RMB 165.75 billion, making it the company’s largest profit-contributing business segment.
In 2022, China National Petroleum Corporation achieved a record high in oil and gas production equivalent, while the large-scale development of new energy accelerated across the board, hastening its transformation from a traditional oil-and-gas company into an integrated energy supplier spanning oil, gas, heat, electricity, and hydrogen.
Oil and gas exploration and development advanced steadily. In 2022, China National Petroleum Corporation (CNPC) intensified its exploration and development efforts, focusing on high‑efficiency operations and achieving a series of major breakthroughs and significant discoveries. Domestically, exploration was concentrated in new areas and frontier basins, with risk‑based exploration and large‑scale pre‑drill surveys expanding into key prospective zones. Major breakthroughs and important finds were made in the Tarim, Junggar, Sichuan, Ordos, Bohai Bay, and other basins, resulting in 148 million tonnes of newly proven recoverable oil reserves and 349 billion cubic metres of recoverable natural gas reserves for the year. Meanwhile, domestic oil and gas production prioritized stable output in mature fields while optimizing capacity‑building plans in emerging regions, driving four consecutive years of positive growth in crude oil production and helping national output return to above 200 million tonnes. Overseas, CNPC’s equity‑based oil and gas production remained steady, rising slightly year over year, and sustaining production at the 100‑million‑tonne level for the fourth consecutive year. In 2022, CNPC’s total oil and gas production equivalent reached 1.685 billion barrels, a record high, up 3.7% from the previous year; sales‑ready natural gas output totaled 4.68 trillion cubic feet, an increase of 5.8% year over year.
Key oil and gas fields are vigorously tackling technical challenges. PetroChina has fully tapped the potential of its reservoirs, and as oil and gas resources increasingly degrade and exploration and development targets become “non‑conventional, deep, and difficult,” the company has continued to pursue innovative solutions. As a result, crude oil production at its major fields has remained stable while steadily increasing. In 2022, Daqing Oilfield maintained a steady output of 30 million tonnes for the eighth consecutive year; Changqing Oilfield’s oil and gas equivalent surpassed 65 million tonnes; Tarim Oilfield’s oil and gas equivalent reached 33.1 million tonnes, setting a new record; and the Southwest Oil and Gas Field produced 38.34 billion cubic meters of natural gas annually, with its oil and gas equivalent climbing to a new milestone of 30 million tonnes.
New energy is accelerating its development and expanding in scale. In 2022, China National Petroleum Corporation (CNPC) achieved new breakthroughs in its new‑energy strategic deployment, with overall progress markedly quickening. CNPC has actively promoted the integrated development of oil and gas resources with “wind, solar, thermal, electric, and hydrogen” new‑energy sources. A preliminary green‑industry framework—centered on six major bases and five key projects—has taken shape, with a number of priority projects completed and put into operation, bringing installed wind and solar capacity to over 1.4 million kilowatts. CNPC has also stepped up its efforts to develop the hydrogen‑energy sector; domestically produced green hydrogen fueled the first-ever “green hydrogen” torch in the history of the Winter Olympics, supplied 140,000 kilograms of hydrogen to 14 Olympic venues, and earned recognition for its supporting technologies as one of the “Top Ten Green and Low‑Carbon Technologies of the Beijing Winter Olympics.” Meanwhile, the number of CNPC’s integrated energy service stations has grown rapidly, with 416 charging and battery‑swap stations and 542 photovoltaic stations in operation in 2022. By year’s end, CNPC’s total capacity for developing and utilizing new energy had reached the equivalent of 8 million tonnes of standard coal.

Taxation
Tax and fee incentives precisely empower business entities.
Recently, the Ministry of Finance and the State Taxation Administration jointly issued several announcements, clarifying the extension and optimization of certain temporary tax and fee preferential policies. These include income tax breaks for small and micro enterprises and individual business households, enhanced pre‑tax deductions for R&D expenses, and tax incentives for logistics companies—among other measures. This suite of targeted tax and fee support policies is helping to alleviate financial pressures and bolster the vitality of a broad range of market entities.
The Central Economic Work Conference made it clear that in 2023, proactive fiscal policy will be strengthened and made more effective. Recently, the State Council Executive Meeting reviewed measures to optimize and refine certain temporary tax and fee preferential policies, which have now been concretely implemented through documents issued by two relevant departments. These measures are expected to reduce the annual burden on businesses and individuals by more than 480 billion yuan.
Experts believe that extending and refining certain temporary tax incentives, with a stronger focus on supporting specific industries and economic entities—particularly in ensuring the sustainable development of small and medium-sized enterprises and individual business households—demonstrates an enhanced policy precision, thereby embodying the implementation of a proactive fiscal policy that is both more robust and more effective.
“In the current economic environment, extending and refining certain temporary tax and fee preferential policies is an important measure to promote stable economic development,” said Li Xuhong, Director of the Institute of Fiscal and Taxation Policy and Application at the National Accounting Institute in Beijing.
The continuation and refinement of certain temporary tax and fee preferential policies exhibit a clear “targeted” approach. To support the development of small and micro enterprises and individual business households, the two departments have specified that, from January 1, 2023, to December 31, 2024, for small and low-profit enterprises, the portion of annual taxable income not exceeding RMB 1 million will be taxed at a reduced rate of 25% when calculating taxable income, with corporate income tax payable at a rate of 20%. For individual business households, the portion of annual taxable income not exceeding RMB 1 million will be subject to personal income tax at half the current preferential rate.
Professor Bai Yanfeng of the School of Finance and Taxation at the Central University of Finance and Economics argues that, judging from the income tax rate schedule applicable to individual business households, the portion of annual taxable income not exceeding RMB 1 million broadly covers the majority of taxable income for most such entities, thereby ensuring broad coverage of tax incentives. At the same time, this threshold helps target tax benefits more precisely, ensuring that they are effectively and appropriately applied.
To promote the development of small and micro enterprises and further alleviate the burden on employers, the two departments have also clarified that, from January 1, 2023, to December 31, 2027, the policy of phased reductions in the payment of the Employment Guarantee Fund for Persons with Disabilities will remain in effect. Specifically, if an employer’s proportion of employed persons with disabilities reaches 1% or more but falls short of the ratio prescribed by the people’s government of the employer’s province, the employer shall pay the Employment Guarantee Fund at 50% of the amount otherwise required.
A series of policies will further stabilize the expectations of small and micro enterprises and individual business households. “To achieve a comprehensive recovery of the national economy, it is essential to ensure the continued improvement of their operating conditions. The extension and refinement of tax and fee preferential policies underscore the government’s unwavering commitment to safeguarding employment and people’s livelihoods,” said Bai Yanfeng.
In addition to targeting the development of small and micro enterprises and individual business households, another key focus of tax and fee support policies is to promote scientific and technological innovation. The two departments have clarified that, for R&D expenses actually incurred by enterprises in their R&D activities that are not capitalized as intangible assets but instead charged to current profits and losses, on top of the standard actual‑expense deduction, an additional pre‑tax super‑deduction of 100% of the actual amount will be granted starting January 1, 2023. For expenses that do result in the formation of intangible assets, a pre‑tax amortization allowance equal to 200% of the asset’s cost will be applied, also effective January 1, 2023.
The additional tax deduction policy encourages enterprises to allocate more funds to research and development, thereby enhancing their innovation and technological capabilities. Specifically, the policy that raises the pre‑tax additional deduction rate for R&D expenses of eligible industries from 75% to 100% has been institutionalized and will be implemented on a long-term basis.
“This time, the state has introduced clear tax and fee preferential policies that, in terms of eligible beneficiaries, cover key groups such as small and micro enterprises, individual business households, technology‑innovation offices, and logistics companies. The coordinated implementation of these comprehensive tax and fee relief measures ensures a tangible reduction in the overall tax and fee burden on market entities,” said Bai Yanfeng.

A range of tax and fee preferential policies will be extended and refined, with policy dividends helping to stabilize expectations and boost confidence.
This year’s Government Work Report proposes to refine tax and fee preferential policies, ensuring that existing measures—such as tax and fee reductions, tax refunds, and tax payment deferrals—are either extended where appropriate or further optimized.
At its executive meeting held on March 24, the State Council decided to extend and further refine certain temporary tax and fee preferential policies to bolster market expectations and confidence. These measures include making the policy of raising the pre‑tax additional deduction rate for R&D expenses of eligible enterprises from 75% to 100% a permanent institutional arrangement; extending until the end of 2027 the policy of halving the urban land use tax on land used for bulk commodity warehousing by logistics enterprises, as well as the policy of reducing the employment security fund for persons with disabilities; and prolonging until the end of 2024 the policy of reducing income tax on the portion of annual taxable income not exceeding RMB 1 million for small and micro enterprises and individual business households, along with the policy of lowering unemployment and work‑injury insurance rates. In addition, a zero tariff on coal imports will remain in effect through the end of this year. Collectively, these policies are expected to reduce the tax and fee burden by more than RMB 480 billion annually.
Industry experts say that several phased tax and fee relief measures have been extended, helping to further stabilize business expectations and bolster corporate confidence.
A number of phased tax and fee preferential policies will be extended and further refined.
Recently, the Ministry of Finance and the State Taxation Administration issued several announcements, clarifying the extension and optimization of a number of temporary tax and fee preferential policies.
To encourage enterprises to increase R&D investment and better support scientific and technological innovation, the policy on pre‑tax additional deductions for R&D expenses has been further refined. According to an announcement issued by two departments, for R&D expenses actually incurred by enterprises in their R&D activities that are not capitalized as intangible assets but instead charged to current profit or loss, in addition to the standard actual‑expense deduction, a further 100% pre‑tax additional deduction will be allowed, effective January 1, 2023. For expenses that result in the formation of intangible assets, a pre‑tax amortization allowance equal to 200% of the asset’s cost will be granted, also effective January 1, 2023.
To support the development of small and micro enterprises and individual business households, from January 1, 2023, to December 31, 2024, for small and low-profit enterprises, the portion of annual taxable income not exceeding RMB 1 million will be taxed at a reduced rate of 25% when calculating taxable income, with corporate income tax payable at a rate of 20%. For individual business households, the portion of annual taxable income not exceeding RMB 1 million will be subject to personal income tax at half the current preferential rate.
To promote the sound development of the logistics industry, the preferential policy on urban land use tax for land used by logistics enterprises for bulk commodity storage facilities will remain in effect. According to an announcement issued by two departments, from January 1, 2023, to December 31, 2027, urban land use tax on land used for bulk commodity storage facilities—whether owned (including self-use and leased) or leased by logistics enterprises—will be levied at 50% of the tax rate applicable to the land’s designated grade.
To promote the development of small and micro enterprises and further alleviate the burden on employers, in accordance with an announcement issued by the Ministry of Finance, the preferential policy on the employment security fund for persons with disabilities will be extended from January 1, 2023, to December 31, 2027.
“Precise and robust tax‑policy extensions will play a pivotal role in bolstering the economic recovery,” said Xu Hongcai, deputy director of the Economic Policy Committee of the China Institute for Policy and Scientific Research. He noted that the continuation of policies—such as reducing the corporate R&D tax rate and imposing zero tariffs on coal imports—underscores China’s determination to become a science and technology powerhouse, while also highlighting the decisive role taxation plays in driving industrial growth and ensuring the sound development of the energy sector.
“Extending and refining certain temporary tax and fee preferential policies reflects a cross‑cycle adjustment tailored to China’s current economic conditions, with the aim of advancing steady yet progressive economic growth,” said Li Xuhong, Director of the Institute for Fiscal and Tax Policies and Applications at the National Accounting Institute in Beijing. She added that the continuation of several temporary tax and fee measures targeting small and micro enterprises and individual business households will help these relatively vulnerable market entities transition smoothly, safeguard employment and people’s livelihoods, and underpin the macroeconomic fundamentals.
Institutionalizing policy dividends to continuously support enterprises’ innovation and development.
Among the various tax and fee preferential policies, the measure raising the pre‑tax additional deduction rate for R&D expenses to 100% has been adopted as a permanent institutional arrangement, drawing widespread attention from all sectors.
In recent years, policies providing additional tax deductions for R&D expenses to support scientific and technological innovation have been steadily strengthened. At the beginning of 2022, the additional deduction rate for R&D expenses incurred by small and medium-sized enterprises engaged in science and technology was raised from 75% to 100%. On September 7, 2022, the State Council Executive Meeting announced that, during the fourth quarter of 2022, three temporary tax‑reduction measures to support corporate innovation would be implemented, encouraging businesses to increase investment and enhance their innovative capabilities. In late September of the same year, the Ministry of Finance, the State Taxation Administration, and the Ministry of Science and Technology jointly issued the “Notice on Strengthening Pre‑Tax Deduction Support for Scientific and Technological Innovation,” while the Ministry of Finance and the State Taxation Administration separately released the “Notice on Preferential Tax Policies for Corporate Investment in Basic Research,” thereby clarifying the details of these incentives.
This time, the temporary measure has been replaced by a permanent, institutionalized policy. Industry experts believe this will help stabilize business expectations and bolster confidence in enterprises’ innovative development.
“The policy of raising the pre‑tax additional deduction rate for R&D expenses to 100% has been institutionalized and will be implemented on a long-term basis, which will help stabilize market expectations and further encourage enterprises to make sustained investments in innovation and R&D,” said Xu Hongcai. He added that, with tax incentives, the issue of how companies can claim the additional deduction when previously capitalized R&D expenses are amortized in the future has been resolved, thereby significantly easing their operational challenges.
Li Xuhong stated that scientific and technological innovation is a key driver of China’s high-quality development. Raising the pre‑tax additional deduction rate for R&D expenses to 100% and enshrining this policy as a long‑term institutional arrangement will not only facilitate the thorough implementation of the strategies of invigorating the country through science and education and of innovation‑driven development, but also play a vital role in strengthening China’s innovation momentum, thereby helping the country achieve self-reliance and self‑strengthening in science and technology. Compared with temporary measures, such institutional arrangements can significantly enhance the certainty of tax incentives for scientific and technological research and development, providing enterprises with a stable policy environment, enabling them to better plan their long‑term R&D investments and technological advancement, boosting their confidence and motivation to invest in R&D, and reinforcing market expectations.
“The long-term stability of institutional arrangements enables enterprises to reap the benefits of favorable policies over an extended period, encouraging them to make greater, sustained investments in research and development. This, in turn, fosters deeper technological accumulation and industrial upgrading, thereby driving the continued advancement of China’s industrial transformation and scientific and technological innovation,” said Li Xuhong.

Jiangsu: “Tax Momentum” Fuels the Upgrading Drive of Private Enterprises Toward Intelligent Manufacturing
The tax authorities of Jiangsu Province have officely prioritized high-quality development, proactively leveraged the role of taxation, and consistently strengthened efforts in both policy implementation and taxpayer‑friendly services, thereby injecting robust “tax‑driven momentum” to empower private enterprises in Jiangsu to boldly innovate and take decisive action.
Speaking about Shenghong Group’s growth journey, National People’s Congress deputy Miao Hangen said: “Precisely targeted tax incentives have provided the group with tangible financial support, enabling it to boldly invest in R&D and achieve breakthroughs in key core technologies in the new materials sector, thereby accelerating its transformation toward intelligent manufacturing.”
Driven by favorable tax policies, an increasing number of private enterprises in Jiangsu are stepping up their efforts in scientific and technological innovation, gradually forging an accelerated path to break through barriers and expand their reach.
“A series of tax and fee policies has injected a fresh stream of capital, bolstering businesses’ confidence to boldly innovate and strive for success.” As he received the annual “Tax and Fee Preference” list from the tax authorities, Fu Zhiwei, a deputy to the National People’s Congress and chairman of Xuzhou Bokang Information Chemical Co., Ltd., expressed full confidence in the company’s future development.
Tax and fee benefits are being delivered swiftly and directly, accelerating the takeoff of industrial development. At the start of the new year, private enterprises in Jiangsu have quickly launched a wave of efforts to boost foreign trade, seize business opportunities, and secure orders. “With the support of tax policies, we now have even greater confidence to ramp up production capacity and bring all lines online,” said Wang Qiangzhong, a deputy to the National People’s Congress and chairman of Jiangsu Gongchuang Artificial Turf Co., Ltd. “In 2022, with the assistance of the tax authorities, our company achieved rapid cash flow turnover, enabling our products to smoothly expand into overseas markets.”
Upon receiving the “Tax Guidance for Enterprises Going Global” from the tax authorities, National People’s Congress deputy and Chairman of Nanjing TICA Environmental Technology Co., Ltd., Jiang Li, stated: “The tax authorities have assigned dedicated liaison officers to us, ensuring seamless communication between the tax authorities and enterprises. This helps companies promptly benefit from tax incentives and alleviates their concerns as they expand overseas.”
Industries are flourishing, and rural areas are undergoing a remarkable transformation. Riding the “spring breeze” of taxpayer‑friendly services, from the shores of the Yellow Sea to the banks of the Yangtze River, a vibrant panorama of robust agriculture, beautiful countryside, and prosperous farmers is slowly unfolding across the Jianghuai region.
In Suqian, National People’s Congress deputy and chairman of the Suqian Yuqiao Planting Professional Cooperative, Yao Lulu, stated: “The tax authorities have tailored a comprehensive service package, offering real-time online support and regular in-person guidance, thereby providing one-stop services for invoicing, tax filing, and accessing preferential policies.”
In Huai’an, National People’s Congress deputy and chairperson of the Yesheng Fresh Fruit Professional Cooperative in Xuyi County, Li Yehong, said: “Bolstered by the ‘spring breeze’ of favorable tax policies and high-quality services, our cooperative has seized opportunities to accelerate its development, forging a path that integrates production, processing, and sales, and successfully led surrounding farmers toward shared prosperity.”

Litigation & Arbitration
The Supreme People’s Procuratorate has released typical cases of public interest litigation concerning the protection of personal information.
The Supreme People’s Procuratorate has released a batch of typical cases involving public-interest litigation on personal information protection, aiming to take the spirit of the 20th National Congress of the Communist Party of China as its guiding principle. It calls on procuratorial organs at all levels responsible for public-interest litigation to elevate their political awareness and regard handling such cases as a pragmatic measure to implement Xi Jinping’s thought on the rule of law and to support Chinese‑style modernization, thereby effectively supervising and ensuring the uniform and correct application of the Personal Information Protection Law.
On November 1, 2021, the Personal Information Protection Law officially came into effect, explicitly authorizing procuratorial organs to file public interest litigation in the field of personal information protection. According to available information, procuratorial organs nationwide filed and handled more than 6,000 public interest litigation cases related to personal information protection in 2022.
The typical cases released this time include eight cases, such as the administrative public interest litigation case brought by the Xindu District People’s Procuratorate of Wuxi City, Jiangsu Province, to urge the protection of consumers’ personal information in service venues. Among these, four are pre-litigation supervision cases under administrative public interest litigation. The procuratorial organs have flexibly employed methods such as pre-litigation consultations, public hearings, and procuratorial recommendations to urge administrative agencies to perform their duties in accordance with the law and to encourage relevant parties to promptly rectify violations, thereby fully demonstrating the strengths of the administrative public interest litigation system, enhancing the effectiveness of administrative law enforcement, and prioritizing the goal of safeguarding public interests at the pre-litigation stage as the optimal judicial outcome. In another case, the Wangcheng District People’s Procuratorate of Changsha City, Hunan Province, initiated an administrative public interest litigation to protect individuals’ biometric information. It issued a procuratorial recommendation to the relevant administrative authorities and invited deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, volunteers, and academic experts to serve as hearing panelists. An open hearing was held to assess whether the administrative agency had fully performed its statutory duties and whether the public interest had been effectively protected, thereby mitigating the risk of personal information leaks and earnestly safeguarding the public interest.
These typical cases also demonstrate the importance of strengthening coordinated performance of duties between criminal prosecution and public-interest litigation, fully leveraging the advantages of interagency collaboration. While holding perpetrators criminally accountable, they also pursue liability for harm to the public interest, advancing claims such as cessation of infringement, elimination of danger, and compensation for losses, thereby highlighting the unique value of the public-interest litigation system. Moreover, these cases emphasize addressing issues at their source, helping to resolve widespread and systemic problems within specific industries, sectors, or systems.
An official from the Eighth Procuratorial Office of the Supreme People’s Procuratorate stated that, going forward, the procuratorial organs will continue to intensify their efforts in handling public interest litigation cases involving personal information protection, prioritizing the safeguarding of personal information pertaining to key individuals and critical sectors, and ensuring rigorous protection of sensitive categories of information as well as the personal data of specific groups.

The nation’s first case involving a full-chain crackdown on the infringement of citizens’ parking information has concluded with a first-instance verdict.
On March 24, the People’s Court of Gulou District, Nanjing, held a public trial for the nation’s first case involving the full‑chain crackdown on the infringement of citizens’ parking information, and rendered an on‑the‑spot verdict: Defendant Huang was convicted of the crime of infringing upon citizens’ personal information and sentenced to four years and eleven months’ imprisonment, together with a fine of RMB 1.2 million; Defendant Li was convicted of the same crime and sentenced to three years and three months’ imprisonment, together with a fine of RMB 250,000. The illegal proceeds obtained by Defendants Huang and Li were confiscated and turned over to the state treasury, and the tools used in committing the offense were also confiscated.
Upon trial, it was ascertained that, beginning in June 2020, Xie, at the request of clients seeking vehicle‑location information, employed programs such as “JTC”—provided by defendant Huang and developed by Li—to scrape parking data. By means of technical methods, Xie circumvented the security safeguards of parking‑platform systems including “Jie Tingche,” thereby illegally obtaining real-time vehicle‑parking‑location data stored on those platforms. Xie then transmitted the retrieved location information to his clients or, at their behest, installed positioning‑and‑tracking devices on the relevant vehicles, for which he charged fees. Meanwhile, Huang, acting on Xie’s instructions, installed such tracking devices on designated vehicles and received remuneration from Xie. According to the records, Huang illicitly profited over RMB 1.13 million, while Li illicitly profited over RMB 240,000.
The court held that real-time location data and trajectory information pertaining to a citizen’s vehicle constitute information capable of reflecting or identifying the specific activities of an individual. Such information is closely linked to legally protected interests under criminal law, such as freedom of movement and personal safety, and thus qualifies as personal information.
The defendants, Huang and Li, violated provisions of the Personal Information Protection Law, the Cybersecurity Law, and other relevant laws by illegally and forcibly scraping real-time parking information—constituting private personal data—and by installing location‑tracking devices on designated vehicles. Their conduct constitutes the crime of infringing upon citizens’ personal information and amounts to joint criminal activity. Defendant Huang is a recidivist who has demonstrated meritorious conduct, pleaded guilty in court, and returned a portion of his illicit gains. Defendant Li, upon surrendering, truthfully confessed to the facts of the crime and also returned part of his ill-gotten proceeds. Taking all these circumstances into account, the court rendered the aforementioned judgment.
In this case, the defendant, together with another defendant, Xie, and others, engaged in a “vehicle‑locating” business, each assuming specific roles such as software development, data retrieval, client outreach, and the installation of GPS‑tracking devices. The upstream and downstream links were tightly interconnected, forming a complete industrial chain. Thirteen individuals, including Xie, were convicted of the crime of infringing upon citizens’ personal information, and all judgments have now become final. During the adjudication of this series of cases, the Gulou District People’s Court of Nanjing City imposed strict penalties, in accordance with the law, on all participants across the entire “end‑to‑end” chain involved in the infringement of citizens’ personal information, thereby effectively safeguarding the security of such information.
More than 50 people, including deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, and representatives of the general public, attended the trial as observers, with the entire proceedings broadcast live online.

Shaanxi’s first tourism arbitration and mediation center makes its debut in Hancheng.
Recently, the Hancheng Tourism Arbitration and Mediation Center of the Xi’an Arbitration Commission was officially inaugurated in Hancheng. This marks the first tourism arbitration‑mediation pilot unit established in Shaanxi Province following the issuance of the “Notice on Launching a Pilot Program for Linking Tourism Complaint Mediation with Arbitration” by the Ministry of Culture and Tourism and the Ministry of Justice.
The Hancheng Tourism Arbitration and Mediation Center, established with the support of the Shaanxi Provincial Department of Culture and Tourism and jointly founded by Hancheng City and the Xi’an Arbitration Commission, is a specialized legal service institution. It maintains a permanent mediation office within the Secretariat of the Hancheng Cultural and Tourism Industry Association, providing tourists with diversified legal services and routine advisory support. The center’s establishment represents both an innovative step taken by Hancheng to implement the province’s initiatives for improving the business environment and a concrete effort to deepen reforms in the tourism sector, promote high‑quality development of the cultural and tourism industries, and help the city stage a remarkable turnaround. Hancheng will remain steadfast in its strategy of “leveraging cultural‑tourism integration to enhance its reputation,” adhere to a market‑oriented development model characterized by “light assets, strong operations, and intrinsic value,” and vigorously advance the integration of culture and tourism. Furthermore, it will work to institutionalize and standardize tourism arbitration and mediation mechanisms, fostering a favorable environment for tourism investment and consumption.
It is understood that the pilot program to seamlessly integrate tourism complaint mediation with arbitration represents a key initiative for innovating the resolution of tourism-related disputes. By leveraging the strengths of the arbitration system, addressing the challenges in resolving such disputes, and fostering high-quality development of Shaanxi Province’s tourism sector, this effort offers a new opportunity. It will also serve as an effective exploration toward building a harmonious tourism‑consumption market and optimizing the business environment for the tourism industry in Shaanxi.

Tesla Lost the First Domestic “One‑for‑Three” Compensation Case; the Beijing High People’s Court Dismissed Its Application for Retrial.
On March 28, Han, the plaintiff in Tesla’s “one refund, threefold compensation” case, posted that the Beijing High People’s Court had ruled to reject Tesla’s application for retrial, attaching a photo of the court’s civil ruling. Previously, both the first-instance and second-instance courts had found that Tesla had engaged in conduct constituting consumer fraud.
In 2019, consumer Han spent RMB 379,700 to purchase a Tesla‑certified pre‑owned Model S P85 from Tesla’s official website. Subsequently, while using the vehicle, Han discovered several defects. An independent third‑party inspection revealed that the car’s C‑pillar and rear fender had been cut and welded. Han contended that these issues posed an immediate threat to personal safety and that Tesla engaged in fraudulent conduct during the sale, prompting Han to request a return or exchange. Tesla refused, leading Han to file a lawsuit. Tesla argued that the prior accident that caused the damage did not affect the vehicle’s structural integrity and therefore did not constitute a major accident or structural impairment; moreover, Tesla was unaware of the incident and thus lacked any intent to deceive. According to Tesla, the vehicle in question had not been involved in a major accident, nor had the replacement of the fender resulted in any structural damage, and it complied with Tesla’s sales commitments.
The court of first instance held that the repair of the vehicle in question involved extensive cutting and welding, “a method and degree of repair that would inevitably have a significant impact on consumers’ willingness to purchase. Yet Tesla merely informed Mr. Han that ‘the vehicle had no structural damage,’ which falls short of the requisite standard of information disclosure.” Furthermore, the court found that “Tesla was aware, or should have been aware, of the accident involving the vehicle and the details of its repairs.” Accordingly, the court determined that Tesla had engaged in fraudulent conduct, ordering it to refund Mr. Han RMB 379,700—the purchase price—and to pay compensation of RMB 1,139,100 pursuant to the Consumer Rights Protection Law. The court of second instance upheld the original judgment. Dissatisfied, Tesla filed a request for retrial, which was rejected by the Beijing Higher People’s Court.

The Intellectual Property Court of the Supreme People’s Court has compiled 61 typical cases and released a summary of the key points of its 2022 judgments.
On March 30, the Supreme People’s Court released the “Summary of Key Points of Judgments from the Intellectual Property Court of the Supreme People’s Court (2022).”
The “Summary” is a carefully curated selection of 61 representative cases, further distilled from the 3,468 cases concluded by the Supreme People’s Court’s Intellectual Property Division in 2022. The Summary comprises 75 key adjudicatory principles, including: 13 principles pertaining to patent administrative cases—such as “the patentability of business methods” and “the determination of the absence of essential technical features”; 31 principles for patent civil cases—such as “rules governing the use of extrinsic evidence in claim construction” and “considerations of background art and the objective of the invention in determining equivalent infringement”; 8 principles for plant variety cases; 10 principles for trade secret cases—such as “the identification of technical solutions eligible for protection as trade secrets”; 12 principles for antitrust cases—such as “antitrust review of settlement agreements reached in patent infringement disputes”; and 1 principle concerning procedural matters—“factors to be considered when determining whether expert appraisal is required during litigation.”

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