JC Master Legal News Issue 1055

Key Takeaways for This Issue

The China Securities Regulatory Commission is soliciting public comments on the “Administrative Measures for the Supervision and Administration of Derivatives Trading (Draft for Comments).”
To implement the Futures and Derivatives Law, promote the sound development of the derivatives market, support business innovation among securities and futures offices, and meet the risk-management needs of various market participants—thereby better serving the real economy and preventing and defusing financial risks—the China Securities Regulatory Commission, drawing on practical experience, has drafted the Measures for the Supervision and Administration of Derivatives Trading (Draft for Public Comment) along with an explanatory note, and is now soliciting public input.
Luring borrowers into “refinancing” and encouraging “AB loans,” regulators are cracking down hard on illegal loan intermediaries.
The China Banking and Insurance Regulatory Commission has issued the “Notice on Launching a Special Campaign to Rectify Illegal Loan Intermediaries,” mandating that the banking sector carry out a six-month special campaign to address illegal loan intermediation.
The legal application of electronic commercial bills has sparked controversy; multiple experts argue that it should be clarified that offline recourse is invalid to prevent inconsistent rulings in similar cases.
With the recent convening of the People’s Bank of China’s 2023 Financial Markets Work Conference, the revision of the Bills Law has once again become a focal point of public attention. The conference called for ensuring the stable functioning of the money market, continuously standardizing the development of the bills market, and advancing the amendment of the Bills Law. In practice, many bill holders still adhere to traditional paper‑based procedures, which often results in the loss of their right of recourse and gives rise to numerous disputes. Consequently, whether to reject such offline recourse claims under the relevant Measures or to recognize the validity of offline recourse actions has sparked divergence in judicial practice.
The Supreme People’s Court has released typical cases of “combating counterfeit agricultural inputs”—imposing strict legal penalties on crimes involving agricultural inputs to effectively safeguard farmers’ income growth.
To further enhance the adjudication of “agricultural input counterfeiting” cases in 2023, punish, in accordance with the law, crimes involving the production and sale of counterfeit or substandard agricultural inputs, effectively safeguard farmers’ interests, and ensure national food security, the Supreme People’s Court has released three typical cases related to combating the counterfeiting of agricultural inputs.

Finance & Capital Markets
The China Securities Regulatory Commission is soliciting public comments on the “Administrative Measures for the Supervision and Administration of Derivatives Trading (Draft for Comments).”
To implement the Futures and Derivatives Law, promote the sound development of the derivatives market, support business innovation among securities and futures operating institutions, and meet the risk-management needs of various market participants—thereby better serving the real economy and preventing and defusing financial risks—the China Securities Regulatory Commission, drawing on practical experience, has drafted the “Administrative Measures for the Supervision and Administration of Derivatives Trading (Draft for Public Comment)” (hereinafter referred to as these Measures), together with an explanatory note, and is now soliciting public comments.
The Futures and Derivatives Law brings derivatives trading within the scope of legal regulation, establishes fundamental institutional frameworks such as the single‑agreement principle, close‑out netting, and trade repositories, and empowers the China Securities Regulatory Commission to issue specific rules governing derivatives trading venues, the admission of derivatives‑related institutions, investor suitability management, trade reporting repositories, and central clearing, among other matters. To strengthen market oversight of derivatives, promote the sound development of the derivatives market, and prevent and mitigate financial risks, it is necessary to implement the Futures and Derivatives Law by enacting, at the level of departmental regulations, a unified set of rules that standardizes the derivatives market.
This Measures comprises eight chapters and 52 articles, covering key provisions such as general principles, derivatives trading and settlement, prohibited trading practices, market participants, derivatives business entities, derivatives market infrastructure, supervisory oversight and legal liabilities, and supplementary provisions. The principal drafting approaches are as follows: First, functional regulation. Drawing on practical experience, the Measures bring all activities and market participants in the derivatives market under the purview of the CSRC’s regulatory framework, adopting a function‑based approach to establish uniform admission criteria, conduct standards, and legal liabilities. Second, coordinated regulation. Taking a holistic view of the capital market and fully accounting for inter‑market linkages, the Measures strengthen regulatory coordination among the derivatives market, the securities market, and the futures market, thereby preventing regulatory arbitrage and closing regulatory gaps. Third, robust risk prevention. Efforts are focused on enhancing transparency in the derivatives market, promoting trade standardization, encouraging exchange‑traded and centrally cleared transactions, raising risk‑management requirements for over‑the‑counter derivatives, implementing a derivatives‑transaction reporting regime, and rigorously cracking down on illicit or regulatory‑evasion activities conducted through derivatives trading. Fourth, provision of policy flexibility. While maintaining stringent risk controls, the Measures leave ample room for further institutional development, avoiding one‑size‑fits‑all measures that could unduly constrain the market and fostering the sound and sustainable growth of the derivatives market.

We will continue to enrich the STAR Market index system and support the development of a multi-tiered capital market; four new indices, including the Science and Technology Innovation Capability Index, are set to be launched soon.
Recently, the Shanghai Stock Exchange and China Securities Index Co., Ltd. officially announced the launch schedule for a new batch of SSE STAR Market-themed indices, including the SSE STAR Market New Energy Index, the SSE STAR Market Industrial Machinery Index, the SSE STAR Market Yangtze River Delta Index, and the SSE STAR Market Guangdong–Hong Kong–Macao Greater Bay Area Index. The introduction of these four new indices will further enrich the STAR Market index universe, providing multi‑dimensional coverage of key national industries and regional development strategies, thereby better meeting investors’ diverse asset allocation needs.
The SSE STAR Market New Energy Index and the SSE STAR Market Industrial Machinery Index each select 50 large‑cap listed companies from their respective sectors on the STAR Market as index constituents, aiming to capture the overall performance of representative securities in the new energy and industrial machinery fields. Both indices achieve market capitalization coverage exceeding 80% within their respective sectors, demonstrating strong representativeness and investment appeal. New energy is a key component of strategic emerging industries and a priority area for support on the STAR Market. Companies in the new energy sector are predominantly concentrated in the battery and photovoltaic value chains; preliminary financial reports indicate that these STAR‑listed offices posted year‑on‑year growth of 66% in revenue and 126% in net profit in 2022. Industrial machinery represents a specialized segment within high‑end equipment. STAR‑listed companies in this space are characterized by high technological content and robust growth potential, with significant presence across sectors such as electric motors and industrial control automation, urban rail transit, machine tools, and instrumentation. According to their latest annual reports, R&D expenditures accounted for 9.5% of total expenses, while earnings grew at a rate of 53.8%.
The SSE STAR Market Yangtze River Delta Index and the SSE STAR Market Guangdong–Hong Kong–Macao Greater Bay Area Index are primarily focused on promoting balanced regional development. Each index selects 50 large‑cap listed companies from the STAR Market whose registered headquarters are located in the Yangtze River Delta and the Guangdong–Hong Kong–Macao Greater Bay Area, respectively, to reflect the overall performance of representative listed securities within these regions and to encourage market attention to the key technology sectors in these core economic clusters. Implementing a strategy for coordinated regional development is an essential component of upholding the new development philosophy and building a modernized economic system, as well as a crucial lever for achieving high‑quality economic growth. At present, the number of STAR Market‑listed companies in both the Yangtze River Delta and the Guangdong–Hong Kong–Macao Greater Bay Area has exceeded 230, with average quarterly growth rates in both the number of listings and total market capitalization exceeding 20%, thereby generating a notable agglomeration effect.
In recent years, the Shanghai Stock Exchange has remained committed to the STAR Market’s “hard‑tech” positioning, continuously enhancing its investment and financing services, and officely supporting the listing of science and technology enterprises that align with national strategies and achieve breakthroughs in critical core technologies, thereby laying a solid foundation for high‑quality development. At present, the Shanghai Stock Exchange and China Securities Index Co., Ltd. have successively launched the STAR 50 Index, the STAR Growth Index, as well as sector‑specific thematic indices focusing on next‑generation information technology, biopharmaceuticals, semiconductors, new materials, and high‑end equipment, thus initially establishing an index system for the STAR Market that covers size‑based, thematic, and strategy‑oriented categories. Notably, the total assets under management of STAR 50‑related products have continued to grow, reaching RMB 88.7 billion, a year‑on‑year increase of 107%. Recently, two STAR 50 index funds have been approved, while ETFs and enhanced index funds are steadily emerging, further diversifying passive investment options on the STAR Market. Moving forward, the Shanghai Stock Exchange and China Securities Index Co., Ltd. will, in alignment with strategic initiatives such as achieving high‑level scientific and technological self‑reliance and strength, continue to refine the STAR Market index framework, introduce more market‑specific STAR Market indices, and promote the high‑quality development of the real economy.

First batch submitted for registration! Eleven main-board IPOs on the Shanghai and Shenzhen stock exchanges are awaiting the issuance of registration results.
The first batch of companies undergoing relocation has made new progress in their IPOs.
Following their approval on March 13, as of 11:00 p.m. on March 14, all five companies in the Shanghai market that were among the first batch to have their main-board IPO applications transferred had submitted their registration filings, and five of the six companies in the Shenzhen market’s first batch of main-board IPO transfers had also completed the submission process.
Also on March 14, the Shanghai Stock Exchange announced the outcomes of its 12th and 13th Listing Review Committee meetings for 2023, with both Jiangsu Hengshang Energy-Saving Technology Co., Ltd. (referred to as “Hengshang Shares”) and Zhejiang Wanfeng Chemical Co., Ltd. (referred to as “Wanfeng Shares”) successfully passing review. Meanwhile, the Shenzhen Stock Exchange disclosed the results of its 10th Listing Review Committee meeting for 2023, in which all three companies—Jiangsu Xiangteng New Materials Co., Ltd. (referred to as “Xiangteng New Materials”), Wuhu Sanlian Forging Co., Ltd. (referred to as “Sanlian Forging”), and Changzhou Changqing Technology Co., Ltd. (referred to as “Changqing Technology”)—were approved.
Notably, Hengshang Co., Ltd. not only received approval at its review meeting on March 14 but also submitted its registration application. According to the standard procedure, the next and final step is the issuance of the registration decision.
The first batch of 10 companies in Shanghai and Shenzhen have submitted their IPO registration applications; on the same day, one company listed on the Shanghai Stock Exchange passed the review and submitted its registration.
On March 14, the five companies that had received approval from the Shanghai Stock Exchange the previous day—Zhongzhong Technology (Tianjin) Co., Ltd., CITIC Metal Co., Ltd., Jiangsu Changqingshu New Materials Technology Co., Ltd., Jiangxi Salt Industry Group Co., Ltd., and Bocheng System Technology Co., Ltd.—had all submitted their registration applications.
On the Shenzhen Stock Exchange, the five companies that received approval on March 13—Nanchang Mining Machinery Group Co., Ltd., Shenzhen Zhongdian Port Technology Co., Ltd., Chongqing Dengkang Oral Care Products Co., Ltd., Zhejiang Haissen Pharmaceutical Co., Ltd., and Shaanxi Energy Investment Co., Ltd.—also completed their registration filings on March 14.
This means that, among the first 11 main-board companies whose applications have been approved since the full registration system was implemented, only Huawei Technology Co., Ltd. has yet to submit its registration filing.
In addition, Hengshang Co., Ltd., which received approval on March 14, has also submitted its registration application. The company operates in the architectural decoration and other construction industries and plans to raise RMB 577 million.
According to the prospectus, Hengshang Co., Ltd. primarily engages in the design, manufacturing, and installation of architectural curtain walls and window‑door systems. In 2019, 2020, and 2021, its non‑recurring net profits were RMB 51.5999 million, RMB 76.3489 million, and RMB 88.7246 million, respectively. During the January–June 2022 period, affected by the pandemic, the company’s operating revenue and total assets at year‑end both declined year over year.
One company in the Shanghai market and three companies in the Shenzhen market have passed the review.
Also on March 14, Wanfeng Shares’ IPO application was approved at the Shanghai Stock Exchange’s Listing Committee meeting, while Xiangteng New Materials, Sanlian Forging, and Changqing Technology each received approval for their IPOs at the Shenzhen Stock Exchange’s Listing Committee meeting.
From the perspective of the review process, Wanfeng Shares completed its transfer from the CSRC to the SSE on February 20, received an inquiry from the exchange on March 3, and passed the review on March 14. Xiangteng New Materials, Sanlian Forging, and Changqing Technology all completed their transfer from the CSRC to the SZSE on February 20 and subsequently passed the review by March 14.
Wanfeng Co., Ltd. operates in the chemical raw materials and chemical products manufacturing sector and plans to raise RMB 548 million through its IPO. According to the prospectus, the company’s core business involves the research, development, production, and sales of disperse dyes and their filter cakes. Affected by the Xiangshui explosion incident, the company posted strong results in 2019; excluding that impact, its operating performance remained broadly stable from 2019 through the first half of 2022. Wanfeng Co., Ltd. forecasts that its net profit attributable to shareholders for the first quarter of 2023 will range from RMB 15.5486 million to RMB 16.6833 million, representing a year-on-year increase of 1.85% to 9.28%.
Xiangteng New Materials operates in the computer, communications, and other electronic equipment manufacturing sector and plans to raise RMB 502 million. According to its prospectus, the company primarily engages in the research and development, production, precision machining, and sales of various thin-film components for the next-generation display industry. In 2022, some of Xiangteng New Materials’ customers experienced significant fluctuations due to product‑mix adjustments or timing of procurement; meanwhile, as the industry entered a destocking phase, utilization rates declined and purchasing volumes correspondingly decreased, resulting in a 38.15% drop in the company’s core business revenue.
Sanlian Forging operates in the automotive manufacturing sector and plans to raise RMB 435 million through its IPO. According to the prospectus, the company is primarily engaged in the R&D, production, and sales of forged automotive components, with key customers including Schaeffler, ZF, Magna, Bosch, and Linamar. In fiscal years 2019, 2020, and 2021, as well as in the first half of 2022, Sanlian Forging reported non‑GAAP net profits attributable to shareholders of RMB 47.73 million, RMB 64.82 million, RMB 66.76 million, and RMB 26.01 million, respectively.
Changqing Technology operates in the railway, shipbuilding, aerospace, and other transportation equipment manufacturing sectors and plans to raise RMB 526 million. According to its prospectus, the company’s core businesses are rail transit and architectural decoration, with net profits of RMB 71.0685 million, RMB 73.2002 million, and RMB 66.5998 million for the years 2019, 2020, and 2021, respectively. In the first quarter of 2023, Changqing Technology expects to report a net profit attributable to owners of the parent company ranging from RMB 9.6951 million to RMB 12.1189 million, representing a year-on-year increase of 900% to 1,100%.

Luring borrowers into “refinancing” and encouraging “AB loans,” regulators are cracking down hard on illegal loan intermediaries.
The China Banking and Insurance Regulatory Commission has issued the “Notice on Launching a Special Campaign to Rectify Illegal Loan Intermediaries” (hereinafter referred to as the “Notice”), mandating that the banking sector carry out a six-month special campaign to address illegal loan intermediation.
Industry insiders believe that, following this round of regulatory crackdowns, loan intermediaries will face a new wave of industry consolidation.
Long-term chaos and a mixed bag of participants
Upon receiving the aforementioned “Notice,” a loan broker promptly conducted an internal review to identify any business units that might be inconsistent with its spirit. “At present, it’s not just banks conducting inspections—local public security authorities have also stepped in,” the broker said.
In the aforementioned Notice, the China Banking and Insurance Regulatory Commission disclosed that Ding et al. engaged in illegal activities—including registering shell companies and facilitating their transfer to help others obtain business loans, as well as providing various intermediary services related to home purchases and other funding needs—totaling over RMB 2 billion in bank credit transactions.
In fact, as early as the beginning of this month, some banks had already launched internal self‑inspections to identify violations such as improper loan‑to‑cash conversions. An official at one bank posted a notice in a WeChat group stating that, effective immediately, all mortgage‑backed business loans previously designated as “mortgage loans” would be suspended, including those that had been approved but not yet mortgaged. For cases where funds have already been disbursed after the mortgage has been redeemed, on‑site due diligence is required to verify the borrower’s genuine business operations before disbursement; moreover, post‑loan monitoring must ensure that funds are used as intended. Failure to comply will result in a demand for full repayment during subsequent audits.
And behind these loan‑refinancing schemes, illegal loan intermediaries are often involved.
In the process by which business‑purpose loans flow into the housing market, illicit loan intermediaries impersonate banks and, via text messages, phone calls, and other channels, lure homebuyers with promises of “low interest rates,” “long repayment terms,” and “rapid disbursement.” They then promote schemes to siphon funds from banks through “business‑purpose loans” and “consumer loans,” channeling these loans into the real estate sector while pocketing hefty brokerage fees.
Beyond the real estate market, during periods of frenzied stock-market activity, illicit loan intermediaries have also diverted low‑interest funds—intended to support small and medium‑sized enterprises—into the stock market by helping clients obtain business loans and consumer loans.
In addition, behind the “AB loan” scheme that collapsed last year, illegal loan intermediaries were also at work.
As the name suggests, “AB lending” involves dividing the borrower into two roles: A and B. Specifically, A is the original borrower; however, due to poor creditworthiness, A is unable to secure a standard bank loan and typically faces rejection when approaching banks or reputable loan intermediaries.
As a result, illicit loan intermediaries persuade A to enlist a well‑qualified individual, B, as a “guarantor,” “credit‑boosting party,” “emergency contact,” or “trustee” for the purpose of processing the transaction. Unaware that they are merely a “credit‑enhancing factor” with no real risk, B is in fact made the ultimate borrower under the scheme orchestrated by these unscrupulous intermediaries. As long as A makes timely repayments, both parties remain unaffected; however, once A defaults, it is only when the bank initiates collection efforts that B discovers they have been the actual borrower, leading to disputes and drawing the lending bank into the fray.
These illegal loan intermediaries not only charge exorbitant brokerage fees for their unlawful practices but also leak customers’ personal information, leaving them vulnerable and exposed online.
Can it be brought under financial regulation?
Customer acquisition is the lifeblood of a loan brokerage. After signing a loan referral agreement with a bank’s branch, the broker must secure qualified clients for that bank. So, how can they acquire customers at scale?
Loan intermediaries either acquire customers through traffic on internet platforms or obtain customer information by purchasing it.
Search engines, short-video platforms, company‑owned websites, and social media apps all serve as sources of traffic. For example, when users open certain short‑video platforms, they may encounter promotional ads disguised as educational content on loan‑related topics; by clicking on the consultation link, customers are directed straight to a list of loan intermediaries.
It has even given rise to information‑and‑advertising offices that specialize in supplying customer lists to loan brokers. These companies resell their lists to multiple lenders, which is why, once customer data is leaked, individuals are bombarded with a barrage of phone calls and text messages from numerous loan intermediaries.
It is worth noting that some lists originate from highly sensitive sources, such as those focused on a particular company, organization, or specific demographic group.
“In recent years, the cost of acquiring customers through traffic has been steadily rising—sometimes reaching several hundred yuan per lead. And if the customer data is purchased from third parties, it often turns out to be of very poor quality,” said a professional in the loan‑brokerage industry.
In addition, for loan intermediaries that have entered into loan‑referral agreements with banks, the banks either offer only a modest commission or no commission at all. Since the intermediaries’ primary source of income is fees from clients, some unscrupulous agents may collude with borrowers to create “pitfalls” for the banks in order to secure their commissions.
In fact, back in 2021, some local regulatory authorities had already conducted investigations within their jurisdictions’ banking systems into illicit loan intermediaries for issues such as business‑loan funds illegally flowing into the real estate market. At the beginning of this year, similar problems resurfaced, but this time the crackdown and remediation efforts have swept across the entire country.
Xue Hongyan, deputy director of the Xingtu Financial Research Institute, analyzes that the existence of loan intermediaries stems from information asymmetry between banks and customers—particularly the customers’ limited understanding of banks’ product offerings—which prevents many potential borrowing needs from being met promptly, thereby creating fertile ground for loan intermediaries.
“Pure loan‑matching serves as a lubricant for transactions, and charging a reasonable fee is justified. However, the biggest problem with loan intermediaries lies in the fact that certain unscrupulous agents, in pursuit of maximum profit, collude with borrowers to falsify documentation and fraudulently obtain bank loans, thereby inflicting losses on banks. They then, in turn, extract exorbitant kickbacks from borrowers, turning into a malignant tumor within the financial system and making themselves prime targets for crackdowns,” he said.
Xue Hongyan argues that the market has an objective demand for loan‑brokerage services, and the business itself is highly profitable, making it difficult to eradicate at its root. From a policy perspective, it is better to facilitate than to prohibit: opening up legitimate channels can help curb illicit ones. By fostering a cohort of law‑abiding, transparent intermediaries through targeted policies, while simultaneously imposing stringent penalties on illegal loan brokers, we may be able to alleviate this challenge.
“We would prefer to be brought under regulatory oversight, much like insurance intermediaries,” said the aforementioned industry insider in the loan‑brokerage sector.

Securities Industry 315 Review: Brokerage Offices Face Stricter Regulatory Action for Violations, with Nine Institutions Fined or Subject to Investigations This Year
Strengthening investor protection is a key priority for the capital market. The recently released State Council institutional reform plan proposes establishing the National Administration of Financial Regulation, which will assume unified oversight of the financial sector—excluding the securities industry—and coordinate efforts to safeguard the rights and interests of financial consumers. Under this framework, the China Securities Regulatory Commission’s investor protection responsibilities will be transferred to the National Administration of Financial Regulation.
Strengthening and enforcing the responsibilities of intermediary institutions is a crucial component of safeguarding investors’ rights and interests in the capital market, as well as a key focus of the registration-based reform.
Within the year, regulators have taken decisive action to strengthen the “gatekeeper” responsibilities of intermediary institutions, with several securities offices receiving penalties for business violations. According to data from the CSRC and local securities regulatory bureaus, as of now, nine securities offices have been sanctioned or placed under investigation, including Everbright Securities, Minsheng Securities, Huatai United Securities, and Huajin Securities, with violations related to private placements, New Third Board listings, bond underwriting, fund sales, and other business areas.
Among them, Guorong Securities received two consecutive penalties, with its New Third Board listing and bond‑related business singled out; meanwhile, Northeast Securities has been placed under investigation in connection with the long‑standing 4.5‑billion‑yuan private placement case involving Yujingangshi.
Guorong Securities “suffered” two consecutive penalties.
Early in 2023, several securities offices have already been penalized. According to statistics, during January, four offices—Guorong Securities, Wanhe Securities, Huajin Securities, and Minsheng Securities—received warning letters or were ordered to make corrections.
Among them, Guorong Securities has received two consecutive penalties, with both its bond‑related business and its New Third Board listing business found to have violated regulations.
Specifically, on January 5, the Inner Mongolia Securities Regulatory Bureau disclosed that Guorong Securities’ bond business had two major violations: First, in its corporate bond underwriting and trust‑management activities, the office failed to conduct a thorough due diligence review of the authenticity of the issuer’s mortgage registration procedures for certain projects, nor did it continuously monitor and promptly urge the issuer to disclose material matters related to its debt‑repayment capacity. Second, the office’s overall risk‑control framework for its bond business was inadequate; in some cases, oversight of how issuers used raised funds was insufficient, and the internal review mechanism was not properly implemented. The Inner Mongolia Securities Regulatory Bureau ordered the company to make corrections and submit a written remediation report within the prescribed time limit.
Just a few days later, on the 10th of the same month, the Jiangsu Securities Regulatory Bureau disclosed that Guorong Securities had failed to exercise due diligence during the due‑diligence process for the recommended listing of Jiangsu Hongma Logistics Co., Ltd., and that Zhang Zhimin, who was then the project leader, bore responsibility for this. In response, the Jiangsu Securities Regulatory Bureau issued a warning letter to the company and its responsible person and recorded the matter in the securities and futures market integrity archive.
Another office implicated in violations related to a refinancing project is Wanhe Securities. According to an announcement issued by the Shenzhen Securities Regulatory Bureau on January 3, during their underwriting of the non‑public offering of shares by Shenzhen Savvy Intelligent Co., Ltd., Wanhe Securities and its relevant business officers, Du Chengbiao and Zhou Gengming, conducted insufficient due diligence on key contracts of the issuer, the misappropriation of funds by the controlling shareholder, and the collection of accounts receivable, among other matters. Furthermore, the commitments made in the underwriting documents were inconsistent with the actual circumstances.
To this end, the Shenzhen Securities Regulatory Bureau has decided to impose administrative regulatory measures in the form of issuing warning letters to Wanhe Securities and its sponsor representatives, Du Chengbiao and Zhou Gengming.
Bond underwriting is also a key area where securities offices have been penalized.
On January 18, the Shanghai Securities Regulatory Bureau issued warning letters to Minsheng Securities and Huajin Securities; both offices were penalized in connection with bond underwriting activities.
Among them, Minsheng Securities encountered two major issues in the course of its bond underwriting and trust‑management activities: First, in bond underwriting due diligence, for certain bond projects, it failed to adequately verify the professional opinions provided by other intermediary institutions and did not require the auditing offices to supplement or correct omissions or data errors in their audit reports. Second, in bond trust management, for some bond projects, it did not promptly issue a temporary trust‑management report to the market regarding the issuer’s serious breaches of trust.
The main issues at Huajin Securities are as follows: in bond underwriting due diligence, certain bond projects failed to conduct adequate verification of the issuer’s significant equity investments and guarantee arrangements; and in bond issuance review, the office did not fully establish internal policies and work procedures in accordance with applicable regulations, resulting in insufficient scrutiny of subscription‑related matters in some bond offerings.
In addition, Guangda Securities, as the lead underwriter for Beijing Yingding Education Technology Co., Ltd. (hereinafter referred to as “Yingding Education”), failed to exercise due diligence and fulfill its obligation of prudent verification during the period of ongoing supervision, and did not detect that Yingding Education had artificially inflated its operating revenue by fabricating business transactions. As a result, it received a warning letter from the Shanghai Securities Regulatory Bureau.
During its ongoing supervisory duties for Hao’oubo, Huatai United Securities failed to fulfill its duty of due diligence and was issued a warning letter by the Jiangsu Securities Regulatory Bureau, and two signing sponsor representatives were also penalized.
Northeast Securities Suddenly Subject to Investigation
In addition to receiving fines, some securities offices have also been suddenly placed under investigation.
Northeast Securities has been placed under investigation by the China Securities Regulatory Commission (CSRC) in connection with an old case involving Yu Jin Gangshi’s private placement. According to the company’s announcement on February 6, the CSRC initiated a formal investigation because, in the course of handling Yu Jin Gangshi’s 2016 non‑public offering of shares, the office is suspected of failing to exercise due diligence in its sponsorship and ongoing supervision duties, and because the documents it issued contained false records, misleading statements, or material omissions.
On suspicion of material financial fraud, Yujingangshi was delisted in June last year. The company and several senior executives were collectively fined RMB 35.95 million by the China Securities Regulatory Commission, while the actual controller was banned from the securities market for life.
Although Yujingangshi has delisted, its former sponsor for the private placement, Northeast Securities, still cannot escape accountability.
Regarding the impact on the case filing, Northeast Securities stated that the company will fully cooperate with the China Securities Regulatory Commission’s relevant work and strictly comply with regulatory requirements in fulfilling its information disclosure obligations. At present, the company’s operations remain normal.
In addition, some securities offices have been penalized for fund‑sales‑related activities. Just last month, Yuekai Securities received a warning letter from the Guangdong Securities Regulatory Bureau.
Upon investigation, it was found that the compliance and risk-control personnel in the company’s fund‑sales department did not hold the requisite fund‑industry qualifications. Internal compliance reviews also revealed that certain marketing and middle‑office/back‑office staff lacking such qualifications had participated in fund‑sales activities, yet the company failed to initiate compliance‑related accountability measures as required by its internal policies. Furthermore, at some branch offices, middle‑office and back‑office personnel continued to engage in fund‑sales activities.
Outsourcing of Insurance Underwriting Responsibilities
In addition to securities offices, accounting offices, law offices, and asset appraisal agencies also serve as key intermediaries in the capital markets, and the quality and standards of their professional practice have long been a focal point of regulatory oversight.
Data show that, over the course of last year, the China Securities Regulatory Commission handled 44 cases involving intermediary institutions’ failure to exercise due diligence, implicating 36 such institutions.
In February this year, a top-level design for nationwide financial and accounting oversight was unveiled, with the General Office of the CPC Central Committee and the General Office of the State Council issuing the “Opinions on Further Strengthening Financial and Accounting Oversight.” The document emphasizes cracking down on financial and accounting violations and illegal activities, enhancing oversight of the financial and accounting practices of state-owned enterprises, listed companies, financial institutions, and other entities, and strengthening quality supervision of intermediary agencies such as accounting offices, asset appraisal institutions, and bookkeeping agencies.
Only by rigorously enforcing the responsibilities of intermediary institutions and guiding all market participants to fulfill their respective roles can we better safeguard investors’ interests.
Recently, the State Council unveiled a plan for institutional reform, under which the National Administration of Financial Regulation will be established. It will assume unified oversight of the financial sector—excluding the securities industry—and coordinate efforts to protect the rights and interests of financial consumers. Notably, the China Securities Regulatory Commission’s investor protection functions will be transferred to the National Administration of Financial Regulation.

China Banking and Insurance Regulatory Commission: Ensure that institutional reform and regulatory work advance in tandem, with neither being neglected nor hindered.
On the 14th, the official website of the China Banking and Insurance Regulatory Commission disclosed that the agency recently convened a meeting to convey and study the spirit of the Two Sessions. The meeting called for ensuring that institutional reform and regulatory work are advanced in tandem, with neither being neglected nor hindered.
According to the State Council institutional reform plan officially announced by China, a National Financial Supervisory Administration will be established on the basis of the China Banking and Insurance Regulatory Commission, assuming unified oversight of the financial sector excluding the securities industry. As a directly affiliated agency of the State Council, the China Banking and Insurance Regulatory Commission will be abolished.
The aforementioned meeting, chaired by Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission, emphasized that it is essential to fully recognize that deepening the reform of Party and state institutions is a key measure for implementing the spirit of the 20th National Congress of the Communist Party of China and a concentrated effort to advance the modernization of the national governance system and governance capacity. Optimizing and adjusting the institutional responsibilities in the financial regulatory field is of paramount importance for strengthening and improving modern financial regulation and for addressing the longstanding, pressing contradictions and problems in the financial sector. Under the unified leadership of the CPC Central Committee and the State Council, we must refine policies and measures, reinforce accountability, and meticulously oversee implementation, ensuring that the tasks of institutional reform are steadily and efficiently carried out in an organized and phased manner.
The meeting emphasized the need to make every effort to sustain the steady improvement of the national economy, prioritize support for restoring and expanding consumption, ensure adequate financing for investment, help accelerate efforts to address shortcomings in the social sector, continuously enhance financial services for import and export trade, and better underpin the development of a modern industrial system, thereby contributing greater financial strength to high-quality development. It also called for the continued advancement of supply-side structural reform in the financial sector, strengthening the governance frameworks of financial institutions, vigorously encouraging banks and insurance companies to return to their core functions, standardizing the development of the third pillar of pension insurance, and steadily expanding institutional openness in the banking and insurance sectors.
The meeting also stressed the need to uphold a bottom-line mindset, promptly address all types of risks and potential hazards, deepen reforms of small and medium-sized financial institutions, continuously strengthen the financial stability safeguard system, and officely safeguard the bottom line of preventing systemic risks.

SZSE: On March 18, the Shenzhen Stock Exchange will fully implement the stock issuance registration system reform and conduct a business‑clearance test for issuance activities.
According to the Shenzhen Stock Exchange’s website on the 14th, the Shenzhen Stock Exchange (hereinafter referred to as the SZSE) has issued a notice regarding the full-network testing of issuance‑related business and listed trading operations in connection with the comprehensive implementation of the stock issuance registration system reform on March 18, 2023.
The notice states that the Shenzhen Stock Exchange issued on February 1, 2023, the “Notice on Technical Preparations for the Comprehensive Implementation of the Stock Issuance Registration System Reform.” To ensure the smooth operation of related business, the Shenzhen Stock Exchange, in collaboration with the Shenzhen Branch of China Securities Depository & Clearing Corporation Limited (hereinafter referred to as ChinaClear) and China Securities Finance Corporation Limited (hereinafter referred to as CSFC), will conduct a full-network test on March 18, 2023. The test will primarily simulate order submission, trade execution reporting, market data reception, clearing and settlement, investor suitability management, and market‑based securities lending and borrowing processes for Shenzhen‑listed stocks and depositary receipts, thereby verifying the accuracy and reliability of the technical systems of all market participants.
To support the Hong Kong Stock Exchange’s launch of the “Pilot Star Central Trading Gateway – Securities Market,” the Shenzhen Stock Exchange will conduct a full-network test on March 18, 2023. The test will simulate business processes such as order submission and trade reporting for Stock Connect securities, as well as market data reception and display, to verify the accuracy and reliability of the technical systems of all market participants.
On November 25, 2022, the Shenzhen Stock Exchange issued the “Notice on Technical Preparations for the Full Implementation of the Expanded‑Length Securities Abbreviation Service,” and on January 7, 2023, it conducted a connectivity test. To meet the testing needs of market participants and ensure the smooth rollout of the relevant services, the Shenzhen Stock Exchange, in collaboration with China Securities Depository & Clearing Corporation Limited’s Shenzhen Branch, has scheduled another system‑wide test for March 18, 2023. This test will simulate business scenarios following the full implementation of expanded‑length securities abbreviations for equities, bonds, and other products, focusing on the processing of securities‑related information files, as well as the handling of order submissions, trade conofficeations, market data reception, and clearing and settlement processes for both trading and non‑trading activities, thereby verifying the accuracy and reliability of the technical systems of all market participants.
The main test contents are as follows:
1. Fully implement the reform of the stock issuance registration system:
(1) Processing of order submissions, trade conofficeations, market data reception and display, as well as clearing and settlement for IPOs, listings, trading, and non‑trading activities involving main‑board stocks under the registration-based system, main‑board stocks under the approval‑based system, and main‑board depositary receipts;
(2) Processing of order submissions, trade conofficeations, market data reception and display, as well as clearing and settlement for trading in ChiNext stocks and ChiNext depositary receipts;
(3) Mainboard investor suitability management;
(4) Market‑based securities lending under the Stock Connect program, non‑agreed‑upon securities lending, market‑based securities borrowing, and margin‑and‑short‑selling services—covering main‑board stocks and main‑board depository receipts, including unrestricted tradable shares (hereinafter referred to as “00 shares”) and post‑IPO restricted shares eligible for lending (hereinafter referred to as “07 shares”)—as well as related business processes such as order submission, trade execution reporting, market data reception and display, and clearing and settlement.
(5) Processing of order submissions, trade conofficeations, market data reception and display, and clearing and settlement for Shenzhen‑listed stocks, other services related to depositary receipts, Shenzhen‑listed stock options, and securities traded under the Stock Connect program;
(6) Processing of business related to preferred stock transfers, including order submission, trade conofficeation, market data reception and display, as well as clearing and settlement.
(7) Reception and processing of static transaction reference information files;
(8) Conduct order submission, market data inquiry, trade execution inquiry, and data download for stock and depositary receipt block trades, securities lending under the margin‑financing and securities‑lending program, and other related services via the trading terminal.
(9) Submit non‑trading orders for 07 Shares via D‑COM (including transfer of restricted shares to a new custodian, tender offers for restricted shares, judicial freezes, etc.), and simulate the processing of various non‑trading transactions for 07 Shares (such as dividend distributions, acquisitions, transfers of custody, and freezes).
2. Stock Connect Business:
(1) Securities order submission, trade conofficeation, market data reception, and display via Stock Connect;
(2) Receipt and loading of Hong Kong stock product information and related documents.
The test will be conducted on Saturday, March 18, 2023, from 8:30 a.m. to 7:30 p.m. (including a recovery‑verification test). During the testing period, the Shenzhen Stock Exchange’s trading and clearing systems will simulate one full business day of trading and settlement, while the Hong Kong Stock Connect securities will simulate half‑day trading and one settlement day.

Commercial & Corporate
National Bureau of Statistics: National real estate development investment declined by 5.7% in January–February.
According to the National Bureau of Statistics website on the 15th, during January–February, nationwide real estate development investment totaled RMB 1.3669 trillion, down 5.7% year on year; of this, residential investment amounted to RMB 1.0273 trillion, a decrease of 4.6%.
In January–February, the total floor area of housing under construction by real estate development enterprises amounted to 750.24 million square meters, down 4.4% year on year. Of this, residential construction accounted for 527.695 million square meters, a decline of 4.7%. New housing starts totaled 135.67 million square meters, down 9.4%, with residential new starts at 98.91 million square meters, a decrease of 8.7%. Housing completions reached 131.78 million square meters, up 8.0%, including 97.82 million square meters of residential completions, an increase of 9.7%.
In January–February, sales of commercial residential properties totaled 151.33 million square meters, down 3.6% year on year, with residential sales declining by 0.6%. Total sales revenue for commercial residential properties reached RMB 1.5449 trillion, a decrease of 0.1%, while residential sales revenue increased by 3.5%.
At the end of February, the total floor area of unsold commercial housing stood at 655.28 million square meters, up 14.9% year on year. Among this, the floor area of unsold residential housing increased by 15.5%.
In January–February, real estate development enterprises received RMB 2.1331 trillion in funding, down 15.2% year on year. Specifically, domestic loans totaled RMB 348.9 billion, a decrease of 15.0%; utilization of foreign capital amounted to RMB 500 million, down 34.5%; self-financing reached RMB 634.2 billion, down 18.2%; deposits and prepayments stood at RMB 711.2 billion, down 11.4%; and personal mortgage loans totaled RMB 349.5 billion, down 15.3%.
In February, the Real Estate Development Prosperity Index (referred to as the “National Housing Prosperity Index”) stood at 94.67.
Last year, there were 16,000 complaints and reports concerning new-energy vehicles, with quality-related issues increasing by more than 70 percent.
On March 14, the State Administration for Market Regulation released last year’s data on consumer complaints and reports. Complaints and reports involving new-energy vehicles warrant particular attention: in 2022, the platform received 16,000 such cases, a year-on-year increase of 62.84%. Among these, complaints and reports related to quality issues rose by 77.35%.
In 2022, market regulation authorities nationwide received a total of 8.6232 million product-related complaints, accounting for 65.81% of all complaints—a rise of 4.37 percentage points compared with the previous year—while service-related complaints numbered 4.4806 million, representing 34.19% of the total. The increasing share of product‑related complaints reflects the growing prominence of product quality issues amid downward pressure on the real economy. The top categories in terms of complaint volume were: ordinary food, apparel, footwear and headgear, household goods, home appliances, transportation vehicles, and telecommunications products, collectively accounting for 58.43%. Among service‑related complaints, the leading categories were: catering and accommodation, sales services, internet services, culture, entertainment and sports, and beauty, hairdressing and bathing services, together comprising 46.37%.
Notably, as the penetration rate of new-energy vehicles continues to rise rapidly, consumers’ expectations for quality are also steadily increasing. In 2022, the platform received 16,000 complaints and reports related to new-energy vehicles, a year-on-year increase of 62.84%. Among these, issues concerning contracts, product quality, and false advertising saw particularly sharp growth, rising by 126.33%, 77.35%, and 75.65%, respectively. Consumer grievances primarily center on: inadequate after-sales service and failure to honor “three-guarantee” commitments; sudden engine stalling during driving, oil leaks, unusual engine noises, brake or steering malfunctions, and battery‑module damage; as well as the dissemination of misleading information and the use of unfair standard contract terms designed to reduce automakers’ liability.

The Ministry of Education and the China Consumers Association are urging parents to make informed choices when selecting after-school training institutions, and in 2023 will launch a special campaign on “Safe Consumption” for off-campus education.
In 2022, consumer associations nationwide handled nearly 70,000 complaints related to education and training services. To effectively reduce consumer rights violations at the start of the new semester, the Ministry of Education and the China Consumers Association issued a notice, urging parents and students to choose training institutions prudently. Some off-campus training providers operate without the administrative permits issued by the competent authorities or engage in unauthorized practices such as “one‑on‑one” tutoring, “live-in tutors,” or “high‑end domestic services.” Such offerings not only lack proper qualifications and quality assurance but also pose significant safety risks. Parents are encouraged to use the “Off-Campus Training Parent App” to select accredited and qualified off-campus training institutions.
Before paying tuition fees, parents should sign the “Off-Campus Training Service Contract for Primary and Secondary School Students (Standard Text)” with the off-campus training institution. They should pay particular attention to provisions related to the curriculum, instructors, and fees, clearly stipulating circumstances under which refunds are permitted and the refund procedures. In addition, they should obtain a formal invoice and keep it safely.
Pay tuition fees rationally, and avoid paying for more than three months or 60 class hours at a time. For non-academic training, limit each payment to no more than RMB 5,000 to minimize the risk of refund disputes and the possibility of providers absconding with funds.
In 2023, the Ministry of Education and the China Consumers Association, in collaboration with relevant departments, will launch a special campaign on “Safe Consumption” in off-campus training, further standardizing tuition‑charging practices, strengthening oversight of prepaid funds for off-campus courses, expediting the resolution of consumer disputes related to such services, and rigorously investigating and cracking down on covert or disguised academic‑subject tutoring, thereby effectively safeguarding the legitimate rights and interests of students and their parents.

Effective June 1, China will implement new regulations on the handling of reports of illegal activities in the telecommunications sector.
Effective June 1, China will implement new regulations on the handling of reports of illegal activities in the telecommunications sector, aimed at upholding market order and safeguarding the legitimate rights and interests of telecommunications users.
The Ministry of Industry and Information Technology recently issued the “Regulations on the Handling of Reports of Illegal Activities in the Telecommunications Sector,” which sets out the basic requirements for handling such reports, clarifies the criteria for acceptance and the procedures for processing, and further refines the requirements for categorized handling, as well as for responding to and referring cases.
The regulations clearly stipulate that the telecommunications regulatory authority shall handle reports in accordance with the principle of statutory jurisdiction, basing its decisions on facts and applying the law as the standard, and ensuring impartiality, fairness, and efficiency. In principle, reports shall be processed by the telecommunications administration where the alleged violation occurred; however, where otherwise provided by laws, administrative regulations, or departmental rules, such provisions shall prevail.
The regulations divide the processing procedure into two basic stages: preliminary review and investigation. Upon receiving a report, the telecommunications regulatory authority shall conduct a preliminary review of the submitted materials. If the report is found to meet the criteria for initiating an administrative penalty case, the authority shall promptly file the case. If the report indicates that the respondent may have violated telecommunications management regulations but lacks the evidence required to initiate a case, the authority shall proceed with further investigation. Where the reported issue has already been resolved or it can be determined that no relevant violation has occurred, the authority shall directly respond to the real-name reporter.
In accordance with the relevant regulations, the telecommunications regulatory authority shall, within 60 days from the date of receipt of a report, make a categorized disposition based on the findings of its investigation. If no violation is found or if the statutory period for administrative penalties has expired, the investigation shall be terminated; if a violation is established but circumstances exist that preclude imposition of a penalty, no penalty shall be imposed and the party shall be ordered to make corrections; if the case meets the criteria for initiating an administrative penalty proceeding, it shall be promptly filed in accordance with the Administrative Penalty Law; and if the alleged violation is suspected of constituting a criminal offense, the case shall be promptly referred to the judicial authorities.

The State-owned Assets Supervision and Administration Commission has issued the list of demonstration enterprises for building world-class companies and for specialized, refined, distinctive, and innovative development.
On March 16, the website of the State-owned Assets Supervision and Administration Commission of the State Council issued the “Notice on the Publication of the List of World-class Demonstration Enterprises and Specialized, Sophisticated, and Novel Demonstration Enterprises.”
The list shows that this time, a total of seven local state-owned enterprises—including SAIC and BOE—have been selected as model companies for building world-class enterprises, while 200 central and local SOEs have been designated as model enterprises specializing in niche markets and demonstrating distinctive strengths. A large number of A-share listed companies also made the list. Among the centrally‑administered SOE‑listed offices included are Aerospace Information, AVIC Optoelectronics, AVIC Unmanned Aircraft System, Changan Automobile, China Ceramics Electronics, Huadian Hydropower, Huadian Heavy Industry, Yangtze Power, Three Gorges Energy, YTO Shares, COFCO Science & Technology, Meiya Pico, Tongyi Zhong, China Duty Free Group, and China Jushi, among others.

Taxation
The Belt and Road Tax Administration Cooperation Mechanism Held a Roundtable Meeting.
On the evening of March 16, the Roundtable Meeting of the Belt and Road Tax Administration Cooperation Mechanism (hereinafter referred to as the “Mechanism”) was held successfully. Participants exchanged views and reached consensus on advancing the implementation and promotion of Version 1.0 of the curriculum framework for the Belt and Road Tax Administration Capacity‑Building Alliance (hereinafter referred to as the “Alliance”), on the development of the journal “Belt and Road Taxation” (in English) (hereinafter referred to as the “Journal”), and on preparations for the Fourth Belt and Road Tax Administration Cooperation Forum. Members of the Mechanism’s Governing Council, observers, members of the Expert Advisory Committee, and members of the Journal’s Editorial Board attended the meeting. The meeting was chaired by Wang Daoshu, Secretary-General of the Secretariat of the Belt and Road Tax Administration Cooperation Mechanism and Deputy Director‑General of the State Taxation Administration of China.
In February 2023, the Alliance publicly released Version 1.0 of its curriculum framework worldwide through its official cooperation‑mechanism website and the Belt and Road Tax Academy portal, garnering widespread attention. At this roundtable, Mr. Rong Guangliang, Chairman of the Alliance and Director of the Financial Services Bureau of Macao, China, stated that Curriculum Version 1.0 is oriented toward enhancing tax administration capacities in Belt and Road countries, closely aligned with the functional roles of tax authorities and the responsibilities of tax officials. Under four thematic pillars—“Tax Systems,” “Tax Administration and Digitalization,” “Tax‑Friendly Business Environment and Taxpayer Services,” and “Tax Cooperation”—a total of 65 courses have been developed. Chairman Rong also highlighted that, after three years of steady progress, the Alliance has achieved significant results in delivering training, establishing the Belt and Road Tax Academies, and building a robust faculty. To date, the Alliance has organized more than 50 online and offline training sessions, providing capacity‑building to over 3,000 tax officials from more than 100 countries and regions. It has successively founded five Belt and Road Tax Academies—in Yangzhou, China; Beijing, China; Astana, Kazakhstan; Macao, China; and Riyadh, Saudi Arabia—thereby establishing a multilingual training network covering English, Chinese, Russian, Portuguese, and Arabic. Additionally, the Alliance has invited 26 internationally renowned tax experts from 13 countries and regions to form its inaugural team of expert instructors. Participants engaged in extensive exchanges during the meeting. The Yangzhou, Astana, and Riyadh Tax Academies emphasized that this curriculum framework provides a practical template for their respective training programs. They plan to adapt its content to suit their unique contexts, refine existing course offerings, strengthen collaboration and knowledge sharing, and develop additional educational resources—including faculty and curricula—so as to broaden the reach, scale, and richness of Alliance‑sponsored training. This effort aims to jointly enhance tax administration capabilities across Belt and Road economies and contribute to the creation of growth‑friendly tax environments. Curriculum Version 1.0 received high praise from attending experts, including Mr. Christian Käser, Chair of the International Chamber of Commerce’s Tax Commission; Mr. Rupak Khadka, a Nepalese tax specialist; and Professor Deng Liping of Xiamen University. Mr. Käser remarked that, with the release of Curriculum Version 1.0 and the gradual rollout of its courses, more tax officials from Belt and Road partner countries will gain access to scientific, professional, and efficient training, steadily elevating their tax administration capacities and ushering the Alliance’s development into a new phase.
The journal “Belt and Road Taxation (English Edition),” a flagship knowledge product of the cooperation mechanism, has published six issues, featuring more than 100 articles totaling over 500,000 words. The journal focuses on pressing issues in the field of international taxation, striving to deepen understanding of the principles, propositions, and achievements of the Belt and Road Initiative and to address the tax-related concerns of countries participating in its joint development. Zhang Zhiyong, Director of the journal’s Editorial Board and President of the China International Tax Research Association, stated that “Belt and Road Taxation (English Edition)” is becoming a vital bridge for tax authorities along the Belt and Road to enhance mutual understanding, build consensus, and strengthen cooperation. Moving forward, the journal will continue to provide intellectual support, improve its quality, expand its dissemination channels, and bolster its brand influence. A number of domestic and international members of the Editorial Board have offered valuable suggestions on how to further enhance the journal’s effectiveness.
It is also learned that the Fourth Belt and Road Tax Administration Cooperation Forum will be held in Tbilisi, Georgia, from September 11 to 13, with a focus on enhancing the tax-related business environment.

Fujian: Green Taxes Boost High-Quality Development
In recent years, Fujian’s tax authorities have fully leveraged the regulatory and guiding roles of green taxation, proactively taking the lead and providing end-to-end support to ensure the effective implementation of preferential tax policies on environmental protection, energy conservation and emissions reduction, and comprehensive resource utilization, thereby helping Fujian Province advance along a high-quality development path that prioritizes ecology and embraces green, low-carbon practices.
Green tax policies promote the green transition.
San Ke Shu Coating Co., Ltd. is a publicly listed manufacturing enterprise. As a coatings producer, its primary emissions consist of gaseous pollutants, and prior to the introduction of the environmental protection tax, it was required to pay annual discharge fees. Hong Jie, Chairman and President of San Ke Shu Coating Co., Ltd., stated: “The environmental protection tax has played a positive role in the company’s green transformation and upgrading.” In 2018, San Ke Shu acquired specialized environmental protection equipment—a zeolite/molecular‑rotor combined with an RTO system—and from 2019 to 2022 invested over RMB 100 million in environmental infrastructure construction and technological upgrades, thereby achieving significant reductions in pollutant emissions.
Since 2018, Fujian Province has cumulatively granted tax reductions and exemptions totaling RMB 32.814 billion for green taxes such as environmental protection tax, resource tax, and farmland occupation tax. Moreover, tax and fee cuts related to green development, low carbon emissions, and ecological conservation have exceeded RMB 40 billion. The number of taxpayers benefiting from these measures, as well as the scale of relief they receive, has been steadily increasing. In the realm of green consumption, a total of 183,400 new-energy vehicles across the province have enjoyed vehicle purchase‑tax exemptions amounting to RMB 4.127 billion; meanwhile, 1.63 million vehicle‑and‑vessel‑tax exemptions—worth RMB 485 million—have been granted to energy‑saving and new‑energy vehicles. This “double dividend” is expected to encourage more consumers to choose low‑emission, energy‑efficient products, thereby contributing to the achievement of the country’s dual carbon goals.
Tax and fee reductions unlock ecological dividends.
Under the guidance of the “dual carbon” goals, China is vigorously advancing the new‑energy industry toward high‑quality development. Zeng Yuqun, Chairman of Contemporary Amperex Technology Co., Limited (CATL), believes that next‑generation energy storage—primarily battery‑based—is a critical technology and essential infrastructure for ensuring the safe and stable operation of the new power system, as well as an important pillar for achieving the “dual carbon” targets.
The tax authorities, in close coordination with the government, finance departments, the China Securities Regulatory Commission, and banks, have promptly launched a “Warm-Heart Project” to analyze and assess the operational characteristics of the lithium‑ion battery and new‑energy industries. Through a comprehensive package of measures—including the implementation of end-of-period VAT credit refunds, export tax rebates, an increased pre‑tax additional deduction rate for R&D expenses of technology‑based SMEs, one‑time pre‑tax deductions and 100% additional deductions for equipment purchases by high‑tech enterprises, as well as tax incentives for corporate investment in basic research—these policies deliver tailored, precision‑targeted guidance on a case‑by‑case basis, enabling taxpayers to swiftly and conveniently benefit. By clearly quantifying both the tangible benefits for taxpayers and the broader impact of tax and fee reductions, this approach enhances taxpayers’ sense of gain and amplifies the overall effectiveness of these measures. “We are grateful to the state for introducing a series of favorable tax and fee reduction policies that have supported the robust growth of the new‑energy sector,” said a representative from CATL.
Data show that in 2022, the company benefited from various tax incentives, with a year-on-year increase of 141%. As its tax and fee burden eased, it was able to allocate more funds to scientific and technological research and development. The group company currently holds or has pending applications for a total of 14,040 domestic and international patents, and has spearheaded or participated in the formulation or revision of over 80 domestic and international standards. “The development of new technologies is inseparable from the support of favorable tax policies. With robust tax relief measures implemented swiftly, enterprises are better positioned to confidently pursue a path of innovative growth,” said the official.
“Project Officer” Services Green Development
Since the beginning of this year, numerous key projects in Fujian have commenced construction, serving as a vital driver of economic growth. The Fujian tax authorities have launched a “Project Officer” tax‑service initiative, providing end-to‑end, high‑quality tax support to 1,580 government‑backed priority projects, with the aim of building a comprehensive, closed‑loop, and systematic tax‑service brand.
Yang Yong, Party Secretary and Director of the Fujian Provincial Tax Service Bureau of the State Taxation Administration, stated that to achieve new accomplishments and break new ground in using tax modernization to support Chinese‑style modernization, it is essential to earnestly implement the provincial Party committee’s action plan of “deep study for excellence, bold initiative for leadership, and pragmatic action for effectiveness.” This requires officely prioritizing high‑quality development, focusing on the themes of “green development and an ecological Fujian” and “taxation supporting the real economy,” and putting into practice a policy framework that places the environmental protection tax at its core while supplementing it with adjustments across multiple tax types. By deploying a comprehensive package of measures—including tax refunds, reductions, deferrals, and exemptions—the bureau will vigorously promote high‑quality, efficient, and intelligent tax and fee services, and build a collaborative governance system featuring Party and government leadership, interdepartmental cooperation, social coordination, and public participation, thereby providing a tax‑friendly “green channel” to help enterprises advance on the path of green development.

Gansu Tax Authorities: Mobilizing Multiple Efforts to Ensure Smooth Operations During the Tax Collection Period
The Gansu tax system has integrated the “Three Focuses and Three Prompts” campaign with the implementation of the Spring Breeze Tax Service Initiative and efforts to optimize the business environment. In response to the marked increase in workload—such as concentrated filing by small-scale taxpayers and bulk payments of social security and medical insurance contributions—the system has continuously refined and strengthened measures under the Spring Breeze Tax Service Campaign, deploying resources across multiple fronts to ensure a smooth tax collection period and ensuring that tax services remain fully accessible and unwavering in quality.
Modular Precision Services
To enhance tax administration efficiency, tax authorities at all levels in Gansu Province have leveraged cloud‑based big data to conduct comprehensive screening and statistical analysis of the number of taxpayers and payers within their jurisdictions. They have scientifically projected the capacity and congestion levels of tax service halls at different times, enabling timely formulation of risk‑mitigation strategies and congestion‑prevention plans. At the same time, they proactively issue filing reminders, guide taxpayers through the electronic tax bureau to file for and benefit from tax and fee preferential policies, and provide individualized assistance via WeChat, remote support, telephone consultations, and other channels to address taxpayers’ questions and concerns.
Exquisite service with a personal touch.
Gansu’s tax authorities are vigorously advancing tax guidance and service triage, as well as “non-contact” tax processing, to deliver a more user‑friendly mobile tax‑filing experience. Across all levels of the provincial tax system, efforts have been made to refine the province‑wide “Longshui Leifeng” one‑stop assistance mechanism, which places taxpayers and payers at the center of its work. The authorities are striving for breakthroughs in providing meticulous services under the principles of “universal access, round‑the‑clock availability, and full‑staff participation,” pursuing innovation in delivering high‑quality services through “intuitive interfaces, streamlined counters, and superior support,” and focusing on tangible results in offering premium “three‑one” services: “at most one online step, no in‑person visits required, and at most one offline visit.” In January 2023, via channels such as the Electronic Tax Bureau, the “Longshui Leifeng” platform, and the SMS service, 6.82 million taxpayer instances received targeted notifications of 13 latest tax‑related policies, along with four batches of instructional videos and explanatory materials.
At present, individuals can directly submit applications for the issuance of invoices on their behalf—covering labor fees, wages, teaching‑hour payments, freight charges, and other such expenses—through the Gansu Provincial Electronic Tax Bureau or the mobile app, and complete the invoice‑issuance process online. In January 2023, a total of 37,000 value‑added tax invoices were issued online across the province.
Precise Delivery of Business Support Policies
Gansu’s tax authorities have conducted on-site visits to establish a “one‑enterprise‑one‑file” record for each business and appointed a dedicated chief liaison officer for every enterprise. From routine tax filing procedures to tailored guidance on tax incentive policies, from assistance with individual income tax final settlement to support in submitting the “three reports,” and from daily risk alerts to helping companies continuously strengthen their internal controls—Gansu’s tax administration has taken a multi‑pronged approach to remove obstacles, bolster confidence, and inject robust “tax‑driven momentum” into enterprises, enabling them to ramp up production. Leveraging online taxpayer‑administration interaction platforms, tax‑enterprise service exchange channels, and telephone communication, the authorities also conduct proactive on‑site visits, precisely disseminate relevant preferential policies, and ensure timely delivery of filing notices and comprehensive awareness of applicable incentives.

LITIGATION & ARBITRATION
The legal application of electronic commercial bills has sparked controversy; multiple experts argue that it should be clarified that offline recourse is invalid to prevent inconsistent rulings in similar cases.
With the recent convening of the People’s Bank of China’s 2023 Financial Markets Work Conference, the revision of the Bills Law has once again become a focal point of public attention. The conference called for ensuring the stable functioning of the money market, continuously standardizing the development of the bills market, and advancing the revision of the Bills Law.
The Negotiable Instruments Law was enacted in the 1990s and revised in 2004. At a recent seminar hosted by the Theoretical Research Professional Committee of the China Society of Behavioral Law, numerous experts pointed out that the revision of the Negotiable Instruments Law should address the current inconsistency in the application of negotiable instrument rules in judicial practice. They recommended unifying the relevant rules governing electronic instruments and clarifying the status of the Measures for the Administration of Electronic Commercial Bills (hereinafter referred to as the “Measures”) as the applicable law in adjudication.
In October 2009, in order to standardize electronic commercial bill business, safeguard the legitimate rights and interests of all parties involved, and promote the development of such business, the People’s Bank of China formulated and promulgated the “Measures,” which explicitly stipulate that all operations related to electronic commercial bills— including issuance, acceptance, endorsement, guarantee, presentation for payment, and recourse—must be conducted through the electronic commercial bill system.
At that time, the People’s Bank of China had already established and put into operation the Electronic Commercial Draft System (ECDS), marking the entry of China’s bill market into the electronic era. “Compared with paper-based bills, electronic commercial drafts feature four key advantages: replacing paper certificates with data messages, substituting manual writing with computer input, using electronic signatures in place of physical seals, and transmitting documents over networks instead of by hand. These features have significantly enhanced the transparency and timeliness of commercial‑bill transactions, effectively mitigated the high operational risks associated with paper bills, reduced transaction costs for all parties, and facilitated the development of a unified bill market,” said Zhu Chongkun, Secretary-General of the Theoretical Research Professional Committee of the China Society of Behavioral Law.
However, in practice, many holders of negotiable instruments continue to rely on traditional paper‑based procedures, thereby forfeiting their right of recourse and giving rise to numerous disputes. Whether the Measures should preclude such recourse or recognize the validity of offline recourse actions has sparked disagreement in judicial practice.
On December 29, 2020, the Supreme People’s Court issued the Provisions on Several Issues Concerning the Adjudication of Bills Dispute Cases (as amended in 2020). These provisions explicitly state that administrative regulations promulgated and implemented by the People’s Bank of China may be applied by analogy, provided they do not conflict with laws or administrative regulations. However, in judicial practice, inconsistent interpretations and divergent rulings on this issue have persisted, drawing attention from both the banking sector and the legal community.
At the seminar, Wu Gaosheng, former Director of the Legislative Planning Office of the Legislative Affairs Commission of the Standing Committee of the National People’s Congress, pointed out that the Measures constitute the sole normative document issued by the People’s Bank of China, directly authorized under the Negotiable Instruments Law, to regulate electronic commercial bill business. The Provisions of the Supreme People’s Court on Several Issues Concerning the Adjudication of Bill Dispute Cases likewise stipulate that, in hearing bill dispute cases, people’s courts shall apply the provisions of the Negotiable Instruments Law; where the Negotiable Instruments Law is silent, they shall apply the Civil Code and other relevant laws, as well as administrative regulations promulgated by the State Council. Furthermore, administrative rules and regulations formulated and promulgated by the People’s Bank of China may be applied by analogy, provided they do not conflict with laws or administrative regulations. In circumstances where no other laws or regulations address the administration of electronic commercial bills, given the distinctive characteristics of such instruments, the Measures—being a departmental regulation specifically governing electronic commercial bills—may serve as a basis for adjudicating cases, so long as its legislative purpose is legitimate, its procedures are lawful, and it does not conflict with higher‑level laws.
Professor Huang Taiyun of Tianjin University points out that the Negotiable Instruments Law was enacted and came into force 14 years prior to the Measures. The Measures serve to address gaps identified after the implementation of the Negotiable Instruments Law; they are specific regulations formulated either pursuant to the authorization granted by higher‑level legislation or to give effect to mandatory provisions of laws and administrative regulations, and they currently constitute the sole such rules in this area, forming an important component of the financial legal and regulatory framework. In compliance with the provisions of the Legislation Law and backed by statutory authority under the Negotiable Instruments Law, the Measures fill a regulatory gap in the field of negotiable instruments—namely, the inadequacy of the Negotiable Instruments Law to adequately govern modern payment methods—in the context of the rapid development of e‑commerce and the widespread use of electronic instruments.
Fu Shaojun, Deputy Secretary-General of the China Society of Behavioral Law, argues that if offline recourse on electronic commercial bills is deemed lawful and valid, it would have the following consequences for transactions involving such bills and for market order: First, because the holder is objectively unable to deliver the instrument in accordance with the law, the party against whom recourse is exercised, upon making payment, cannot obtain the corresponding bill and thus cannot exercise its right of subrogation. Second, since offline recourse is not recorded in the electronic commercial bill system, the system would default to the conclusion that the holder has lost the right of recourse against all prior parties except the drawer, acceptor, and guarantor. Third, if courts were to recognize offline recourse, they would effectively transform from judicial adjudicatory bodies into entities responsible for conofficeing and transferring (and regulating) rights to negotiable instruments. Fourth, electronic bills involve numerous parties and a complex web of creditor–debtor relationships; any disruption in even a single link in this chain would directly or indirectly affect the interests of the parties to the bill relationship or to the underlying transaction. Fifth, if, outside the electronic commercial bill system, additional bill statuses are separately afofficeed through judicial rulings, this could result in inconsistencies between the bill status ascertained by court judgment and the status registered in the electronic commercial bill system. For some time now, certain entities have sought to carry out electronic‑bill‑related activities outside the official electronic‑bill system—such as providing offline guarantees for electronic bills, pledging them off‑line, engaging in offline recourse as in the present case, or even resorting to the offline delivery of paper‑based electronic bills (an act of fraud). Once such offline practices become established as unwritten norms and gain acceptance, they risk encouraging market participants to exploit the conflict between online electronic‑bill transactions and offline recourse in pursuit of profit.
Today, the revision of the Negotiable Instruments Law provides a favorable opportunity to resolve longstanding discrepancies in judicial practice. Several experts have pointed out that, in revising the law, it is essential to further clarify that offline recourse under negotiable instruments is invalid. It would be advisable to enshrine the relevant provisions of the Measures explicitly in the Negotiable Instruments Law, designating them as the applicable legal framework for court adjudication, thereby ensuring consistent rulings in similar cases and minimizing divergences in the interpretation and application of the law in judicial practice.

Committee Member Li Lianxiang: Further improve the arbitration system to better support high-quality economic and social development.
During this year’s Two Sessions, Li Lianxiang, a member of the National Committee of the Chinese People’s Political Consultative Conference and chief partner at Shandong Guoyao Qindao Law Office, submitted a proposal suggesting that the Arbitration Law of the People’s Republic of China be revised to improve the arbitration system and enable arbitration to better support high-quality economic and social development.
Li Lianxiang believes that, owing to arbitration’s voluntary, flexible, and self‑governing nature, an increasing number of private entrepreneurs are turning to it as one of the key mechanisms for resolving economic disputes. However, the current Arbitration Law has revealed shortcomings that no longer align with evolving circumstances and the demands of arbitration practice, such as a narrow scope of cases accepted, slow progress in building a robust pool of arbitrators, and insufficient alignment with international arbitration rules.
The Standing Committee of the 13th National People’s Congress has included the amendment of the Arbitration Law in its legislative plan. In Li Lianxiang’s view, the revision of the Arbitration Law could be further improved in five key areas.
“First, the scope of arbitration should be appropriately adjusted,” said Li Lianxiang. He noted that the current Arbitration Law imposes certain limitations on the arbitrability of disputes and recommended lifting the restriction to disputes between equal parties, fully and accurately implementing the principle of party autonomy, taking the principle that parties have the right to dispose of their rights as the guiding norm, while reserving the power to safeguard national security and the public interest, thereby appropriately expanding the scope of application of the Arbitration Law.
The second proposal put forward by Li Lianxiang is to draw on internationally accepted norms. He recommends strengthening the judiciary’s supportive yet appropriately restrained oversight of arbitration, upholding the procedural standards of judicial review that are widely adopted in international practice, and, when enacting domestic arbitration legislation, endeavoring to take into account the UNCITRAL Model Law on International Commercial Arbitration, the New York Convention, and relevant international customs.
The introduction of the concept of the seat of arbitration is the third proposal put forward by Li Lianxiang: “It is recommended that the Arbitration Law formally incorporate the concept of the seat of arbitration, with provisions such as ‘Arbitration proceedings seated within the territory of the People’s Republic of China shall be governed by the provisions of this Law.’”
“Fourth, we must strengthen the governance of arbitration institutions. It is recommended that, during the revision process, the public‑interest, non‑profit legal‑person status of arbitration institutions be clearly defined, their internal governance mechanisms be improved, and the level of self‑regulation within the arbitration sector be enhanced,” said Li Lianxiang.
As a member of the legal profession, Li Lianxiang believes that the development of a high-caliber arbitration workforce should also be reflected in the revision of the Arbitration Law. He recommends strengthening overall planning and systematically advancing the building of an arbitration roster, accelerating the cultivation of a pool of outstanding arbitrators who are professional, diverse, and internationally oriented, and establishing an information-disclosure regime for arbitrators.
“As a member of the CPPCC, I feel deeply honored by my mission and acutely aware of my great responsibility. I will fully leverage my professional expertise, continuously enhance my capacity to participate in and deliberate on state affairs, and forge ahead with unwavering resolve on the path of governing the country according to law,” said Li Lianxiang.

The Supreme People’s Court has released typical cases of “combating counterfeit agricultural inputs”—imposing strict legal penalties on crimes involving agricultural inputs to effectively safeguard farmers’ income growth.
The quality and safety of agricultural inputs are vital to enhancing agricultural productivity, increasing farmers’ incomes, and ensuring rural stability. General Secretary Xi Jinping has emphasized that guaranteeing a stable and secure supply of grain and other essential agricultural products remains the top priority in building a strong agricultural nation. To further strengthen the adjudication of “agricultural input counterfeiting” cases in 2023, punish, in accordance with the law, crimes involving the production and sale of fake or substandard agricultural inputs, effectively safeguard farmers’ interests, and ensure national food security, the Supreme People’s Court has released three typical cases related to combating counterfeit agricultural inputs.
In recent years, people’s courts at all levels across the country have consistently put the people first, attaching great importance to adjudicating cases involving the counterfeiting of agricultural inputs. They have steadfastly imposed strict, law-based penalties on crimes related to the production and sale of substandard or counterfeit pesticides, veterinary drugs, fertilizers, seeds, and other products that harm farmers, bringing a number of offenders to justice and, in accordance with the law, increasing the severity of property‑related sanctions to effectively deter the manufacture and distribution of fake or inferior agricultural inputs. At the same time, courts have emphasized leveraging judicial measures to recover losses and mitigate damages, thereby helping to resolve social conflicts. With regard to civil cases involving trademark infringement and unauthorized use of product labels, courts nationwide have introduced innovative litigation‑service initiatives, drawing on the achievements of smart court development to establish green channels for such cases, ensuring swift filing, speedy trials, and prompt enforcement.
Meanwhile, the Supreme People’s Court, either independently or in collaboration with relevant departments, has successively issued the “Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Involving Food Safety,” the “Guiding Opinions on Further Strengthening Criminal Trials Related to Seeds,” and the “Guiding Opinions on Protecting Intellectual Property in the Seed Industry, Combating Counterfeit and Substandard Products, and Infringing Practices, and Fostering a Favorable Environment for the Revitalization of the Seed Industry.” These documents further clarify the criteria for punishing agricultural‑input‑related crimes and for adjudicating such cases, specifying, for example, the standards for conviction and sentencing in instances where prohibited substances are added to pesticides, veterinary drugs, or feed products, as well as how to determine illegal and criminal acts involving counterfeit‑brand seed infringement. In doing so, they continuously adapt to the new requirements of legal safeguards for agricultural‑input safety in the new era. Recently, the Supreme People’s Court, in coordination with the Ministry of Agriculture and Rural Affairs and other agencies, is formulating the “Measures for Coordinating Administrative Enforcement and Criminal Justice in the Field of Agricultural Product Quality and Safety,” while jointly launching a three-year campaign—“Tackle Prohibitions, Control Residues, and Promote Improvement”—targeted at food‑grade agricultural products. The Court is actively participating in comprehensive and source‑level governance, working with relevant departments to forge a concerted effort to combat counterfeiting and fraud in the agricultural‑input sector.
Good seeds yield abundant harvests; food security ensures the people’s well-being. Going forward, the Supreme People’s Court will guide people’s courts at all levels to fully exercise their adjudicatory functions, steadfastly impose strict punishments in accordance with the law for crimes involving agricultural inputs, safeguard food security, and promote increased agricultural productivity, higher farmer incomes, and rural stability, thereby providing robust judicial support for advancing the modernization of agriculture and rural areas and accelerating the building of a strong agricultural nation.

The Supreme People’s Procuratorate has released typical cases of procuratorial organs lawfully punishing crimes involving the production and sale of counterfeit and substandard goods.
On March 14, the Supreme People’s Procuratorate publicly released typical cases of procuratorial organs lawfully punishing crimes involving the production and sale of substandard and counterfeit goods. Focusing on their core duties of oversight and case handling, the procuratorial organs have consistently maintained a strong crackdown on such offenses. In 2022, they approved the arrest of 3,943 individuals in 2,376 cases involving the production and sale of substandard and counterfeit goods, and prosecuted 14,449 individuals in 7,933 cases. Fully exercising their legal supervisory functions, they recommended that administrative law enforcement agencies refer 2,529 individuals in 2,373 cases suspected of criminal activity, and supervised public security organs in initiating investigations in 900 cases involving 744 individuals.
This batch of typical cases comprises six matters, namely: the case involving Wang and Chen for the production and sale of substandard and fake products; the case involving Hao et al. for the production and sale of substandard and fake products; the case involving Zheng et al. for the sale of substandard and fake products; the case involving Ma et al. for the sale of substandard and fake products; the case involving Liu and Xia et al. for the production and sale of toxic and harmful food; and the case involving Gong for the sale of substandard and fake seeds.
These typical cases reflect the policy orientation of strictly punishing, in accordance with the law, crimes involving the production and sale of counterfeit and substandard goods. They underscore the need to conduct thorough investigations from source to end‑user, target offenders with precision, and sever criminal chains at their roots. At the same time, they reafoffice the legislative spirit underlying the newly revised judicial interpretation on food safety, thereby alerting the public to the serious criminal risks associated with the manufacture and sale of expired food. For example, in the case of Ma et al. for selling counterfeit and substandard products, the defendants purchased expired pig offal—such as pig stomachs and pig ears—at low prices and resold them. They were subsequently caught red-handed by public security authorities, and the procuratorial organ brought charges against Ma for the crime of selling counterfeit and substandard products. Ultimately, Ma was sentenced to seven years and six months’ imprisonment and fined RMB 500,000.
“During case handling, the procuratorial organs have actively engaged in addressing the root causes of disputes, rigorously fulfilled their responsibility to promote legal awareness, and leveraged prosecutorial recommendations as a key tool for advancing the modernization of social governance. By adopting a ‘I oversee’ approach to encourage ‘all‑party oversight,’ they have urged relevant departments to perform their duties in accordance with the law, jointly tackling the persistent bottlenecks and systemic challenges that hinder economic and social development through source‑level and systematic governance,” said an official from the Fourth Procuratorial Office of the Supreme People’s Procuratorate. Looking ahead, the procuratorial organs will, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and arrangements of the CPC Central Committee, severely crack down on illegal and criminal activities involving the production and sale of counterfeit and substandard goods in accordance with the law, strengthen their integrated prosecutorial functions across criminal, civil, administrative, and public interest litigation areas, and work to foster a new pattern of multi‑stakeholder governance against counterfeiting and substandard products, thereby creating a sound rule-of-law environment conducive to the country’s high‑quality economic and social development.

The Guangdong High People’s Court has released typical cases of judicial protection of consumer rights for 2023.
The Guangdong Provincial Higher People’s Court has released ten typical cases of judicial protection of consumer rights, covering contract and tort disputes in areas such as online shopping, education and training, food safety, medical aesthetics, automobile sales, and outbound tourism. These cases illustrate the people’s courts’ efforts to foster a safe and orderly consumption environment and to uphold a fair and trustworthy market order.
This batch of cases involves such issues as the dissemination of false product information in online live‑streamed sales, refund disputes over pre‑sale purchases, injuries to consumers caused by negligence on the part of travel agencies, unlawful medical practices by aesthetic‑medicine providers, transactions involving used cars, failure to adequately disclose exclusionary clauses in electronic insurance policies, online auctions, and the protection of consumers’ personal information. In the case of “Shen v. a certain store concerning an online sales contract,” the court held that the store’s misrepresentation of product information during a live‑streamed sale constituted fraud, thereby safeguarding consumers’ legitimate rights and interests in the context of the digital economy and promoting the healthy, sustainable development of the online economy. In the case of “Qiu v. a certain trading company concerning an online sales contract,” because the trading company sold weight‑loss pills that did not meet food‑safety standards, the court ordered it to not only refund the purchase price but also pay ten times the amount as punitive damages, correctly applying punitive damages under the law to fully protect public safety in matters of food and consumer health. In the case of “Xie v. a certain insurance company concerning a property‑insurance contract,” the court ruled that a standard exclusionary clause intended to reduce the insurer’s liability lacked legal effect due to the insurer’s failure to provide adequate explanation or clarification. This decision reafofficeed that the electronic‑contract format does not relieve businesses of their obligation to clearly disclose and explain standard exclusionary provisions, thereby maximizing consumers’ rights to information and to make informed choices.

The Dianjiang People’s Court in Chongqing has concluded a case involving the illegal absorption of public deposits that spanned multiple provinces.
Recently, the People’s Court of Dianjiang County, Chongqing Municipality, successfully concluded a criminal restitution enforcement case involving illegal public deposit-taking that spanned four years, implicated 376 individuals, and involved funds totaling over RMB 37.96 million.
According to reports, from June to November 2014, Zheng and Deng established companies in seven counties and districts, including Rongchang District and Dianjiang County in Chongqing, and illegally raised more than 37.96 million yuan from the public by luring investors with high-interest returns. In November 2018, the Dianjiang People’s Court sentenced Zheng to one year and six months’ imprisonment and Deng to seven years’ imprisonment, each also fined 550,000 yuan, and ordered both defendants to compensate 376 investors a total of over 37.96 million yuan.
In April 2019, the case entered the compulsory enforcement procedure. Following investigation, no assets under the names of Zheng and Deng were found to be available for execution. Given the large number of parties involved, the substantial sums at stake, the cross‑regional nature of the case, and the complex flow of funds, enforcement proved extremely challenging and placed considerable pressure on the authorities. To effectively safeguard the legitimate rights and interests of all parties, the Dianjiang Court attached great importance to the matter, promptly assigning a dedicated team of experienced personnel and establishing a special task force. Through coordinated efforts with multiple departments across Sichuan, Chongqing, Shaanxi, and other provinces and municipalities, it was ultimately determined that the funds in question had been transferred to a real estate development company in Shaanxi for use in a real estate project in Xi’an, and that an unrelated real estate development company in Xi’an was entitled to the proceeds from the transfer of development rights for that project. Accordingly, the Enforcement Bureau of the Dianjiang Court lawfully added the Shaanxi real estate development company as an enforced party and served the Xi’an real estate development company with an enforcement order and a notice of assistance in enforcement. After dozens of on‑site visits by enforcement officers to Sichuan, Chongqing, Shaanxi, and other jurisdictions to coordinate and facilitate resolution, they successfully placed a lien on RMB 50 million in funds related to the company’s projects. In February this year, among the 376 participants in the fundraising scheme, totaling over RMB 37.96 million, full restitution was made to 371 individuals, while the remaining 5 were fully deposited into escrow.

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