JC Master Legal News Issue 812

Key Takeaways for This Issue
The China Securities Regulatory Commission has released information on the on-site inspections of IPO applicants conducted in the second half of 2017, as well as the handling of related issues.
Recently, the China Securities Regulatory Commission released information on on-site inspections of IPO applicants and the handling of related issues in the second half of 2017. The findings primarily indicate that issuers are suspected of violating issuance requirements in areas such as accounting foundations, internal controls, and information disclosure, while intermediary institutions have been found to have conducted insufficient verification of the information disclosed in prospectuses, inadequately examined material matters, and maintained incomplete working papers.
The China Banking Regulatory Commission has issued the “Guidelines on Data Governance for Banking Financial Institutions” and is seeking public comments.
Recently, the China Banking Regulatory Commission has drafted the “Guidelines on Data Governance for Banking Financial Institutions (Draft for Public Comment)” (hereinafter referred to as the “Guidelines”). The Guidelines, guided by regulatory oversight and a problem‑oriented approach, comprise seven chapters and fifty-five articles.
The State Council’s specific plan for institutional reform proposes merging the national and local tax authorities.
Recently, the State Council has unveiled a detailed plan for institutional reform and formally submitted it to the National People’s Congress for deliberation and approval. At the provincial level and below, national and local tax authorities will be merged, assuming responsibility for the administration and collection of all taxes and non-tax revenues within their respective jurisdictions. Following the merger, the tax authorities will operate under a dual leadership system, with the State Taxation Administration taking the lead and the people’s governments of provinces, autonomous regions, and municipalities directly under the central government exercising joint oversight.
The Supreme People’s Court has issued the “Regulations on the Disclosure of Trial Procedure Information by People’s Courts via the Internet.”
Recently, the Supreme People’s Court issued the “Provisions on the Disclosure of Trial Procedure Information by People’s Courts via the Internet.” The Provisions comprise a total of seventeen articles, setting forth clear and specific rules on such matters as the basic principles governing the disclosure of trial procedure information, the role and positioning of the platform for disclosing such information, the collection and verification of identity information of litigation participants, the rules applicable in special circumstances, the scope of trial procedure information to be disclosed online, the procedures and legal effect of electronic service conducted through the trial procedure information disclosure platform, the correction and withdrawal of already disclosed trial procedure information, and the oversight mechanism for ensuring the effective implementation of these provisions.
The First Session of the 13th National People’s Congress elected the new leadership of the state.
On March 17, the First Session of the 13th National People’s Congress elected Xi Jinping as President of the People’s Republic of China and Chairman of the Central Military Commission of the People’s Republic of China.

Table of Contents
Table of Contents

Finance & Capital Markets
The China Securities Regulatory Commission has released information on the on-site inspections of IPO applicants conducted in the second half of 2017, as well as the handling of related issues.
Five departments have issued the “Opinions on Further Supporting Innovation in Commercial Bank Capital Instruments.”
Beiba Dao Group Manipulated Stock Prices and Will Be Fined and Have Its Proceeds Confiscated in the Amount of RMB 5.67 Billion.
The merger of the China Banking Regulatory Commission and the China Insurance Regulatory Commission will strengthen the uniformity of financial regulation.
CSRC: CDRs will be launched soon.

Corporate & Commercial
The China Banking Regulatory Commission has issued the “Guidelines on Data Governance for Banking Financial Institutions” and is seeking public comments.
The China Insurance Regulatory Commission has issued the “Key Work Points for Protecting Insurance Consumers’ Rights and Interests in 2018.”
Three departments have issued the “Opinions on Doing a Good Job in Current Maternity Insurance Work.”
The Department of Informatization and Software Services is conducting research to establish a National Technical Committee for the Standardization of Blockchain and Distributed Ledger Technologies.

Taxation
The State Council’s specific plan for institutional reform proposes merging the national and local tax authorities.
The Ministry of Finance has issued the “Notice on Properly Carrying Out Relevant Work in the Management of the Agency Accounting Industry for 2018.”

Litigation & Arbitration
The Supreme People’s Court has issued the “Regulations on the Disclosure of Trial Procedure Information by People’s Courts via the Internet.”
The Supreme People’s Court, the National Development and Reform Commission, and the Ministry of Land and Resources have issued the “Notice on Imposing Restrictive Measures on Real Estate Transactions against Discredited Persons Subject to Enforcement.”

Other
The First Session of the 13th National People’s Congress elected the new leadership of the state.
The State Council’s plan for institutional reform has been approved.
Finance & Capital Markets
The China Securities Regulatory Commission has released information on the on-site inspections of IPO applicants conducted in the second half of 2017, as well as the handling of related issues.
Recently, the China Securities Regulatory Commission released information on on-site inspections of IPO applicants and the handling of related issues in the second half of 2017. The findings primarily indicate that issuers are suspected of violating issuance requirements in areas such as accounting foundations, internal controls, and information disclosure, while intermediary institutions have been found to have conducted insufficient verification of the information disclosed in prospectuses, inadequately examined material matters, and maintained incomplete working papers.
With respect to issuers and intermediary institutions found to have issues during inspections, the CSRC adopts differentiated measures based on the nature, severity, and impact of such issues.
First, regulatory measures in the form of warning letters were issued to two companies. The primary issues include the actual controller bearing certain expenses on behalf of the issuer, using personal bank accounts to conduct company business, significant internal control deficiencies in fund management, and failure to disclose fund transactions with entities affiliated with the actual controller. These matters raise concerns about potential violations of issuance requirements in areas such as accounting foundations, internal controls, and information disclosure.
Second, regulatory measures are proposed to be imposed, in accordance with established procedures, on 13 intermediary institutions. The primary issues include insufficient verification of information disclosed in prospectuses, inadequate scrutiny of material matters, and incomplete working papers, involving six sponsor institutions, five accounting offices, and two law offices.
Third, enterprises and their intermediary institutions found to have other issues are being urged to implement corrective measures or are subject to cautionary interviews. The primary problems include: incomplete disclosure of related parties and related-party transactions; fund transfers with related parties lacking a legitimate business rationale; inaccurate information disclosed regarding major customers and suppliers; inconsistent timing of revenue recognition; inadequate internal control measures; lack of independence from related parties in areas such as personnel, finance, and operations; and the improper allocation of period‑end expenses across accounting periods. The Commission has notified the affected enterprises and intermediary institutions via feedback letters, urging them to effect prompt rectification. In addition, three enterprises and their respective intermediary institutions have been summoned for cautionary interviews.
In addition, during the preparation and conduct of on-site inspections, a total of 10 companies withdrew their IPO applications. Overall, this round of on-site inspections rigorously upheld the principle of comprehensive, stringent, and law-based regulation, maintained a zero-tolerance stance toward illegal and non-compliant conduct, effectively transmitted regulatory pressure to the market, and played a positive role in purifying the IPO market environment, tightening entry standards, and supporting high-quality enterprises in issuing and listing.
Meanwhile, the China Securities Regulatory Commission announced that in the first half of 2018 it will continue to conduct in-depth on-site inspections of companies seeking initial public offerings. The scope of these inspections will primarily cover: companies selected through random sampling for information disclosure quality reviews; companies identified during routine review processes as having obvious issues or significant risks; and companies that have failed to submit their responses to feedback comments or notification letters within the prescribed time limits. By institutionalizing such on-site inspections, the Commission aims to encourage IPO applicants to enhance the quality of their filings, hold intermediary institutions accountable for exercising due diligence, and contribute to the resolute effort to prevent and defuse major risks in the capital market.

Five departments have issued the “Opinions on Further Supporting Innovation in Commercial Bank Capital Instruments.”
To further support commercial banks in broadening their capital‑raising channels, enhance the resilience of the banking system, and strengthen banks’ ability to support the real economy, the China Banking Regulatory Commission, the People’s Bank of China, the China Securities Regulatory Commission, the China Insurance Regulatory Commission, and the State Administration of Foreign Exchange have jointly issued the “Opinions on Further Supporting Innovation in Commercial Bank Capital Instruments” (hereinafter referred to as the “Opinions”).
The Opinions primarily cover the following areas: First, actively broaden the channels for issuing capital instruments. By leveraging the complementary strengths of domestic and international financial markets and making effective use of market resources at home and abroad, support commercial banks in issuing capital instruments through multiple channels, steadily expanding the scale of such issuances. Second, proactively explore ways to diversify capital instruments. Drawing on past experience and refining relevant regulatory frameworks, create favorable conditions for banks to issue perpetual capital bonds, convertible Tier 2 capital bonds, capital bonds with periodic conversion clauses, and total loss‑absorbing capacity (TLAC) debt instruments, among others. Third, expand the investor base. On the premise of prudent risk management, examine investment policies for social security funds, insurance companies, securities offices, fund management companies, and other institutional investors in commercial bank capital instruments, thereby broadening the range of entities eligible to invest in these instruments. Fourth, streamline the approval procedures for issuing capital instruments. Optimize the approval process for capital instrument issuance and refine the shelf‑registration issuance mechanism.
The Opinions stipulate that commercial banks should integrate capital replenishment with capital planning, comprehensively taking into account factors such as asset growth, structural adjustments, internal capital retention, and the external environment, and formulate capital replenishment plans in a scientific and prudent manner.

Beiba Dao Group Manipulated Stock Prices and Will Be Fined and Have Its Proceeds Confiscated in the Amount of RMB 5.67 Billion.
On March 14, the China Securities Regulatory Commission announced that it plans to impose the maximum penalty—confiscation of illegal gains plus a fine five times that amount—on Xiamen Beiba Dao Group in connection with suspected market manipulation, totaling approximately RMB 5.67 billion. This would be the highest-ever fine levied by the CSRC.
According to investigators from the China Securities Regulatory Commission, it was determined that between February and May 2017, Xiamen Beiba Dao Group and its de facto controller established and controlled a well‑organized trading team. Using multiple margin‑financing intermediaries, they raised several billion yuan to engage in speculative trading of recently listed stocks.
According to reports, the Beiba Dao Group effectively controlled more than 300 stock accounts, comprising both employee‑related accounts and accounts provided by margin‑financing intermediaries. The group employed abnormal trading practices—such as frequent wash trades, intraday price‑pumping, and rapid pursuit of daily upper limits—to manipulate the prices of numerous recently listed stocks.
The recently listed stocks allegedly manipulated by Bei Badao include Zhangjiagang Rural Commercial Bank, Jiangyin Bank, and Hesheng Shares, among others, with cumulative illicit profits totaling RMB 945 million during the period of manipulation. The case has now undergone investigation and adjudication, as well as the preliminary notice procedure for administrative penalties.
According to investigators from the China Securities Regulatory Commission, newly listed stocks—characterized by low price-to-earnings ratios at issuance, novel themes, and relatively small free-floats—are particularly susceptible to becoming hotspots for speculative trading in new issues, small-cap stocks, and short-term maneuvers, thereby accumulating market risks and bubbles.

The merger of the China Banking Regulatory Commission and the China Insurance Regulatory Commission will strengthen the uniformity of financial regulation.
On March 13, the State Council’s institutional reform plan was submitted to the First Session of the 13th National People’s Congress for deliberation. Under the plan, the functions of the China Banking Regulatory Commission and the China Insurance Regulatory Commission are to be merged to establish the China Banking and Insurance Regulatory Commission; the National Council for Social Security Fund will be transferred from direct administration by the State Council to management by the Ministry of Finance; the supervisory boards of key large state-owned enterprises will be abolished; and the tax collection and administration system for national and local taxes will be reformed by merging national and local tax agencies at the provincial level and below.
This reform features three noteworthy aspects. First, it has strengthened the central bank’s role in drafting financial laws and regulations and in macroprudential oversight, thereby establishing a unified legal and regulatory framework and a coherent macroprudential supervisory system for the financial sector, with markedly improved coordination among monetary policy, macroprudential regulation, and financial supervision. Second, by separating industry development planning, the formulation of regulatory statutes, and macroprudential functions, the newly established China Banking and Insurance Regulatory Commission is now focused on fulfilling its supervisory mandate, which helps to further uphold the principle that regulation is, above all, about oversight. This approach enables a sustained reinforcement of stringent regulatory measures from both a functional and conduct‑based perspective, ensuring the effective implementation of financial‑sector laws and regulations. Third, the consolidation of banking and insurance supervision into a single regulatory body will help harness the synergies between these two sectors, enabling conduct‑based supervision at the micro‑level, coordinated management of key risk points across banking and insurance, the elimination of fragmented oversight to enhance regulatory efficiency, the removal of regulatory gaps, and the enhancement of compliance and resilience in the operation of the banking and insurance systems.

CSRC: CDRs will be launched soon.
On March 15, Yan Qingmin, Vice Chairman of the China Securities Regulatory Commission, stated at the closing session of the First Meeting of the 13th National Committee of the Chinese People’s Political Consultative Conference that Chinese Depositary Receipts (CDRs) will be launched soon. He noted that CDRs represent an effective mechanism for addressing legal and regulatory differences between the two markets, facilitating the return of companies already listed overseas to the A-share market. Regarding how to identify “unicorn” enterprises, Yan Qingmin pointed out that this process requires joint screening by multiple government departments; the Ministry of Science and Technology and the Ministry of Industry and Information Technology have established technical criteria that must be met, covering areas such as the industrial internet and artificial intelligence.
Earlier, the Economic Observer cited analysis from investment bankers indicating that regulators have been evaluating, since late 2017, the introduction of Chinese Depositary Receipts on the Shanghai and Shenzhen stock exchanges for companies listed overseas. The first batch of eight companies has already been finalized, including, in addition to the “BATJ” quartet, Ctrip, Weibo, NetEase, and Sunny Optical, which is listed in Hong Kong. The first seven offices are all leading Chinese internet companies listed on domestic exchanges.
On March 15, the Shanghai Stock Exchange announced that in 2018 it will deepen the implementation of its “New Blue-Chip” initiative to attract more high-quality, innovative companies to list on the exchange. The exchange will focus on enterprises in new technologies, new industries, new business forms, and new models, intensify efforts to cultivate premium listing candidates, and prioritize offering tailored listing services to companies such as those in the BATJ group and “unicorn” offices.
At the “March 15, 2018 Online Investor Rights Protection Consultation” event, Chen Juan, Manager of the Shenzhen Stock Exchange Research Institute, stated that the exchange has been studying CDRs for an extended period, completing preparatory work on product rules and institutional frameworks; however, the initiative had not yet been unveiled. With conditions now more favorable this year, the exchange plans to launch the program as soon as possible.
Wang Jianjun, General Manager of the Shenzhen Stock Exchange, previously stated that there is no precise standard for defining “unicorn” companies, and that preparations are needed on multiple fronts—rules, market readiness, and investor adaptation. This will require an adjustment period, with the pace of rule implementation determined by market conditions. As for overseas‑listed companies seeking to return to the A‑share market, they may adopt the CDR (Chinese Depositary Receipt) mechanism; the exchange has been studying this approach for a long time and now believes it is essentially ready for launch this year.

Commercial & Corporate
The China Banking Regulatory Commission has issued the “Guidelines on Data Governance for Banking Financial Institutions” and is seeking public comments.
Recently, the China Banking Regulatory Commission has drafted the “Guidelines on Data Governance for Banking Financial Institutions (Draft for Public Comment)” (hereinafter referred to as the “Guidelines”). The Guidelines, guided by regulatory oversight and a problem‑oriented approach, comprise seven chapters and fifty-five articles.
The Guidelines aim to play a leading role in regulatory guidance. Based on a meticulous review of relevant policy documents, extensive consultations and discussions, and the prudent incorporation of the latest research and practical findings, they focus on guiding banking financial institutions in data governance across five key areas: First, they require banking financial institutions to integrate data governance into their corporate governance framework and link data governance performance to corporate governance assessments and regulatory ratings. Second, they explicitly encourage these institutions to undertake institutional innovations and, where appropriate, appoint a Chief Data Officer. Third, they mandate the establishment of a robust data culture, fostering the understanding that data is a critical asset and must be accurate and objective, while strengthening data‑driven awareness and upholding professional standards of compliant and evidence‑based data use. Fourth, they call for enhanced data utilization to unlock data value and drive bank‑wide development, emphasizing that data should serve as a key foundation for business management, particularly risk management. Fifth, they urge banking financial institutions to adapt to the demands of the big‑data era by bolstering data security awareness, collecting data in compliance with laws and regulations, preventing excessive or abusive data collection, and safeguarding customer privacy in accordance with the law.
In response to the key issues currently existing in banking financial institutions’ data management and in the reporting of regulatory data to supervisory authorities, the Guidelines emphasize the following requirements: First, establish a data quality control mechanism to comprehensively enhance data quality. Second, strengthen the accountability of banking financial institutions for data quality by clearly assigning ultimate responsibility for data governance to the board of directors and instituting and implementing a data‑governance accountability framework that extends up to the senior management level. Third, underscore the requirements for regulatory data quality by stipulating that banking financial institutions must integrate regulatory data into their overall data governance framework, ensure the effective organization and execution of all regulatory‑data‑related activities, establish a robust regulatory data quality management system, and continuously improve the quality of regulatory data.

The China Insurance Regulatory Commission has issued the “Key Work Points for Protecting Insurance Consumers’ Rights and Interests in 2018.”
On March 15, the China Insurance Regulatory Commission issued a notice promulgating the “Key Work Points for Protecting Insurance Consumers’ Rights and Interests in 2018” (hereinafter referred to as the “Work Points”), which calls for intensifying efforts to investigate and prosecute illegal and non-compliant conduct. In response to typical issues and prominent companies that infringe upon the legitimate rights and interests of insurance consumers, the Commission will continue to take office enforcement action, launch targeted crackdowns, and thoroughly investigate and address specific cases. Adhering to a principle of strictness, it will impose rigorous rectification, swift handling, and severe accountability, thereby serving as a deterrent and sending a clear warning. The Commission will also organize inspections to ensure the effective implementation of traceability measures, with a particular focus on addressing serious violations—such as deceiving insurance consumers, concealing material information related to insurance contracts, and imposing compulsory bundling of insurance products—that undermine consumers’ rights to information, fair trading, and freedom of choice.
The Work Plan emphasizes that, in the area of regulation, transparency must be prioritized. In addition, the institutional framework for protecting insurance consumers’ rights and interests will be further refined. The Regulations on Real-Name Registration for Insurance will be promulgated, and the construction of a real-name verification and registration platform for insurance will be completed. Regulatory standards for insurance advertising practices will be studied and established. The Measures for the Administration of Insurance Consumer Complaints will be revised. Guiding documents will be formulated to standardize the establishment of insurance dispute mediation organizations, encouraging insurance companies to actively participate in the resolution of insurance disputes and in the linkage between litigation and mediation, thereby improving the mechanisms for mediating and resolving insurance disputes.

Three departments have issued the “Opinions on Doing a Good Job in Current Maternity Insurance Work.”
Recently, the Ministry of Human Resources and Social Security, in conjunction with the Ministry of Finance and the National Health and Family Planning Commission, issued the “Opinions on Doing a Good Job in Current Maternity Insurance Work.” From the perspective of adapting to the implementation of the universal two-child policy, these opinions set forth clear requirements for effectively carrying out maternity insurance work, thereby safeguarding the legitimate rights and interests of employees and ensuring the stable operation of the maternity insurance system.
The “Opinions” explicitly set forth the following four priority areas for current maternity insurance work: First, raise awareness and ensure full implementation of maternity insurance benefits. Localities must fully recognize that implementing maternity insurance policies is a crucial safeguard for the comprehensive two‑child policy; they should ensure that all eligible employers and employees are covered, that eligible insured employees receive timely and full reimbursement of maternity medical expenses and maternity allowances as prescribed, and that the maternity insurance fund maintains fiscal balance to achieve sustainable development. Second, strengthen early warning systems and refine premium‑rate adjustment mechanisms. In light of the implementation of the comprehensive two‑child policy, localities should improve monitoring indicators, enhance operational analysis, and, in accordance with the management requirements for basic medical insurance funds, establish a comprehensive risk‑early‑warning mechanism. Pursuant to the financial regulations governing social insurance funds, they should adopt targeted measures—such as drawing down accumulated surpluses, providing temporary subsidies, and dynamically adjusting premium rates—to keep the fund’s cumulative reserves at an appropriate level, equivalent to 6–9 months of benefit expenditures. Third, manage expectations and standardize maternity allowance payment policies. Following the principle of “doing one’s utmost within one’s capacity,” localities should proceed from actual conditions, appropriately guide public expectations, and standardize maternity allowance disbursement, ensuring that such allowances are paid throughout the statutory maternity leave period stipulated in the Special Provisions on Labor Protection for Female Workers. Fourth, strengthen administration and enhance the efficiency of fund utilization. Localities should further expand maternity insurance coverage, elevate the level of pooled management, and bolster the fund’s mutual assistance capacity; reinforce the management of maternity health services, incorporate maternity medical expenses into the scope of medical insurance payment reform, and enable direct settlement of these costs; and make full use of the intelligent monitoring system of medical insurance to strengthen oversight and auditing, thereby curbing unreasonable cost increases.

The Department of Informatization and Software Services is conducting research to establish a National Technical Committee for the Standardization of Blockchain and Distributed Ledger Technologies.
Recently, the Informationization and Software Services Department of the Ministry of Industry and Information Technology has conducted a special study on the establishment of a national technical committee for standardizing blockchain and distributed ledger technologies.
At present, international standardization bodies such as the International Organization for Standardization (ISO), the International Telecommunication Union (ITU), and the World Wide Web Consortium (W3C) have all launched initiatives to develop blockchain standards. ISO has established Technical Committee TC 307, dedicated to blockchain and distributed ledger technologies, which is advancing standardization efforts in key areas including foundational concepts, identity authentication, and smart contracts. China participates in these standardization activities as a Participating Member (P‑member) and has made significant progress.
To promptly advance the establishment of a comprehensive blockchain standards system and effectively coordinate with ISO/TC 307, the Department of Informatization and Software Services has guided the China Academy of Information and Communications Technology in drafting a proposal to set up the National Technical Committee on Blockchain and Distributed Ledger Technologies. Moving forward, the Department will actively promote related efforts, expedite the formal establishment of the committee, and better support the development of the blockchain technology industry.

Taxation TAXATATION
The State Council’s specific plan for institutional reform proposes merging the national and local tax authorities.
Recently, the State Council has unveiled a detailed plan for institutional reform and formally submitted it to the National People’s Congress for deliberation and approval. At the provincial level and below, national and local tax authorities will be merged, assuming responsibility for the administration and collection of all taxes and non-tax revenues within their respective jurisdictions. Following the merger, the tax authorities will operate under a dual leadership system, with the State Taxation Administration taking the lead and the people’s governments of provinces, autonomous regions, and municipalities directly under the central government exercising joint oversight.

The Ministry of Finance has issued the “Notice on Properly Carrying Out Relevant Work in the Management of the Agency Accounting Industry for 2018.”
Recently, the Ministry of Finance issued the “Notice on Doing a Good Job in Relevant Management Work for the Agency Accounting Industry in 2018,” requiring all provincial-level fiscal departments to strictly comply with Article 17 of the Measures for the Administration of Agency Accounting Services, which stipulates that “agency accounting offices shall, before April 30 each year, submit to the approving authority the Basic Information Form for Agency Accounting Offices and the Report on Changes in Full-time Practitioners.” Accordingly, they are to organize the local fiscal departments’ agency accounting qualification management agencies (hereinafter referred to as the approving authorities) to conscientiously carry out the online annual filing and review process for agency accounting offices in 2018.
Accounting agencies that had obtained agency bookkeeping qualifications prior to December 31, 2017, shall, by April 30, 2018, file a record with their approving authority through the “National Agency Bookkeeping Institution Management System.” If an accounting agency establishes a branch, the branch shall file a record with the approving authority in its place of location. For accounting agencies that, prior to December 31, 2017, relocated their office address across the jurisdiction of their original approving authority, they shall file a record with the approving authority in the new location.
For filing materials submitted by agency bookkeeping institutions that do not meet the requirements, the approving authority shall return them and, in a single notice, specify all items that need to be corrected. For those that fail to complete the annual filing as required, the approving authority shall order them to make rectifications within a specified time limit; if they refuse to comply, they shall be placed on a list of key entities under scrutiny and publicly disclosed to alert them to their obligations. If an institution is unable to continuously meet the eligibility criteria for agency bookkeeping, the approving authority shall require it to effect rectification within 60 days; if, upon expiration of this period, it still fails to satisfy the prescribed conditions, the approving authority shall revoke its agency bookkeeping qualification.

LITIGATION & ARBITRATION
The Supreme People’s Court has issued the “Regulations on the Disclosure of Trial Procedure Information by People’s Courts via the Internet.”
Recently, the Supreme People’s Court issued the “Provisions on the Disclosure of Trial‑Process Information by People’s Courts via the Internet.” The Provisions comprise seventeen articles and set forth clear, specific rules on such matters as the fundamental principles governing the disclosure of trial‑process information, the role of the online platform for such disclosure, the collection and verification of identity information of litigation participants, the rules applicable in special circumstances, the scope of trial‑process information to be disclosed online, the procedures and legal effect of electronic service conducted through the trial‑process information disclosure platform, the correction and withdrawal of already disclosed trial‑process information, and the supervisory mechanisms for ensuring proper implementation of these provisions. Under the Provisions, with the exception of trial‑process information involving state secrets or that which, pursuant to laws or judicial interpretations, must remain confidential or whose access is otherwise restricted, all four categories of trial‑process information—namely, procedural information generated during the adjudication of criminal, civil, administrative, and state‑compensation cases; process‑related information pertaining to the handling of litigation matters; litigation documents; and minutes—shall be made publicly available via the Internet to the parties to the proceedings, their legal representatives, litigation agents, and defense counsel.
The Regulations also designate the China Judicial Trial Process Information Disclosure Website as the “unified platform for the People’s Courts to disclose trial process information.”

The Supreme People’s Court, the National Development and Reform Commission, and the Ministry of Land and Resources have issued the “Notice on Imposing Restrictive Measures on Real Estate Transactions against Discredited Persons Subject to Enforcement.”
Recently, the National Development and Reform Commission, the Supreme People’s Court, and the Ministry of Land and Resources have jointly imposed punitive measures restricting real estate transactions on persons subject to enforcement who have lost trust, as well as on their legal representatives, principal persons in charge, actual controllers, and those directly responsible for impeding the performance of debt obligations. The main measures are as follows:
I. People’s courts at all levels shall impose restrictions on persons subject to enforcement who have lost trust, as well as their legal representatives, principal persons in charge, actual controllers, and those directly responsible for impeding the performance of debt obligations, from participating in judicial auctions of real estate.
II. The municipal and county land and resources authorities shall restrict persons subject to enforcement who have lost trust, as well as their legal representatives, principal persons in charge, actual controllers, and those directly responsible for impeding the performance of debt obligations, from obtaining government‑supplied land.
III. Local departments of natural resources and people’s courts shall actively promote the establishment of a mechanism for mutual access to and sharing of real estate registration information and information on the list of discredited persons subject to enforcement at the same administrative level. In areas where conditions permit, when handling real estate registration matters involving changes in real estate ownership—such as transfers, mortgages, or modifications—the departments of natural resources shall, upon request, notify the people’s courts of relevant information pertaining to discredited persons subject to enforcement and their legal representatives, principal persons in charge, actual controllers, and those directly responsible for impeding the performance of debt obligations, thereby facilitating the lawful implementation of enforcement measures by the people’s courts.
IV. Establish and improve a mechanism for information exchange and sharing between the National Credit Information Sharing Platform and the National Real Estate Registration Information Platform. The National Credit Information Sharing Platform shall promptly transmit to the National Real Estate Registration Information Platform the list of discredited persons subject to enforcement provided by the Supreme People’s Court; in turn, the National Real Estate Registration Information Platform shall promptly feed back to the National Credit Information Sharing Platform the real estate registration information pertaining to such discredited persons.

Other
The First Session of the 13th National People’s Congress elected the new leadership of the state.
On March 17, the First Session of the 13th National People’s Congress elected Xi Jinping as President of the People’s Republic of China and Chairman of the Central Military Commission of the People’s Republic of China. The session also elected Li Zhanshu as Chairman of the Standing Committee of the 13th National People’s Congress and Wang Qishan as Vice President of the People’s Republic of China.

The State Council’s plan for institutional reform has been approved.
Recently, the State Council’s institutional reform plan was submitted to the First Session of the 13th National People’s Congress for deliberation and approval. Under the plan, the number of ministerial-level institutions under the State Council has been reduced by eight, and the number of vice-ministerial-level institutions has been cut by seven. With the exception of the General Office of the State Council, the State Council now comprises 26 constituent departments. The specific adjustments are as follows:
1. The Ministry of Natural Resources has been established. The Ministry of Land and Resources, the State Oceanic Administration, and the National Administration of Surveying, Mapping and Geoinformation have been abolished.
2. Establish the Ministry of Ecology and Environment. The Ministry of Environmental Protection will be abolished.
3. Establish the Ministry of Agriculture and Rural Affairs. The Ministry of Agriculture will be abolished.
4. Establish the Ministry of Culture and Tourism. The Ministry of Culture and the State Tourism Administration will be abolished.
5. Establish the National Health Commission. The State Health and Family Planning Commission will be abolished. The Office of the Leading Group of the State Council for Deepening Reform of the Medical and Healthcare System will also be dissolved.
6. Establish the Ministry of Veterans Affairs.
7. Establish the Ministry of Emergency Management. The State Administration of Work Safety will be abolished.
8. Reorganize the Ministry of Science and Technology.
9. The Ministry of Justice shall be reorganized. The Legal Affairs Office of the State Council shall be abolished.
10. Optimize the functions of the Ministry of Water Resources. The State Council Three Gorges Project Construction Committee and its Office, as well as the State Council South-to-North Water Diversion Project Construction Committee and its Office, will no longer be retained.
11. Optimize the functions and responsibilities of the National Audit Office. The Supervisory Board for Key State-Owned Large Enterprises will no longer be established.
12. The Ministry of Supervision has been merged into the newly established National Supervisory Commission. The Ministry of Supervision and the National Bureau of Corruption Prevention have been abolished.
Following the reform, with the exception of the General Office of the State Council, the State Council has established 26 constituent departments.

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