JC Master Legal News Issue 1209

Key Takeaways for This Issue

Eight Departments: Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Activities Recently, the China Securities Regulatory Commission and seven other departments issued the “Implementation Plan for the Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Activities.”

At a press conference held by the State Council Information Office on May 27, the office unveiled key plans for advancing the rule of law across the board during the 15th Five-Year Plan period, providing an overview of related initiatives.

On May 28, the Supreme People’s Procuratorate issued the “Notice on the Issuance of Typical Cases on Strengthening Procuratorial Oversight and Promoting the Prevention and Governance of Juvenile Delinquency.”

Finance and Capital Markets

FINANCE & CAPITAL MARKETS

Eight departments: Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Activities. Recently, the China Securities Regulatory Commission and seven other departments issued the “Implementation Plan for the Comprehensive Rectification of Illegal Cross-Border Securities, Futures, and Fund Activities” (hereinafter referred to as the “Plan”).
According to the Plan, after two years of concentrated rectification, illegal cross-border operations by overseas securities, futures, and fund‑management institutions will be comprehensively banned, thereby achieving the goal of “resolutely outlawing illegality and prudently winding down existing positions.” Specifically: First, the scope of rectification covers overseas entities engaging in unauthorized cross‑border securities, futures, and fund activities; domestic affiliates or partners that assist such overseas entities in conducting illicit cross‑border business; unauthorized intermediaries soliciting domestic investors; and internet platforms and online self‑media outlets that disseminate information in violation of laws and regulations. Second, measures to prohibit illegal cross‑border activities include banning overseas entities from carrying out marketing and solicitation activities related to securities, futures, and fund services within China, as well as from providing account‑opening and other transaction‑related services. Third, a two‑year period of intensive remediation will be established to address and eliminate existing illegal business holdings. The Plan also outlines ten key tasks, including comprehensive monitoring and screening, and strengthened oversight and removal of unlawful content on internet platforms.

The People’s Bank of China has revised the Measures for the Administration of Financial Bond Issuance in the National Interbank Bond Market, among other regulations. Recently, the People’s Bank of China issued the Decision of the People’s Bank of China on Amending Certain Regulations (hereinafter referred to as the “Decision”), which will take effect on July 1, 2026.
According to the Decision, this amendment primarily affects three regulations, including the Measures for the Administration of Financial Bond Issuance in the National Interbank Bond Market (hereinafter referred to as the “Measures”), with key provisions encompassing the standardization of key institutional designations, the strengthening of information disclosure requirements, and the clarification of the functions of the central securities depository. The Decision deletes Articles 8, 13, and 25 of the Measures. In addition, Paragraph 2 of Article 2 of the Measures is revised to read: “For the purposes of these Measures, ‘financial institution legal persons’ include policy banks, commercial banks, and other financial institutions”; the reference to “Central Clearing Corporation” in Article 26 is amended to “central securities depository”; and Article 28 is revised to stipulate that “issuers shall fulfill their information disclosure obligations prior to and throughout the term of financial bonds.” The Decision also revises Articles 36 and 40 of the Measures.

Business and Corporations

COMMERCIAL & CORPORATE

Five departments have announced the launch of the 2026 “Hundred Events, Ten Thousand Enterprises” initiative to foster integrated collaboration between large, medium, and small enterprises. On May 26, 2026, the Ministry of Industry and Information Technology and four other departments issued the “Notice on Carrying Out the 2026 ‘Hundred Events, Ten Thousand Enterprises’ Initiative for Integrated Collaboration Among Large, Medium, and Small Enterprises.”
The notice specifies that the event will run from May to December 2026, with dedicated matchmaking sessions focused on key sectors such as robotics, servers, AI terminals, and XR smart glasses, as well as industrial chains spanning software, automotive, steel, and synthetic fibers. It will also organize initiatives like “Visiting Central State-Owned Enterprises,” a series of matchmaking events between large private enterprises and SMEs, and the “Ten-Thousand-Mile Journey of Intellectual Property Services,” all aimed at promoting open application scenarios, patent commercialization, supply-chain collaboration, and digital transformation. At the local level, activities may be hosted leveraging specialized industrial clusters, patent resource databases maintained by universities and research institutions, digital‑intelligent supply-chain platforms, application scenarios in priority areas, and foreign‑trade events. Furthermore, participants are required to report on the outcomes of these activities by the end of June and December, and to submit statistical reports by December 20.

The State Administration for Market Regulation has launched an initiative to leverage credit mechanisms in addressing “involutionary” competition. Recently, the Administration issued the “Notice on Launching a Special Campaign to Tackle ‘Involutionary’ Competition Through Credit-Based Measures.”
The special campaign will run from May to December, focusing on high‑incidence sectors such as livestream e‑commerce, the food‑delivery industry, and the production of key industrial products. It will conduct targeted “double-random” inspections in these areas and publicly disclose the results through the National Enterprise Credit Information Publicity System. Identified leads will be handled in accordance with the law, with credit‑based regulatory tools—including inclusion on the List of Abnormal Operations, the List of Seriously Illegal and Dishonest Entities, and the public disclosure of administrative penalties—being comprehensively applied to swiftly and rigorously investigate and prosecute violations and acts of dishonesty. For business entities engaged in “involutionary” competition that violate laws or breach trust, credit rehabilitation will be strictly enforced, and facilitative measures such as “acceptance with missing documents” will not apply. At the same time, typical cases will be widely publicized, and the management of the List of Seriously Illegal and Dishonest Entities, along with related long‑term mechanisms, will be further refined.

At a press conference held by the State Council Information Office on May 27, the “Fifteenth Five-Year Plan” period’s key initiatives for advancing law-based governance nationwide were presented. The briefing highlighted that, during this period, efforts to build a law-based China will focus on scientific legislation, strict law enforcement, impartial administration of justice, and universal compliance with the law. The people’s courts will strengthen judicial protection of intellectual property rights, draft normative documents on judicial safeguards for artificial intelligence and data ownership, and refine adjudicatory rules concerning data ownership, data trading, and AI-generated works. They will also work on drafting supplementary judicial interpretations to the Ecological and Environmental Protection Code and ensure the efficient adjudication of disputes involving technology contracts, patent licensing and transfer, as well as investment, financing, and mergers and acquisitions. Furthermore, the courts will implement the Law on Promoting the Private Economy, expedite the issuance of judicial interpretations of the Company Law, address profit-driven law enforcement and unlawful cross‑jurisdictional judicial practices, improve mechanisms for credit‑based penalties and rehabilitation, formulate judicial interpretations on civil compensation for insider trading and market manipulation, and advance reforms in bankruptcy adjudication while refining rules governing labor disputes arising from new forms of employment.

On May 25, 2026, the State Administration for Market Regulation and the National Standardization Administration approved and released 375 recommended national standards. The two authorities issued an announcement titled “Announcement on the Approval and Publication of 375 Recommended National Standards, Including ‘Paper Sheet Sizes for Printing, Writing, and Drawing,’ as well as Five Amendments to Recommended National Standards.”
This approval marks the release of 375 voluntary national standards and five amendments to national standards, covering such fields as paper products, steel, non‑ferrous metals, plastics, construction materials, chemicals, food, cybersecurity, blockchain, the industrial internet, urban operations management, e‑commerce, shipbuilding and offshore engineering, and aerospace. Most of these standards will take effect on December 1, 2026; some will become applicable on July 1 or September 1, 2026, while a small number will enter into force on March 1, June 1, 2027, or January 1, 2028. The five accompanying amendments address topics including conductive charging systems for electric vehicles, test methods for energy consumption of light‑duty hybrid electric vehicles, technical specifications for wind farm integration into power systems, determination of sea cucumber polysaccharides, and methodologies for evaluating patent‑intensive products.

On May 29, 2026, the Accreditation and Testing Division of the State Administration for Market Regulation released the “Administrative Measures for the Accreditation of Inspection and Testing Institutions (Draft Amendment),” with public comments solicited until June 29, 2026.
The draft amendment comprises forty-two articles, refining the management of the list of accreditation items and the scope of competence areas, and stipulating that activities within the listed scope must obtain accreditation. It further specifies application requirements, introducing new criteria such as having more than ten insured technical personnel, a fixed premises with a usage term of at least three years, a management system in effective operation for no less than six months, and specific information‑system requirements. The draft also sets out procedures for acceptance, technical review, licensing, renewal, and modification, while promoting online approval and electronic certificates. It mandates that reports be issued only within the scope of competence specified on the certificate and bear the CMA mark, and requires institutions to participate in proficiency testing or assessments. A nationwide unified information platform is established, with clear provisions for supervisory reviews, special inspections, risk alerts, and credit‑based tiered management, and it raises the maximum fines for unauthorized issuance of certificates, issuance beyond the scope of accreditation, failure to file changes, and the transfer, lease, or lending of certificate marks.

Litigation and Arbitration

LITIGATION & ARBITRATION

The Cybersecurity Bureau of the Ministry of Public Security has recently released five typical cases of cracking down on and rectifying online rumors.
The five cases announced this time involve such practices as fabricating staged scenes, concocting false information about schools, and using AI to generate fake accident reports. Specifically, these include: staging a fictitious “kidnapping” scenario in a livestream and inciting viewers to call the police; orchestrating scripted livestreams featuring “luring a female anchor abroad” and “demanding ransom”; spreading the falsehood that “five students at a certain middle school are pregnant”; employing AI to produce a video depicting the “collapse of the Zhangjiajie Grand Canyon Glass Bridge”; and using AI to fabricate claims of an “explosion at a factory workshop resulting in severe injuries to workers.” The individuals involved have each been subjected to administrative detention, administrative warnings, or criminal coercive measures.

On May 28, the Supreme People’s Procuratorate issued the “Notice on the Issuance of Typical Cases on Strengthening Procuratorial Oversight and Promoting the Prevention and Governance of Juvenile Delinquency.”
This batch comprises 10 cases, focusing on pressing issues in the protection of minors, including new types of drugs, cybercrime, mandatory reporting, and school safety. The content covers tiered and categorized intervention mechanisms, the linkage between conditional non-prosecution and specialized correctional measures, the governance of bank card‑related matters and harmful online content, the regulation of sales of dangerous instruments, the control of novel addictive substances such as “laughing gas,” cross‑regional cooperation on mandatory reporting, and public interest litigation concerning campus safety management. The cases also address practices such as procuratorial recommendations, administrative public interest litigation, case‑filing supervision, digital oversight models, local legislative proposals, and multi‑agency collaborative governance.

Five departments have jointly issued the Interim Provisions on the Protection of Basic Rights and Interests of Older Workers. Recently, the Ministry of Human Resources and Social Security and four other departments released the Interim Provisions on the Protection of Basic Rights and Interests of Older Workers (hereinafter referred to as the “Provisions”), which will take effect on July 1.
The Regulations represent China’s first specialized set of rules explicitly safeguarding the rights and interests of older workers. They delineate the rights and obligations of employers and such workers, ensuring their lawful entitlements to remuneration, rest and leave, occupational safety and health, and work‑related injury insurance. The Regulations mandate timely and full payment of wages, with remuneration no lower than the minimum wage standard. To further protect the rights of older workers, the Regulations stipulate that those who need to extend their contribution period may continue to pay pension insurance premiums as self‑employed individuals; alternatively, with mutual agreement between the worker and the employer, the employer may make these contributions on the worker’s behalf, with the employer withholding and remitting the portion that would otherwise be payable by the individual. Social insurance administration agencies will also further streamline public services, enhance information‑access channels, provide clear guidance to those seeking to extend their contribution periods, and deliver efficient, convenient enrollment and premium‑payment services.