JC Master Legal News Issue 1188

Key Takeaways for This Issue

The China Securities Regulatory Commission plans to issue the “Measures for the Implementation of Supervisory and Administrative Measures in the Securities and Futures Markets.” Recently, the CSRC released a notice soliciting public comments on the “Measures for the Implementation of Supervisory and Administrative Measures in the Securities and Futures Markets (Draft for Comments),” with the deadline for submitting feedback set for December 28, 2025.

The Supreme People’s Court Releases Typical Cases and Measures to Safeguard the Legitimate Rights and Interests of Private Enterprises in Accordance with the Law. On December 4, the Supreme People’s Court held a press conference to release typical civil and commercial cases that demonstrate the lawful and equal protection of the legitimate rights and interests of private enterprises.

The Supreme People’s Court and the All-China Women’s Federation recently jointly issued the “Top‑to‑Top” Online Mediation‑Litigation Coordination Mechanism for Marriage and Family Disputes.

Finance & Capital Markets 
The China Securities Regulatory Commission plans to issue the “Measures for the Implementation of Supervisory and Administrative Measures in the Securities and Futures Markets.” Recently, the CSRC released a notice soliciting public comments on the “Measures for the Implementation of Supervisory and Administrative Measures in the Securities and Futures Markets (Draft for Comments),” with the deadline for submitting feedback set for December 28, 2025. 
The Measures (Draft for Public Comment) comprises twenty-five articles, setting forth fourteen categories of regulatory measures, including orders to make corrections, regulatory interviews, warning letters, periodic reporting requirements, restrictions on business activities, and directives to discipline relevant personnel. It also establishes principles for the implementation of such measures, along with procedures, evidentiary requirements, recusal rules, legal review protocols, prior notification obligations, emergency response mechanisms, requirements for the content of decision documents, and provisions regarding public disclosure and service of process. In principle, no further regulatory measures shall be imposed if no violations are detected within a two-year period. The document further clarifies provisions related to administrative reconsideration, litigation, the commitment system, and accountability mechanisms.

Three departments have jointly issued the “Administrative Measures on Customer Due Diligence and the Preservation of Customer Identification Information and Transaction Records by Financial Institutions.” Recently, the People’s Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission jointly released these measures, which will take effect on January 1, 2026. 
The Measures apply to domestic financial institutions, including banks, securities firms, insurers, trust companies, and payment service providers, and set out specific requirements for customer due diligence and the retention of identity information and transaction records. Financial institutions are required to identify and verify the identities of customers and beneficial owners, implement enhanced measures for high‑risk customers, and adopt simplified procedures for low‑risk cases. Identity information and transaction records must be retained for at least 10 years. With respect to existing customers, higher‑risk clients must complete due diligence within six months, while all customers must do so within two years.

Shanghai’s Pudong is set to introduce regulations on the development of free-trade‑zone offshore bond business. On December 1, the General Office of the Standing Committee of the Shanghai Municipal People’s Congress released the “Several Provisions on the Development of Free‑Trade‑Zone Offshore Bond Business in the Pudong New Area of Shanghai (Draft)” and opened it for public comment, with a deadline of December 15, 2025. 
The draft comprises twenty-four articles, clearly defining offshore bonds issued under the free trade regime, specifying the scope and eligibility criteria for issuers and investors, and establishing standards for underwriting, registration and custody, fund utilization, and information disclosure. It stipulates that issuers must fulfill their obligations to combat money laundering, terrorist financing, and tax evasion, with proceeds generally intended for use outside China. The framework supports cross-border regulatory and law‑enforcement cooperation, strengthens investor protection, and encourages the preferential application of Chinese law in dispute resolution. The Pudong New Area and the Lingang New Area will formulate complementary support policies, while Shanghai’s Financial Development Fund will provide dedicated funding. 
On December 1, the National Administration of Financial Regulation issued the “Notice on Adjusting Risk Factors for Relevant Business Activities of Insurance Companies.” 
The notice reduces the risk factors for insurance companies’ holdings of CSI 300 Index constituents and CSI Dividend Low Volatility 100 Index constituents held for more than three years from 0.3 to 0.27, and for ordinary shares listed on the STAR Market held for more than two years from 0.4 to 0.36. For export credit insurance business and China Export & Credit Insurance Corporation’s overseas investment insurance business, the premium risk factor is lowered from 0.467 to 0.42, and the reserve risk factor is reduced from 0.605 to 0.545. Insurance companies are required to strengthen internal controls, accurately measure the duration of investment holdings and risk capital, and ensure that solvency data are truthful, accurate, and complete.

Commercial & Corporate 
On December 2, the Beijing Municipal Administration for Market Regulation issued an announcement soliciting public comments on the “Guidelines for Preventive Protection of Enterprise Names (Trial)” and will accept public feedback from December 2 to December 11, 2025. 
The Guidelines stipulate that municipal registration authorities shall coordinate preventive protection of enterprise names and implement proactive management by including commercially distinctive identifiers—such as enterprise names, abbreviations, trade names, and trademarks—that enjoy a certain degree of influence. To apply for protection, an enterprise must be registered in the city, its commercial identifier must have established a measure of recognition, and there must be no existing disputes. Application channels include recommendations from relevant departments, self‑initiated filings, and voluntary protective measures. The registration authority shall determine which identifiers qualify for protection based on factors such as distinctiveness, public awareness, and continuous use; after a ten‑day public notice period without objection, protection shall be granted. Identical or similar identifiers shall not be registered if they pertain to the same or an entire industry.

Beijing has issued new regulations on the registration and administration of business entities’ operating premises (registered addresses). On December 2, the General Office of the Beijing Municipal People’s Government promulgated the “Notice on Issuing the ‘Several Provisions of Beijing Municipality on the Registration and Administration of Business Entities’ Operating Premises (Registered Addresses),” thereby abolishing the previous relevant provisions enacted in 2015. 
The Regulations clearly define the scope of business entities and the definition of a registered address, requiring that business premises comply with fire safety, planning, environmental protection, and other regulatory requirements, and prohibiting the use of illegal structures or hazardous buildings. Applications for registration must be accompanied by documentation demonstrating lawful use; standardized registration procedures may waive the submission of such documents. Online operators are permitted to register their online addresses as their business premises, and branch offices may aggregate information on multiple locations without needing to obtain separate licenses. For cluster‑registered premises, systems for overall quantity control and industrial guidance must be established.

The Supreme People’s Court Releases Typical Cases and Measures to Safeguard the Legitimate Rights and Interests of Private Enterprises in Accordance with the Law. On December 4, the Supreme People’s Court held a press conference to release typical civil and commercial cases that demonstrate the lawful and equal protection of the legitimate rights and interests of private enterprises. 
Among these measures, the Supreme People’s Court has prioritized the following: safeguarding the personal and property security of entrepreneurs in accordance with the law; rectifying wrongful cases involving enterprises and standardizing the handling of assets implicated in such cases; cracking down on corruption within private enterprises and protecting the personality rights of both enterprises and their owners; supporting private enterprises’ right to timely receipt of payments, declaring “back-to-back” clauses invalid, and reinforcing government integrity in contract performance; and improving the judicial protection system for intellectual property, increasing the severity of punitive damages, and regulating anti-monopoly and anti-unfair competition practices. As part of this special campaign, litigation services have been streamlined to reduce the costs of enterprise rehabilitation, credit‑rehabilitation mechanisms have been refined, sanctions for dishonesty have been applied with precision, and the efficient adjudication of bankruptcy cases has been promoted.

LITIGATION & ARBITRATION

The Supreme People’s Court recently released six typical cases of fraud crimes in areas related to people’s livelihoods. The court selected six cases that have become final since 2023, involving scams targeting pension insurance, disability subsidies, medical services, health products for the elderly, and sports events, with judgments rendered by courts across multiple regions. 
The cases encompass such scenarios as concealing a death to fraudulently obtain pensions, holding dual household registrations to receive duplicate pension payments, impersonating persons with disabilities to illicitly claim subsidies, using medical brokers posing as doctors to defraud patients of medical expenses, engaging in false advertising to lure elderly individuals into purchasing health products, and fabricating marathon entry slots to swindle registration fees. Each case was adjudicated as fraud, resulting in fixed-term imprisonment, fines, and orders to return the ill-gotten gains. The rulings underscore the need for stringent punishment of scams that harm people’s livelihoods, clearly delineate legal red lines in areas such as social security, disability subsidies, and medical services, and urge enterprises, financial institutions, healthcare providers, and other relevant sectors to strengthen risk management and safeguard the public’s property.

On December 3, the Supreme People’s Procuratorate released a set of typical cases demonstrating the coordinated efforts of the procuratorial and judicial organs to achieve substantive resolution of administrative disputes in accordance with the law, covering areas such as statutes of limitations for filing lawsuits, protests, expropriation and compensation, housing registration, and administrative enforcement. 
The cases focus on the substantive resolution of administrative disputes, clarifying that the statute of limitations for filing a lawsuit begins to run from the date when the party becomes aware of the administrative act and its responsible authority. They underscore that the procuratorial organs may lodge protests in cases that have not yet proceeded to substantive adjudication, and that courts may collaborate with the procuratorate to advance dispute resolution. Typical cases include: 1) determination of the statute of limitations for claims related to demolition compensation and associated resettlement; 2) recognition of length of service for temporary workers and adjustments to retirement benefits; 3) expropriation compensation, service of legal documents, and protection of litigation rights; 4) disputes over compensation standards for resettlement exceeding the prescribed area in housing expropriation; 5) the evidentiary weight of forensic appraisal opinions in housing registration disputes; and 6) management of vehicle towing in traffic accidents, administrative enforcement, and the prevention of arbitrary fee‑charging practices. The document emphasizes diversified approaches to dispute resolution—such as coordination between the judiciary and the procuratorate, collaboration between government and courts, expert participation, and non‑litigious mechanisms—to promote the efficient and substantive settlement of administrative disputes and safeguard the legitimate rights and interests of both enterprises and individuals.

The Supreme People’s Court and the All-China Women’s Federation recently jointly issued the “Top‑to‑Top” Online Mediation‑Litigation Coordination Mechanism for Marriage and Family Disputes. 
The Notice explicitly supports the integration of people’s mediation committees for marriage and family disputes into court‑mediation platforms, enabling both online and offline mediation. It also allows for online applications for judicial confirmation of mediation agreements and the issuance of mediation documents. The Notice sets out clear provisions on division of responsibilities, work procedures, and the development of the mediation workforce, while imposing requirements for the selection, management, training, and guidance of mediation organizations and mediators. Furthermore, it encourages localities to establish mechanisms for communication, consultation, and information sharing, jointly publish typical cases, and implement policies to ensure adequate funding.

On December 5, the Supreme People’s Procuratorate released a set of typical cases involving volunteer assistance in public-interest litigation. 
The document selects eight typical cases, covering areas such as the development of barrier-free environments, ecological and resource protection, food safety, cultural heritage preservation, and workplace safety. These cases highlight the in-depth involvement of “Yixin Weigong” volunteers in stages including tip reporting, expert consultation, procuratorial hearings, and follow-up monitoring, where they play a substantive supporting role. The volunteers comprise members of democratic parties, deputies to the People’s Congress, members of the Chinese People’s Political Consultative Conference, university experts, cultural‑tourism bloggers, and others, helping the procuratorial organs enhance the quality and efficiency of case handling, promote the rectification of identified issues, and innovate both the content and forms of public participation in public-interest protection.