JC Master Legal News Issue1201

Key Takeaways for This Issue

Five departments have launched a public consultation on the draft Financial Law. 
On March 20, the Ministry of Justice, the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange issued a notice soliciting public comments on the draft “Financial Law of the People’s Republic of China,” with the deadline for submissions set for April 19, 2026. 
The National Administration of Financial Regulation is seeking public input on new regulations governing consumer complaints in the banking and insurance sectors. 
Recently, the National Administration of Financial Regulation issued an announcement soliciting public comments on the “Measures for the Handling of Financial Consumer Complaints by Banking and Insurance Institutions (Revised Draft for Public Consultation),” with the deadline for submitting feedback set for April 20. 
The China Securities Regulatory Commission has sought input from institutions on the “15th Five-Year Plan” for the capital market. 
On March 19, the China Securities Regulatory Commission convened a symposium on the capital market’s “15th Five-Year Plan” with investment institutions. 
The State Administration for Market Regulation has refined the mechanism for entrusting reviews of operator concentrations. 
On March 19, the State Administration for Market Regulation issued the “Notice on Further Improving the System of Entrusted Review of Concentrations of Undertakings.”

Finance & Capital Markets 
Five departments have launched a public consultation on the draft Financial Law. 
On March 20, the Ministry of Justice, the People’s Bank of China, the National Administration of Financial Regulation, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange issued a notice soliciting public comments on the draft “Financial Law of the People’s Republic of China,” with the deadline for submissions set for April 19, 2026. 
As a foundational law in the financial sector, the draft comprises eleven chapters and ninety-five articles, applying to financial activities conducted within China, including deposit‑taking, lending, securities, fund management, trust services, and payment and settlement. It primarily establishes a modern central banking system, refines the frameworks for monetary policy and macroprudential regulation, and standardizes comprehensive financial statistics. The draft subjects banks, securities firms, fund and futures companies, insurers, trust institutions, and payment service providers to full‑cycle supervision covering market access, operations, and exit; it strengthens requirements for transparent shareholding structures, qualified shareholders, and corporate governance, while mandating that financial institutions assume primary responsibility for risk prevention and reinforcing constraints on related‑party transactions, information disclosure, and anti‑corruption measures. The draft also harmonizes rules governing the approval, suitability of marketing practices, and information disclosure of financial products and services, requiring that internet‑based financial marketing comply with applicable online regulatory standards. Furthermore, it sets uniform rules and assigns liability for violations such as the establishment of financial market trading venues, on‑ and off‑exchange trading activities, insider trading, and market manipulation. The draft systematically lays out unified registration, custody, and settlement rules for financial infrastructure, as well as provisions ensuring the property independence of central counterparties. It further specifies the regulatory powers, inspection and investigation measures, and coordination mechanisms of the State Council’s financial regulatory authorities, and establishes a multi‑tiered framework for addressing financial risks, encompassing early corrective actions, receivership and trusteeship, write‑downs of equity and debt, temporary transitional institutions, the use of a financial stability fund, and seamless integration with judicial procedures. At the same time, it substantially increases penalties for financial misconduct and imposes stricter bans on engaging in the industry. 
The National Administration of Financial Regulation is seeking public input on new regulations governing consumer complaints in the banking and insurance sectors. 
Recently, the National Administration of Financial Regulation issued an announcement soliciting public comments on the “Measures for the Handling of Financial Consumer Complaints by Banking and Insurance Institutions (Revised Draft for Public Consultation),” with the deadline for submitting feedback set for April 20. 
The Measures (Draft for Public Comments) comprise six chapters and fifty-two articles, revised and refined on the basis of the original Measures for the Administration of Consumer Complaint Handling in the Banking and Insurance Sectors. The document expands its scope to encompass all types of banks, insurance institutions, and related intermediary entities under the supervision of the China Banking and Insurance Regulatory Commission, clarifies their responsibilities for handling consumer complaints, mandates that designated senior executives oversee complaint‑handling functions, and requires the establishment of robust complaint‑handling procedures, risk‑assessment frameworks, and mechanisms for tracing the root causes of issues and implementing corrective measures. It also incorporates complaint statistics and the quality of resolution into performance‑evaluation criteria. The Measures standardize complaint‑acceptance channels, documentation requirements, and processing procedures; they set limits on the number of representatives allowed during in‑person consultations, specify deadlines for supplementary submissions, and define timeframes for resolution—generally 15 days, with an extension to 30 days for complex cases and a further 30-day extension for particularly complicated matters—while laying out rules for handling repeated complaints. They also require full‑process record‑keeping and the retention of records for at least three years. A dedicated chapter enhances the diversified dispute‑resolution mechanism, encouraging priority negotiation and mediation, strengthening the roles of financial dispute‑resolution organizations and industry associations, and establishing expedited arrangements such as “small‑amount compensation” and “minor‑claim settlement.” In terms of oversight and administration, the CBIRC and its local branches may intensify supervision of complaint‑handling activities through referral, inspections, public notifications, and regulatory assessments. For instances of failure to establish required systems, submit data, process complaints in accordance with prescribed procedures, or cooperate with mediation efforts, they may order corrective action within a specified timeframe and impose fines ranging from RMB 10,000 to RMB 200,000. 
The China Securities Regulatory Commission has sought input from institutions on the “15th Five-Year Plan” for the capital market. 
On March 19, the China Securities Regulatory Commission convened a symposium on the capital market’s “15th Five-Year Plan” with investment institutions. 
The meeting was chaired by Wu Qing, Secretary of the CPC Committee and Chairman of the China Securities Regulatory Commission, and was attended by representatives from the National Council for Social Security Fund, insurance asset management institutions, public mutual funds, private equity funds, bank wealth‑management products, and other investment entities. Building on an assessment of recent progress in developing a market‑stabilization mechanism with Chinese characteristics, facilitating the entry of medium- and long-term capital into the market, and enhancing investor returns, participants focused on offering suggestions and recommendations regarding the development goals and tasks for the capital market during the 15th Five-Year Plan period. Topics included further deepening reforms on the investment side, improving the inclusiveness and adaptability of the regulatory framework, and bolstering the intrinsic stability of the capital market. The meeting also sought input on organizing study and education activities within the CSRC system to foster and put into practice a correct view of political achievements.

Commercial & Corporate 
The State Administration for Market Regulation has refined the mechanism for entrusting reviews of operator concentrations. 
On March 19, the State Administration for Market Regulation issued the “Notice on Further Improving the System of Entrusted Review of Concentrations of Undertakings.” 
Building on Announcement No. 33 of 2025, the new announcement expands the scope of cases entrusted for review to include certain non‑simplified matters, specifying that the market regulation authorities of five provinces and municipalities—Beijing, Shanghai, Guangdong, Chongqing, and Shaanxi—may conduct such reviews. These circumstances encompass various combinations where the market shares of the undertakings involved in the concentration fall within the ranges of 15%–25% or 25%–35% in the relevant market, upstream and downstream markets, or related markets unrelated to upstream or downstream relationships, with specific entrusted agencies designated by region. The announcement also sets forth conditions under which the entrustment may be terminated, including cases that fail to meet the entrustment criteria, concentrations implemented in violation of the law, transactions below the notification threshold that are subsequently withdrawn, canceled, or substantially altered. Furthermore, it stipulates that for non‑simplified cases, written opinions shall be solicited through unified letters issued by the State Administration for Market Regulation; key review decisions shall bear the Administration’s exclusive antitrust seal; and conditional approvals or prohibitions shall be publicly announced by the Administration. With respect to simplified cases, the announcement adds the market regulation authorities of Liaoning Province, Zhejiang Province, and Sichuan Province as entrusted agencies, while accordingly adjusting the designated receiving units and regional allocations for simplified cases nationwide. This announcement shall take effect on August 1, 2026. 
The Ministry of Industry and Information Technology convened a roundtable meeting for small and medium-sized enterprises in the new materials sector. 
On March 19, the Ministry of Industry and Information Technology convened a roundtable meeting for small and medium-sized enterprises in the new materials sector. 
The meeting was chaired by Li Lecheng, Secretary of the Party Group and Minister of the Ministry of Industry and Information Technology, and focused on fostering the development of small and medium-sized enterprises in the new materials sector and elevating the level of innovation in this field. Leaders from eight SMEs in the new materials industry shared insights on R&D, pilot-scale validation, and industrial application, while also articulating the challenges and concerns they face in production and operations. The Ministry of Industry and Information Technology instructed relevant departments and units to carefully review and incorporate the enterprises’ feedback, addressing each issue systematically. The meeting outlined a strategic focus on advanced basic materials, critical strategic materials, cutting-edge new materials, and the integration of “AI + Materials.” By aligning with material needs across key application‑oriented industrial and supply chains, the initiative seeks to strengthen policy coordination, talent development, and resource support, promote collaborative innovation throughout the value chain, and optimize the ecosystem for new‑materials innovation. At the same time, it emphasized that enterprises should concentrate on core manufacturing priorities, target urgently needed critical materials and address weak links in the industrial chain, increase investment in R&D, participate in major national science and technology projects, and deploy AI technologies in material R&D, pilot testing, and production, thereby enhancing their capacity for independent assurance of critical materials.

Taxation 
Beijing has issued the Key Work Guidelines for the Development and Construction of Comprehensive Bonded Zones in 2026. 
Recently, Beijing’s “Two Zones” office released the “Key Work Priorities for the Development and Construction of Comprehensive Bonded Zones in 2026.” 
The “Key Work Plan” outlines 66 tasks across seven priority areas, centered on the four major comprehensive bonded zones—Tianzhu, Zhongguancun, Yizhuang, and Daxing Airport—focusing on industrial development, business expansion, supporting infrastructure, innovation-driven growth, investment promotion, and domestic–international coordination. In terms of industry, it calls for segmenting specific sectors, fostering differentiated development among the four zones, and emphasizing distinctive functional layouts such as airport‑based open platforms, R&D and innovation, new‑type productivity, and inter‑provincial bonded zones. On the business front, it mandates vigorous development of “bonded +” services, with particular support for bonded R&D, maintenance, testing, exhibition and trade, commercial leasing, and financial leasing; it also encourages exploration of emerging models like in‑situ processing and data annotation, while advancing the establishment of pilot zones for cross‑border e‑commerce and the secure supply of rare‑disease medicines. Regarding supporting measures, the plan proposes building specialized inspection facilities for controlled items and common‑technology platforms such as simulation and testing, alongside improvements to local living and transportation amenities. In the realm of innovation, it advocates piloting “small‑scale, targeted” policy initiatives within the framework of the National Comprehensive Demonstration Zone for Expanding Service Sector Opening-Up. For investment promotion, it underscores leveraging platforms like the China International Fair for Trade in Services and the Zhongguancun Forum to attract investment and facilitate the implementation of key projects. Finally, in terms of domestic–international coordination, it proposes embedding the bonded zones more deeply into the city’s priority industrial chains and optimizing integrated service frameworks such as “One‑Stop Bonded Services” and “One‑Stop Overseas Operations.”

Litigation & Arbitration 
The Supreme People’s Court and the Supreme People’s Procuratorate have released five typical cases of prosecuting official crimes in the “agriculture, rural areas, and farmers” sector. 
Recently, the Supreme People’s Court and the Supreme People’s Procuratorate released typical cases of punishing official misconduct in the “agriculture, rural areas, and farmers” sector in accordance with the law. 
The document released five typical cases, focusing on key areas and stages involving agricultural industry projects, the construction of high-standard farmland and specialized agricultural bases, subsidies for the purchase and sale of agricultural machinery, irrigation and water‑conservation projects, the management of rural collective “three‑asset” resources, special funds for resettlement, and farmers’ pension insurance. The cases reveal that judicial authorities have classified acts of seeking personal gain through abuse of power—such as bribery, embezzlement, misappropriation of funds, and misuse of public funds—in processes including project approval, disbursement of subsidies, awarding of contracts, application for agricultural‑machinery subsidies, compensation in water‑conservation and resettlement projects, and the collection and remittance of rural collective funds and pension contributions—as official crimes committed by state functionaries or personnel of grassroots rural organizations. Where the amounts involved are particularly large or exceptionally large, such offenses typically carry prison sentences of three to ten years or more, together with fines; moreover, all or part of the illicit gains and proceeds are recovered and returned in accordance with the law. Taking into account mitigating factors such as meritorious service, voluntary confession, and restitution, these rulings reflect a judicial approach that emphasizes both strict punishment and the recovery of stolen assets to minimize losses. 
The Supreme People’s Procuratorate has launched a special campaign for procuratorial organs to centrally resolve petition-related issues involving the procuratorate. 
Recently, the Supreme People’s Procuratorate has directed procuratorial organs to launch a special campaign to comprehensively resolve petition-related issues. 
The Special Action Plan specifies that the procuratorial organs will, in accordance with their legal supervisory duties, focus on thoroughly investigating and sorting out petition-related issues involving the procuratorate, identify and resolve conflicts and disputes, implement systems for leading cadres to receive and visit petitioners and take responsibility for handling specific cases, and employ measures such as judicial assistance, procuratorial hearings, and support for litigation to promote the lawful and orderly resolution of petition cases. Procuratorial organs at all levels, along with their internal departments, will strengthen integrated performance of duties and collaborative coordination to forge a concerted effort in this special initiative. At the same time, the meeting reviewed the 2026 study plan of the CPC Leadership Group of the Supreme People’s Procuratorate, emphasizing strict adherence to the “Rules on the Study Sessions of Party Committees (Leading Party Groups)’ Theoretical Study Centers.” Through study seminars, specialized briefings, thematic investigations, and centralized study sessions, the aim is to enhance the capacity to apply Xi Jinping Thought on the Rule of Law in advancing high-quality development of procuratorial work. In addition, the meeting heard a report on the progress made in 2025 in further implementing the “Three Regulations” aimed at preventing interference in judicial proceedings. It underscored the importance of accurately and规范ly completing the required reporting forms, strengthening verification, retrospective checks, and accountability‑related notifications, and imposing strict disciplinary and regulatory sanctions on any violations involving improper inquiries into, interference with, or meddling in judicial activities. This effort will be led by the leadership of the Supreme People’s Procuratorate and procuratorial organs at all levels, continuously reinforcing rigorous and standardized constraints on judicial conduct. 
The Supreme People’s Court has issued the Guidelines on the Adjudication of Civil Cases Involving Minors. 
Recently, the General Office of the Supreme People’s Court issued the “Notice on the Issuance of the ‘Work Guidelines for People’s Courts in Adjudicating Civil Cases Involving Minors.’” 
The “Guidelines” represent the Supreme People’s Court’s first judicial document specifically regulating civil proceedings involving minors. Comprising five parts and thirty-nine articles, they apply to civil cases concerning marriage and family matters, inheritance, torts, contracts, and other areas involving minors, emphasizing the overarching principles of “the best interests of the child” and the prevention of illegal and criminal conduct. At the case‑filing stage, the document establishes clear procedures for designating minors as a special category, along with rules governing the review and appointment of legal representatives; it further specifies criteria for appointing a guardian when a guardian refuses to assume responsibility, and outlines the procedural handover for litigation representation once a minor attains full civil capacity. During the trial and adjudication phases, the Guidelines set forth detailed rules on issues such as determining custody and visitation rights, applying personal safety protection orders, the disposition of a minor’s property by a guardian, the validity of waiving an inheritance on behalf of a minor, the assumption of tort liability by minors, the determination of the validity of online game‑top-up and live‑stream‑tip contracts, and the appropriate elevation of standards for compensation for emotional distress. They also strengthen requirements for the protection of privacy and personal information. In terms of ancillary measures, the document establishes systems for social investigations, psychological counseling, family education guidance, judicial assistance, and post‑judgment follow‑up visits. It promotes regular, coordinated collaboration with procuratorial, educational, public security, civil affairs, Communist Youth League, Women’s Federation, and Care‑for‑the‑Next‑Generation committees, while mandating the development of specialized enforcement mechanisms in the execution of child support and visitation arrangements, together with ongoing follow‑up monitoring. 
The Ministry of Justice is soliciting public comments on the Measures for the Administration of Commercial Mediation Organizations. 
On March 17, the Ministry of Justice issued the “Notice on Public Solicitation of Comments on the Measures for the Administration of Commercial Mediation Organizations (Draft for Comments).” The deadline for submitting public comments is April 16, 2026. 
The Draft for Soliciting Opinions comprises six chapters and forty articles, setting out a comprehensive regulatory framework governing the establishment, amendment, deregistration, practice management, and supervisory oversight of commercial mediation organizations. With respect to establishment, it elaborates on the composition of organizational names and specifies prohibited designations; it further stipulates that such organizations must have founders, a registered address, articles of association, sufficient assets, qualified commercial mediators and full-time staff, and must obtain a practice certificate issued by the judicial administrative authority. It also lays out specific procedural requirements for application materials, acceptance and supplementation, issuance and revocation of practice certificates, roster compilation, and information disclosure. On the matters of amendment and deregistration, the draft sets forth distinct rules: for cross‑regional relocations, it provides procedures for deregistration and reestablishment; it identifies circumstances requiring formal deregistration; and it prescribes obligations regarding public notice, liquidation, and the handover of archives, finances, and seals. In terms of practice management, the draft mandates the establishment of systems covering business operations, financial management, conflict‑of‑interest handling, complaint resolution, and record‑keeping; requires the public disclosure of mediator rosters, fee schedules, and case‑volume statistics; standardizes the filing requirements for foreign nationals serving as mediators; and imposes constraints on fee structures, asset utilization, and nonprofit status. Regarding supervisory oversight, the draft strengthens the day‑to‑day regulatory responsibilities of county‑level judicial administrative authorities, clarifies the content of annual work reports, and outlines measures for on‑site inspections and audits. It further details penalties for unlawful conduct—including practicing without authorization, soliciting business through improper means, and engaging in sham mediation—and establishes criteria for determining “serious circumstances.” At the same time, it sets forth transitional provisions governing the admission and rectification requirements for existing entities, as well as approval and filing procedures for overseas commercial mediation organizations seeking to establish operational branches in free trade zones, the Hainan Free Trade Port, and other designated areas.

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