JC Master Legal News Issue 1159

Key Takeaways for This Issue

Finance and Capital Markets

FINANCE &CAPITAL MARKETS 
 

The China Securities Regulatory Commission has issued the “Action Plan for Promoting High-Quality Development of Publicly Offered Funds.”

On May 7, the China Securities Regulatory Commission issued the “Action Plan for Promoting the High-Quality Development of Publicly Offered Funds” (hereinafter referred to as the “Action Plan”).

The action plan outlines 25 reform measures across six key areas—optimizing fund‑management models, refining performance‑assessment and evaluation systems, vigorously developing equity‑oriented funds, safeguarding risk thresholds, strengthening regulatory oversight and enforcement, and promoting high‑quality development—addressing market and public concerns. It seeks to establish a new model for the development of public mutual funds that is well‑suited to China’s national conditions and market realities, with a focus on guiding industry participants to shift from an emphasis on “scale” to one on “returns,” thereby marking a turning point in the sector’s high‑quality growth and accelerating the building of world‑class investment institutions.

National Administration of Financial Regulation: Reducing the overall financing costs borne by small and micro enterprises.

On May 7, the website of the National Administration of Financial Regulation issued the “Notice on Strengthening Financial Services for Small and Micro Enterprises in 2025,” which calls for maintaining an adequate supply of credit to small and micro enterprises.

The notice clarifies the need to deepen the coordination mechanism for supporting financing of small and micro enterprises, with a focus on providing financial support in key areas. Banking and financial institutions are required to uphold the “two unwavering commitments,” conduct credit granting to private and small‑and‑micro enterprises in a fair and targeted manner, and help these businesses grow and strengthen. Efforts will be intensified to support small and micro foreign‑trade enterprises by leveraging import‑export trade scenarios and data such as orders and logistics, thereby enhancing credit assessment and financial service capabilities and fostering stable foreign trade and sustained growth. Furthermore, emphasis will be placed on fostering new‑type productive forces, enriching and refining financial products, and offering diversified, relay‑style financial services to support the specialized, refined, distinctive, and innovative development of small and micro enterprises, as well as their technological innovation. 
 

Business and Corporations 
COMMERCIAL & CORPORATE

Three departments: Fully implement the use of specialized credit reports in lieu of certificates verifying the absence or presence of records of violations of laws and regulations.

On May 7, the National Development and Reform Commission’s website issued the “Notice on Fully Implementing the Use of Specialized Credit Reports in Place of Certificates of No Illegal or Non‑Compliant Records,” requiring all regions to fully roll out the “credit‑based certification” initiative by the end of September 2025.

The notice specifies that provincial-level specialized credit reports shall cover information such as administrative penalties and lists of entities with serious breaches of trust, while strengthening data quality management. The scope of application includes enterprises, individual business households, and other entities, with encouragement to extend coverage to social organizations and natural persons. Provincial credit‑leading authorities are required to broaden the range of report applications and enable credit subjects to select the reporting time frame and areas of focus. A cross‑provincial mutual recognition mechanism shall be established to streamline procedures and reduce costs, along with an objection‑and‑appeal mechanism to ensure the accuracy of the information.

Taxation

TAXATION

The National Administration of Financial Regulation will introduce eight additional policies.

On May 7, Li Yunze, Director of the National Administration of Financial Regulation, stated at a press conference held by the State Council Information Office that eight additional policies will be introduced in the near future.

First, we will expedite the introduction of a series of financing mechanisms tailored to the new model of real estate development, thereby helping to further consolidate the stability of the real estate market.

Second, the scope of the pilot program for long-term investment by insurance funds will be further expanded, with an additional RMB 60 billion expected to be approved in the near term, thereby injecting more incremental capital into the market.

Third, we will adjust and optimize regulatory rules, further reduce the risk factor for insurance companies’ equity investments, and support the stabilization and revitalization of the capital market.

Fourth, we will promptly introduce a comprehensive package of policies to support financing for small and micro enterprises and private firms, further strengthen and refine the mechanisms for coordinating financing efforts, and help stabilize businesses and the economy.

Fifth, a series of policy measures have been formulated and implemented to support the development of foreign trade in the banking and insurance sectors. The coordination mechanism for financing small and micro enterprises has been extended to all foreign‑trade enterprises, and targeted services have been provided to market entities most affected by tariffs, with every effort made to help them maintain stable operations and expand their markets.

Sixth, revise and promulgate the Administrative Measures for M&A Loans to accelerate industrial transformation and upgrading.

Seventh, the entities eligible to initiate the establishment of financial asset investment companies will be expanded to include qualified nationwide commercial banks, thereby increasing investment in science and technology innovation enterprises.

Eighth, formulate guidelines for the high-quality development of science and technology insurance to better leverage its risk-sharing and compensation functions, thereby providing robust support for scientific and technological innovation.

Litigation and Arbitration

LITIGATION & ARBITRATION

The Supreme People’s Procuratorate has released the 58th batch of guiding cases, focusing on the supervision of final administrative judgments.

On May 6, 2025, the Supreme People’s Procuratorate released the 58th batch of guiding cases, covering areas such as administrative rewards, administrative confirmation, and administrative penalties.

This release comprises five guiding cases. In terms of supervisory mechanisms, three cases were subject to protests filed by the Supreme People’s Procuratorate, one was protested by a provincial-level procuratorate, and one was addressed through a retrial prosecution recommendation issued by a municipal-level procuratorate. With respect to the administrative actions and areas of administrative governance involved, these cases cover administrative rewards, administrative confirmations, administrative penalties, and the scope of acceptance in administrative litigation, touching on issues of vital public concern such as safeguarding the rights and interests of rural single-child families, clarifying forest‑land ownership, imposing administrative penalties for workplace safety accidents, recognizing occupational disease–related work injuries, and processing applications for residential land plots by villagers. As for the outcomes of case handling, following the procuratorial organs’ submission of supervisory opinions, three cases resulted in the people’s courts directly overturning the original judgments, while in two cases the people’s courts adopted the procuratorial supervision and jointly worked to achieve a substantive resolution of the administrative disputes.

The Supreme People’s Court has released the first batch of typical cases demonstrating the application of model texts.

On May 6, the Supreme People’s Court released the first batch of typical cases demonstrating the application of model texts, highlighting their effectiveness in cases involving financial lending, divorce, traffic accidents, labor disputes, and property services.

The five cases released by the Supreme People’s Court demonstrate the positive impact of model templates in enhancing case filing efficiency, facilitating mediation, and improving the quality and effectiveness of adjudication. For example, the Fengtai District People’s Court in Beijing has leveraged model templates to streamline the efficient filing of financial disputes; the Shuimogou District People’s Court in Urumqi has achieved substantive resolution of divorce-related conflicts; the Yiyuan County People’s Court provides drafting services for parties filing oral complaints, thereby expediting the settlement of traffic accident disputes; the Yuhua District People’s Court in Changsha has used model templates to ensure fair and impartial adjudication of labor disputes; and the Qingshan District People’s Court in Baotou has employed model templates together with a corrective‑action checklist mechanism to resolve property‑management disputes on a large scale and promote root‑cause governance. The application of these model templates has not only simplified procedures for litigants and lawyers but has also significantly enhanced the quality and efficiency of case handling.

The second draft of the revised Arbitration Law has been released.

Recently, the 15th Meeting of the Standing Committee of the 14th National People’s Congress reviewed the “Arbitration Law of the People’s Republic of China (Second Draft for Deliberation),” and is now soliciting public comments. The deadline for submitting feedback is May 29.

The second draft for deliberation provides detailed provisions on arbitration agreements, arbitration procedures, and the establishment and administration of arbitration commissions. The draft underscores the independence of arbitration agreements, clarifies the composition of arbitral tribunals and the grounds for recusal of arbitrators, and stipulates that an arbitral award is final and binding, while also setting out the procedures to be followed in cases where an award is set aside or not enforced. With respect to international arbitration, the draft specifically addresses the choice of the seat of arbitration and international cooperation. Furthermore, the draft supports arbitration commissions in establishing branch offices abroad to conduct arbitral proceedings.

The website of the National People’s Congress of China has published a list of currently valid laws.

On May 7, the website of the National People’s Congress of China published a list of currently effective laws, totaling 306.

According to the catalog, as of April 30, 2025—the date on which the Fifteenth Meeting of the Standing Committee of the 14th National People’s Congress concluded—China has a total of 306 currently effective laws. Among these, in the field of administrative law, the Law of the People’s Republic of China on the Prevention and Control of Infectious Diseases was revised; in the field of economic law, the Law of the People’s Republic of China on Promoting the Private Economy was adopted.