JC Master Legal News Issue 818

Key Takeaways for This Issue
The China Securities Regulatory Commission is soliciting public comments on the Measures for the Issuance and Trading of Depositary Receipts.
Recently, in order to clarify the institutional arrangements governing the issuance, listing, trading, and other aspects of depositary receipts—a new type of security—and to standardize related activities, the China Securities Regulatory Commission has solicited public comments on the Measures for the Administration of the Issuance and Trading of Depositary Receipts. These Measures are designed to provide a comprehensive and unified regulatory framework for the basic system of depositary receipts in the form of departmental rules, while, within the framework of the Securities Law, they further elaborate on the Several Opinions on Piloting the Domestic Issuance of Shares or Depositary Receipts by Innovative Enterprises.

The State Council has issued the “Opinions on Promoting the Development of ‘Internet Plus Healthcare’.”
Recently, the State Council issued the “Opinions on Promoting the Development of ‘Internet Plus Healthcare.’” The series of policies and measures outlined in these Opinions clearly demonstrate a strong commitment to supporting the development of “Internet Plus Healthcare,” emphasizing an innovation‑driven, inclusive yet prudent policy orientation. They also identify key areas for integrated development and establish a robust support system, while setting clear regulatory and security red lines. The introduction of these policies will help deepen the “delegation, regulation, and service” reform and supply‑side structural reform, address the imbalances and inadequacies in the development of the healthcare sector, and meet the growing, multi‑tiered, and diversified medical and health needs of the public.
The State Taxation Administration has issued the revised Measures for Handling Matters Related to Enterprise Income Tax Preferential Policies.
The State Taxation Administration recently revised and reissued the Measures for Handling Preferential Policies on Enterprise Income Tax. The key provisions include streamlining the procedures for applying preferential treatments, updating the contents of the Catalogue of Preferential Items for Enterprise Income Tax, strengthening the management of retained documentation for record‑keeping, reafofficeing the rights, obligations, and legal liabilities of enterprises, and setting forth requirements for subsequent administration.
The Ministry of Justice has promulgated the Measures for the Implementation of the National Unified Legal Professional Qualification Examination.
Recently, the Ministry of Justice promulgated the Measures for the Administration of the National Unified Legal Professional Qualification Examination, which shall take effect from the date of its publication. As the first regulatory framework governing China’s legal professional qualification system, these Measures set forth provisions on eligibility requirements, organizational and procedural arrangements, disciplinary measures for violations, and the administration of qualification granting, playing a crucial role in standardizing the organization and conduct of the legal professional qualification examination.
Four departments jointly issued the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions.”
The People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange recently jointly issued the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions,” aiming to standardize such business, harmonize regulatory requirements for similar asset management products, effectively mitigate financial risks, and better support the real economy.

Table of Contents
Table of Contents

Finance & Capital Markets
The China Securities Regulatory Commission is soliciting public comments on the Measures for the Issuance and Trading of Depositary Receipts.
The China Securities Regulatory Commission is soliciting public comments on the “Administrative Measures for Foreign-Invested Futures Companies (Draft for Comments).”
The China Securities Regulatory Commission has issued the “Administrative Measures for the Establishment, Acquisition, and Equity Participation of Overseas Operating Entities by Securities Companies and Fund Management Companies (Draft for Public Comment).”
Four departments have jointly issued the “Notice on Regulating Private Lending Activities and Maintaining Economic and Financial Order.”
The General Office of the People’s Bank of China has issued the “Notice on Further Clarifying Relevant Matters Concerning the Management of Overseas Securities Investments by Qualified Domestic Institutional Investors in Renminbi.”

Corporate & Commercial
The State Council has issued the “Opinions on Promoting the Development of ‘Internet Plus Healthcare’.”
The China Securities Regulatory Commission and the Ministry of Housing and Urban–Rural Development have jointly issued the “Notice on Promoting Work Related to the Securitization of Residential Rental Assets.”
The Ministry of Culture and Tourism and the Ministry of Finance have jointly issued the “Guiding Opinions on Promoting the Public–Private Partnership Model in the Tourism Sector.”
The National Energy Administration has issued the “Notice on Matters Concerning Alleviating the Burden on Enterprises in the Renewable Energy Sector.”
The Ministry of Finance has issued the “Notice on Further Strengthening the Standardized Management of Public-Private Partnership (PPP) Demonstration Projects.”

Taxation
The State Taxation Administration has issued the revised Measures for Handling Matters Related to Enterprise Income Tax Preferential Policies.
The Ministry of Finance, together with four other departments, has issued the “Notice on the Value-Added Tax Policy for Anti-Cancer Drugs.”

Litigation & Arbitration
The Ministry of Justice has promulgated the Measures for the Implementation of the National Unified Legal Professional Qualification Examination.
The Supreme People’s Court has issued the “Decision on the Establishment of the Shanghai Financial Court (Draft).”

Other
Four departments jointly issued the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions.”
China’s first cloud-based AI chip has been unveiled.
Finance & Capital Markets
The China Securities Regulatory Commission is soliciting public comments on the Measures for the Issuance and Trading of Depositary Receipts.
Recently, the China Securities Regulatory Commission has solicited public comments on the Measures for the Issuance and Trading of Depositary Receipts. To clarify the institutional framework governing this new type of security—depositary receipts—in areas such as issuance, listing, and trading, and to standardize related activities, the Measures are designed to provide a comprehensive and unified set of regulations at the level of departmental rules, thereby refining the requirements set forth in the Several Opinions on Piloting the Issuance of Shares or Depositary Receipts by Innovative Enterprises within China (hereinafter referred to as the “Several Opinions”), all within the framework of the Securities Law.
The Measures comprise eight chapters and sixty-one articles, and primarily cover the following contents:
First, the legal applicability and fundamental regulatory principles governing depositary receipts are clarified. It is stipulated that, as securities recognized by the State Council through the promulgation of the “Several Opinions,” depositary receipts shall be subject to the Securities Law, the “Several Opinions,” these Measures, and other relevant regulations issued by the China Securities Regulatory Commission in respect of their issuance, listing, trading, and related activities. Overseas underlying security issuers shall participate in the issuance of depositary receipts, fulfill their obligations as issuers and listed companies in accordance with the law, and bear the corresponding legal liabilities.
Second, arrangements have been made for the issuance, listing, and trading of depositary receipts. The basic conditions and procedures for issuing depositary receipts are stipulated, and principled provisions are set forth regarding refinancing through the issuance of such receipts. The conditions and procedures for listing and trading depositary receipts are also specified, clarifying that any reduction of holdings in depositary receipts must comply with relevant laws, administrative regulations, the rules of the China Securities Regulatory Commission, and the stock exchange’s business rules governing share reductions by listed companies. In addition, principled arrangements are established for acquisitions, major asset restructurings, and other transactions conducted via the issuance of depositary receipts.
Third, the information disclosure requirements for depositary receipts have been clarified. The regulations stipulate that the overseas underlying securities issuer, together with its controlling shareholders and actual controllers, bears responsibility for information disclosure. While applying the principles of information disclosure set forth in the Securities Law, the Measures for the Administration of Information Disclosure by Listed Companies, and other relevant provisions to depositary receipts, special disclosure requirements have also been established—tailored to the characteristics of depositary receipts and the overseas underlying securities issuer—covering matters such as depositary arrangements, voting‑rights differentials, and contractual control. For cases where certain provisions are demonstrably inapplicable, an exemption‑application mechanism has been put in place.
Fourth, a depositary and custodial system for depositary receipts has been established. The roles and responsibilities of depositaries and custodians are defined, and general requirements for the qualifications of depositaries are set forth; the essential terms of depositary and custodial agreements are specified, and the rights and obligations of all participating parties are delineated.
Fifth, investor protection has been strengthened. While clarifying that overseas issuers of underlying securities must ensure that the protection of domestic investors’ rights and interests is, in general, no less stringent than that required by domestic laws, administrative regulations, and the requirements of the China Securities Regulatory Commission, measures have been put in place to safeguard investors—given the unique characteristics of the structure of investors in China’s securities market—including separate voting rights for depositary receipt holders and arrangements for buybacks upon delisting of depositary receipts.
Sixth, strengthen regulatory oversight and enforcement, and clarify legal liabilities. The regulations specify that the CSRC may conduct on-site inspections, investigations, and evidence collection against relevant market participants, thereby expanding its toolkit for addressing violations of securities laws and regulations. They also provide that the CSRC may impose supervisory measures such as ordering corrective actions, issuing warning letters, designating individuals as unsuitable candidates, and imposing market bans. Within the framework of the Securities Law, targeted provisions are set forth regarding the civil and administrative liabilities of relevant market participants for breaches of securities laws and regulations.

The China Securities Regulatory Commission is soliciting public comments on the “Administrative Measures for Foreign-Invested Futures Companies (Draft for Comments).”
To implement the decisions and arrangements of the CPC Central Committee and the State Council on further opening up the financial sector, to systematically attract high-quality overseas financial institutions to invest in futures companies, and to enhance the ability of China’s futures industry to serve the real economy and its international competitiveness, the China Securities Regulatory Commission, in coordination with relevant ministries and commissions, has formulated the Measures for the Administration of Foreign-Invested Futures Companies (hereinafter referred to as the “Foreign Investment Measures”).
The “Measures on Foreign Investment” primarily cover the following aspects: First, clarifying the scope of application. A futures company with foreign investment is defined as one in which a single overseas shareholder or multiple related overseas shareholders hold (either directly or through indirect control) 5% or more of the company’s equity. Second, refining the requirements for overseas shareholders. Such shareholders must be financial institutions with a strong international reputation and solid operating performance, ranking among the global leaders in terms of business scale, revenue, and profitability over the past three years, and maintaining high‑level long-term credit ratings during that period. Third, standardizing indirect shareholding. Where an overseas investor, through investment relationships, agreements, or other arrangements, exercises actual control over 5% or more of a futures company’s equity, such holdings must be converted to direct ownership; however, exemptions are granted for indirect holdings via domestic securities offices and other circumstances specified by the China Securities Regulatory Commission. Fourth, specifying provisions for the performance of duties by senior management. All senior executives of a futures company with foreign investment must perform their duties on-site within China, and the number of senior executives who are Chinese nationals must account for no less than one-third of the total. Fifth, setting forth requirements regarding the language of official documents and the deployment of information systems.

The China Securities Regulatory Commission has issued the “Administrative Measures for the Establishment, Acquisition, and Equity Participation of Overseas Operating Entities by Securities Companies and Fund Management Companies (Draft for Public Comment).”
To promote, in a lawful and orderly manner, the international expansion of securities and fund management institutions and to strengthen their oversight of overseas entities, the China Securities Regulatory Commission has drafted the “Administrative Measures for the Establishment, Acquisition, and Equity Participation of Overseas Operating Entities by Securities Companies and Fund Management Companies” (Draft for Public Comment) (hereinafter referred to as the “Administrative Measures”), which is now being made available for public consultation.
In response to the aforementioned issues, the China Securities Regulatory Commission has formulated the “Administrative Measures,” which apply uniformly to securities and fund management institutions. These Measures adhere to the following principles: First, they uphold the principles of “regulation in accordance with the law, stringent regulation, and comprehensive oversight,” clearly defining the scope of supervision, refining regulatory rules, improving supervisory approaches, strengthening ongoing monitoring, enhancing cross-border regulatory cooperation, and thereby boosting the effectiveness of regulation. Second, they require securities and fund management institutions to adhere to the principles of “focusing on core businesses, operating prudently, acting with honesty and integrity, exercising due diligence, maintaining capital constraints, and ensuring robust internal controls.” They also call for coordinated planning of internationalization strategies, guiding overseas subsidiaries to concentrate resources on expanding and strengthening their core businesses, streamlining business structures and organizational frameworks, improving corporate governance, establishing collective decision-making mechanisms, and elevating compliance, internal control, and risk management standards.
The Measures comprise a total of 39 articles, with the main content covering the following four areas: First, maintaining appropriate entry thresholds to support institutions’ international expansion. The requirements for both types of institutions seeking to operate overseas have been consolidated, stipulating that institutions must act with integrity and good faith, operate in compliance, maintain sound financial health and adequate asset liquidity, and implement robust internal controls. Second, standardizing business scope and refining organizational structures. Overseas entities are required to focus on their core businesses, regulate their subsidiaries, restrict reinvestment activities, and be granted a 24-month transition period to meet regulatory requirements. Third, urging parent companies to strengthen oversight and improve the management of their overseas subsidiaries. Parent companies are mandated to enhance corporate governance at the overseas level, establish collective decision-making mechanisms for major matters, refine management systems for overseas operations, and put in place comprehensive compliance, risk management, and internal control frameworks covering both overseas entities and their cross-border activities. Fourth, reinforcing ongoing supervision and improving cross-border regulatory cooperation. Specific requirements for information reporting by securities and fund management institutions have been detailed, and legal liabilities for such institutions and their relevant personnel have been clearly defined. Cross-border regulatory cooperation has been enhanced, with strengthened information sharing with foreign regulators to promptly monitor developments at overseas entities and effectively prevent and address cross-border financial risks.

Four departments have jointly issued the “Notice on Regulating Private Lending Activities and Maintaining Economic and Financial Order.”
To further standardize private lending activities, safeguard economic and financial order, prevent financial risks, effectively protect the legitimate rights and interests of the public, and crack down on financial crimes and illegal activities, the China Banking and Insurance Regulatory Commission, in collaboration with the Ministry of Public Security, the State Administration for Market Regulation, and the People’s Bank of China, has jointly issued the “Notice on Regulating Private Lending Activities and Maintaining Economic and Financial Order” (hereinafter referred to as the “Notice”). The Notice stipulates that, without lawful approval from the competent authorities, no entity or individual may establish an institution engaged in, or primarily engaged in, the business of granting loans, nor may they conduct loan‑granting as a regular business activity.
The Notice stipulates that the following illegal financial activities shall be severely cracked down upon: issuing private loans using funds raised through unlawful public deposits or disguised forms of public deposit‑taking; employing unlawful methods such as intentional injury, illegal detention, humiliation, intimidation, threats, and harassment to collect loan repayments; misappropriating credit funds from financial institutions for subsequent high‑interest re‑lending; illegally extending loans to current students; granting loans without a specified purpose; or, under the guise of providing services or selling goods, effectively charging exorbitant interest (fees) in a disguised form of lending. At the same time, the Notice prohibits banking and financial institution employees from, as principal members or de facto controllers, engaging in organized private lending activities.
With regard to the conduct of private lending activities, the Notice stipulates the following: First, all banking and financial institutions, as well as micro‑loan companies and other entities authorized by competent authorities to provide loans or financing, shall operate in compliance with the law, strengthen their service orientation, develop credit products tailored to diverse customer segments, and intensify support for the real economy. Second, local people’s governments and relevant departments shall enhance coordination and cooperation and fulfill their duties in accordance with the law. Third, banking regulatory authorities, public security organs, market regulation and administration departments, the People’s Bank of China, and other pertinent agencies will promptly disclose typical cases to the public, step up publicity and education efforts, reinforce risk warnings, and raise the general public’s awareness of risk prevention.

The General Office of the People’s Bank of China has issued the “Notice on Further Clarifying Relevant Matters Concerning the Management of Overseas Securities Investments by Qualified Domestic Institutional Investors in Renminbi.”
On the 3rd, the People’s Bank of China issued the “Notice from the General Office of the People’s Bank of China on Further Clarifying Matters Related to the Management of Overseas Securities Investments by RMB‑Qualified Domestic Institutional Investors,” which sets out provisions on macroprudential oversight and information reporting for overseas investments by RMB‑qualified investors. The Notice stipulates that RMB‑qualified investors engaging in overseas investments shall not remit RMB funds abroad for the purpose of purchasing foreign currency.
The Notice states that overseas investment by RMB‑qualified investors refers to the investment, by domestic financial institutions licensed by the State Council’s financial regulatory authorities, of their own RMB funds or RMB funds raised from domestic institutions and individuals, in RMB‑denominated products in overseas financial markets (excluding the use of banks’ own funds abroad).
The Notice clarifies that RMB‑qualified investors engaging in overseas investments shall, in accordance with applicable regulations, submit to the Shanghai Head Office of the People’s Bank of China information on their basic details, custodian bank, sources and scale of funds, investment plans, fund remittances in and out, and overseas holdings.

Commercial & Corporate
The State Council has issued the “Opinions on Promoting the Development of ‘Internet Plus Healthcare’.”
Recently, the State Council issued the “Opinions on Promoting the Development of ‘Internet Plus Healthcare.’” The series of policies and measures outlined in these Opinions clearly demonstrate a strong commitment to supporting the development of “Internet Plus Healthcare,” emphasizing an innovation‑driven, inclusive yet prudent policy orientation. They also identify key areas for integrated development and establish a robust support system, while setting clear regulatory and security red lines. The introduction of these policies will help deepen the reforms aimed at streamlining administration, delegating power, improving regulation, and enhancing services, as well as addressing the imbalances and inadequacies in the development of the healthcare sector, thereby meeting the growing, multi‑tiered, and diversified healthcare needs of the public. The document comprises three main components:
First, we will improve the “Internet Plus Healthcare” service system. By advancing seven key areas—developing “Internet Plus” medical services, innovating “Internet Plus” public health services, optimizing “Internet Plus” family‑doctor contract services, enhancing “Internet Plus” pharmaceutical supply and security services, promoting “Internet Plus” medical insurance settlement services, strengthening “Internet Plus” medical education and science‑communication services, and advancing “Internet Plus” artificial intelligence applications—we will foster the integration of the internet with healthcare, covering numerous aspects of the coordinated development of medical care, pharmaceuticals, and medical insurance.
Second, we will improve the support system for “Internet Plus Healthcare.” Specifically, we will take concrete measures in five areas: accelerating the interoperability and sharing of healthcare information; refining the standards framework for “Internet Plus Healthcare”; enhancing hospital management and public‑service delivery; strengthening the infrastructure capacity of medical institutions; and promptly formulating and improving relevant supporting policies.
Third, strengthen industry oversight and security safeguards by establishing clear provisions for enhancing medical quality supervision and ensuring data information security, thereby ensuring the standardized and orderly development of “Internet Plus Healthcare.”

The China Securities Regulatory Commission and the Ministry of Housing and Urban–Rural Development have jointly issued the “Notice on Promoting Work Related to the Securitization of Residential Rental Assets.”
Recently, the China Securities Regulatory Commission and the Ministry of Housing and Urban–Rural Development, building on their earlier work, jointly issued the “Notice on Promoting the Securitization of Residential Rental Assets” (hereinafter referred to as the “Notice”). Advancing the securitization of residential rental assets will help unlock the value of existing rental‑housing stock, enhance capital efficiency, and foster the development of the residential rental market.
The Notice sets forth the basic requirements for launching asset-backed securities based on housing rental assets. These primarily include: the property must be completed and have clear ownership; its construction quality and safety standards must comply with relevant regulations; all required procedures for housing rental registration and filing must have been duly completed; the property must be in normal operation and generate consistent, stable cash flows; and the original rights holder must maintain sound corporate governance and have no material violations of laws or regulations in the past two years.
The Notice specifies the priority and key areas for support, clearly stating that asset securitization shall be prioritized for housing rental projects located in large and medium-sized cities, the Xiongan New Area, and other regions receiving focused national policy support, as well as in pilot cities undertaking the development of rental housing on collectively owned construction land.
The Notice has refined the procedures for securitizing housing‑rental assets. It encourages housing‑rental enterprises to undertake asset securitization in line with their operational conditions and financial needs, and it clarifies the processes for application, acceptance, review, and issuance. Moreover, it streamlines the procedures related to the construction, acceptance, filing, and trading of rental housing involved in such securitization initiatives, establishing a green channel to enhance efficiency.
The Notice explicitly calls for strengthening the supervision and management of asset-backed securitization in the housing‑rental sector. It sets out clear requirements regarding the establishment and improvement of compliance, risk‑control, and management systems; the development of a robust self‑regulatory framework; the prudent valuation of housing‑rental assets; and the reinforcement of the responsibilities of intermediary institutions and originators.
The Notice calls for fostering a favorable policy environment, cultivating diversified investment entities, encouraging specialized and institutionalized developers or operators, establishing and improving regulatory coordination mechanisms, and supporting the securitization of housing‑rental assets.

The Ministry of Culture and Tourism and the Ministry of Finance have jointly issued the “Guiding Opinions on Promoting the Public–Private Partnership Model in the Tourism Sector.”
The Ministry of Culture and Tourism and the Ministry of Finance recently jointly issued the “Guiding Opinions on Promoting the Public–Private Partnership Model in the Tourism Sector” (hereinafter referred to as the “Opinions”), which lays out a comprehensive plan to mobilize greater social resources to support the development of the tourism industry, explore and advance implementation pathways, development models, and long-term mechanisms for tourism PPPs, enhance the effectiveness of tourism investment and the efficiency of public resource utilization, and establish a number of demonstration tourism PPP projects.
The Opinions clearly state that priority will be given to supporting project development in emerging sectors such as tourist attractions, all‑area tourism, rural tourism, self‑drive and recreational vehicle campsites, tourist restrooms, tourism‑oriented towns, transport‑tourism integration, smart tourism, and health tourism. Furthermore, it calls for implementing agencies to adopt integrated planning, synergistic development, and comprehensive upgrading of government‑mandated public services—ranging from resource protection and environmental improvement to ecological conservation, cultural heritage preservation, advisory services, and public infrastructure—and to align these with adjacent or related commercial assets, including hotels, scenic areas, retail outlets, parking facilities, property management, advertising spaces, and fuel/gas stations. This approach aims to enhance the quality and efficiency of the tourism industry while driving its transformation and upgrading. In particular, eligible existing projects—such as nationally selected premium tourism initiatives and tourism‑driven poverty‑alleviation loan programs—will be prioritized for conversion into tourism PPP projects.
The Opinions require that, during implementation, relevant departments at all levels rigorously screen projects, ensure fair competition, appropriately allocate risks, safeguard reasonable returns, strictly manage debt, strengthen information disclosure, and enhance performance evaluation. At the same time, they call for bolstering policy support, reinforcing inter‑agency coordination and collaboration, establishing a priority recommendation letter system, optimizing funding mechanisms, leveraging exemplary cases to drive progress, expanding channels for financial support, instituting a dynamic assessment and adjustment mechanism, and making prudent arrangements for tourism‑related land use.

The National Energy Administration has issued the “Notice on Matters Concerning Alleviating the Burden on Enterprises in the Renewable Energy Sector.”
Recently, the National Energy Administration issued the “Notice on Matters Concerning the Reduction of Burdens on Enterprises in the Renewable Energy Sector” (hereinafter referred to as the “Notice”), which further standardizes the management of the renewable energy industry, alleviates the investment and operational burdens faced by renewable energy enterprises—including other institutions and individual investors—promotes a reduction in renewable energy costs, and supports the sound development of the real economy sectors related to renewable energy.
The Notice stipulates that the requirements of the Renewable Energy Law must be strictly enforced, and the guaranteed purchase system for renewable energy must be rigorously implemented. Grid enterprises are required to promptly process grid‑connection applications, set clear deadlines for connection, and implement the guaranteed purchase policy in accordance with the nationally approved minimum regional guaranteed purchase hours, achieving compliance no later than 2020. For regions that fail to meet these guaranteed purchase obligations, the State Council’s energy authority will adopt measures such as suspending the allocation of annual wind and photovoltaic power generation capacity targets, thereby moderating the pace of project development and construction.
The Notice clarifies that grid‑connection and transmission and distribution projects for all renewable energy generation projects connected to the transmission grid shall be wholly financed and constructed by the local power grid enterprise. For distributed renewable energy generation projects connected to the distribution grid, the grid‑connection works and associated grid‑upgrade projects shall also be financed and constructed by the power grid enterprise.
The Notice encourages renewable energy generators to participate in market‑based transactions for any electricity output exceeding the minimum guaranteed purchase hours. It stipulates that grid operators shall enter into priority dispatch contracts with renewable energy producers and implement a renewable energy quota system, thereby ensuring that market‑based electricity trading safeguards the legitimate rights and interests of renewable energy generators.
At the same time, the Notice outlines a series of measures to optimize the investment climate and reduce the costs of renewable energy development, including lowering land‑related expenses and eliminating unreasonable fees, leveraging green finance to cut corporate financing costs, and curbing and rectifying practices such as arbitrary charges that impose additional burdens on businesses.

The Ministry of Finance has issued the “Notice on Further Strengthening the Standardized Management of Public-Private Partnership (PPP) Demonstration Projects.”
On April 27, the Ministry of Finance issued the “Notice on Further Strengthening the Standardized Management of Public-Private Partnership (PPP) Demonstration Projects.” The notice stipulates that 173 demonstration projects identified as having issues during verification will be handled on a case-by-case basis: 30 projects, including the Baotou City Three-Dimensional Transportation Hub and the Comprehensive Tourism Highway, which are no longer to be implemented under the PPP model, will be removed from the list of demonstration projects and delisted from the National PPP Comprehensive Information Platform’s project database; meanwhile, 54 projects—such as the Hexi No. 3 Water Plant in Fengtai District, Beijing—whose social capital procurement has not yet been completed or whose implementation has undergone significant changes, will also be removed from the demonstration project list but retained in the project database for continued implementation under the PPP model.
In addition, for the 89 projects that exhibit irregular operating models, lax procurement procedures, or defects in the contracting parties, the relevant provincial finance departments, in coordination with pertinent stakeholders, are required to promptly oversee corrective measures and ensure completion by the end of June. Projects that remain non‑compliant with applicable requirements after the deadline will be removed from the list of demonstration projects or delisted from the project database.

Taxation TAXATATION
The State Taxation Administration has issued the revised Measures for Handling Matters Related to Enterprise Income Tax Preferential Policies.
To implement the tax system’s “delegation, regulation, and service” reform, optimize the tax environment, and effectively enforce the various preferential policies under the Enterprise Income Tax, the State Taxation Administration recently revised and reissued the Measures for Handling Matters Related to Enterprise Income Tax Preferential Policies (hereinafter referred to as the “Measures”).
(1) Simplify the procedures for handling preferential measures.
According to the Measures, all preferential treatments for enterprise income tax are administered under the “self-assessment, declaration-based enjoyment, and retention of relevant documentation for record‑keeping” procedure.
(II) Update the contents of the “Catalogue for the Administration of Corporate Income Tax Preferential Items”
In light of adjustments to the corporate income tax preferential policies, the “Catalogue of Filing and Administration for Corporate Income Tax Preferential Items (2015 Edition)” has been revised, and the “Catalogue of Management for Corporate Income Tax Preferential Items (2017 Edition)” (hereinafter referred to as the “Catalogue”) has been compiled.
(3) Strengthen the management of retained documentation for record-keeping purposes
Supporting documentation for record‑keeping refers to contracts, agreements, vouchers, certificates, documents, accounting records, explanatory notes, and other materials related to the preferential treatments enjoyed by an enterprise, which are used to verify whether the enterprise meets the conditions stipulated for such preferential measures.
(4) Reafoffice the rights, obligations, and legal liabilities of enterprises.
Enterprises are entitled, in accordance with the law, to enjoy tax incentives, and they also have the obligation to file returns accurately and on time, and to accept supervision and inspections. For the purposes of these Measures, “enterprise” includes resident enterprises as well as non-resident enterprises that have established institutions or establishments within the territory of China.
(5) Requirements for Subsequent Management
To strengthen administration, the Measures stipulate that tax authorities shall conduct follow-up management of enterprises’ enjoyment of preferential treatments, and enterprises are required to cooperate and submit supporting documentation for record‑keeping in accordance with the time limits and procedures prescribed by the tax authorities.

The Ministry of Finance, together with four other departments, has issued the “Notice on the Value-Added Tax Policy for Anti-Cancer Drugs.”
Recently, the Ministry of Finance, in conjunction with the General Administration of Customs, the State Taxation Administration, and the National Medical Products Administration, issued the “Notice on the Value-Added Tax Policy for Anti-Cancer Drugs,” the main contents of which are as follows:
I. Effective May 1, 2018, general VAT taxpayers engaged in the production, sale, wholesale, or retail of anti-cancer drugs may elect to calculate and pay VAT using the simplified method at a tax rate of 3%. Once such taxpayers have opted for the simplified method, they may not change their choice within 36 months.
II. Effective May 1, 2018, a reduced import value-added tax rate of 3% shall be applied to imported anti-cancer drugs.
III. Taxpayers shall separately account for the sales revenue of anti-cancer drugs. If such separate accounting is not maintained, the simplified tax collection policy stipulated in Article 1 of this Notice shall not apply.

Litigation & Arbitration
The Ministry of Justice has promulgated the Measures for the Implementation of the National Unified Legal Professional Qualification Examination.
Recently, the Ministry of Justice promulgated the Measures for the Implementation of the National Unified Legal Professional Qualification Examination (hereinafter referred to as the “Measures”), which shall take effect from the date of their publication. The Measures constitute the first set of regulations governing China’s legal professional qualification system, clearly defining such matters as eligibility requirements for registration, organizational implementation, disciplinary measures for violations, and the administration of qualification granting. They play a crucial role in standardizing the organization and conduct of the legal professional qualification examination.
The “Implementation Measures” comprise 7 chapters and 28 articles, as follows: Chapter 1, General Provisions, contains 5 articles. It clarifies the legal basis of the legal professional qualification examination system, the scope of persons required to pass the national unified legal professional qualification examination, the examination requirements, and the implementing authorities. Chapter 2, Examination Organization, consists of 3 articles, specifying the responsibilities of judicial administrative organs at all levels in the organization, administration, and management of the examination. Chapter 3, Eligibility for Registration, includes 2 articles, setting forth the positive and prohibitive conditions for registration; in accordance with the “Opinions” and relevant central regulations, it defines the academic qualifications required for applicants and the circumstances under which registration is prohibited. Chapter 4, Examination Content and Format, comprises 5 articles, stipulating the organizational structure, format, content, and passing criteria of the examination. Chapter 5, Disciplinary Measures, contains 2 articles, establishing general principles for addressing violations by examinees and examination staff. Specific detailed provisions on the handling of examination misconduct will be promulgated separately. Chapter 6, Granting and Administration of Qualifications, consists of 4 articles, governing the granting of qualifications and subsequent administration, and establishing a system for managing the personal files of those who obtain qualifications and for publicizing relevant information. Detailed rules for the administration of legal professional qualifications will be formulated separately. Chapter 7, Supplementary Provisions, includes 7 articles, setting out general principles regarding the transition between the old and new systems, the relaxation of eligibility criteria, and the participation of residents of Hong Kong, Macao, and Taiwan, as well as active-duty military personnel, in the national unified legal professional qualification examination.

The Supreme People’s Court has issued the “Decision on the Establishment of the Shanghai Financial Court (Draft).”
Recently, the Supreme People’s Court released the “Draft Decision on the Establishment of the Shanghai Financial Court,” with the following key provisions:
(1) On the Establishment of the Shanghai Financial Court
To explore and improve the financial adjudication system, foster a sound legal environment for finance, and refine a Chinese‑style financial judicial system, it is essential to base these efforts on the needs of economic and social development. Accordingly, Shanghai—where the number of financial cases is relatively high and the foundation for financial adjudication is strong—should be selected as the pilot site for establishing a financial court. The organizational structure of the Shanghai Financial Court’s trial divisions shall be specifically determined by the Supreme People’s Court, taking into account the types and volume of financial cases, as well as the views of the relevant institutional staffing authorities.
(II) On the Supervision of the Shanghai Financial Court
The Shanghai Financial Court is a specialized court, with the same level of jurisdiction as other intermediate people’s courts in Shanghai. Upon its establishment in accordance with statutory procedures, it is accountable to and subject to the oversight of the Standing Committee of the Shanghai Municipal People’s Congress. In accordance with the law, the Shanghai Financial Court’s adjudicatory work is guided by and subject to judicial supervision from the Supreme People’s Court and the Shanghai Higher People’s Court; moreover, the cases heard by the Shanghai Financial Court are, in accordance with the law, subject to legal supervision by the People’s Procuratorate.
(III) On the Jurisdiction of Cases at the Shanghai Financial Court
The Shanghai Financial Court has exclusive jurisdiction over financial and commercial civil cases, as well as financial administrative cases, that were previously under the jurisdiction of the intermediate people’s courts in Shanghai prior to the establishment of the Shanghai Financial Court. The specific scope of such cases shall be determined by the Supreme People’s Court. In particular, this includes: 1) first-instance, second-instance, and retrial financial and commercial civil cases—such as financial loan, negotiable instrument, letter of credit, securities, futures, insurance, financial leasing, pawnbroking, and financial arbitration matters—under the jurisdiction of the intermediate people’s courts within Shanghai; 2) first-instance, second-instance, and retrial financial administrative cases—where the defendant is a financial regulatory authority—under the jurisdiction of the intermediate people’s courts within Shanghai; 3) novel, significant, difficult, or complex first-instance financial and commercial civil cases, as well as financial administrative cases, within Shanghai; and 4) first-instance civil and administrative cases—where the defendant or third party is the Shanghai Stock Exchange, the Shanghai Branch of China Securities Depository & Clearing Corporation Limited, the Shanghai Futures Exchange, or other similar entities—arising from the performance of duties by such entities, as designated by relevant judicial interpretations of the Supreme People’s Court to fall under the jurisdiction of the intermediate people’s courts in Shanghai. Appeals against judgments and rulings rendered by the Shanghai Financial Court shall be heard by the Shanghai Higher People’s Court. The First, Second, and Third Intermediate People’s Courts of Shanghai shall no longer exercise jurisdiction over financial and commercial civil cases or financial administrative cases. The delineation of these jurisdictions is guided by the principles of strict adherence to the law, ease of understanding and application, and service to the overall development agenda; it underscores the specialized mandate of the Financial Court, ensures uniformity in judicial standards, strengthens direct coordination between the courts and financial regulatory authorities, and helps prevent financial risks. Following the adoption of the Decision (Draft) by the Standing Committee of the National People’s Congress, the Supreme People’s Court will issue a dedicated judicial interpretation to further clarify the jurisdictional issues of the Shanghai Financial Court.

Other
Four departments jointly issued the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions.”
To standardize asset management business of financial institutions, unify regulatory standards for similar asset management products, effectively prevent and control financial risks, and better serve the real economy, with the approval of the State Council, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange recently jointly issued the “Guiding Opinions on Regulating Asset Management Business of Financial Institutions” (Yin Fa [2018] No. 106, hereinafter referred to as the “Opinions”).
The Opinions, in line with the overarching directives of the CPC Central Committee and the State Council to “serve the real economy, guard against financial risks, and deepen financial reform,” and in accordance with the strategic plan to “resolutely win the battle against major risks,” adhere to a risk‑control‑first mindset, uphold the fundamental goal of serving the real economy, embrace a regulatory philosophy that integrates macroprudential management with microprudential supervision, adopt a problem‑oriented approach, and follow the guiding principle of advancing reforms in a proactive yet prudent manner. They comprehensively cover and uniformly regulate the asset‑management activities of all types of financial institutions, ensure fair market access and regulation, minimize opportunities for regulatory arbitrage, and effectively safeguard the legitimate rights and interests of financial consumers.
The Opinions standardize regulatory requirements across product types by classifying asset management products along two dimensions—fundraising methods and investment nature—and accordingly harmonize requirements related to investment scope, leverage constraints, information disclosure, and other aspects. They uphold the principle of matching products with investors, strengthen investor suitability management, and reinforce financial institutions’ duties of due diligence and information disclosure. The Opinions explicitly prohibit asset management entities from guaranteeing principal or returns, thereby breaking the practice of guaranteed repayment. They impose strict limits on investments in non-standard debt assets, ban fund‑pooling, and seek to mitigate shadow banking and liquidity risks. Liability‑related and tiered‑leverage requirements are standardized by category, eliminating multi‑layered nesting and curbing conduit‑type business. Finally, they enhance regulatory coordination, bolster macroprudential oversight, and strengthen functional regulation.
The Opinions uphold the principle of combining risk prevention with orderly regulation, appropriately establish a transition period, and grant financial institutions sufficient time to carry out orderly rectification and transformation of their asset management businesses, thereby ensuring the stable functioning of the financial market.

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