1. Administrative Measures for Financial Leasing Companies

Effective from November 1, 2024

To regulate the business conduct of financial leasing companies, mitigate financial risks, and promote their stable operation and high-quality development, these Measures are formulated in accordance with the Banking Supervision Law and other relevant laws and regulations. The main contents of these Measures are as follows:

1.1 Improvement of the Major Shareholder System

The minimum registered capital requirement for financial leasing companies is raised to 1 billion RMB (or its equivalent in freely convertible currency) to strengthen their risk-resistance 

capacity. New categories of major shareholders include state-owned capital, state-owned financial capital, and foreign manufacturing enterprises. Market access standards are appropriately raised, including total assets, operating income, registered capital, and minimum shareholding ratios for major shareholders.

1.2 Strengthening Business Classification Supervision

To further clarify the scope of core and specialized business activities, the Measures categorize businesses based on their risk levels and required professional expertise. Non-core and non-essential activities are to be excluded, and strict tiered supervision is applied.

1.3 Strengthening Corporate Governance Supervision

The Measures further specify regulatory requirements concerning the party-building of financial leasing companies, the "three meetings and one level" system, shareholder obligations, remuneration management, related party transactions, and information disclosure.

1.4 Strengthening Risk Management

Clear regulatory requirements are outlined regarding the capital adequacy, credit risk, liquidity risk, operational risk, and major related-party transactions of financial leasing companies. The Measures optimize additional regulatory indicators and specify the requirements for regulatory ratings and enforcement actions.

1.5 Regulating Cross-border Leasing Business

The Measures establish rules for the operation of cross-border financing leases, stipulating that financial leasing companies manage overseas project companies as specialized businesses.

1.6 Improving Business Operation Rules

Financial leasing companies must select appropriate leased assets, ensuring clear ownership, specificity, disposability, economic value, and income generation potential.

2. Interpretation of Several Legal Issues Regarding Criminal Cases of Refusal to Execute Judgments or Rulings

Effective from December 1, 2024

To severely punish the crime of refusal to execute judgments, which has elicited strong public responses, and to effectively protect the legitimate rights of successful litigants, the Supreme People’s Court and the Supreme People’s Procuratorate jointly issued this interpretation. The main contents include the following:

2.1 Clarification of “Able to Execute but Refuses to Execute, with Severe Circumstances”

These circumstances primarily include: 

Maliciously disposing of property rights without compensation by abandoning claims or collateral, maliciously extending the maturity of a debt, or disposing of property rights through fraudulent settlements or false transfers, which prevent the execution of judgments or rulings;

Engaging in acts that maliciously diminish assets subject to liability, such as acquiring another’s property at an unreasonably high price or providing guarantees for another person’s debts, reducing the assets available to fulfill the judgment or ruling, leading to its non-enforcement; 

Refusing to fulfill obligations, such as assisting in the exercise of personal rights, even after coercive measures (e.g., fines or detention) have been taken, thereby preventing enforcement of the judgment or ruling, with particularly severe circumstances;

Obstructing enforcement personnel from entering the execution site by means such as intimidation, verbal abuse, mob disturbances, or threats, resulting in the inability to carry out enforcement, with particularly severe circumstances;

And other similar situations.

2.2 Clarification of “Particularly Serious Circumstances”

This includes: obstruction of enforcement through fraudulent litigation, arbitration, or notarization, causing the judgment or ruling to be unenforceable; organizing groups to interfere with the execution process; using violent methods such as siege, detention, or assault against enforcement personnel, preventing the execution of judgments; and causing serious consequences such as suicide or self-harm of the applicant due to refusal to execute the judgment; and other particularly serious circumstances.

2.3 Hiding or transferring assets before the judgment or ruling becomes effective may constitute the crime of refusing to execute a judgment or ruling.

If a person, in order to evade execution obligations, engages in acts such as hiding or transferring assets after the commencement of litigation and before the judgment becomes effective, and if these actions are verified to be true after the judgment or ruling becomes effective, and the person refuses to comply with the execution upon being required to do so, criminal liability for the crime of refusing to execute a judgment or ruling may be pursued.

2.4 The Criminal Liability of Third Parties for Assisting in Hiding or Transferring Assets

If a third party, knowing that an individual who is obligated to execute a judgment or ruling has the ability to comply but refuses to do so, conspires with the obligated individual and assists in hiding or transferring assets or other acts of refusal to execute, resulting in the inability to enforce the judgment or ruling, the third party may be prosecuted as an accomplice for the crime of refusing to execute a judgment or ruling.

2.5 Aggravating Circumstances

If a person refuses to comply with a judgment or ruling requiring the payment of support fees, medical expenses, or labor remuneration, and such refusal constitutes a criminal offense, the person shall be subject to a more severe penalty in accordance with the law.

3. Measures for Joint Punishment of Telecommunications Network Fraud and Related Illegal Activities

Effective from December 1, 2024

In order to combat and govern telecommunications network fraud and its related crimes, these Measures are formulated in accordance with the Anti-Telecommunications Network Fraud Law and other related laws and regulations. The main contents are as follows:

3.1 Scope of Punishment

Persons criminally liable for telecommunications network fraud and related crimes; individuals, organizations, or entities identified as engaging in the illegal buying, selling, renting, or lending of phone cards, IoT cards, fixed-line telephones, telecom lines, SMS ports, bank accounts, payment accounts, digital RMB wallets, internet accounts, etc.

3.2 Punitive Measures

Comprehensive measures including financial sanctions, telecommunications network restrictions, and credit sanctions will be applied, while ensuring the basic financial and communication services required for the punished individuals’ living needs.

-Financial Sanctions:

1)Restrictions on non-counter withdrawal functions of bank accounts and digital RMB wallets held by the punished individual.

2)Restrictions on payment account services, with account balances transferable only to the individual’s bank account with the same name.

3)Suspension of opening new payment accounts or real-name digital RMB wallets for the individual. Newly opened bank accounts shall comply with the requirements set forth in Paragraph 1 of this Article.

-Telecommunications Network Sanctions: 

1)Restrictions on functions and services associated with phone cards, IoT cards, fixed-line telecom lines, SMS ports, etc., under the name of the subject of punishment, including but not limited to transfer and other related services;

2)Restrictions on the use of internet accounts registered under the phone cards held by the subject of punishment that is identified as having fraud risk, as well as related business operations.

-Credit Sanctions:

1)Individuals will be included in the “seriously untrustworthy subject list” of telecommunications network fraud and shared on the national credit information platform.

2)Information on these individuals will be publicly disclosed through the “Credit China” website and included in the financial credit information database.

3.3 Duration of Punishment

The duration of punishment for different subjects will be 2 or 3 years, with a maximum continuous punishment period of 5 years if the subject is included in the sanction list multiple times within the same duration.

4. Pre-school Education Law of the People’s Republic of China

Adopted on November 8, 2024, and effective from June 1, 2025

In order to ensure that children of the appropriate age receive pre-school education, standardize the implementation of pre-school education, and promote its universal and safe high-quality development, this Law is formulated in accordance with the Constitution. The main contents of the Law include:

4.1 Public Welfare and Inclusiveness

The state will promote the popularization of pre-school education, building a public service system that is comprehensive, well-distributed, inclusive, safe, and of high quality, with particular emphasis on the needs of ethnic minorities, border areas, underdeveloped regions, and vulnerable groups such as orphans, children with disabilities, and left-behind children.

4.2 Government Leadership and Guarantee Mechanism

The Law stipulates that the primary source of funding for pre-school education shall be from government investment, supplemented by reasonable family contributions and diversified funding channels. It also defines the sharing mechanism for pre-school education fiscal input and subsidies.

4.3 Child-Centered, Improving Care and Education Quality

Local governments at various levels shall facilitate the access of children to pre-school education near their parents' or guardians’ workplace or residence. No form of entrance examination or testing is allowed for children entering pre-school. Pre-school activities shall be regulated, with a focus on combining care with education, and no primary school curricula should be taught.

4.4 Teacher Quality Enhancement

-Strengthen staffing arrangements. The Law requires that kindergartens and their organizers to ensure adequate and appropriate staffing of teachers and other personnel according to relevant standards.

-Implement strict hiring management. Kindergartens must conduct background checks and health examinations for teachers and other staff they hire. Individuals whose backgrounds or health conditions may pose a risk to the safety and well-being of children, or who are deemed unsuitable for early childhood education, must not be hired.

-Strengthen compensation guarantees. Kindergartens and their organizers must guarantee the salaries and welfare of teaching staff. The salaries of teachers in public kindergartens should be incorporated into the scope of fiscal guarantees.

4.5 Strengthening Fee Management

Reasonable fee standards shall be set for public and non-profit private kindergartens and periodic fee adjustment mechanism shall be established to encourage reasonable charges, and curb excessive fees.