File Study

Action Plan to Promote Large-scale Equipment Renewal and Consumer Goods Trade-in

General Requirements

By 2027, the investment scale of equipment in industries such as industry, agriculture, construction, transportation, education, culture and tourism, and healthcare will increase by more than 25% compared to 2023. The energy efficiency of key energy-using equipment in major industries will reach the energy-saving level, and the proportion of production capacity with A-level environmental performance will increase significantly. The digital R&D design tool penetration rate and the numerical control rate of key processes in industrial enterprises above the designated size will exceed 90% and 75%, respectively. The number of scrapped cars will double compared to 2023, the volume of second-hand car transactions will increase by 45% compared to 2023, and the volume of waste home appliances recycled will increase by 30% compared to 2023. The proportion of recycled materials in the resource supply will further increase.

Implement Equipment Renewal Actions

• Promote equipment renewal and technological transformation in key industries: In industries such as steel, non-ferrous metals, petrochemicals, chemicals, building materials, power, machinery, aviation, shipbuilding, textiles, and electronics, promote the renewal and technological transformation of production equipment, energy-using equipment, power transmission and distribution equipment, etc. Eliminate non-compliant equipment in accordance with laws and regulations.
• Accelerate equipment renewal in the construction and municipal infrastructure sectors: In conjunction with urban renewal and renovation of old residential areas, focus on the renewal and renovation of residential elevators, water supply, heating, gas supply, sewage treatment, sanitation, urban lifeline projects, and security. Promote the upgrade and renovation of water treatment plants and pressurized water supply facilities and equipment nationwide. Promote the construction of IoT intelligent sensing equipment for urban lifeline projects such as underground pipelines, bridges, tunnels, and manhole covers. Accelerate the renovation of security equipment such as video surveillance in key public areas and roads.
• Support the renewal of transportation equipment and outdated agricultural machinery: Replace public buses with electric ones. Accelerate the structural adjustment of agricultural machinery.
• Improve the level of educational, cultural, and medical equipment: Encourage qualified medical institutions to accelerate the renewal and renovation of medical equipment such as medical imaging, radiotherapy, telemedicine, and surgical robots.

Implement Consumer Goods Trade-in Actions

• Trade-in of automobiles and home appliances
• Aging-friendly renovations

Implement Recycling and Circular Economy Actions

• Support electronic product manufacturers in developing second-hand transactions, refurbishment, and repair businesses.
• Promote the application of non-destructive testing, additive manufacturing, flexible processing, and other technologies to improve remanufacturing processing levels.
• Continuously improve the technology level of waste non-ferrous metal utilization, and strengthen the research and application of rare and precious metal extraction technologies. Timely improve import standards and policies for retired power batteries, recycled materials, and other related items.

Implement Standards Enhancement Actions

• Optimize and improve control levels for air and water pollutants.
• Vigorously popularize the knowledge of safe usage life and energy-saving practices for household appliances.
• Improve green design standards for materials and components that are easy to recycle, disassemble, regenerate, and remanufacture.
• Issue national standards for data erasure methods in second-hand transactions of electronic products such as mobile phones and tablets.
• Increase tax incentives for special equipment related to energy saving, water saving, environmental protection, and production safety, and include digital and intelligent transformation in the scope of preferential policies.
• Encourage banking institutions to appropriately reduce the down payment ratio for passenger car loans and reasonably determine the loan term and credit limit, under the premise of legal compliance and controllable risks.

Strengthen Policy Support

• Include eligible equipment renewal and recycling projects in the scope of funding support such as central budget investment.
• Use central government-arranged energy-saving and emission reduction subsidy funds to support eligible automobile trade-ins.
• Make full use of the subsidy policy for scrapping and renewing agricultural machinery.
• Promote the practice of “reverse invoicing” by resource recycling enterprises for individuals selling scrapped products.

Several Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-quality Development of the Capital Market

Strictly Control Issuance and Listing Access

• More effectively protect the legitimate rights and interests of investors, especially small and medium investors, and help better meet the growing wealth management needs of the people.
• Raise listing standards for the main board and build board, and improve the Sci-tech Innovation Board’s evaluation standards for innovation attributes.
• Clarify that dividend policies must be disclosed at the time of listing. Include situations such as “clearance-style” dividends before listing in the negative list for issuance and listing.
• Adhere to the principle of “responsibility upon application,” and strictly investigate and deal with violations such as fraudulent issuance.
• Reinforce strict supervision, and the returns on new offerings are back.

Strict Continuous Supervision of Listed Companies

• Seriously address illegal activities such as financial fraud and fund occupation in key areas.
• Effectively play the supervisory role of independent directors, strengthen the constraints on their performance of duties, and a group of independent directors will resign.
• Issue management measures for the reduction of shareholding in listed companies, and adopt a classified approach for different types of shareholders, providing exit channels for venture capital.
• Strictly prevent various types of shareholder bypassing reductions based on the principle of substance over form.
• Order violators to repurchase the shares reduced in violation of regulations and pay the price difference, this one is tough.
• For companies that have not paid dividends for many years or have low dividend ratios, restrict major shareholders’ reductions and implement risk warnings, promoting multiple dividends per year, advance dividends, and pre-spring festival dividends.
• Formulate guidelines for market value management of listed companies, and strictly crack down on illegal activities such as market manipulation and insider trading under the guise of market value management. Market value management is legalized.

Increase Delisting Supervision

• Establish and improve a differentiated delisting standard system for different boards.
• Further reduce the value of “shell” resources. No more “shells” in the future.
• Severely crack down on malicious activities such as financial fraud and market manipulation that evade delisting, and hold controlling shareholders, actual controllers, directors, and senior executives responsible for major violations in delisting accountable for compensating investors’ losses.

Strengthen Supervision of Securities and Fund Institutions, Promote the Industry to Return to Its Origins, and Enhance Quality

• Improve the securities and fund industry’s compensation management system, which is consistent with operating performance, business nature, contribution level, compliance risk control, and social culture. Resolutely correct the unhealthy trends of money-worship, luxury, hedonism, short-termism, and “showing off wealth.” “Live-streaming fund managers with good looks are done for.”

Strengthen Trading Supervision and Enhance the Inherent Stability of the Capital Market

• Strengthen the construction of strategic reserves and stabilization mechanisms. Stabilization funds are coming.
• Strengthen bottom-line thinking and improve response measures for extreme situations.
• Strictly investigate and deal with illegal activities such as market manipulation and malicious short selling, and strengthen deterrence and warnings.

Vigorously Promote Long-term Funds to Enter the Market, and Continue to Strengthen Long-term investment Power

• Build a policy system that supports “long-term funds for long-term investment.”
• Establish a fast-track approval channel for exchange-traded funds (ETFs) and promote the development of index-based investments.
• Steadily reduce the overall fee rate of the public fund industry and study the standardization of fund manager compensation systems.

Further Deepen Reform and Opening-up, and Better Serve High-quality Development

• Better serve the implementation of national strategies such as technological innovation, green development, state-owned enterprise reform, and the development and growth of small and medium-sized enterprises and private enterprises, and promote the development of new productive forces.
• Increase support for equity and bond financing for enterprises that align with national industrial policy orientations and have broken through key core technologies.
• Adhere to the coordinated advancement of high-level institutional opening and safety in the capital market.
• Improve the efficiency of the filing management of overseas listings.

Promote the Formation of Synergies to Promote High-quality Development of the Capital Market

• Significantly increase the cost of violations.
• Issue regulations on the supervision and management of listed companies.
• Strictly and tightly improve the management of departing personnel, and address issues such as “shadow shareholders,” improper shareholding, “revolving doors” between politics and business, and “escape-style resignations.”