The so–called short swing profit rule ("SSPR") is originally provided in the PRC Securities Law. Under Article 44 of the PRC Securities Law, for shareholders that hold more than 5% shares of a listed company or a company whose stocks are traded on the other national securities trading venues as approved by the State Council, directors, supervisors or senior management personnel of the said company, where they buy/sell and then sell/buy within six months the stocks or other securities of equity nature in the said company, the proceeds realized from such transactions shall belong to the said company, and the board of directors of the said company shall recover the proceeds. Article 44 further provides that the China Securities Regulatory Commission ("CSRC") may prescribe exemptions under which the SSPR shall not apply.

On July 9, 2023, the State Council of the People's Republic of China[1] promulgated the Regulations on Supervision and Administration of Private Investment Funds ("Regulations"), which will take effect from September 1st, 2023. According to the Q&A regarding the Regulations published by the China Securities Regulatory Commission ("CSRC") and the Ministry of Justice ("Q&A"), the Regulations are primarily intended to ensure financial security through controlling risk sources and to enhance the functioning of private funds to support the real economy. In addition, the Regulations aim to define the bottom line of regulatory supervision, strengthen interim and ex post supervision, and adopt a differentiated regulatory approach for regulating various types of private funds, especially venture capital funds.

On July 13, 2023, the Cyberspace Administration of China ("CAC"), together with the National Development and Reform Commission, the Ministry of Education, the Ministry of Science and Technology, the Ministry of Industry and Information Technology, the Ministry of Public Security, and the National Radio and Television Administration issued the Interim Measures for Generative Artificial Intelligence Services (the "Interim Measures"), which will come into effect on August 15, 2023. The Interim Measures have been substantially revised based on public feedback received in response to the Measures for Administration of Generative Artificial Intelligence Services (the "Draft"), which the CAC issued for public comments on April 11. Compared to the Draft, the Interim Measures provide greater tolerance for immature generative AI services and place more emphasis on encouraging technological development and innovation, while better balancing development and security at the principle and institutional levels.