On Monday, September 4th, 2023, the State Council Press Office held a routine briefing on the State Council policy, and invited Vice Minister Jong Li of Ministry of Human Resources and Social Security, Deputy Director Huang Huabo of the National Health Insurance Bureau, Director Zhang Xun of the Third Legislative Bureau of the Ministry of Justice, Director Tan Chaoyun of the Ministry of Human Resources and Social Security Regulation Department, Director Zhai Yanli of the Ministry of Human Resources and Social Security Social Insurance Management Center, and Director Long Xuewen of the National Health Insurance Management Center to introduce them.Regulations on handling social insuranceRelevant information, and answer questions from reporters.

[Jong Li, Vice Minister of Ministry of Human Resources and Social Security]

On August 16th, Premier Li Qiang signed the State Council Order No.765, promulgating the Regulations on Handling Social Insurance, which will take effect on December 1st, 2023. Below I will give you a brief introduction on the formulation of the Regulations.

Social security service is the "last mile" of the social insurance system, which plays an important role in serving the people, implementing people’s livelihood policies and promoting the high-quality development of social security. The CPC Central Committee and the State Council attached great importance to social security work and made a series of major arrangements to strengthen social security handling. General Secretary of the Supreme Leader pointed out that the social security system is the safety net of people’s life and the stabilizer of social operation, and stressed the need to improve the social security management system and service network, and strengthen social security work from all aspects of legislation, law enforcement, justice and law-abiding. This provides a fundamental basis for us to improve the social security system and promote the development of social security management. The 20th National Congress of the Communist Party of China proposed to improve the multi-level social security system covering the whole people, coordinating urban and rural areas, being fair, unified, safe, standardized and sustainable. This has clearly defined the target requirements for doing a good job in social security management.

Since the 18th National Congress of the Communist Party of China, the Ministry of Human Resources and Social Security, the National Health Insurance Bureau and other departments have resolutely implemented the important instructions of the Supreme Leader General Secretary and the decision-making arrangements of the CPC Central Committee and the State Council, adhered to the people-centered development ideology, comprehensively deepened reforms, and built the largest social security system in the world. We have continued to implement the universal enrollment plan. The number of participants in basic old-age insurance, unemployment insurance, industrial injury insurance and maternity insurance has reached 1.057 billion, 240 million, 294 million and 246 million respectively, and the enrollment rate of basic medical insurance has stabilized at around 95%. Strengthen the fund support capacity, the accumulated balance of various social security funds exceeds 12.5 trillion yuan, and the market-oriented investment operation has steadily expanded; Continuously optimize the handling service system and achieve full coverage of provinces, cities, counties, towns (streets) and villages (communities). The steady development of social security and the improvement of the efficiency of handling services have effectively enhanced the people’s sense of happiness and security.

At present, China’s social security system reform has entered a stage of system integration, coordination and high efficiency, which puts forward new and higher requirements for social security management. As the first administrative regulation in the field of social security management, the Regulations mark a new step in the legalization, standardization and refinement of social security management, which is of great milestone significance.

The "Regulations" consists of 7 chapters and 63 articles. The main contents are summarized as "five clarifications": First, the scope of application is clarified. These Regulations shall apply to the social insurance stipulated by the state, such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance. The second is to clarify the responsibilities of the agency. It is stipulated that the social security agency shall handle the responsibilities of social insurance relationship registration and transfer, information recording and storage, and treatment approval and distribution. This further reflects the social security agency’s responsibility as the concrete executor of social insurance policy, the direct guardian of the people’s rights and interests, and the front-line provider of public services. The third is to clarify the requirements for convenience and benefit. It is required that people can enjoy more efficient and convenient public services by strengthening information sharing, reducing certification materials, shortening the processing time limit and providing humanized and personalized services to special groups. The fourth is to clarify the supervision and management measures. Require social security agencies to negotiate and sign service agreements with eligible institutions to standardize social insurance services. The administrative departments of human resources and social security and medical security are required to supervise and inspect social security agencies and social security service agencies, and establish a social insurance credit management system. Require financial departments and audit institutions to supervise according to law. The fifth is to clarify the legal responsibility. The corresponding legal responsibilities are stipulated for illegal acts such as defrauding social security fund expenditures, concealing, transferring, encroaching, misappropriating social security funds or illegally investing in operations.

The "Regulations" are based on standardizing handling, optimizing services, ensuring safety, safeguarding rights and interests, and promoting fairness, and strive to improve the social security handling service system, improve service levels, and improve service efficiency. The promulgation and implementation of the "Regulations" is conducive to improving the refined management and service level of social security agencies, improving the efficiency of social security governance, better meeting people’s expectations for high-quality life, and playing an important role in the high-quality development of social security agencies. The Ministry of Human Resources and Social Security and the National Health Insurance Bureau will take the promulgation and implementation of the Regulations as an opportunity to formulate and improve relevant supporting rules and regulations, further standardize handling services, improve service quality, and promote convenience and benefit.

　　CCTV News:This afternoon, the Shanghai No.1 Intermediate People’s Court publicly pronounced the cases of 12 defendants, including Shanghai Shentong Investment Group Co., Ltd., Shanghai Shentong Dada Asset Management Co., Ltd. and defendants Ma Shenke and Shan Kun, for fund-raising fraud and illegal absorption of public deposits, and fined Shentong Group and Shentong Dada Company RMB 300 million and RMB 100 million respectively for fund-raising fraud. Ma Shenke was sentenced to life imprisonment for the crime of fund-raising fraud, deprived of political rights for life, and fined RMB 20 million; Shan Kun was sentenced to 12 years in prison, deprived of political rights for two years and fined RMB 1 million for the crime of fund-raising fraud. At the same time, 10 people, including Chen Shangkun, were sentenced to fixed-term imprisonment ranging from 11 years to 3 years for the crime of fund-raising fraud and the crime of illegally absorbing public deposits, and were deprived of political rights and fined.

　　It was found through trial that from October 2013 to December 2015, the defendant units Shentong Group and Shentong Dada Company used "Dadabao" online financial management software, or set up a limited partnership to attract investment partners by publishing projects for their own use, false projects and projects whose profitability could not be guaranteed, and sold all kinds of packaged financial products, and handed over the raised funds to Shentong Group for unified control. Most of the fund-raising funds of more than 14.4 billion yuan were used to return the principal and interest of fund-raising, operating expenses and employee salary expenses, or for personal profligacy. As of the time of the incident, more than 60,000 victims lost more than 6.46 billion yuan.

　　Up to now, this case has sealed up, detained and frozen related bank accounts, Alipay accounts, real estate, cars, watches and equity. At present, the recovery work is still in progress, and the recovered assets will be transferred to the enforcement agencies and eventually returned to the victims in proportion.

　　The court held that the two defendants and five people, including Ma Shenke, Shan Kun and Chen Shangkun, used or participated in the illegal fund-raising by fraudulent means for the purpose of illegal possession, and their actions constituted the crime of fund-raising fraud, and the amount was extremely huge. Defendants Zhang Yili, Xu Yingyi, Gao Boyi and other seven people violated the relevant state regulations, illegally absorbed public deposits, and disrupted the financial order. Their actions all constituted the crime of illegally absorbing public deposits, and the amount was huge. 2. The illegal fund-raising activities of the defendant unit and 12 defendants, including Mashenko, Shan Kun and Chen Shangkun, seriously disrupted the national financial management system and should be severely punished according to law. Shanghai No.1 Intermediate People’s Court made the above judgment according to the criminal facts, nature, circumstances and social harm of the two defendant units and defendants.

　　Nearly 500 people, including relatives of the defendants, some victims, representatives of the Municipal People’s Congress, CPPCC members, and invited supervisors, attended the trial and sentenced. (CCTV reporter Yu Xiang)