On 8 February 2021, the Securities and Futures Commission of Hong Kong* (the “SFC”) issued a consultation paper[1] (the “Consultation Paper”) which, if enacted as proposed, would have a far-reaching impact on the way in which public offerings of equity and debt securities are made in Hong Kong SAR. Comments to the Consultation Paper will be open through 7 May 2021. The Consultation Paper was issued exactly one week after the end of the consultation period (1 February 2021) for a consultation paper by The Stock Exchange of Hong Kong Limited (the “SEHK”) that dealt with increasing the profit requirement for the Main Board.[2] That earlier consultation paper by the SEHK generated much debate from certain market participants and we expect that the Consultation Paper will likewise invite significant discussion in the industry.
Continue Reading SFC’s Consultation: Bookbuilding and Placing in ECM & DCM

In the field of medicine, the research and development of innovative drugs often require a large amount of capital and human resources. It often takes billions of dollars of investment and years of experimentation and examination before the drugs can finally be marketed. Thus, innovative drugs belong to a special field highly dependent on intellectual property protection. Only by strengthening the protection of intellectual property rights, especially the protection of medicine-related patents, can we continue to promote the development of more and more innovative drugs, thereby helping to ensure the life and health interests of the people.
Continue Reading Stability Analysis of Patents with Compound Subject Matter during Invalidation Stage

At the end of 2020, China National Intellectual Property Administration (CNIPA) published the latest version of revision of the Guidelines for Patent Examination, all of which were aimed at Chapter X of Part II (“Some Provisions on Examination of Invention Applications in the Field of Chemistry”). The revision came into force on January 15, 2021. The revision involves many aspects, mainly including supplementary experimental data, as well as judgement of novelty and inventiveness of patent applications for inventions for compounds and inventions in biological field. The revision of supplementary experimental data may mainly be intended to meet China’s commitments in the Sino-US trade agreement;therevision of compound inventions is intended to eliminate the discord between Chapter IV (Inventive Step) and Chapter X (Chemical Inventions) of the Guidelines for Patent Examination;and the revision of inventions in biological field clarifies examination practices in the past several years on the grounds that the old Guidelines for Patent Examination could not keep pace with development of science and technology. There is no doubt that the revision will have a great impact on future prosecution of patent applications. The revision will be described in detail below.
Continue Reading Interpretation of Main Points of Revision of the Guidelines for Patent Examination (2020)

At the beginning of 2021, China issued another important statute on trade compliance – the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (the “Rules”), following the promulgation and implementation of the Provisions on the Unreliable Entity List (“UEL Provisions”) and the Export Control Law and other relevant laws and regulations in the second half of last year. The Rules have attracted wide public attention and media coverage since its introduction. China has not yet issued any prohibition order on the application of any specific extra-territorial laws in accordance with the Rules, and the enforcement requirements of the relevant provisions thereof are still up in the air. However, a number of enterprises have already encountered various problems in practice. In this article, we will continue to discuss the following key issues upon the implementation of the Rules by referring to similar rules and relevant cases in other countries.
Continue Reading International Comparative Study on Several Issues of the Blocking Rules

In cross-border transactions, parties commonly insert a “liquidated damages” clause in their contracts. Such a clause clearly stipulates the amount of damages that the defaulting party shall pay if the contract is breached. The purpose is to deter parties from breaching the contract and to allow parties to contractually pre-agree on a measure of damages that may be difficult to prove once incurred, thereby providing parties with certainty and allowing parties to expedite the process of recouping losses.
Continue Reading An update on international legal positions——Liquidated damages

On January 9, the PRC Ministry of Commerce issued the Rules on Counteracting Unjustified Extra-territorial Application of Foreign Legislation and Other Measures (the “Rules”). The Rules set out roughly the rights and obligations of the parties which may be adversely impacted by such unjustified extra-territorial application of foreign legislation or other measures and also the actions that may be taken by the government.
Continue Reading China’s New Blocking Statute Paving the Way for Compensation

In order to carry out the central government policy of opening up financial market and implement the Regulations on Administration of Foreign-funded Insurance Companies (the “Regulations”) amended by the PRC State Council on September 30, 2019, China Banking and Insurance Regulatory Commission (the “CBIRC”) issued a Draft for Comments of the Implementing Rules for the Regulations on Administration of Foreign-funded Insurance Companies (the “Draft Rule”) on December 31, 2020 for public opinion. The Draft Rule proposes to clarify some major issues presented during the implementation of the Regulations, such as the ambiguity in recognizing the “Foreign Insurance Group Company” and the “Overseas Financial Institution”. Below we would like to provide an overview of the Draft Rule and highlight the major changes.
Continue Reading Overview of the Draft Rule on Foreign-funded Insurance Companies

Written by :Tai Hong、Wei Jie

Translated by :Cheng Cheng

In recent years, the Central Committee of the Central Committee of the Communist Party of China (“CPC”) with General Secretary Xi Jinping at the core leader has repeatedly stressed that “innovation is the first driving force to lead development, and protection of intellectual property rights is to protect innovation”, especially “to accelerate the construction of intellectual property rights protection system in emerging fields and business types.”  As an important industry related to public health, the Central Committee of the CPC and the State Council have also proposed to promote relevant innovations and set up a supporting protection mechanism in intellectual property in several documents such as the Opinions on Deepening the Reform of the Evaluation and Approval Systems and Encouraging Innovation on Drugs and Medical Devices and the Opinions on Strengthening the Protection of Intellectual Property Rights.   Among them, under the purposes of “promoting structural adjustment and technology innovation in drug and medical device industries, improving industrial competitiveness” and “protecting the lawful rights and interests of patentees, reducing the risks of patent infringements by generic drugs, and encouraging the development of generic drugs”, exploring and establishing a drug patent linkage system has become an important task repeatedly mentioned.
Continue Reading Preliminary Discussion on Chinese Drug Patent Linkage System