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By Chen Yun (Robert) & Wang Rong King & Wood Mallesons’ Finance & Capital Markets group

chen_yunFinally after seven months of waiting, the Administrative Measures on Due Diligence of Tax Related Information in respect of Non-Resident Financial Accounts (the “Measures”) were jointly promulgated by the State Administration of Taxation (“SAT”), Ministry of Finance (“MOF”), People’s Bank of China (“PBOC”), China Banking Regulatory Commission (“CBRC”), China Securities Regulatory Commission (“CSRC”) and China Insurance Regulatory Commission (“CIRC”) on May 19, 2017.

Compared to the previous draft for public comments, there is no material change in the Measures. For relevant background information, please refer to our previous article: “PRC issued consultation paper for CRS/FATCA implementation rules”.
Continue Reading  CRS Implementing Rules Finally Released

By Mark Schaub,  Atticus Zhao, David Hong  King & Wood Mallesons’ Corporate & Securities group

schaub_mThe move towards self-driving cars is relentless and China as the world’s largest auto market and a leader in internet technologies wants to be at the cutting edge of this revolution.

That self-driving cars is a huge potential market seems clear. On March 3, 2017, IHS Markit, the leading automobile market intelligence firm, published its latest Advanced Driver Assistance Systems (ADAS) Applications and Sensors Report[1]. This report noted that the global ADAS market is set to explode and surpass 302 million units annually in 2022 – which would be a nearly 200% increase over the 2016 numbers. This growth is mostly driven by advances in sensors technology that can be combined to provide better automated driving and includes aftermarket ADAS solutions for existing vehicles.
Continue Reading China: ADAS to Self-driving Cars – The Journey Starts

By King & Wood Mallesons

On 19 May 2017, BOCOM International Holdings Company Limited (BOCOM International, stock code: 3329), advised by King & Wood Mallesons (KWM), was successfully listed on the main board of the Stock Exchange of Hong Kong Limited (SEHK). The basic issuance size was approximately 667 million shares, priced at HK$2.68 per share, raising approximately HK$1.68 billion. The transaction involved Bank of Communications, an A + H shares listed company, spinning off its subsidiary BOCOM International to be listed on SEHK, making BOCOM International the first listed securities firm with a PRC bank background  in Hong Kong.
Continue Reading King & Wood Mallesons advises BOCOM International to become the first HK-listed securities firm with a PRC bank background

By Susan Ning King & Wood Mallesons’ Commercial & Regulatory group

ning_susanThe reform and opening up in China has been a process of establishing and improving a modern market system. As this process deepens, “building a unified, open, orderly and competitive market” has become the goal of the market economy reform. The year 2017 is the second year of China’s 13th Five-year Plan, in which “market” and “competition” are the key points that cannot be overlooked. According to the Plan, establishment of a modern market system requires accelerating the development of a unified, open, orderly and competitive market, establishing mechanisms for ensuring fair competition, overcoming regional segmentation, breaking up industry monopolies, and removing market barriers in order to promote the free and orderly flow and equitable exchange of goods and factors of production [1]

The Plan obviously lays an unprecedented emphasis on the market’s fundamental role in resource allocation. Meanwhile, the government is taking or strengthening regulatory measures to control market disrupting risks, resorting to the law to ensure orderly operation of the market economy and to resolve externality problems of the market. Compliance issues regarding anti-corruption, employment, tax, anti-monopoly, and environmental protection are now under strict government supervision. Reinforcing the compliance system, therefore, by incorporating it into the “Now Normal” management mechanism is a path enterprises must take in their development.
Continue Reading Compliance Challenges for Businesses in the “New Normal”

By Mia Qu, Hannah Sun and Wendy Dong King & Wood Mallesons’ Dispute Resolution group

qu_miaoTo protect your IP rights, sending potential infringers a Cease & Desist Letter or Warning Letter (the “Letter”) is one of the most common tools. Is it a necessary step before starting any legal proceedings in China？What legal consequences does it entail? Are there any issues that must be attended to? How effective is the Letter? This article will try to project a bird’s eye view regarding everything you should know before sending the Letter to your potential infringers.

Purpose of Sending the Letter

Sending the Letter is not a condition precedent for the right holder to initiate legal actions in China. The purpose of sending the Letter includes:
Continue Reading Everything You Should Know before Sending a Cease & Desist Letter in China

By King & Wood Mallesons

King & Wood Mallesons confirmed today that Sue Kench has been appointed as Global Managing Partner, effective 1 June 2017.

Sue has held the role of Chief Executive Partner Australia since 2013 and over that time the Australian business has gone from strength to strength, gaining market share, growing profit and revenue and winning a range of coveted awards. She is a current member of the firm’s Global Executive Committee and International Management Committee.

Sue will lead the firm’s global strategy and operations with a focus on cementing KWM as the leading international firm in Asia.
Continue Reading King & Wood Mallesons appoints new Global Managing Partner and Global COO

By King & Wood Mallesons

20 May 2017, King & Wood Mallesons (KWM) was ranked as a Tier 1 law firm in both Patent and Trademark/Copyright in the Asian Legal Business (ALB) 2017 IP Rankings for the third consecutive year. Taking account of factors including volume, complexity and size of work undertaken, clients, team, and the firm’s year-on-year development and growth momentum, ALB concluded the final rankings in the two categories of patent and trademark/copyright. KWM’s IP team strengthens its leading position in both contentious and non-contentious by this ranking, with outstanding and first-class expertise and reputation among clients.
Continue Reading King & Wood Mallesons Continuously Tops ALB 2017 IP Rankings in the Third Year

By King & Wood Mallesons

2 May 2017, acting as counsel for All-Stars Investment, King & Wood Mallesons (“KWM”) facilitated the series B round of financing for Logistics QQ Truck Alliance (“Truck Alliance”), raising more than US$270 million of new capital. This is the largest round of funding thus far amongst online long-haul logistics platform start-ups in China. International Finance Corp (“IFC”) and All-Stars Investment Ltd co-led the financing, and several new heavyweight institutions and existing investors also jumped on the bandwagon to invest new cash. Truck Alliance’s valuation now exceeds US$ 1 billion and joins the ranks of “unicorn” companies in China.  
Continue Reading King & Wood Mallesons represents All-Stars Investment in Logistics QQ Truck Alliance’s US$ 270 million Round B financing, minting another unicorn

By Mark Schaub and Chen Bing King & Wood Mallesons’ Corporate & Securities group.

schaub_m1Many international companies that have seen sales of product rocket via Chinese ecommerce celebrated the March 17 Announcement by MOFCOM (i.e. a press release regarding the supervision of products imported through cross-border ecommerce (“CBEC Products”) during and after the extended grace period) as a signal that the good times will continue to roll. As stated in our previous article[1] we had concerns that many were reading too much into the March 17 Announcement and in particular the Chinese authorities would continue to have concerns about ensuring consumer safety.

Recently, Xiaoming Yuan, the Deputy Director-General of the Financial Department of the Ministry of Commerce (“MOFCOM”) in an interview with Oriental Outlook provided useful background about the context and implications of the March 17 Announcement.
Continue Reading China Cross-border Ecomm: Intentions Become Clearer

By Mark Schaub and Chen Bing King & Wood Mallesons’ Corporate & Securities group

schaub_m1On April 28, 2017, China Food and Drug Administration (“CFDA”) released for public comment a draft Opinion on the Further Strengthening of the Supervision of Health Food (“Draft Opinion”).

The Draft Opinion leans heavily on principles already set out in the new Food Safety Law and the Administration Measures on Registration and Filing of Health Food (“Administration Measures”) of 26 February 2016 but also does give a hint as to their current thinking in relation to health food registration and filing:
Continue Reading CFDA Further Strengthen the Supervision of Health Food