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

以1978年为起点, 40年改革开放历程推动中国政治、经济、文化、社会等多领域呈现全面发展、多点突破的崭新局面, 金融开放作为改革开放进程中的亮眼篇章, 包括支付清算、债券投资、信用评级等领域开放化程度不断加深, 推进我国包括金融监管规则在内的金融基础设施与国际接轨。跨境资产证券化作为金融开放化进程下国际化结构性融资工具的重要安排之一, 亦迎来蓬勃发展的有利契机。
Continue Reading 放眼眺望, 诗和远方——跨境资产证券化的市场探析与未来展望

By Chang Junfeng, Gan Yulai and Deng Zhe King & Wood Mallesons’ Dispute Resolution group.

Is insider trading still under severe crackdown? 

Insider trading had always been the closely focused subject of the China Securities Regulatory Commission (the “CSRC”) in the recent years. In 2017, it became the top priority of the CSRC. According to the Bulletin of the China Securities Regulatory Commission Regarding Cases Handled in H1 2017, in the first half of 2017, the CSRC launched a total of 302 preliminary/formal investigations, 140 of which were new insider trading cases, making up 46% of the total number of investigations. Among these new insider trading cases, the CSRC initiated preliminary investigations into 104 of them and filed formal investigations into 36. In addition, on 7 July 2017, the CSRC issued the third batch of cases under investigation, with a heavy focus placed on insider trading.
Continue Reading Punishment and Conviction in Recent Insider Trading Cases

By Zhang Baosheng Wang Ting Zhu Jinshu King&Wood Mallesons’ Dispute Resolution Group

zhang_baoshengRecently, the Shanghai Stock Exchange (the “SSE”) and the Shenzhen Stock Exchange (the “SZSE”) restricted trading on 38 securities exchange accounts because of unusual trading behavior. This has caused widespread discussion in the securities market. What is unusual trading

By Guo Sun Lee  Hayden Flinn, King & Wood Mallesons’ Hong Kong Office

lee_guosunOn 10 July 2015 the Hong Kong Legislative Council agreed to extend the existing profits tax exemption for offshore funds to PE funds. The new exemptions, set out in the Inland Revenue (Amendment) Bill 2015 (the “Bill”), will come into effect shortly when the Bill is gazetted and will apply to transactions carried out after 1 April 2015.

The amendments, designed to address the concerns of offshore PE funds and promote Hong Kong’s status as an asset management hub, broaden the existing exemption to cover transactions in securities of certain private companies incorporated outside Hong Kong, to remove the requirement to transact through SFO licensed entities for ‘qualifying funds’ and to extend coverage to include special purpose vehicles.
Continue Reading Amended profits tax exemption a welcome change for private equity funds

作者:胡梅 刘海涛  金杜律师事务所争议解决组上海办公室

近几个月来,为数不少的中国企业被指控违反美国证券法和上市公司准则,并因此受到相关调查和法院诉讼。这些问题的曝光通常源于公司聘请的会计师事务所对公司财务信息真实性的怀疑,或是出于外界对公司某些不正当交易的指责。这些公司在被内部审计委员会、美国证监会和相关证交所调查的同时,也面临受害股东提起的法律诉讼。大多数这类中国公司根本没有预想到会面临这些诉讼和调查,也没有料想到其强度和因此会产生的高额费用。这一切都对公司及其董事、管理人员和员工形成了巨大的压力。公司为配合调查或应诉需要调集大量的人力和资金,相关的开支动辄上千万美元,同时还不可避免地殃及公司的日常运作和员工的士气。

为了合规以及应对在美诉讼都要付出高昂的资金成本,外加股价的低迷和交易量的骤减,对于中国企业来说,美国资本市场的吸引力已不如往日。
Continue Reading 中国公司在美国上市的法律风险和成本考量

作者:胡梅 刘海涛 北京金杜律师事务所争议解决

近几个月来,为数不少的中国企业被指控违反美国证券法和上市公司准则,并因此受到了相关调查和法院诉讼。这些问题的曝光通常源于公司聘请的会计师事务所对公司财务信息真实性的怀疑,或是出于外界对公司某些不正当交易的指责。这些公司在被内部审计委员会、美国证监会和相关证交所调查的同时,也面临受害股东提起的法律诉讼。大多数这类中国公司根本没有预想到会面临这些诉讼和调查,也没有料想到其强度和因此会产生的高额费用。这一切都对公司及其董事、管理人员和员工形成了巨大的压力。公司为配合调查或应诉需要调集大量的人力和资金,相关的开支动辄上千万美元,同时还不可避免地殃及公司的日常运作和员工的士气。

为了合规以及应对在美诉讼都要付出高昂的资金成本,外加股价的低迷和交易量的骤减,对于中国企业来说,美国资本市场的吸引力已不如往日。这些因素正促使一些中国公司重新考虑是否要继续保留其美国上市公司的资格。这类公司有多种退出机制可供选择。公司可以先退市,再通过私募收购实现私有化。公司也可选择退市后作场外交易,或者作为粉单上市公司。退市的成本一般会很高昂,因此在决定退市前公司需要先作慎重周密的考虑。

Continue Reading 中国公司在美国上市的法律风险和成本方面的考量

Jing Gang, Partner, and Wang Huapeng – Securities & Capital Markets Group 

1.The importance of foreign companies listing in China.

1.1 Permitting and attracting foreign enterprises to list on domestic stock exchanges is the norm on international capital markets.

From a global perspective, major securities exchanges are sparing no effort in attracting foreign enterprises to list, with foreign enterprises well represented on their lists of listed companies.Continue Reading Listing of foreign enterprises in China: Future Possibilities