Seizing opportunities in investment, financing

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    From left: Jordan Yang, Cathy Fu, Carl Miao,Zhang Haoliang, Huang Rui, Victor Shen and Hope Hang

    During the roundtable session of the CBLJ Forum 2019, lawyers from AllBright Law Offices moderated with guests and arbitration experts, discussing the topic “Financial Markets, opportunities in investment and financing, and legal risk prevention”.

    Attending the session were senior partners Andy Zhao, Cathy Fu, Carl Miao, partner Jordan Yang, at AllBright Law Offices, Zhang Haoliang, director of the Beijing Arbitration Commission (BAC) Business Development / International Case Division, Huang Rui, arbitrator at the BAC and the China International Economic and Trade Arbitration Commission (CIETAC), Victor Shen, chief legal counsel at Henkel Greater China and Korea, and Hope Hang, general counsel at JuneYao Group.

    Zhao said in his keynote speech that many risks in the market have resulted from an imbalance between the business-related division and the legal affairs division within a company. He said that clients not only needed a lawyer to inform them of the risks, but also expected the lawyer to classify the types of risk and find solutions accordingly.

    Regarding the “explosion of bombs” in China’s PE funds industry, Fu was of the opinion that the key link in PE funds was the fund managers, and whether the numerous investor rights protection cases can be effectively handled at present involves financial security. When touching upon the establishment of offshore PE funds, Miao explained that the China Securities Regulatory Commission (CSRC) did not have any laws and regulations targeting PE funds that are operating in China but registered overseas, and that supervision overseas was quite soft. However, there are many potential risks in the case of soft supervision. “Sometimes, clients expect to have less supervision, but we lawyers need to make sure that there won’t be any problems,” he said.

    Hang shared her view from the perspective of a private enterprise. She said the biggest source of risk in a merger may be the transaction structure and purpose of the merger, because different merger purposes could lead to different issues in terms of compliance. She also pointed out that regulatory bodies put great emphasis on “proactive, complete, timely and effective information disclosure”, and this should be adhered to by the staff responsible for such work in a company.

    Shen said the detailed implementation rules of the new Foreign Investment Law, issued in March, and building a friendly business environment for foreign investors were also important elements.

    The media coverage on the roundtable conference is organized based on shorthand transcripts. Any remarks by the guest speakers and scholars represent their own opinions, and not the opinions of the organizations to which they belong. Read the full report of the CBLJ Forum 2019 here.