The Securities and Exchange Commission (SEC) has reached a settlement with the former head of the municipal bond desk at Aegis Capital Corporation (Aegis) Alan Appelbaum. The SEC alleged Appelbaum violated...more
A confluence of two events has the potential to curtail a type of US investment in China that may currently be flying under the radar. The first is a white paper recently released by a group of academics, which details the...more
In December 2020, then-US president Donald J. Trump signed into law the Holding Foreign Companies Accountable Act (the "HFCAA"). This law is just one measure, among many, that have been promulgated by legislative and...more
On December 24, 2021, China Securities Regulatory Commission (“CSRC”) issued draft rules and measures on the direct and indirect offshore listings of onshore companies for public comments. The deadline for submitting public...more
On December 27, 2021, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce jointly issued the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Edition)...more
On December 20, 2021, the US Securities and Exchange Commission’s Division of Corporation Finance (“Division”) issued the Sample Letter (“Letter”) to companies based or having the majority of their operations in the People’s...more
On July 30, 2021, Securities and Exchange Commission (“SEC”) Chair Gary Gensler issued a public statement announcing that he has asked SEC staff to require additional disclosures from offshore issuers with ties to China-based...more
Companies based in China have long sought to list their shares for trading on U.S. markets. The reason is clear - the U.S. markets are deep, liquid and the envy of the world....more
On Friday, SEC Chair Gary Gensler issued a statement concerning investor protection related to recent developments in China. The statement summarizes risks to US investors as a result of recent government-led developments in...more
Last month we alerted our clients to the expected impact of the Implementation Rules for the Law for Promoting Private Education (“Education Sector Implementation Rules”), which signaled a continued focus by the authorities...more
On April 2, 2019, the Supreme People’s Court of the PRC and the Department of Justice of Hong Kong signed the “Arrangements concerning the Mutual Assistance in Court-Order Interim Measures in Aid of Arbitral Proceedings by...more
Insurers in which a shareholder has a 10% or greater position should consider the latest guidance from state insurance regulators on variable interest entities (VIEs) and related parties. ...more
Yesterday, November 23, 2020, the Staff of the Securities and Exchange Commission Division of Corporation Finance issued CF Disclosure Guidance Topic No. 10. The guidance addresses disclosure considerations for companies...more
On October 29, 2020, Ninebot, a leading supplier of electric scooters incorporated in the Cayman Islands, went public on China’s Science and Technology Innovation Board (the “STAR Board”). This makes the company the first...more
The first installment of a series of alerts focusing on practical issues relating to China’s new Foreign Investment Law. The law institutes new reporting requirements for foreign investors....more
On November 1, 2019, China's Ministry of Justice ("MOJ") released a draft version of the Implementation Regulations on the Foreign Investment Law ("Draft Regulations"), aimed at facilitating the new Foreign Investment Law...more
China is a market that represents a paradox for many telecoms, media and technology (“TMT“) companies. On the one hand it offers the promise of almost unlimited growth potential if you get the product right, but on the other...more
This edition provides an overview of key regulatory developments in the past three months relevant to companies listed, or planning to list, on The Stock Exchange of Hong Kong Limited (HKEx), and their advisers. In...more
In less than six months, a new law will take effect in China that will have a major impact on foreign investment. The National Congress of the People’s Republic of China passed the Foreign Investment Law in March, three years...more
Since the Enron debacle, the Financial Accounting Standards Board (FASB) has paid a lot of attention to the types of entities that were used by Enron to avoid its financial reporting obligations. The FASB released Accounting...more
China presents some of the world’s most exciting opportunities, and a unique set of cultural, legal and political challenges. It has a distinct legal regime that in many respects cannot be understood by direct reference to...more
A 2016 judgment (the “Judgment”) made by the Supreme People’s Court of China (the “Supreme Court”) was believed by some scholars and practitioners to confirm judicial recognition of the VIE structure. We believe the Supreme...more
The Chinese regulatory regime governing e-commerce has been constantly evolving as domestic and cross-border e-commerce continues its rapid growth. Recently, the regulatory environment has opened up in several ways:...more
The variable interest entity (VIE) structure has been around since the listing of Sina.com on the Nasdaq Stock Market in 2000. It enables companies to exercise control over operating entities and derive economic benefits from...more
Apple’s iTunes and Disney’s DisneyLife websites have reportedly become early targets of China’s internet regulators who are beginning to enforce new rules restricting the publication of online content. The new rules, the...more