View all

Briefings in English - 2008

New Chinese M&A financing rules facilitate domestic consolidation

The China Banking Regulatory Commission has published the long-awaited mergers and acquisitions (M&A) financing rules. They represent a remarkable step in the development and modernisation of China’s financial system and are likely to bring about significant changes to the domestic M&A market and facilitate consolidation within Chinese industries. Although they do not directly facilitate foreign investment in China (because they apply only to acquisition financing extended to People’s Republic of China-incorporated purchasers), outbound investments by Chinese companies are specifically addressed. This briefing outlines the rules’ implications. (December 2008)

An overview of the Lehman Brothers minibonds saga

In the wake of the collapse of Lehman Brothers, so-called ‘minibonds’ have caused a great deal of controversy in Hong Kong. Questions have been raised over the sales and marketing practices of distributors and whether complex structured products are appropriate for the retail market. In this briefing we summarise the principal characteristics of the minibond products, describe the recent regulatory investigations into whether misselling occurred and identify issues that financial institutions should take into account when reviewing their selling practices. We also discuss potential tortious liability arising from misselling practices and likely future developments in this area. (16 December 2008)

Opportunities for foreign investment in China’s dairy sector

Foreign investors have viewed the crisis of confidence in China’s dairy industry – caused by the melamine scandal and low valuations of dairy companies – as an opportunity to enter the sector. China’s government is encouraging consolidation in the industry, which is likely to lead to more investment. However, foreign investors are still subject to a number of restrictions and approval requirements, which are summarised in this briefing. (December 2008)

2009 Listing Rule amendments - how will they affect you?

On 28 November 2008, the Hong Kong Stock Exchange issued the conclusions to its Combined Consultation Paper on Proposed Changes to the Listing Rules. It also set out amendments to the Listing Rules to implement the proposals, which will come into effect on 1 January 2009. This briefing discusses the three main areas in which the amendments will significantly affect listed companies, directors, company secretaries and professional advisers: extension of the blackout period; removal of the requirement for a qualified accountant; and pre-vetting of documents. (December 2008)

Bond buy-backs

We have seen an increasing interest in recent weeks in issuers looking to buy back their bonds (both straight debt and convertible). This note looks at the relevant legal issues (and assumes Reg S bonds governed by English or Hong Kong law). (December 2008)

A rethink of capital requirements for Asian banks?

The current financial crisis has placed pressure on banks in the US, Europe and the Asia Pacific region to review the structure of their businesses as well as their compliance with global standards. Given the nature of the financial crisis and the risks it has highlighted, one of the key compliance issues to be addressed by regulators and banks is the level of capital reserves that banks should be obliged to keep. This briefing brings into focus this particular element of the suite of regulatory conditions that banks may be required to satisfy in order to weather the present storm. (November 2008)

China’s MOFCOM imposes conditions on InBev’s acquisition of Anheuser-Busch

On 18 November 2008, the Chinese Ministry of Commerce published its decision to clear InBev NV/SA’s proposed US$52bn acquisition of Anheuser-Busch Companies Inc, subject to conditions. This decision marks the first time that a merger decision under the new Chinese Anti-monopoly Law has been published and the first time that merging parties have been required to agree to undertakings in order to obtain clearance under the new law. (November 2008)

Warning and guidance from Hong Kong Stock Exchange on disclosure obligations

On Friday 31 October, the Hong Kong Stock Exchange gave substantial interpretive guidance and observations on listed issuers' disclosure obligations under the Listing Rules. This briefing summarises the key points.

Data privacy protection across Asia

Data protection regulation is a key business issue for information-intensive businesses in the 21st century. This guide outlines the principal features of data protection laws in some key jurisdictions across Asia. (October 2008)

Hong Kong and China stand out in short-selling developments

In spite of the recent expiry of the US’s dramatic ban on short-selling financial stocks, a number of other countries that have similarly clamped down on the practice are maintaining their bans. In stark contrast to these bans, Hong Kong has adopted a more low-key approach to short-selling and China has been planning to introduce the practice. This briefing provides a round-up of recent developments concerning short-selling regulations. In particular, it examines why Hong Kong and China have adopted a different approach. (October 2008)

China's contaminated milk – product recall and other legal implications

China’s contaminated milk scandal will have far-reaching implications for companies involved in food production in that country. (October 2008)

New Labour Contract Law Implementation Rules

The State Council of the People’s Republic of China (PRC) has published the PRC Labour Contract Law Implementation Rules. They clarify certain ambiguities in the Labour Contract Law but do not bring about any major changes – the message is that, for now, the PRC government is comfortable with the general approach to labour regulation under the Labour Contract Law. This briefing outlines the Implementation Rules’ measures and highlights some areas of ambiguity that remain unresolved. (September 2008)

Variable annuities to take off in Hong Kong

As Asia’s population becomes older and wealthier, people are increasingly reliant on access to market returns to help them keep pace with inflation and to protect their lifestyles. Variable annuities more successfully meet this need than do traditional insurance products. This briefing explains what variable annuities are, why they are likely to be increasingly popular in Hong Kong and how insurers can reduce the risks involved. (September 2008)

Memorandum of Understanding between Russian and Chinese securities market regulators

A Memorandum of Understanding has been signed between the Russian Federal Service on Financial Markets and the Commission for Regulation of the Securities Market of the People’s Republic of China. The Memorandum will allow the admittance of Chinese issuers’ securities to placement and circulation in the Russian Federation. (September 2008)

China publishes merger control notification thresholds

On 3 August 2008 the Chinese State Council published the long-awaited merger control notification thresholds. These thresholds provide welcome clarity and are an improvement on the previous law. Also welcome is the removal of the market share thresholds contained in the draft thresholds published in March.

China’s Anti-monopoly Law enters into force with little guidance on how companies should comply

One year after its adoption, China’s new Anti-monopoly Law (AML) came into effect today. It introduces the first comprehensive competition law code to China. The AML will have significant ramifications for how companies within and outside China conduct their business, not least because companies that violate the new law can be subject to severe penalties. However, uncertainty remains over how the new regime will work. This briefing explains some of the AML’s implications for businesses, some of the areas that still need clarifying and the role of courts. (1 August 2008)

China’s draft Labour Contract Law Implementing Regulations

Further to the Labour Contract Law (LCL) which took effect on 1 January 2008, China’s Legislative Affairs Office of the State Council has recently released a draft of the Implementing Regulations for the Labour Contract Law of the People’s Republic of China (Draft Regulations) for public consultation. This briefing discusses the Draft Regulations’ key provisions. July 2008

Hong Kong’s new competition law

On 6 May 2008, the Hong Kong government launched a second public consultation on a comprehensive, cross-sector competition law. This briefing will outline the key elements of the proposals that shape Hong Kong’s unique competition law, highlighting areas for which debate and uncertainty remain. (May 2008)

2008 Beijing Olympics or bust

The upcoming Beijing Olympics have provided an impetus to the Chinese government to address concerns about piracy of the Olympic insignia and the 2008 Beijing Olympics mascots, given China’s record on counterfeit goods. The Chinese government has teamed up with the World Customs Organization (WCO) to launch an anti-counterfeiting operation to protect marks associated with the Olympics. (April 2008)

For information on the different formats of our publications, please view our accessibility page.

Search publications

Careers

Information on our China careers