How a compliance non-prosecution system benefits IPO planners

Private companies are usually started from scratch and face challenges such as compliance costs and operating pressures. Many have undergone a development phase of “barbaric growth”, where compliance issues – even of a criminal nature – inevitably arise. For suspected criminal compliance issues, while strictly holding companies and personnel criminally liable can lead to a forceful crackdown on crime, it can also cause a series of social problems … (Read more >)

Legal internal control in listing compliance, corporate governance

Listing compliance and corporate governance are often relegated to a form of financial internal control in A-share IPOs and daily operation and management of companies. But their significance and importance in laying firm foundation for effective listing and continuing operational governance should not be downplayed… (Read more >)

New listing landscape holds opportunity for well-prepared firm

Aconvoluted, unenviable economic landscape awaits Chinese companies planning to go public this year, between recurring covid-19 outbreaks, Russia’s war in Ukraine, rising interest rates amid soaring US inflation, and pressure from China’s own economic downturn … (Read more >)

Overview of listing by way of M&A and reorganisation

M&A and reorganisation has long been held as a favourable method of resource allocation that stimulates market vitality and improves the quality of listed companies. However, after the 2013-2016 M&A-centred bull market ended in massive stock market turbulence, a more cautious approach emerged … (Read more >)

With the introduction of the Beijing Stock Exchange (BSE) and the board transfer system for New Third Board-listed companies, China’s registration system reform has essentially developed a multi-layered capital market to provide financing channels for enterprises of different sizes, development stages and capital needs… (Read more >)

Avoiding risks to listing success from R&D co-operation

Innovative tech companies wanting to increase their R&D capacity or overcome technical thresholds will often form tie-ups with universities, research institutes and other technological entities. This approach has been used by many Star Market-listed companies, including Luster Lighttech, HSC, Orbecc and Longda Superalloy, to name a few… (Read more >)

Transfer of Beijing-listed companies to other stock exchanges

Eligible companies listed on the Beijing Stock Exchange (BSE) may apply to transfer to the Star Market of Shanghai Stock Exchange (SSE) or ChiNext of the Shenzhen Stock Exchange (SZSE) under ‘Guiding Opinions on the Listing Transfers of Companies Listed on the Beijing Stock Exchange’ issued by the China Securities Regulatory Commission (CSRC) on 7 January 2022… (Read more >)

Securities firms can defend against investor suitability disputes

One of the most common claims by investors in margin trading disputes is that a securities company failed to fulfil its suitability obligation – ensuring that the product it was selling to the client was appropriate to their needs and risk profile… (Read more >)

Markets of choice

As the coronavirus pandemic and escalating geopolitical storms have cast a shadow over the globe, China’s capital markets have followed a long, hard road since 2021. While opportunities like the newly minted Beijing Stock Exchange and a package of significant policies have been unveiled to deepen the opening-up and interconnection of markets, uncertainties including the twists and turns of global economic recovery and the US Federal Reserve’s consecutive hikes of interest rates have made positive progress challenging.

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