Home Listing rules The wheels keep turning | Review of business law in China

The wheels keep turning | Review of business law in China

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HAfter reaching the middle of the year (at an almost uncanny pace), we usually look back and then forward at past accomplishments and future aspirations. Between recurring pandemic outbreaks, inflationary pressures and fluctuating energy prices causing major economies to pause and reflect, many found the first half of the year difficult. But the steps of progress cannot be stopped any more than the wheels of time cannot stop turning and, even in the stories covered by this issue of Review of business law in Chinawe find many reasons for optimism.

With capital tightening both at home and abroad amid new policies, Sino-US regulatory gridlocks and global geopolitical tensions, how should Chinese companies determine their listing destinations? Our cover, Markets of choiceexplores the bleak outlook facing Chinese companies listed in the US, but also the opportunities found in Stock Connect, a pilot private pension scheme, and the SME-focused Beijing Stock Exchange.

With China’s increasingly sophisticated capital market, especially in light of the full launch of registration system reform, companies are faced with more, but not necessarily simpler, options. In Long and winding roadstop law firms elaborate on many trending market issues, from rules on inter-counsel migration to benefits of the new ‘compliance and do not prosecute’ system.

Zooming in on China’s vast but still developing derivatives and futures market, the Futures and Derivatives Law, the first basic law in the country’s nearly 30-year history of futures trading, is expected to come into effect in August. The new law, consisting of 13 chapters and 155 articles, aims to align national practice with international standards, with requirements for cross-border trade bringing new compliance pressures.

Derivatives and futures trading can be technical and highly specialized, involving special legal protection mechanisms such as close-out netting, which previously risked being contradicted by bankruptcy law and its own brand of cross-border regulation and dispute resolution. In bright futurewe look at the new status of futures trading in China from this perspective.

For in-house lawyers, how to identify and collaborate well with outside lawyers who best fit business needs is a persistent headache. What is the best way to determine where the qualities of a law firm match the legal services needs of the company? Given their common legal backgrounds but with different motivations, how do in-house and external lawyers communicate and collaborate? In Match the piecesNancy Wei, Legal Director at Tupperware (China), and formerly at Mayer Brown and Stephenson Harwood, shares valuable insights from her experience on both sides.