MIIT Lifts Foreign Equity Ratio Limit for Online Data and Transaction Processing Businesses in Shanghai FTZ

New Foreign Investment Law Takes Shape

Legal Review of New Regulations for Medical Devices (II)

Compliance in dismantling of a red-chip structure

The erection of a red-chip structure generally involves the founding shareholder of a domestic company first establishing an offshore special purpose vehicle (SPV) in the British Virgin Islands or Cayman Islands, using the SPV to establish a wholly owned subsidiary in Hong Kong, then having the Hong Kong subsidiary establish a wholly foreign owned enterprise (WFOE) in mainland China, which executes various agreements with the domestic company for the control of domestic equity, and finally having the SPV, as the financing platform, sell preferred shares or convertible loans to a fund to carry out private financing and realise the overseas listing of the SPV.

AllBright Newsletter [2014.11.28]

Guarding against compliance risks in real estate enterprise financing

In recent years, as the central government has intensified regulation and control, signs of adjustment have appeared in the real estate industry, with property enterprises facing such phenomena as weak sales, increase in inventory, tight cashflow, etc. The real estate industry is essentially capital intensive, naturally reliant on a demand for funding, and, particularly at the moment, the demand of real estate enterprises for financing is extremely pressing. Real estate enterprises are also characterised by a large demand for financing, tying up the proceeds for a long period of time, etc.

Legal Review of New Regulations for Medical Devices (I)

Compliance issues with domestic acquisitions by foreign investors

With the opening of the Chinese market, acquisitions of domestic businesses by foreign investors have become a primary means of foreign direct investment. The following is an overview of key compliance issues encountered in the course of acquisitions by foreign investors. In practice, a more detailed analysis should be conducted, taking into account the specific circumstances of each transaction.

AllBright Newsletter [2014.09.26]

Compliance measures available to prevent dilution of trademarks

The dilution of a well known trademark is an act that reduces and weakens the distinctiveness of the mark and harms and tarnishes the goodwill therein. The diluter exploits the notoriety and reputation of another’s well known trademark to earn illegal commercial gain, in doing so causing harm to the trademark’s owner. Enterprises that own well known trademarks need to pay close attention to this.