DeHeng Law Offices in Eastern China Jointly Hold Summit for
Enterprises Seeking to List on Hong Kong Stock Exchange

2018-8-19

Theme background of the summit for enterprises on listing in Hong Kong

Scene of the summit for enterprises on listing in Hong Kong

On August 17, 2018, as one of the commemorative events of the 25th anniversary of DeHeng Law Offices and 20th anniversary of the Shanghai office, ten DeHeng offices in Shanghai, Suzhou, Wuxi, Hangzhou, Ningbo, Nanjing, Wenzhou, Hefei, Jinan, and Fuzhou jointly held the "Summit for Enterprises in Eastern China on the Listing in Hong Kong" at the Grand Kempinski Hotel Shanghai. Nearly 300 guests from six provinces and one municipality in Eastern China attended the conference to discuss many hot topics on company listing in Hong Kong.

▲Mr. Yuwei Wang chairing the forum 

▲Mr. Jianjun Xu giving a welcome speech at the forum

Mr. Jianjun Xu, the deputy director of DeHeng Law Offices and head of the Capital Markets Practice Group, delivered a welcome speech at the forum. He said that given the economic development and the needs of Chinese companies going global, overseas listings including listing in Hong Kong will become the choice for more and more Chinese-funded enterprises, bringing new development opportunities for enterprises, and also bringing new service opportunities for relevant professional organizations in China. DeHeng, as a large-scale comprehensive law firm in China, boasts a wealth of experience in overseas listing services and service advantages. DeHeng is actively preparing for the launch of its Hong Kong office this year, which will provide a new impetus for this. We hope that cooperation with relevant institutions will be fostered through such professional forums to better provide professional services to clients.

The representative of Hong Kong Stock Exchange was invited to brief the guests on the latest developments in Hong Kong securities market and the connect between China and Hong Kong stock markets, and also explain in detail the reform of the listing system launched by Hong Kong Stock Exchange Stock Exchange in the first half of this year.

It is reported that since 2014, the launch of Stock Connect that connects the mainland China and Hong Kong stock exchanges has opened up a new era of the "common market" between the mainland China and Hong Kong. By the first half of 2018, some 49% of the companies listed in Hong Kong, 67% of the market capitalization, and 79% of the turnover were achieved by mainland enterprises. Recently, the Hong Kong Stock Exchange has launched a host of measures to reform the listing system, including allowing biotech companies that do not pass the financial qualification test of the main board to go public, but other conditions are set to safeguard the interests of investors; allowing the companies with the "same share with different rights" structure to go public, but additional listing requirements and shareholder protection measures were also introduced; providing a more convenient dual listing option for Mainland Chinese companies and international companies which are seeking dual listing in Hong Kong.

As one of the world's largest equity capital markets, Hong Kong has a wide spectrum of products and supports a variety of trading strategies. With the implementation of new reform measures on listing and the further interconnection of the capital markets in the Mainland and Hong Kong, the vitality and competitiveness of Hong Kong capital market will be surely enhanced, providing more opportunities for mainland enterprises to go public in Hong Kong. 

▲Keynote Speakers (from left to right: Mr. Fisher Zhou, Ms. Mengyu Lu, and Ms. Jie Zheng)

▲Keynote Speakers (from left to right: Mr. Xingxi Yu, Mr. Frank Lin, Ms. Yun Jing)

Fisher Zhou, head of Healthcare of CLSA Limited; and Mengyu Lu, Partner at Sidley Austin LLP Hong Kong Office; and Frank YC Lin, partner at PwC, gave professional introduction and analysis of the regulations related to the listing at Hong Kong Stock Exchange, Hong Kong listing procedure, main financial issues in preparation for listing, and the common key issues in listing in Hong Kong. Ms. Jie Zheng from DeHeng's Shenzhen office, shared with the audience the listing of Country Garden Property in Hong Kong conducted by DeHeng recently. Xingxi Yu, ex-secretary to board of directors at China Railway Construction, shared his views on the "compliance issues for listed companies holding A+H shares" and made professional analysis and experience sharing on the compliance issues in the mainland and Hong Kong. Yun Jing, Managing Director of Corporate Finance Department at Yunfeng Financial, delivered a speech on the "Company's Financing Structure before Public Listing".

Mr. Yuwei Wang, Partner of DeHeng Shanghai office, presided over the forum and shared his insights on how to spin off a subsidiary of a Mainland listed company and list such subsidiary in Hong Kong, with a focus on the listing process, key issues and PN15 exemptions. 

▲Mr. Hongshan Shen delivered an acknowledgement speech on behalf of
the 10 DeHeng offices in Eastern China

Mr. Hongshan Shen, Managing Partner of DeHeng Shanghai office, delivered an acknowledgement speech on behalf of the 10 DeHeng offices in Eastern China. He said that going public in Hong Kong to gain a foothold in Hong Kong and other international capital markets will bring great opportunity and challenge for companies. It is also a very important strategic move. The enthusiastic participation of guests reflects the industry's interest in this matter. The forum is another major event after the same theme seminar held by DeHeng in Shenzhen in July this year. Eastern China is one of the most economically active regions in China, and the needs for overseas listing have increased significantly. DeHeng's head office has worked closely with the 10 DeHeng offices in Eastern China, as well as investment banks, accounting firms and other related organizations to jointly organize this forum, in an effort to help companies in the Mainland to understand how to harness the transformation and development through their listing in the Hong Kong capital market by means of exchange and interaction, and seize more investment and financing opportunities in the "interconnected" environment of the mainland and Hong Kong capital markets, as well as provide high-quality services for the financing layout and overseas listing of enterprises. 

▲Representatives of ten DeHeng offices in Eastern China expressing thanks on the stage

DeHeng is one of the first few law firms in China to engage in securities law business and the domestic interest and overseas companies' business. DeHeng has provided professional, high-quality and efficient services for the listing of China Railway Construction dual listing on Shanghai and Hong Kong Stock Exchanges, Agricultural Bank of China dual listing on Shanghai and Hong Kong Stock Exchanges, China Railway Signal & Communication Corp listing on Hong Kong Stock Exchange, China Railway Construction's spin-off CRCC High-tech Equipment H shares, and China Development Bank Leasing. It also served as the corporate legal counsel for such organizations as Shanghai Stock Exchange, China Financial Futures Exchange, and Shanghai Futures Exchange, and Shanghai Insurance Exchange.