China Business Law Journal – June 2024

Markets in flux

Let us be perfectly frank here, capital markets are in a bit of a pickle. Take Hong Kong’s stock market, for example. Despite some encouraging performances in the tech sector that rescued the Hang Seng Index from a below-15,000 trough earlier this year, both IPO funds and volume shrank from last year, evidence that market concerns are far from assuaged.

It speaks volumes then that, even so, companies in mainland China see Hong Kong, as well as other overseas destinations, as hopeful venues for a public issuance, while they brace for a new era of strict regulation on home turf and a new normal marked by fewer but higher-quality IPOs each year.

In our cover story, Proceed with caution, a stellar lineup of capital market partners share their observations on the evolving landscape, as well as their hopes, concerns and advice to the market players whose enthusiasm may be tempered, but far from dashed.

Also not to be missed is our yearly ranking of top 10 IPO deals on China’s major stock exchanges, featuring their legal counsel, and our exclusive lists of leading law firms in terms of accumulated IPO value based on the top 30 deals of each bourse in the past year.

Craving for even more capital market-related intelligence? Look no further than our seven-article series titled Up, down and all around, a collection from active law firms covering market uncertainty across a wide range of issues, from overseas bond issuance to mandatory reform of governance structures.

Unlike the IPO market, which is slowing down in search of stronger footing, the automotive industry has been evolving at a blink-and-miss-it pace. Today, an automobile is much more than a means of traveling from A to B; it’s a mobile data centre that collects and processes data both inside and out via sensors, dashcams and in-vehicle apps.

While this is great news for the drivers and passengers enjoying the convenience, it is a mixed bag for the automotive companies, with lush business opportunities juxtaposed with data and personal information risks wholly unfamiliar to the erstwhile manufacturing-heavy industry.

In Driving data management, Gordon Cheng, board secretary and chief legal officer at Chery Jaguar Land Rover, unwraps the many layers of data compliance requirements that have surged to the top of carmakers’ priority lists.

Automotive, however, is not the only time-honoured industry going through a tech overhaul. Legal services are transitioning, and MetaSota serves as a prominent example of legaltech companies leading the charge amid AI reform. Startup to flat out: MetaSota, introduces an exclusive interview with company COO Wang Yiwei. The internet celebrity elaborates on his product philosophy and unique tactics for social media promotion.