Dechert LLP (JD Supra China)
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China Issues New National Security Rules on Foreign Investment Effective January 18, 2020
On December 19, 2020, China’s National Development and Reform Commission (“NDRC”) and Ministry of Commerce (“MOFCOM”) jointly issued the Measures on National Security Review of Foreign Investments (“Review Measures”).
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OFAC Issues Guidance Indicating Aggressive Interpretation of China Military Company Sanctions
On December 28, 2020, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) released guidance on the implementation of sanctions targeting securities of Communist Chinese military companies (“CCMCs”) imposed through Executive Order 13959 (“Order”), which was issued by President Trump on November 12, 2020.
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Removal of QFII and RQFII Quotas
Further to the announcement by the State Administration of Foreign Exchange ("SAFE") in September 2019 of its plans to remove the investment quota limitations on two inbound investment schemes – the Qualified Foreign Institutional Investor ("QFII") program and the Renminbi Qualified Foreign Institutional Investor ("RQFII") program, on May 7, 2020, the People's Bank of China ("PBOC") and SAFE...
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China’s Supreme People’s Court Recently Issued its Judicial Guidance Opinions on Adjudication of COVID-19 Related Cases
On April 16, 2020, the Supreme People’s Court of China (the “SPC”) issued the Guiding Opinions of the SPC on Several Issues Concerning Proper Trial of Civil Cases Involving COVID-19 (I) (the “COVID-19 Opinions”), providing a more detailed guidance and specific measurement of standards for lower Chinese courts to follow in their adjudication activities. The COVID-19 Opinions were issued as a “judic
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China Supreme People's Court's Judicial Arrangement with Hong Kong Government Regarding Interim Measures for Arbitral Proceedings in Hong Kong and Mainland China Takes Effect
The Supreme People’s Court (the “SPC”) of China and the Government of Hong Kong Special Administrative Region on April 2, 2019 signed the Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Hong Kong Special Administrative Region (the “Arrangement”), which entered into force on October 1, 2019 and also...
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China Announces Removal of QFII and RQFII Investment Quota Limitations
On September 10, 2019, the State Administration of Foreign Exchange (SAFE) held a press conference in which it announced that it would be removing the investment quota limitations on two inbound investment schemes – the Qualified Foreign Institutional Investor (QFII) program and the Renminbi Qualified Foreign Institutional Investor (RQFII) program.
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China Proposes Merger of QFII and RQFII Programs
The China Securities Regulatory Commission (CSRC) earlier this year invited public comments on a new consolidated regime under draft regulations (Draft Regulations) for Qualified Foreign Institutional Investors (QFIIs) and Renminbi Qualified Foreign Institutional Investors (RQFIIs). If adopted, the proposed regime would: consolidate the existing QFII and RQFII programs under a single regime;...
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Standing Question Prevents Clarity from Justices on “Cy Pres” Class Action Settlements
In Frank v. Gaos, plaintiff Paloma Goas brought a class action alleging that Google’s transmission of users’ search terms violated the Stored Communications Act, 18 U.S.C. § 2701, et seq. (“SCA”). The SCA creates a private right of action that allows any “person aggrieved by any violation” of the statute to “recover from” the entity that “engaged in th[e] violation such relief as may be...
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Trademarking a Sound: The First Sound Trademark granted through a Judicial Proceeding in China
The Beijing High Court recently made a final judgement in favor of Tencent, finding that the notification beeping sound of the digital company’s instant-messaging and social network services is distinctive enough to be awarded a trademark registration. This marks the first sound trademark registration granted through a judicial proceeding in China. Significantly, the Beijing High Court’s...
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Beijing IP Court Finds Live Football Broadcasts Not Copyrightable
Live broadcasts of football games failed to reach the fixation and originality requirements for copyright protection, held by the Beijing IP Court in its recent judgment...
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China’s Cyberspace Administration announces first state level investigations under Cybersecurity Law
China’s Cyberspace Administration announced that it has commenced investigations into Tencent Wechat, Sina Weibo and Baidu Tieba for violation of China’s Cybersecurity Law late last week (11 August 2017). More particularly, the Cybersecurity Administration is looking into whether these service providers have been disseminating information which violate national security, public security and...
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Bond Connect – The Fast and Furious Way to the China Interbank Bond Market
Following announcement of the proposed launch of a bond trading link between China and Hong Kong (Bond Connect) earlier this year, Bond Connect officially launched on July 3, 2017. Bond Connect allows foreign institutional investors to invest in bonds and other debt instruments traded on the China Interbank Bond Market (CIBM), which is currently the third largest bond market in the world...
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Financial Services Quarterly Report - Second Quarter 2017: China Cybersecurity Law: Key Takeaways for Financial Services Firms in China
China’s Cybersecurity Law came into force on 1 June 2017, despite speculation that there would be a delay in its launch. The new law covers a wide range of activities relating to the cyberspace, including personal data protection and security, hacking, malicious software prohibition, handling of emergency network situations, and data localisation. Many of these regulations affect the operation of
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The Cyberspace Administration of China Clarifies the Cybersecurity Law
At a press conference held on the eve of its launch, China’s Cybersecurity authority, the Cyberspace Administration of China (the “CAC”), provided clarification on some aspects of the Cybersecurity Law - notably on the purposes and intended scope of some of its provisions...
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China Cybersecurity Law: Seven Key Points to Ensure You are Compliance Ready for its Launch on 1 June 2017
China’s Cybersecurity Law comes into force on 1 June 2017. It is a significant piece of legislation impacting all companies operating a network in China. It covers a wide range of activities relating to the cyberspace, including personal data protection and security, hacking, malicious software prohibition, handling of emergency network situations, data localisation. There are hefty penalties for
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PRC’s New Cybersecurity Law to be implemented on June 1, 2017
Potential Implications for Foreign Network Products and Services - Cybersecurity is of national strategic importance to China, which has the largest group of internet users and the largest internet market in the world. The Chinese government has stressed this point in the National Cyberspace Security Strategy (the "Strategy") issued by the Cyberspace Administration of China ("CAC") on...
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China-Hong Kong Bond Connect on its way!
China has announced the launch of a new initiative that is likely to liberalize the process for foreign investors to invest in the China bond market. As the third largest bond market in the world, this could be a significant boost to international investors wanting access to the Mainland China debt market.
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Financial Services Quarterly Report- Fourth Quarter 2016: What’s New in the Asian Asset Management Industry
Dechert’s Financial Services team recently presented a seminar in London, during which panellists provided insights into “What’s New in Asia”. Topics included: Some key takeaways from the panel discussion, which focused on recent updates in Mainland China, Hong Kong and Singapore, are summarised below.
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Financial Services Quarterly Report - Third Quarter 2016: Foreign Institutional Investors are Granted Unprecedented Access to China’s Interbank Bond Market
A new program providing fund managers with access to China’s principal bond market officially opened for business in May 2016. The program – known as the China Interbank Bond Market (CIBM) program – greatly simplifies the process of fixed-income investing in China. Previously, managers needed to obtain licenses and quotas to invest in bonds, a process that could take months. In contrast, managers
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United States to Receive $38 billion RFQII Quota for Investments in China
The quota allocation – the first of its kind awarded to the United States – was announced on June 7, 2016 by Yi Gang, Deputy Governor of the People’s Bank of China, the country’s central bank. This represents an apparent effort to broaden the overseas use of China’s currency, the yuan, and to lure capital back to mainland China. Additional details are expected to be forthcoming.
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Financial Services Quarterly Report First Quarter 2016: Fighting Currency Outflows, China Proposes Further Opening its Securities Markets to Fund Managers and Foreign Investors
Faced with redemptions and currency outflows from the country, Chinese regulators have taken welcome steps to make it easier for fund managers and other institutional investors to invest in China. Fund managers, in particular, stand to benefit from two recent proposals. To date, with certain exceptions – such as Stock Connect1 – fund managers have needed to obtain licenses from the Chinese...
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Financial Services Quarterly Report Third Quarter 2015: China’s Policy Response to Market Turbulence: What It Means for Fund Managers
News of the volatile Chinese stock market has dominated international headlines over the past couple of months, and the spotlight has been on the Chinese authorities’ reaction to these developments. Their wide-reaching policy response has implications for fund managers both inside and outside of China.
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Private Equity Newsletter - Summer 2015 Edition: Where’s the Exit? New Opportunities in China for Private Equity Firms
It has long been a well established exit route in developed markets for a private equity firm to sell its interest in a portfolio company to a listed company in exchange for shares in that listed company. Until recently, this was not a route that was used by acquirers that are listed on the local Chinese stock exchanges, and with more than 2,700 companies listed on such stock exchanges (each a “Li
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Investment Funds Update – Asia: Legal and regulatory updates for the funds industry from the key jurisdictions in Asia: Mainland China: QFII and RQFII Capital Gains Tax
Capital gains tax (“CGT”) has been a key issue surrounding the investment by QFIIs and RQFIIs in the Mainland Chinese securities market. Mainland Chinese tax authorities have publicly decided to retrospectively collect CGT for the period from 17 November 2009 to 16 November 2014.
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A Case Study: How the Record Breaking Antitrust Penalty Against Qualcomm Transforms the Landscape of SEPs Licensing in China
The PRC National Development and Reform Commission (NDRC) finally concluded its antitrust investigations against Qualcomm and issued an administrative sanction on February 10, 2015, putting an end to the 16-month investigation. The anti-monopoly enforcement agency held that Qualcomm had abused its dominant market position and restricted competition, and that its monopolistic conduct had violated...
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A New Era for Private Funds in China?
Several years ago, alternative asset managers were enthusiastically regarding China as a new frontier for fundraising. Indeed, in 2011, Chinese private equity and venture capital firms raised substantially more money from local renminbi investors than from foreign investors. This was in part based on the premise that investment firms could access deals that were hitherto unavailable to them –...
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A New Era for Private Funds in China?
Several years ago, alternative asset managers were enthusiastically regarding China as a new frontier for fundraising. Indeed, in 2011, Chinese private equity and venture capital firms raised substantially more money from local renminbi investors than from foreign investors1. This was in part based on the premise that investment firms could access deals that were hitherto unavailable to them –...
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New Route to Trade Shanghai-Listed Securities
The Shanghai-Hong Kong Stock Connect program, expected to launch this fall, will give many European and U.S. funds, managers and individuals their first opportunity to trade Shanghai-listed equities. Stock Connect represents a significant liberalization of the stock markets in the People’s Republic of China (PRC).
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China’s State Secret Laws: Avoiding Liability in Cross Border Litigation and Investigations
When complying with discovery obligations in cross border litigation or responding to document production requests from overseas regulators, multi-nationals operating in China have to comply with China’s state secret laws that prohibit the unauthorized export of China’s state secrets. Recent cases in the United States and Hong Kong have shown that companies faced with document production requests
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China’s Anti-Graft Campaign: Implications for Multi-Nationals Operating in China
Chinese anti-corruption efforts historically targeted recipients of bribes, particularly government officials. In the past year, however, Chinese authorities have initiated a very public crackdown on bribe payers in the life sciences industry, commencing investigations into the conduct of a number of multi-national companies operating in China as well as their China-based senior executives....