Five compliance advisers assist China’s third largest e-commerce listing

China third largest e-commerce listing

Cross-border e-commerce company Zibuyu in an unusual move engaged five compliance legal advisers on its HKD275 million listing on the HKEX.

The clothing and footwear company is the third major e-commerce player in China’s B2C cross-border market in terms of 2021 gross merchandise volume, according to Frost & Sullivan.

Its sales were mainly via Amazon and Wish as well as being heavily reliant on overseas markets such as the US and Europe, which was the source of 98.6% of the company’s income in the first half of this year.

As Zibuyu’s multinational operations may be adversely affected if it failed to comply with the regulations of the various jurisdictions in which it operated, the company enlisted several legal advisers, the HKEX filing said.

These advisers, who inspected general compliance matters in various jurisdictions, included Hong Kong counsel Peter Chen Law Office, the US counsel Nixon Peabody, German counsel Luther, French counsel Fidal, and Japanese counsel Anderson Mori & Tomotsune.

For other legal matters in Zibuyu’s listing, Tian Yuan Law Firm advised on Hong Kong law, Jingtian & Gongcheng advised on PRC law, Harneys advised on Cayman Islands law, and Hogan Lovells advised on international sanctions law.

Wilson Sonsini acted as Hong Kong counsel, while Commerce and Finance Law Offices acted as PRC counsel to the joint sponsors and the underwriters, Huatai Financial Holdings and ABCI Securities.

Hong Kong-based partner Li Nan led Tian Yuan’s team, with support from Hong Kong-based partner Isabelle Wu.

Harneys’ team was led by Hong Kong-based partner Raymond Ng.

Wilson Sonsini’s team included Greater China corporate partners Ouyang Dan and Winfield Lau, and US-based tax partner Myra Sutanto Shen.