Listing strategies for new economy industries

    From left: Andrew Zhang, Sun Bin, Liu Jian, Chen Yang, Chen Yingying and Liang Min

    With the enthusiasm for Hong Kong listings that began last year and that continues, and the establishment of the Science and Technology Innovation Board, Commerce & Finance Law Offices discussed the topic “IPO strategies and risk management for companies in the new economy industries” with the legal counsel of listed and unlisted enterprises, and with Commerce & Finance partner Andrew Zhang serving as chair for the topic during the first CBLJ Forum 2019.

    Special corporate guests who attended this session included: Sun Bin, the chief legal officer of Xiaomi; Liu Jian, the senior legal director, and investment and financing legal affairs general manager of Meituan Dianping; Chen Yang, legal director at China Renaissance Group; Chen Yingying, the legal director and securities affairs representative of Meten International Education Group; and Liang Min, the general counsel of Keep.

    In the keynote speech, Zhang Xiaoman, partner of Commerce & Finance, analyzed and compared the New Third Board, domestic shares, Hong Kong shares, US shares and CDRs (Chinese depository receipts), all listing channels open to new economy enterprises, and gave an explanation of the Science and Technology Innovation Board. He also advised: “If one believes that every internet enterprise can list on the Science and Technology Innovation Board, this is a grave misunderstanding, as this board requires that there be hard science or technology in the enterprise.”

    In the subsequent special guest discussion session, several of the corporate guests shared their personal views. Sun said that one of the challenges in Xiaomi’s Hong Kong listing was that, as Xiaomi’s business included numerous sectors such as the internet, e-commerce, hardware, etc., the business logic, legal logic and legal compliance issues involved were intricate and complex. “Based on a comment by an intermediary firm that assisted us in our listing, this was like doing seven listings,” she said.

    Liu said that Meituan, like Xiaomi, was involved in numerous businesses, and during its listing, it was also making major moves such as an acquisition and launch of a new business. “In the course of the listing, we had to consider these moves for our listing prospectus, posing a major challenge for us,” he said.

    Through statistical data, Chen Yingying pointed out that, as there were still obstacles to A-share listings, overseas listings remained the preferred choice for educational enterprises.

    The media coverage on the roundtable conference is organized based on shorthand transcripts. Any remarks by the guest speakers and scholars represent their own opinions, and not the opinions of the organizations to which they belong. Read the full report of the CBLJ Forum 2019 here.