This update provides an overview of key regulatory developments from Q4 2021 relevant to companies listed or planning to list on The Stock Exchange of Hong Kong Limited (HKEx) and to.
Global investors are gaining power from China’s debtors to the mainland
Foreign investors in failed Chinese groups may be given powers to liquidate the continent’s assets with Hong Kong, which aims to boost business confidence in the country’s legal system.
The mechanism will force the courts of Shanghai, Shenzhen and Xiamen to recognize the bankruptcy orders filed by the creditor companies in Hong Kong, a channel for Chinese companies raising money from global investors. This means that investors can more easily seek out Chinese business assets on the mainland to recoup their money. The scheme could be extended to more Chinese cities in the future.