过去几年，中国资本市场持续自我革新，规模得到提升，结构不断改善，展现出韧性和活力。ALB连续第二年推出十五佳资本市场律师榜单，记录相关领域杰出法律服务提供者对资本市场业务的观察和思考。
安永最新发布的《中国内地和香港首次公开募股 (IPO) 市场调研》显示，2022年全球IPO活动明显放缓，多重负面因素影响全球股市震荡下行，截至2022年12月14日，全球共有1333家企业上市、筹资1795亿美元，同比分别下降45%和61%。
中国资本市场则在重重困境中保持坚挺。安永数据显示，全球交易所中IPO数量和筹资额的前两名均为上海证券交易所和深圳证券交易所。而据Wind数据，按照上市日期口径计，截至2022年底，2022年A股共计425家企业首发上市，合计筹集资金5869.66亿元（约842亿美元）。虽然IPO宗数较2021年有所减少，但筹资额实现了8%的增长，连续两年创下新高。
毕马威中国发布的《中国内地和香港IPO市场：2022年回顾及2023年展望》中称，中国内地受全球市场波动的影响较小，在相对较低的通胀环境下，加上稳定经济的政策措施，A股IPO市场显现出了韧性。
此外，从各大板块看，实施注册制的科创板和创业板成为A股IPO的主舞台。据中国《金融时报》数据，截至12月30日，2022年科创板和创业板IPO数量分别为123家、148家，合计占比63%。科创板首发筹集资金总额合计2520.44亿元，同比增长24.22%；创业板首发筹集资金总额合计1796.36亿元，同比增长21.78%；两者合计占A股IPO总筹资额的73%，充分体现了资本市场对科技创新企业及新兴产业的支持。
“全面注册制改革使（律师）服务对象覆盖不同行业、不同类型、不同成长阶段的企业，服务实体经济的广度深度不断拓展，推动国民经济行稳致远。”
——朱振武，天元
与此同时，北京证券交易所也实现了稳健发展，2022年，共计83家企业在北交所IPO，供筹得165.58亿元；北交所上市公司数量在2022年实现翻倍。
“随着2022年底以来新冠疫情防控措施的调整，各行各业都在复苏当中，中国资本市场持续回暖。特别是国家将继续深化金融体制改革，这是资本市场的福音。”天元律师事务所高级合伙人朱振武律师说。
朱律师表示，中美“脱钩”风险导致大批中概股回归A股，强化科创板、创业板定位政策出台，俄乌冲突下军工、航天等行业的蓬勃发展，新冠防控措施放松所带来的旅游、餐饮、运输等行业的复苏等政策、动态，值得密切追踪关注，都给中国资本市场带来增量。
“资本市场监管制度市场化改革的大趋势下，资本市场律师更应从产融结合的底层逻辑出发，秉持‘架起商业与资本’的执业使命，把握资本市场的价值思维及底线思维。“
——朱锐，国枫上海
“当前，中国经济处在从高速发展转变为高质量发展的关键阶段，在新冠疫情及全球格局变化的冲击下，中国经济转型迎来了‘阵痛期’与‘缓和期’。转型阶段的阵痛在2022年以上海为代表的全国性、区域性经济中心城市尤为突出。”北京国枫（上海）律师事务所执委会委员朱锐律师认为正因如此，资本市场的改革在此刻有着重要意义。“在实体经济遭遇暂时性困难的大背景下，亟需资本市场为实体经济注入活力。”
德恒律师事务所上海办公室主任沈宏山律师表示，去年3月之后一段时间内，股票发行上市节奏放缓，新股终止审核、破发等情况频现，资本市场律师跨地域作业极大受限，但律师手头的工作并没有停止，企业上市依然在进行，资本市场并非一片沉寂。6月后，随着政策调整，沈律师感觉到上市节奏迅速恢复，企业家的预期都在提振，律师们则继续积极提升内功，拥抱资本市场改革带来的机遇。
全面注册制
谈到资本市场改革，近期最大亮点和律师们共同的关注点都少不了具有里程碑意义的全面注册制实施。
2023年2月1日，中国证监会、沪深交易所、北交所、全国股转系统等就全面实行股票发行注册制主要制度规则向社会公开征求意见；2月17日，证监会发布实施全面注册制相关制度规则，标志着注册制的制度安排基本定型，注册制推广到全市场和各类公开发行股票行为。
朱锐律师说，2019年科创板正式试点注册制，2020年创业板改革并试点注册制，2021年北交所揭牌开市同步试点注册制，经过4年试点，如今股票发行注册制全市场推行，这意味着中国资本市场经过30年的发展正式进入全面注册制时代。
“注册制下，上市财务标准从强调盈利性变得更加多元化，为更多具备竞争优势、创新能力的细分行业龙头企业提供了登陆资本市场的机会。”深耕资本市场业务十五年的朱锐律师亲历并见证了数家高端制造、生物医药、信息科技、航空航天企业的上市项目。例如去年5月朱律师经办的普蕊斯发行上市项目，为国内临床试验领域服务型创新企业嫁接资本市场开创了成功先例，是注册制下服务类创新企业上市的代表性案例。
“我经历了资本市场的起起伏伏，从最初的审核制到现在的注册制，包括股权分置等改革措施，能够有幸参与到中国资本市场的发展进程，并为此做出一点贡献，我觉得很荣幸。”沈宏山律师的话道出了资本市场专业人士们的一致心得。
“注册制的根本思路是对市场和监管边界的重塑，是对市场各方主体职能和责任的厘清，可以说是资本市场领域的‘改革开放’。”
——沈宏山，德恒上海
沈律师表示，除了股票发行，全面注册制还涉及到股票交易规则的优化、重大资产重组规则的调整、证券中介机构监管责任的强化等内容。“注册制的根本思路是对市场和监管边界的重塑，是对市场各方主体职能和责任的厘清，可以说是资本市场领域的‘改革开放’。”
“一方面，全面注册制改革有利于打造一个规范、透明、开放、有活力、有韧性的资本市场，维护市场公平竞争秩序，将投资决策的选择权交给市场，入口端上市条件多元，发行上市效率提升，入口端、出口端会更加均衡，有利于建立优胜劣汰的资本市场新生态。另一方面，服务对象将覆盖不同行业、不同类型、不同成长阶段的企业，服务实体经济的广度深度不断拓展，错位发展、相互补充的多层次资本市场格局更加完善，形成了主板、科创板、创业板、北交所、新三板等在内的相互贯通体系，也将进一步完善支持科技创新企业的多元体系，从而形成全国一盘棋，推动国民经济行稳致远。”朱振武律师说。
在以全面注册制为代表的多重变革中，朱锐律师认为一系列措施都指向市场化趋势。
“市场本身是最有效率的资源配置工具，改革的本质是权力的让渡，把市场力量即买卖双方的判断、意向和约束力量引入到发行结果、发行价格的确定上来，才能形成运行健康、有韧性的资本市场。”朱锐律师说，“正如沃尔特·贝戈豪特在一百多年前的感叹：‘在英国，资本总是肯定地和立即地流向最需要它的地方和资本能够赚取最多的地方，就像是水总能流向需要它的平面。’”
朱锐律师观察到市场化的另一面是监管透明化，通过降低信息不对称和交易成本，减轻信息不对称对投资者的影响，使固化的资产不断转变为有流动性的金融产品，真正发挥市场的长处。
“我期待更多透明化、精确化、市场化的监管制度，实现‘看得见的手’与‘看不见的手’之间的深度协同，更好地发挥资本市场集聚社会资本的经济助推功能、优化资源配置的价值发现功能、改善金融结构的风险控制功能与实现共同富裕的社会平衡功能。”朱锐律师说。
双向开放
在全面注册制正式实施的同一天，中国资本市场还迎来另一重大变革——境内企业境外上市进入备案制时代。
2月17日，证监会发布《境内企业境外发行证券和上市管理试行办法》，并同步发布了相关配套监管指引。这一整套“境外上市新规”对境内企业直接和间接境外上市活动统一实施备案管理，并明确境内企业直接和间接境外发行上市证券的适用情形，将于今年3月31日起实施。
“我认为境外上市新规的重点在于通过划定负面清单和监管范围的方式，提高了境外上市制度的包容性，进一步提升企业融资效率，有利于充分发挥市场在资源配置中的决定性作用，提高企业直接融资比重，构建错位发展、功能互补的多层次资本市场体系，更好地服务国家战略。”朱振武律师说。
高伟绅律师事务所合伙人向天宁律师深耕香港资本市场业务，他表示，注册制、备案制“靴子终于落地”将更有利于资本市场健康有序地发展。“香港有个核心的监管概念是通过适当的披露，使得投资人可以做出有适当根据的决定，而注册制和备案制的落实恰恰是国家在清除监管不确定性方面做出的重大努力，有助于为市场指明方向。”
在境外业务方面，朱锐律师还对去年8月的一份协议尤为关注：“证监会、财政部与美国公众公司会计监督委员会（PCAOB）签署审计监管合作协议，是跨境资本市场监管透明化的重要一步，为国内企业跨境资本市场业务提供了底层合规性保障。”
除此之外，2022年中国资本市场一系列开放举措纷纷落地：2月，证监会发布《境内外证券交易所互联互通存托凭证业务监管规定》，将互联互通存托凭证业务范围拓展至瑞士、德国；6月，证监会发布《关于交易型开放式基金纳入互联互通相关安排的公告》，进一步深化内地与香港股票市场交易互联互通机制；7月，中瑞证券市场互联互通存托凭证业务正式开通；8月，沪深港通交易日历优化工作正式启动； 12月，中国证监会、香港证监会联合公告称，原则同意两地交易所进一步扩大股票互联互通标的范围……
向天宁律师认为，内地和香港资本市场的相互关联性在过去的一段时间愈发凸显。“习总书记指出，以国内大循环为主体、国内国际双循环相互促进的新发展格局‘不是封闭的国内循环，而是更加开放的国内国际双循环’。从申请上市发行到上市之后的交易流通，港股越来越有中国特色，一方面，两地资本市场在‘一国’的大原则下互动越加频繁；另一方面，两者在‘两治’的基础上在产业政策方面形成了良性互补。”
“新规出台，自然而然需要一段时间去沉淀。”向律师说，当前诸多问题，例如“红黄灯类行业赴港上市有何注意事项”、“红筹和H股上市都需要备案，证监会对于不同主体结构的监管理念和实操是否有不同侧重”、“VIE架构将何去何从”等，都需要通过时间和实践慢慢获得澄清。
“境内外市场双向开放是不可逆转的历史趋势，关键问题不在于要不要开放，而是如何开放。”向律师表示，资本市场的从业者熬过寒冬，将对未来保持谨慎乐观。
更多机会、更高要求
“稳健的经济发展离不开资本市场的助力，资本市场深度发展离不开资本市场律师的贡献。我们看好中国经济基本面的同时，也相信这个过程中一定有资本市场律师的一席之地。”沈宏山律师说。
“在全面注册制实施后，中介机构的责任进一步压实和强化，通俗地说就是：活多了、责任大了。”沈律师表示，这是市场化带来的更有活力的变化，中国资本市场还有很多金融服务产品需要丰富和完善，所需的法律服务越来越多。
“市场化程度的加深会衍生出新的法律服务业务，比如律师可能参与招股说明书的撰写。”沈律师相信，资本市场发展会为相关法律服务带来更大的蛋糕。
朱振武律师同样认为中介机构的执业能力面临更大考验，但同时这有利于构建良好的中介机构服务行业生态，督促行业内主体公平竞争，促进中介机构归位尽责。
“一方面，国内很多新兴律所和专业机构在市场上崭露头角，在资本市场业务领域挑战传统大型综合所的地位。尤其北交所IPO的推出，吸引了一批新锐律所加入市场竞争。一些优秀团队拥有熟悉技术、业务、财务、税务的复合型律师人才，能够更好地了解不同客户行业情况和战略规划，为其量身打造合适的法律服务方案。”朱振武律师说。“另一方面，一些国际律所会调整在中国市场的布局，与本土律所竞争，这些国际律所通常具有更丰富的国际经验和专业知识，能够更好地满足国际客户的需求。”
“竞争难以避免，但随着国家监管思路的逐步明确，资本市场业务完全有机会加速发展，成为一块更大的‘美味蛋糕’。”
——向天宁，高伟绅
“竞争难以避免，但随着国家监管思路的逐步明确，资本市场业务完全有机会加速发展，成为一块更大的‘美味蛋糕‘。”向天宁律师说，“机会总是留给有准备的人，尤其是在市场急剧变革的时期，戒骄戒躁，深入学习和领会监管精神，帮助客户在复杂的环境中拨云见日，合法合规地最大化商业目的，而不单单靠压缩法律服务费用去抢占市场。”
“市场化改革必然带来更激烈的竞争。注册制下中介机构的市场分化加剧、头部效应显现、产业聚焦能力产生的集中度趋势对中介机构能力提出了新的要求。”朱锐律师认为，资本市场律师应从产融结合的底层逻辑出发，秉持“架起商业与资本”的执业使命，把握资本市场的价值思维及底线思维。
“价值思维要求资本市场律师从投资者角度把握企业上市的基本面，运用产业研判思维，把握企业盈利趋势；通过竞争分析方法，评估企业创新能力。底线思维要求律师以监管者立场理解企业上市的规范性评估，辅导拟上市企业做到股权清晰、资产完整、业务合法、利润真实，从而适应注册制下更加细致化、透明化的审核。”朱锐律师说。
展望未来
谈及未来， 朱振武律师表示，他和团队将关注高端装备、人工智能、新能源汽车、半导体与集成电路、生物医药和生命科学领域；朱锐律师和团队会着重关注新一代信息科技、生物医药等新经济领域的业务。
沈宏山律师认为，资本市场法律服务领域与国家战略、产业方向调整的联动性越来越紧密，因此以新能源、新材料、大健康、数字经济为代表的高科技领域，以及以高端制造、高端装备为代表的实业制造领域，将会是法律服务重点关注的领域。
同时，针对新兴行业和企业，朱振武律师将注重提高团队对行业前沿法律问题的研究能力，以更好地满足新行业客户的需求。朱锐律师则表示会进一步关注资产证券化、创新金融工具的发行等新兴金融形式，以专业化、精细化的态度开发全方位、全周期、全流程的法律服务产品。
“境内资本市场资源有限，无法承载所有行业所有发行人的诉求。换个角度看，这给跨境交易留出了差异化竞争的充足空间。”向天宁律师说，从行业维度，不在境内资本市场占据优先地位的客户将是他关注的重点。
“从产品线的角度，除了传统的首发上市、合规、配售、公众公司并购及私有化以外，欧洲GDR将仍然是我们关注的焦点。充分利用高伟绅大本营在欧洲及帮助中国领先的A股上市公司发行各类GDR的先发优势，我将一如既往地全力支持优秀的中国企业走向国际资本市场并为其保驾护航。”向律师说。
2023 ALB China Top 15 Capital Markets Lawyers
Over the past few years, the authorities have been continuously evolving and refining China's capital markets in order to equip them with resilience and vitality. To reflect the key roles that lawyers are playing in this evolution, ALB China presents its second annual list of the Top 15 Capital Markets Lawyers, documenting the observations and reflections of outstanding legal service providers in the capital markets space.
In a recent report titled Chinese Mainland and Hong Kong IPO Markets, Ernst & Young points out the global IPO market slowdown and poor stock market performance due to a combination of negative factors in 2022. With only 1,333 IPOs raising $179.5 billion as of Dec. 14 last year, IPO activity dipped 45 percent and 61 percent by the number of deals and proceeds, respectively.
China's capital markets, however, remain firm amidst difficulties. In terms of the number of deals and proceeds globally, the top two rankings are taken by the Shanghai Stock Exchange and Shenzhen Stock Exchange. According to Wind, the A-share market raised 586,966 billion yuan ($84.2 billion) from 425 IPO deals in 2022 (as of the year-end), based on the caliber of the listing date. As compared to 2021, the number of IPOs decreased but the funds raised grew by 8 percent to reach new highs for two consecutive years.
Additionally, KPMG China released its Mainland China and Hong Kong IPO Markets: 2021 Review and 2022 Outlook report, which found that that the Chinese mainland has been comparatively less affected by global volatility. With relatively low inflation environment and the policy measures to stabilize the economy, the A-share IPO market remained resilient.
And the STAR Market and the CHINEXT, which adopt the registration system, have been the main stage for A-share IPOs. The statistics from the Financial News suggest that, as of December 30, the number of IPOs on the STAR Market and the CHINEXT in 2022 was 123 and 148 respectively, accounting for a combined 63 percent. The IPO funds raised on the STAR Market totaled 252.044 billion yuan ($36.6 billion), up 24.22 percent YoY; and the number on the CHINEXT totaled 179.636 billion yuan ($26.1 billion), up 21.78 percent YoY. Together, they accounted for a combined 73 percent of the total A-share IPOs. This demonstrates the support that the capital markets render to enterprises geared toward sci-tech innovation and emerging industries.
"The registration-based IPO reform allows lawyers to advise businesses at different stages of development across sectors and expand our coverage in the real economy. In this way, we can promote sustainable economic development.”
— Zhu Zhenwu, Tian Yuan Law Firm
Meanwhile, the Beijing Stock Exchange (BSE) has achieved steady development. In 2022, it raised 16.558 billion yuan ($2.4 billion) from 83 listings and the number of listed companies doubled.
"Following the adjustment of the COVID-19 control measures at the end of 2022, China’s capital markets continue to rebound with signs of recovery across sectors. In particular, China will continue to deepen its financial system reform, which is a boon for the capital market," says Zhu Zhenwu, a senior partner with Tian Yuan Law Firm.
Zhu mentioned some notable policies and dynamics that can bring incremental growth to the Chinese capital markets: the homecomings of a wave of Chinese stocks given the risk of “decoupling” between the U.S. and China; the introduction of policies that reinforce the orientation of the STAR Market and the CHINEXT; the booming military and aerospace industries under the Russian-Ukrainian conflict; and the recovery of tourism, catering and transportation industries following relaxed COVID-19 control measures.
"Amidst the trend of market-based regulation, capital market lawyers should grasp the value and bottom line of the capital market based on the logic of industry-finance integration to accomplish the mission of connecting business and capital. "
— Zhu Rui, Grandway Law Offices
Zhu Rui, an executive committee member with Grandway Law Offices says that China's economy is at a critical stage of transformation “from high-speed development to high-quality development,” noting that this is why it necessitates the reform of the capital market at this moment. "China needs the capital market to inject vitality into the real economy against temporary setbacks,” he says. “Against the shocks of COVID-19 and changes in the global landscape, it is going through the throes of transition before it can stabilize. The throes are particularly pronounced in 2022 in national and regional economic centers represented by Shanghai."
Shen Hongshan, the managing partner in DeHeng Shanghai Law Office, suggests that for a period of time after last March, stock issuance and listing slowed down, with frequent cases of suspended and tumbling IPOs, greatly restricting capital market lawyers in multi-location practice. However, they still have their hands full because listings are still underway, and the capital market is not in a complete halt. Shen feels that the pace of listing activity has quickly recovered, and entrepreneurs have boosted expectations with policy adjustment after June 2022. The lawyers are actively improving their skills to embrace the opportunities brought by capital market reform.
REGISTRATION-BASED IPO SYSTEM
When it comes to capital market reform, the biggest highlight and common concern for lawyers is the full implementation of the iconic registration-based IPO system.
On Feb. 1, the China Securities Regulatory Commission (CSRC), the three bourses in Shanghai, Shenzhen, and Beijing, and the New Third Board solicited opinions from the public on the full implementation of the registration-based IPO system. On Feb. 17, the CSRC issued institutional rules for the full implementation of the registration system, marking that the system has been institutionally finalized and applied to all types of public stock offerings in the entire market.
After four years from its first trial on the STAR Market in 2019, the CHINEXT in 2020, to the BSE in 2021, the registration system has realized market-wide application, which means that the Chinese capital market, after three decades of development, is entering the era of the registration-based system, according to Zhu Rui.
"Under the system, the financial criteria for listing have been broadened beyond profitability and become more diverse, providing opportunities for more leading companies in niche segments with competitive advantages and innovation capabilities to land on the capital market,” says Zhu Rui, a fifteen-year veteran in the capital market business, who has dealt with the listings of companies in sectors such as high-end manufacturing, biopharmaceutical, information technology, and aerospace. For example, he helped ClinPlus with the IPO process last May. This is a successful precedent of domestic innovative SMOs entering the capital market, and a representative case of listing by innovative service providers under the new system.
Shen’s comments echo Zhu Rui’s. "I have seen the ups and downs of the capital market, from the initial audit system to the current registration system, including such reforms as split share, and I feel privileged as part of China's capital markets," he says.
"The point of the registration-based IPO system is to reshape the boundaries between market and regulation, and clarify the functions and responsibilities of market stakeholders. It is a reform of the capital market."
— Shen Hongshan, DeHeng Law Offices
Shen lists the reforms under the registration-based system: optimizing stock trading rules, adjusting major asset reorganization rules, and strengthening the supervisory responsibilities of securities intermediaries. "The point of the registration system is to reshape the boundaries between market and regulation, and clarify the functions and responsibilities of market stakeholders. It is a reform to the capital market,” he says.
Zhu Zhenwu feels the comprehensive registration system reform, on the one hand, ensures fair competition. “When the choice of investment decisions is left to the market, there is a balance between listing and delisting petitions, with diversified listing conditions and improved listing efficiency,” he notes. “As a result, we can expect a new capital market that is standardized, transparent, open, dynamic and resilient. On the other hand, we can advise businesses at different stages of development across sectors and expand our coverage in the real economy. A multi-level capital market pattern where the Main Board, the STAR Market, the CHINEXT, the BSE, and the New Third Board complement each other in coordinated development will be formed. The diversified system to support sci-tech innovation enterprises will be improved. In this way, China will realize sustainable development."
Zhu Rui believes that an array of changes represented by the new system point to a market-oriented trend. "The market itself is the most efficient tool for resource allocation,” he says. “In nature, the reform is a transfer of power, which means allowing market players, say, buyers and sellers, to govern listing results and prices with their judgment, intention, and binding power. This is how a healthy and resilient capital market is created. As Walter Bagehot exclaimed more than a century ago, ‘Thus English capital runs as surely and instantly where it is most wanted, and where there is most to be made of it, as water runs to find its level.’”
Zhu Rui has also noticed another bonus of regulatory transparency, which mitigates the impact of information asymmetry on investors by reducing information asymmetry and transaction costs, so that solidified assets are constantly transformed into financial products with liquidity.
"I expect a more transparent, accurate, and market-oriented regulatory system to achieve a deep synergy between the 'visible hand’ and the 'invisible hand’. As a result, the capital market can better fulfill its functions of gathering social capital, optimizing resource allocation, improving financial structure, and achieving common prosperity," adds Zhu Rui.
TWO-WAY OPENING-UP
Alongside the full implementation of the registration system, China has embraced another major change — filing-based administration of overseas listings by domestic enterprises.
On February 17, the CSRC released Trial Regulations for Filing-based Administration of Overseas Securities Offering and Listing by Domestic Companies and the related regulatory guidelines. The regulations, which require unified filing-based management of direct and indirect overseas listings by domestic enterprises and clarify applicable scenarios, will come into force on March 31.
"I think the new regulations can make the overseas listing system more inclusive and corporate financing more efficient by delineating the negative list and the scope of regulation,” says Zhu Zhenwu. “The market will play a decisive role in resource allocation and the proportion of direct corporate financing increases. Furthermore, a multi-level capital market system with complementary functions and coordinated development will better serve the national strategy.”
Xiang Tianning, a partner with Clifford Chance who focuses on the Hong Kong capital market, says that the implementation of the registration and filing systems will help the capital market to develop in a healthy and orderly manner. "Hong Kong has a core regulatory principle that allows investors to make informed decisions based on appropriate disclosure. The implementation of the registration and filing systems is a major effort by the state to remove regulatory uncertainty and provides a direction for the market,” says Xiang.
In terms of offshore business, Zhu Rui is particularly concerned about an agreement from last August. "The signing of an audit and regulatory cooperation agreement between the CSRC and China's Ministry of Finance and the PCAOB is an important step to make cross-border capital market regulation transparent. It guarantees bottom-line compliance of domestic companies in cross-border operation,” he says.
In addition, a series of initiatives to open up China's capital markets have been introduced in 2022. In February, the CSRC issued the Provisions on the Regulation of the Depositary Receipt Business under the Stock Connect Scheme between Domestic and Overseas Stock Exchanges, which expands the business scope to Switzerland and Germany. In June, the CSRC issued the Announcement on the Arrangements for Including Exchange-Traded Funds in the Mainland-Hong Kong Mutual Market Access Mechanism, which further deepens the Mainland-Hong Kong mutual market access mechanism. In July, the first batch of global depository receipts (GDRs) of Chinese and Swiss securities markets were listed. In August, the optimized trading calendar of Shanghai-Shenzhen-Hong Kong Stock Connect was officially implemented. In December, the CSRC and the Hong Kong Securities Regulatory Commission jointly announced that they agreed in principle on the expansion of eligible stocks under the Stock Connect programme.
Xiang indicates that the Mainland-Hong Kong mutual market access is increasingly evident these days. "General Secretary Xi Jinping proposed that China needs to create a new development dynamic that focuses on domestic flow and features positive interplay between domestic flow and international engagement, ‘by fostering a new development paradigm, we are not pursuing a closed-door circulation, but open and mutually reinforcing domestic and international circulations.’ The Hong Kong stock market, from application, listing and offering, to trading, has embodied more Chinese characteristics. On the one hand, the Mainland and Hong Kong capital markets are frequently interacting under the principle of 'one country'; on the other hand, the two complement each other in industrial policies under ‘two systems,’” he notes.
Xiang adds, however, that it takes both time and practice to solve many other issues, for example, the things worth attention when companies in industries labeled as red and yellow light seek to list in Hong Kong, whether the CSRC has different priorities regarding the regulation of different entities in theory or practice when red-chip and H-share listings are managed through filing, and what course for the VIE structure to follow.
"Two-way opening-up of financial markets at home and abroad is an irreversible trend, and the key is not whether or not, but how," says Xiang, adding that the capital market players will remain cautiously optimistic after going through the cold winter.
OPPORTUNITIES AND REQUIREMENTS
Shen Hongshan says that sound economic development is not possible without the capital market, and the further development of the capital market hinges on capital market lawyers. “We are optimistic about the fundamentals of the Chinese economy, and we believe that there is a place for capital market lawyers," he notes. “After the full implementation of the registration system, intermediaries need to take on greater duties and responsibilities. This is a more dynamic trend brought by marketization. We expect growing demand for legal services since many financial products in China need to be improved.”
As the economy becomes more market-oriented, new legal services emerge. For example, lawyers may participate in preparing prospectuses, says Shen, who believes that capital market development will present even more opportunities for legal professionals.
Zhu Zhenwu agreed that a much greater test lies ahead of intermediaries. However, at the same time, this will foster a healthy industry landscape where intermediaries are encouraged to fulfill their responsibilities in fair competition.
"On the one hand, many law firms and professional institutions are springing up to challenge large established agencies in the capital market business. In particular, the BSE, after opening its door to IPO, has attracted some new agencies to join the competition. Some outstanding teams have versatile talents who are familiar with technology, business, finance, and taxation. They can better understand industry-specific developments and strategies and customize targeted solutions for different clients," says Zhu Zhenwu. "On the other hand, some international agencies will adjust their strategy to compete with local law firms. With more international experience and expertise, they can better meet the needs of global clients.”
"Competition is inevitable. As China makes it clear in regulation, there is a good chance to turn the capital market business into a bigger cake."
— Xiang Tianning, Clifford Chance
Xiang observes that competition is inevitable and as China makes regulations clearer, there is a good chance the pie will grow bigger. "Opportunities always come to those who are prepared, especially amidst rapid market changes. We should guard against rashness and guide clients through the complexities with a deeper understanding of regulation rules. We need to maximize their business purposes legally and compliantly, rather than bringing down legal service fees alone to grab the share,” he says.
Zhu Rui agrees that the reform is bound to increase competition. “Intermediaries have to deal with new requirements as market segmentation and concentration grows under the registration system. They are required to focus on specific industries," he says, adding that capital markets lawyers should grasp the value and bottom line of the capital markets based on the underlying logic of industry-finance integration to accomplish the mission of connecting business and capital.
"A value mindset requires capital market lawyers to understand an IPO from the perspective of investors, to be specific, applying industrial thinking to seize the profitability trends and evaluating corporate innovation capabilities through competitive analysis,” notes Zhu Rui. “A bottom-line mindset means lawyers should understand the normative IPO assessment from the regulators' standpoint. They should ensure clear equity, complete assets, legal business and real profits for applicants. Therefore, these enterprises can adapt to a detailed and transparent audit under the registration system."
LOOKING TO THE FUTURE
As for the future, Zhu Zhenwu and his team will focus on sectors such as high-end equipment, artificial intelligence, new energy vehicles, semiconductors and integrated circuits, biomedicine and life sciences; while Zhu Rui and his team will prioritize new-generation information technology, biomedicine, and other new economy-related deals.
Shen Hongshan believes that the capital market business is getting more closely linked to national strategies and industrial directions, and the focus should be the high-tech space including new energy, new materials, big health and digital economy and the industrial manufacturing space represented by high-end manufacturing and high-end equipment.
For emerging industries and enterprises, Zhu Zhenwu will guide his team to dive into the legal front in the industry to better meet the needs of clients from new industries. Zhu Rui shares his interest in emerging financial forms such as asset securitization and the issuance of innovative financial instruments. He will offer comprehensive legal services throughout the process professionally.
Xiang Tianning feels that the domestic capital markets with limited resources will be unable to meet the demand of all issuers from all industries. “This leaves ample room for differentiated competition in cross-border exchanges,” he says, indicating that clients without a favorable position in the domestic capital market are the focus.
"In terms of products, European GDRs will remain our focus, in addition to traditional IPO, compliance, placements, public company M&A and privatization. Based in Europe, Clifford Chance has a proven track record of helping top Chinese A-share companies issue GDRs of all kinds. I will go all out as always to escort top Chinese companies to the international capital markets," says Xiang.
THE LIST
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2023 ALB China Top 15 Capital Markets Lawyers |
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Guo Kejun郭克军 Huang Yan黄艳 Luan Jianhai栾建海 Shen Hongshan沈宏山 Shi Jinjuan石锦娟 Su Zheng苏峥 Wang Jin王瑾 Wang Kan王侃 Wang Li王立 Wu Yuting武玉挺 Xiang Tianning向天宁 Xiang Zhenhua项振华 Zhang Tao张涛 Zhu Rui朱锐 Zhu Zhenwu朱振武 |
