Mergers and Acquisitions

China bans listing of tutorial institutions

The expansion of competing U.S.-China sanctions requirements are forcing multinationals to rethink their traditional global compliance strategies

State Council unveils strict rules barring for-profit tutoring companies; MIIT launches six-month campaign targeting internet industry bad practices; and UBS launches family trust services for wealthy clients

CBIRC approves China's first wholly foreign-owned money broker to begin operations; Chinese investment in Europe fell to decade low in 2020; and NDRC releases new rules standardizing disclosure and compilation requirements for price index providers

In fast-paced M&A auctions, potential Chinese buyers must ensure that they are not disadvantaged by the new rules or be perceived as such

Shenzhen allows PE firms to invest in the A-share market

Scott Yu and Frank Jiang of Zhong Lun Law Firm highlight recently introduced national security measures for review of foreign investments including its broader reach within China, the scope of M&A targets and expanded sectorial coverage, and the new review mechanism coordinated by the NDRC

SAMR details the specifics on review of concentrations of business operators

Scrutiny of Chinese investment in the U.S. is unlikely to ease anytime soon, but a Biden administration is expected to adopt a less abrasive approach than that of his predecessor