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How PE Investors Can Avoid Pitfalls When Investing in PRC-Related Deals
May 22, 2024 | BY
Susan MokCharles Wu of Clyde & Co describes the current regulatory state of China's investment market, for private equity investors, including the much anticipated recent clarity provided by key regulators as well as potential pitfalls to avoid
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Summary
- Much has changed in the PRC's investment market for private equity investors since before the pandemic, but much also remains the same
- Recent MIIT rules provide much anticipated clarity over what is or is not permitted in the PRC's promising and valuable Internet ecosystem
- In its implementation of the PRC's offshore IPO rules since March 2023, the CSRC has also provided clarity over what types of structures and listing venues are and are not allowed
- Ask yourself – if the clarity we have now existed five years ago, would we still have invested in the PRC market? If the answer is still yes, there are ways to minimize legal risk in this new normal