Private Equity and Venture Capital

The U.S. released new regulations that will bring SPAC disclosure requirements more in line with traditional IPOs; First Chinese VC firm is included in U.S. Defense Department's military-related company list; and China is working on expanding its Anti-Money Laundering Law to cover virtual assets

Current sanctions, the risk of future sanctions, and foreign investment controls are some of the increasingly prominent challenges facing merger & acquisition (M&A) deals involving Chinese parties this year. While there is no universal solution for each transaction, there are still ways parties and lawyers can minimize the risk of problems arising.

Public may no longer be able to access court rulings as CJO database might be closing; Analysts worry a new CSRC draft might lead to problems with start-up financing; and China proposes a four-tier classification system to deal with data breaches

Former China COO of Morgan Stanley compares the challenges of being a senior executive at a boutique private equity firm against that of a bulge bracket investment bank

China proposes to allow businesses to transfer certain types of data overseas without restrictions; IBM's former IT services arm Kyndryl plans to split its China business over data security rules and tech restrictions; and Shenzhen's government introduces initiatives to raise funding for local tech companies amidst U.S. tech restrictions

GGV capital is breaking up its business into two, separating its Asia partnership; A Shanghai court has recognized Bitcoin as a currency; and China eases capital controls in an effort to attract foreign investment.

Favorable tax policy for venture capital firms is extended to 2027.

Biden's new Executive Order simplifies the proposed "Reverse CFIUS" review process of outbound investment into China; Small hedge funds in China are threatened with a minimum asset requirement; and Shanghai Stock Exchange further scrutinizes medical companies as an anti-corruption campaign intensifies.

James Yong Wang and Ziyang Li from Jingtian & Gongcheng examine an unprecedented and significant new Regulation which represents the beginning of a new stage for the private investment fund industry in China