China Justice Observer

中司观察

EnglishArabicChinese (Simplified)DutchFrenchGermanHindiItalianJapaneseKoreanPortugueseRussianSpanishSwedishHebrewIndonesianVietnameseThaiTurkishMalay

China’s New Rules on Law Firms IPO Practice

Mon, 07 Mar 2022
Categories: China Legal Trends

On 28 Jan. 2022, China Securities Regulatory Commission, the Ministry of Justice and the All China Lawyers Association jointly issued the “Guidelines for the Application of Regulatory Rules – Legal Class No.2: Rules for the Practice of Law Firms Engaged in the Initial Public Offering (IPO) and Listings” (hereinafter “the Rules”, 监管规则适用指引——法律类第2号:律师事务所从事首次公开发行股票并上市法律业务执业细则), which took effect from 27 Feb. 2022.

The Rules, composed of 11 Chapters and 68 Articles, touches upon the major matter of law firms issuing legal opinions.

The IPO and listing of securities service mentioned in the Rules refers to the service in which the law firm accepts the commission of the company (i.e. the issuer) to go IPO in China, assigns the firm’s lawyers to verify and validate the relevant legal matters, and issues legal opinions and other instruments.

In recent years, Chinese law firms engaged in IPO business have often been investigated and punished by regulatory authorities for non-compliance, or have been subject to large claims by investors.

The Rules is designed to address these non-compliance behaviors.

 

 

Cover Photo by Sifan Liu on Unsplash

Contributors: CJO Staff Contributors Team

Save as PDF

You might also like

SPC Releases IP Guiding Cases

In December 2023, China’s Supreme People's Court issued its 39th batch of guiding cases focused on intellectual property rights, covering various aspects such as IPR infringement disputes, patent ownership, and copyright ownership.

SPC Releases Judicial Interpretation on Contract Law

In December 2023, China's Supreme People's Court issued a judicial interpretation on the Contract section of the Civil Code, aimed at guiding courts in adjudicating disputes and ensuring nationwide consistency in application.

China Introduces New Drunk Driving Convictions Standards Effective 2023

In December 2023, China announced updated standards for drunk driving convictions, stating that individuals who drive with a blood alcohol content (BAC) of 80mg/100ml or higher on a breath test may be held criminally liable, according to the recent joint announcement by the Supreme People's Court, Supreme People's Procuratorate, Ministry of Public Security, and Ministry of Justice.

SPC's Revised Rules Extend Reach of International Commercial Courts

In December 2023, China's Supreme People’s Court's newly amended provisions extended the reach of its International Commercial Courts (CICC). To establish a valid choice of court agreement, three requirements must be met - the international nature, the agreement in writing, and the amount in controversy - while the 'actual connection' is no longer required.