{"id":80092,"date":"2025-09-23T03:33:13","date_gmt":"2025-09-23T03:33:13","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/80092\/"},"modified":"2025-09-23T03:33:13","modified_gmt":"2025-09-23T03:33:13","slug":"signs-of-a-rebound-spur-chinese-businesses-to-venture-out-into-uncertainty","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/80092\/","title":{"rendered":"Signs of a rebound spur Chinese businesses to venture out into uncertainty"},"content":{"rendered":"

As capital markets resurrect, how can businesses capitalise on opportunities amid risks and nagging uncertainties? Experts from leading domestic and international law firms share their insights with Claire Zhao<\/strong><\/p>\n

IN JULY, in a vivid display of market momentum, six gongs were lined up and struck simultaneously at the HKEX to celebrate the listings of five companies and one exchange-traded fund on the same day.<\/strong><\/p>\n

Since late last year, the Hong Kong IPO market has shown consistent signs of revival, building into a long-awaited resurgence throughout this year. A July report from Goldman Sachs indicates that fundraising totals on the HKEX for the first seven months have already surged past last year\u2019s full-year figure by 41%. But does this current fervour in the capital markets signify a broad-based recovery?<\/p>\n

Undercurrents continue to swirl. Astute market participants recognise that this recovery diverges fundamentally from those of the past. Listing in Hong Kong is no longer a mere carnival of capital; it has evolved into a strategic manoeuvre within a broader landscape of geopolitical tension.<\/p>\n

Amid the market volatility, how can companies discern trends and identify structural opportunities? How, too, might legal teams transcend their traditional roles to provide forward-looking support for strategic decision making and global operations? For China Business Law Journal\u2019s mid-year market research, our editorial team visited domestic and international law firms, seeking insights from managing partners and senior practitioners on these pressing questions.<\/p>\n

The research reveals that a company\u2019s core competitiveness lies not in avoiding all risks, but in turning constraints into strategic advantages. To navigate today\u2019s geopolitical turbulence and rapid evolution of technical regulations, Chinese enterprises must shift from \u201cpassive compliance\u201d to \u201cproactive rule integration\u201d \u2013 a transformation in which legal teams are now positioned to play a crucial role.<\/p>\n

First green shoots<\/strong><\/p>\n

\u201cIn recent months, we have seen an uptick in enquiries and engagements for IPOs,\u201d observes Danielle Roman, managing partner at offshore law firm Mourant\u2019s Hong Kong office. She outlines the shift in client demand as one that \u201cpossibly represents an improvement in the exit environment in contrast to the more challenging past couple of years\u201d.<\/p>\n

\"Danielle<\/strong><\/p>\n

Hong Kong\u2019s IPO market is showing clear signs of revival, with a notable surge in listings by mainland Chinese companies. According to Goldman Sachs, 51 companies listed on the HKEX up to 16 July, raising HKD124 billion (USD15.9 billion), compared to 77 listings raising HKD88 billion throughout 2024. Ten of this year\u2019s listings were dual A+H share offerings, while more than 200 companies are now in the pipeline.<\/p>\n

Mainland Chinese companies are increasingly favouring Hong Kong as a preferred destination for IPOs, with many A-share listed firms having either announced or completed secondary listings in the city under an A+H share structure. According to Wang Yuan, a senior partner at Jia Yuan Law Offices<\/a> and director of its Shanghai office, this trend reflects both the financing needs of portfolio companies and exit demand from investment funds.<\/p>\n

\"Wang<\/p>\n

\u201cKey factors include slower A-share IPO approval processes \u2026 combined with the current geopolitical climate, which has made US listings less attractive for Chinese companies,\u201d he says. \u201cThe shift has sustained momentum in Hong Kong\u2019s IPO market.\u201d<\/p>\n

Zhang Rongsheng, a partner at Jingtian & Gongcheng<\/a> in Beijing, says China\u2019s A-share market continues to uphold a stance of strict regulation. \u201cAlthough the Star Market has begun accepting applications under the \u2018fifth set\u2019 of listing standards \u2013 signalling a gradual return to normalised review procedures \u2013 the market remains somewhat cautious,\u201d he says. \u201cAs a result, a significant number of mainland companies deliberating between A and H shares are ultimately opting to list in Hong Kong.\u201d<\/p>\n

The fifth set of listing standards values a company based on its technological innovation and market potential, rather than its current financial performance.<\/p>\n

Despite a persistently challenging fundraising environment, Roman observes that both larger and emerging managers continue to launch new products \u2013 even as some take longer to raise funds than in previous years. She also notes the rise of bespoke structures and project-specific funds, reflecting caution among both investors and managers.<\/p>\n

The surge in corporate restructuring and M&A has continued in 2025. Vicky Lord<\/a>, managing partner at Harneys\u2019 Shanghai office, attributes this trend to macroeconomic volatility and ongoing regulatory reform, prompting companies to reassess capital structures and seek greater operational flexibility amid financial uncertainty.<\/p>\n

\u201cMany companies look for ways to cut costs and implement synergies by restructuring their subsidiaries in China and optimising their setup in China,\u201d says Ulrike Glueck, managing partner at CMS China<\/a>\u2019s Shanghai office. She notes that investors are increasingly acquiring assets or shares in areas that complement their core operations or divesting non-core businesses. Similarly active are private equity firms, which \u2013 armed with ample capital reserves and operational expertise \u2013 are acquiring and revitalising distressed companies, while also targeting startups with advanced technologies and specialised know-how.<\/p>\n

Fast-tracked transformation<\/strong><\/p>\n

Amid deglobalisation and technological upheaval, the global economic architecture is undergoing a systemic overhaul, with supply chain and trade frameworks shifting towards greater diversification, regionalisation, sustainability and digitalisation. As China\u2019s economy pivots from expansion-led growth to qualitative upgrading, domestic companies are redefining their globalisation strategies.<\/p>\n

Catherine Guo<\/a>, a partner at Anli Partners<\/a> based in Beijing, says international trade is bearing the immediate brunt of the climate of geopolitical uncertainty. \u201cThe convergence of abrupt shifts in tariff policies, mounting pressure to reconfigure supply chains, and intensifying geopolitical rivalry is directly impacting companies\u2019 operational costs and strategic planning,\u201d she says<\/p>\n

Yet, opportunities for international expansion persist. Lord, of Harneys, highlights that \u201chigh-growth emerging economies in Central Asia, Africa and Latin America\u201d are particularly noteworthy. New energy firms are accelerating overseas expansion, and biopharmaceutical companies are increasing investment in innovative drug pipelines despite headwinds.<\/p>\n

Wei Xin<\/a>, a director and founder of RICC & Co in Shanghai, believes cross-border expansion and industrial chain collaboration help unlock significant growth opportunities for companies. \u201cGoing global allows companies to access larger international markets, securing greater resources and customers,\u201d he says. \u201cAt the same time, supply chain co-ordination enables businesses to integrate upstream and downstream resources, combine complementary strengths, reduce production costs, and enhance operational efficiency \u2013 strengthening their competitiveness within global value chains.\u201d<\/p>\n

As the restructuring of global supply chains accelerates, trends towards regionalisation and localisation are becoming more prominent. In response, China is advancing its bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement (DEPA). Simultaneously, it is deepening regional economic co-operation through its Belt and Road Initiative and efforts to establish a free trade area for the Asia-Pacific.<\/p>\n

\"Tang<\/p>\n

As Chinese companies expand overseas, Tang Zhoujun, an equity partner at Zhong Lun Law Firm<\/a> in Beijing, sees considerable potential in Southeast Asian markets. \u201cDespite the rising tide of deglobalisation in recent years, regional integration is accelerating in key emerging markets, particularly Southeast Asia,\u201d he says. \u201cThis unlocking of market potential has established the region as a prime destination for Chinese enterprises seeking new growth opportunities abroad.\u201d<\/p>\n

New frameworks for international economic co-operation support global expansion and raise the bar for cross-border compliance and dispute resolution practices. Take the automotive sector as an example: Between 2021 and 2024, China\u2019s vehicle exports surged from 1 million to 6.4 million units, ranking first globally for two consecutive years in 2023 and 2024. This rapid expansion marks the industry\u2019s entry into a new stage of \u201cin-depth globalisation\u201d, where manufacturers face increasingly complex cross-border compliance challenges.<\/p>\n

In the past five years, the Shanghai International Arbitration Centre has handled more than 2,400 arbitration cases related to the automotive sector, with disputed amounts exceeding RMB38 billion (USD5.3 billion), underscoring international disputes. Guo, at Anli, notes: \u201cNational automotive technical regulations, such as the EU\u2019s carbon emission rules and data localisation requirements, vary significantly across markets. Companies expanding overseas must remain agile in adapting to local policies.\u201d<\/p>\n

Eva Wang, the Beijing-based COO of Fangda Partners<\/a>, believes new trade agreements such as the Regional Comprehensive Economic Partnership and the DEPA will push greater emphasis on rules of origin and the structuring of cross-border investments.<\/p>\n

While regional integration and localisation reshape global industry, technology is accelerating a deeper realignment \u2013 transforming supply chains and creating fundamentally new models of value creation.<\/p>\n

Against the backdrop of US-China technological decoupling, sustainable access to key technological equipment has emerged as a critical corporate risk, accelerating China\u2019s push for technological self-reliance. The country\u2019s biopharmaceutical sector exemplifies this dynamic shift.<\/p>\n

According to Wang Weibin, managing partner at Beshining Law Office in Shanghai, the national volume-based procurement policy has spurred a wave of generic drug approvals, prompting companies to challenge originator drug patents through invalidation claims and pharmaceutical patent linkage proceedings. Meanwhile, China\u2019s innovative drug industry, developing steadily since 2010, has in recent years become a major participant in global novel drug transactions.<\/p>\n

At the same time, disruptive technological breakthroughs, exemplified by artificial intelligence, are fuelling growth in digital asset trading and virtual reality applications. Lord notes that companies are increasingly investing in digital innovation to fast-forward their businesses. \u201cDigitalisation creates opportunities to improve customer experience and develop new revenue streams through innovative products and services,\u201d she says.<\/p>\n

Zeng Tao, a Shanghai-based senior partner at Hansheng Law Offices<\/a>, says: \u201cAs digital economic integration accelerates, technologies such as artificial intelligence and big data are proving instrumental in driving industrial advancement and innovation in business models.\u201d<\/p>\n

According to official figures from China\u2019s National Data Administration, the country has developed more than 100 large-scale AI models with more than 10 billion parameters. These models are being extensively deployed across critical sectors such as electronics, healthcare, intelligent transport and e-commerce, enabling more than 100 commercial application scenarios.<\/p>\n

The year 2025 is widely regarded as the \u201cdawn of the intelligent agent era\u201d. Kevin King, a partner at Jin Mao Law Firm<\/a> in Shanghai, believes a new wave of industrial transformation is already underway. \u201cBusinesses should strategise early to secure first-mover advantages in emerging fields, thereby driving innovation and upgrading their operations.\u201d<\/p>\n

This has also spurred new demands for algorithm patenting and data compliance. \u201cOn one hand, technological innovations in areas like AI model architecture and training methods have now reached patentability thresholds, pushing companies to build protective barriers through patents,\u201d says Wang Weibin. \u201cOn the other hand, fragmented patent examination standards globally are complicating application strategies, necessitating careful alignment of technical disclosure methods with claim design to mitigate eligibility risks.<\/p>\n

\u201cAs Chinese enterprises accelerate their global expansion, we are witnessing a surge in demand for cross-border intellectual property protection,\u201d adds Wang. \u201cThis is particularly evident in the critical need for comprehensive Freedom-to-Operate (FTO) analyses before international market entry, as well as in developing practical strategies to navigate international technology restrictions.\u201d<\/p>\n

Wang specifically cautions pharmaceutical manufacturers against inadequate infringement risk assessments when launching products overseas, and highlights disputes over service invention ownership resulting from the mobility of key technical personnel.<\/p>\n

\u201cWe recommend establishing a dynamic global FTO mechanism to keep pace with evolving international regulations, while implementing standardised ownership agreements and inventor management systems to mitigate risks associated with talent mobility,\u201d he says.<\/p>\n

Zeng, of Hansheng, observes that amid a surge in technology ownership disputes among innovation-driven enterprises, IP infringement risks are escalating. \u201cBoth the cost and complexity of enforcement are rising \u2026 Businesses must transition from reactive litigation to proactive risk control,\u201d he says.<\/p>\n

\"Eva<\/p>\n

\u201cMany Chinese enterprises tend to prioritise market expansion when venturing overseas,\u201d remarks Eva Wang, of Fangda, \u201cyet overlook the importance of establishing a robust global intellectual property framework.\u201d Without systematic trademark and patent protection, businesses may face risks such as product counterfeiting, technology infringement, and even customs detentions. She therefore recommends that businesses implement a holistic IP strategy prior to entering new markets and establish rapid enforcement mechanisms in key jurisdictions.<\/p>\n

New competitive barriers<\/strong><\/p>\n

This year is set to witness an explosion in corporate compliance demands. Chinese enterprises expanding overseas face increasingly complex legal and regulatory environments abroad. The adoption of AI and digital transformation has introduced significant new risks, including data leakage, algorithmic ethics concerns, and IP disputes. This rapidly evolving regulatory landscape is creating new forms of competitive barriers within the compliance domain.<\/p>\n

Eva Wang notes that \u201cpenetrative and whole-chain\u201d supervision in capital markets is becoming standard practice, significantly raising legal compliance requirements for companies in areas such as financing, M&A and information disclosure.<\/p>\n

Kevin Huang<\/a>, a Shanghai-based partner at Commerce & Finance Law Offices<\/a>, says that geopolitical factors are driving frequent upgrades to export controls, trade barriers and sanctions targeting China\u2019s high-tech and sensitive sectors \u2013 particularly semiconductors and 5G communications \u2013 by the US and Europe.<\/p>\n

In response, Eva Wang advises: \u201cAmid escalating US-China tensions and tightened multilateral scrutiny, companies must establish multi-jurisdictional compliance review mechanisms in early project stages, and incorporate \u2018trigger clauses\u2019 or termination rights into agreements to address sudden changes in sanctions or export controls.\u201d<\/p>\n

Another key focus of compliance regulation lies in data governance and personal information protection. China has introduced a series of regulations and industry standards \u2013 including the Network Data Security Management Regulations, the Public Security Video and Image Information System Management Regulations, and the Personal Information Protection Compliance Audit Measures \u2013 which further elaborate and expand the obligations established under the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law.<\/p>\n

\"\"<\/p>\n

Glueck, of CMS China<\/a>, points out: \u201cCompanies must prioritise data protection to maintain trust, comply with evolving legal requirements, and innovate responsibly in the digital economy.\u201d<\/p>\n

Globally, businesses are experiencing a significant increase in demand for cross-border data flows. Zoe Zhou, Wei Tu Law Firm\u2019s managing partner based in Guangzhou, notices the diminishing importance of physical operations to e-commerce, banking and financing, medical treatment and other industries.<\/p>\n

A growing number of companies are exploring business models that allow them to serve global customers without a local physical presence, leveraging digital means to achieve international market reach. \u201cIn such a context, companies start to look at the regulatory regime and rules for cross-border data transfer and service delivery,\u201d she says.<\/p>\n

In technology-driven sectors, the deepening application of AI and the evolution of international data governance frameworks have made the establishment of an integrated compliance system a standard requirement for companies. Jeff Yang<\/a>, a director and senior partner at Wang Jing & GH Law Firm based in Guangzhou and Shenzhen, says: \u201cBuilding a \u2018macro-compliance\u2019 framework encompassing antitrust, personal information protection and advertising compliance has become essential for internet enterprises.\u201d<\/p>\n

Anli\u2019s Catherine Guo<\/a> adds: \u201cRegulatory frameworks governing cross-border data flows have become a central challenge for companies expanding overseas. Compliance requirements in areas such as data security and privacy protection are driving increased demand for preventive legal services.\u201d<\/p>\n

Huang, at Commerce & Finance Law Offices<\/a>, advises businesses to closely monitor variations in data protection regulations across jurisdictions. \u201cStringent regulations such as the EU\u2019s General Data Protection Regulation require companies to assume responsibility for the entire lifecycle of user data, with severe financial penalties for violations,\u201d he says.<\/p>\n

\u201cIn contrast, some emerging economies maintain more lenient frameworks but exhibit high enforcement unpredictability, often leaving companies in a state of \u2018compliance ambiguity\u2019.\u201d He cautions that Chinese cross-border e-commerce companies operating in Europe without proper data governance could face substantial fines, or even suspension of operations, with little warning.<\/p>\n

Zeng, of Hansheng, says companies should pay close attention to the EU\u2019s Artificial Intelligence Act, enacted last year, particularly the dual compliance challenges it presents alongside China\u2019s Data Security Law.<\/p>\n

Eva Wang emphasises that, as cross-border data regulations continue to mature, companies should establish interdisciplinary data compliance response mechanisms and develop tailored management protocols aligned with the specific processing pathways of different business lines.<\/p>\n

In the field of IP, emerging issues such as copyright identification for AI-generated content (AIGC) and the boundaries of fair use for training data are presenting new compliance challenges for businesses. Zhu Zhiwei, a Shenzhen-based partner at King & Win Law Firm<\/a>, cites data showing that Shanghai courts concluded 50,000 IP cases last year, with total compensation amounts surging by 132.4% year-on-year. Among these, cases involving emerging areas such as AI and e-commerce livestreaming saw a notable increase.<\/p>\n

Zhu recommends that companies clearly define ownership rights of AIGC works through contractual agreements, establish compliance review mechanisms for data sources, and prioritise the use of properly licensed or anonymised data.<\/p>\n

At the same time, algorithm-driven employment models are redefining the boundaries of labour relationships, creating new compliance challenges, particularly in flexible working arrangements, remote offices, and emerging talent-related disputes.<\/p>\n

According to a work report released by the Shanghai High People\u2019s Court during the annual legislative sessions of the National People\u2019s Congress and the Chinese People\u2019s Political Consultative Conference, last year local courts concluded 1,223 cases involving disputes in new forms of employment covering food delivery riders and ride-hailing drivers. These cases are driving advancement in the criteria used to determine labour relationships.<\/p>\n

Zhu suggests that companies develop classification guidelines for flexible employment, clarifying the rights and responsibilities of all parties through platform agreements and task-specific rules.<\/p>\n

RICC\u2019s Wei Xin<\/a> adds: \u201cBusinesses must reassess the balance between compliance requirements and workforce flexibility to identify the optimal approach.\u201d<\/p>\n

As corporate social responsibility compliance expands into broader environmental, social and governance (ESG) dimensions, ESG compliance has become a critical interface for companies seeking to access green financing in capital markets and meet international supply chain standards.<\/p>\n

While most companies have yet to fully integrate ESG principles into governance and investment strategies, Mourant\u2019s Danielle Roman anticipates growing demand for aligning fund documentation with ESG disclosure standards to meet regulatory and investor expectations.<\/p>\n

Lord, of Harneys, observes: \u201cThose that engage in sustainable development stand to gain a competitive advantage and attract environmentally conscious consumers and investors.\u201d<\/p>\n

Glueck highlights that, for the Chinese market, leading technologies and industrial collaboration prospects in new energy vehicles and other strong sectors will be of interest to European investors.<\/p>\n

\"Jeff<\/p>\n

Yang, at Wang Jing & GH Law Firm, says: \u201cThis is an emerging market driven by sustainability. Green economy initiatives and responsible investment are evolving into commercially viable sectors with long-term value.\u201d<\/p>\n

Yet compliance is not the end goal. John Liu, a partner at Anli Partners<\/a> based in Beijing and Shanghai, says: \u201cFor Chinese companies, safeguarding their interests should not stop at administrative compliance \u2013 they must also proactively evaluate opportunities for procedural challenges \u2026 and seek a voice in shaping evolving regulations.\u201d<\/p>\n

Mechanisms such as international carbon tariffs and green supply chain standards illustrate how compliance requirements now function as both technical barriers and instruments of influence in global trade.<\/p>\n

Liu Xinhai, a Shanghai-based senior partner at Yingke Law Firm<\/a>, concludes: \u201cIn the tide of globalisation, Chinese enterprises \u2018going global\u2019 entails not only the export of capital and technology, but a strategic contest for influence over the rules of the game.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"As capital markets resurrect, how can businesses capitalise on opportunities amid risks and nagging uncertainties? Experts from leading…\n","protected":false},"author":2,"featured_media":80093,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[53754,53755,1793,53756,79,53757,381,53758,53759,53760,53761,53762,53763,53764,18,53765,53766,53767,20366,53768,53769,4202,53770,19,53771,11092,17,53772,53773,53774,53775,53776,53777,53778,53779,53780,188,53781,53782,53783,53784,53785,53786,53787,53788,53789,53790,53791,53792,53793,53794,53795,53796,53797],"class_list":{"0":"post-80092","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-anli-partners","9":"tag-artificial-intelligence-act","10":"tag-beijing","11":"tag-beshining-law-office","12":"tag-business","13":"tag-catherine-guo","14":"tag-china","15":"tag-claire-zhao","16":"tag-commerce-finance-law-offices","17":"tag-cybersecurity-law","18":"tag-danielle-roman","19":"tag-data-security-law","20":"tag-depa","21":"tag-digital-economy-partnership-agreement","22":"tag-eire","23":"tag-eva-wang","24":"tag-fangda-partners","25":"tag-general-data-protection-regulation","26":"tag-goldman-sachs","27":"tag-hansheng-law-offices","28":"tag-harneys","29":"tag-hong-kong","30":"tag-hong-kong-ipo","31":"tag-ie","32":"tag-ip","33":"tag-ipo","34":"tag-ireland","35":"tag-jeff-yang","36":"tag-jia-yuan-law-offices","37":"tag-jin-mao-law-firm","38":"tag-jingtian-gongcheng","39":"tag-john-liu","40":"tag-kevin-huang","41":"tag-kevin-king","42":"tag-king-win-law-firm","43":"tag-liu-xinhai","44":"tag-markets","45":"tag-national-data-administration","46":"tag-personal-information-protection-law","47":"tag-ricc-co","48":"tag-shanghai-international-arbitration-centre","49":"tag-tang-zhoujun","50":"tag-ulrike-glueck","51":"tag-vicky-lord","52":"tag-wang-jing-gh-law-firm","53":"tag-wang-weibin","54":"tag-wang-yuan","55":"tag-wei-xin","56":"tag-yingke-law-firm","57":"tag-zeng-tao","58":"tag-zhang-rongsheng","59":"tag-zhong-lun-law-firm","60":"tag-zhu-zhiwei","61":"tag-zoe-zhou"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/80092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=80092"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/80092\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/80093"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=80092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=80092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=80092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}