Chinese companies going outbound will continue to use Hong Kong as an investment platform

Myles Seto, partner in the corporate commercial practice group, was recently interviewed by Ming Pao Daily. In the article, he discussed the trend of overseas mergers and acquisitions by PRC enterprises and the role played by the lawyers in Hong Kong. 

Myles commented that, while Chinese outbound M&As involve PRC laws and the laws of the investment destinations, it has been observed that around 60% of the outbound investments are conducted through Hong Kong, using it as an investment platform to facilitate the transactions

Hong Kong lawyers play the role of intermediaries and provide legal advice on related matters, ranging from the design of the deal structure to the negotiation process. Further, as an independent and impartial jurisdiction, Hong Kong has an advantage in acting as the forum for dispute resolution between the PRC and foreign parties.

Lawyers in Hong Kong generally have a competitive edge in terms of their experience in overseas investment, the quality of service and the efficiency in their communications with clients. Given those factors, PRC companies looking to invest outside of China will continue to use Hong Kong as their legal hub.

Please click here to read the article (N.B. in Chinese).