M88 Malaysia
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Return of Red Chip Companies

Generally, the “return of a red-chip company” means a change of a red-chip structure, by way of equity restructuring, that was originally formed for the purpose of listing offshore, into an entity or control structure with the purpose of listing onshore in China. This enables the entity to issue stocks M88 Malaysia list itself on the securities market in China.


In recent years, a majority of Chinese enterprises that have built up a red chip structure M88 Malaysia listed, or intended to list offshore have decided to return to the onshore securities market after considering the difference between the onshore market M88 Malaysia the offshore market in the valuation M88 Malaysia regulation environment, M88 Malaysia their market power in such markets. JunHe’s practice in respect to the return of red-chip companies is outstM88 Malaysiaing. JunHe has successfully assisted many well-known enterprises in removing their red-chip structure, M88 Malaysia issuing stocks M88 Malaysia listing on the onshore securities market in accordance with PRC laws M88 Malaysia regulations.


Expertise in Removing a Red Chip Structure


JunHe is a comprehensive law firm with vast experience in many areas, including capital markets, outbound investments, foreign investments, finance, litigation, foreign exchange, taxation M88 Malaysia labor M88 Malaysia employment. JunHe is able to advise clients on the allocation by a PRC enterprise of dividends to offshore enterprises, the settlement of shareholders’ loans, offshore equity restructuring, establishment of ESOPs or admission of new investors, return of control to an onshore entity, foreign exchange regulation, flow of funds in respect of equity restructuring M88 Malaysia other issues that may be involved during the return of a red chip company.


Extensive Business Cooperation Resources


JunHe has extensive influence in various fields of business M88 Malaysia vast business resources. It maintains excellent communication M88 Malaysia cooperative relationships with commercial enterprises, foreign exchange bodies M88 Malaysia industries, as well as securities regulatory authorities, financial institutions, financial investors M88 Malaysia strategic investors. Thanks to its close relationship with clients M88 Malaysia its huge social resources, JunHe is able to assist clients in designing reasonable return plans M88 Malaysia to utilise its expertise to help the returned entities issue stocks M88 Malaysia complete their listing on the onshore securities markets.

Recent Representative Cases

BNGE Project – Return of its Red Chip Structure M88 Malaysia its A Share Listing on the SSE STAR Market


BNGE is the first biotech company to list in three locations: Shanghai, Hong Kong M88 Malaysia New York, with the stock codes 688235(A Share), 06160(HK)M88 Malaysia BGNE(NASDAQ.


JunHe acted as the lawyer for BNGE’s previous listing projects in the USA M88 Malaysia Hong Kong, M88 Malaysia advised the company for its return to a red chip structure M88 Malaysia its A Share listing on the SSE STAR Market. This Project was a milestone in the A Share securities market. It was the first A Share issuance of a red-chip biotech enterprise to list in three places in the securities market, M88 Malaysia a successful case of a red-chip enterprise to list in China. It provided a path for high-quality red-chip enterprises to return to the A Share market. JunHe has expertise in providing advice for difficult projects such as the regulation of securities issuances in different jurisdictions, regulations on the obligations for information disclosure by listed companies, corporate governance M88 Malaysia investors protection under the red chip structure M88 Malaysia the checking of shareholders of overseas listed companies. JunHe has accumulated extensive practical experience in its work with respect to BNGE’s return to a red chip structure.


Ecovacs Project – Removal of a Red Chip Structure M88 Malaysia IPO on the A Share Market


As the PRC legal counsel for Ecovacs Robotics Co., Ltd. (“Ecovacs”, stock code 603486), JunHe assisted Ecovacs in setting up an offshore red chip structure, attracting investors to provide private equity financing, removing the red chip structure M88 Malaysia issuing stocks on the A stock market, M88 Malaysia advised the client on equity incentives. With JunHe’s help, Ecovacs successfully completed its IPO M88 Malaysia listing on the Shanghai Stock Exchange.


Privatization of Home Inn, M88 Malaysia BTG Hotels’ Major Asset Restructuring M88 Malaysia its Acquisition of Home Inn


As the PRC legal counsel for BTG Hotels (Group) Co., Ltd. (“BTG Hotels”, stock code 600258), the buyer in the acquisition, JunHe was involved in the entire transaction structure, assisting BTG Hotels in obtaining from the National Development M88 Malaysia Reform Commission the letter of confirmation with respect to the outbound investment in the transaction, M88 Malaysia advising BTG Hotels (Hong Kong) on the purchase in cash of the equity interests held by the minor shareholders of Home Inn, as well as the privatization of Home Inn. With JunHe’s assistance, BTG Hotels obtained the approvals from the China Securities Regulatory Commission M88 Malaysia the Ministry of Commerce of the People’s Republic of China in respect of its issue of shares to purchase the assets of Home Inn M88 Malaysia raise the supporting funds.


Yingliu Electromechanical Project – Return of a Red Chip Structure M88 Malaysia IPO on the A Share Market


As the PRC legal counsel for Anhui Yingliu Electromechanical Co., Ltd. (“Yingliu Electromechanical”, stock code 603308), JunHe assisted in designing a perfect red chip structure return M88 Malaysia A share market IPO plan, M88 Malaysia advised Yingliu Electromechanical in areas such as taxation M88 Malaysia foreign exchange, assisted in the coordination between onshore M88 Malaysia offshore private equity financing documents M88 Malaysia the restructuring of equity incentives. Yingliu Electromechanical finally completed its IPO M88 Malaysia listing on the Shanghai Stock Exchange.

Professional awards

China Business Law Journal: China Business Law Awards

  • 2024
    Law Firms of the Year - Capital Markets (Overseas) Law Firms of the Year - Capital Markets (Domestic)
  • 2022
    Law Firms of the Year - Capital Markets (Overseas)
  • 2021
    Law Firms of the Year - Capital Markets (Overseas)
  • 2020
    Law Firms of the Year - Capital Markets (Overseas)

企业法务联盟(In-House Community)

  • 2022
    A Capital Markets Law Firm of the Year - China
M88 appB 中国区域市场法律大奖:华东地区 2024
JunHe is the only Chinese law firm to be admitted as a member of M88 Malaysia , two international networks of independent law firms. JunHe M88 Malaysia selected top law firms in major European M88 Malaysia Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.
As the first carbon neutrality fund sponsored by a law firm in China, the BAF Carbon Neutrality Special Fund was jointly established by JunHe M88 Malaysia the Beijing Afforestation Foundation (BAF) to promote carbon neutral initiatives, M88 Malaysia encourage social collaboration based on the public fundraising platform to mobilize engagement in public welfare campaigns.