China is awash in money these days and plenty of Chinese companies have plenty of it. What Chinese companies really need is good technology.
Ten years ago, our China lawyers would get two to three contracts a year where our client was selling products to China.
The China lawyers at my firm have been experiencing a big uptick in the number of companies and individuals contacting us after having been offered stock in a Chinese company as an alternative to payment in cash.
The Hong Kong securities regulator, the Securities and Futures Commission (SFC), will commence a pilot project next month to assess how ‘fintech’ can be used in its regulatory monitoring processes with a view to implementing new systems.
Despite the many risks, our China lawyers still see far too many foreign companies engage in pointless gyrations to convince themselves that their relationship with their China “agent” or “independent contractor” or “partner” is anything other than an employer-employee relationship.