Amid a broader dealmaking slump, Beijing has reportedly asked law firms to refrain from using negative descriptions about China-related risks in offshore listing documents.
The China Securities Regulatory Commission (CSRC) told local lawyers to refrain from including negative descriptions of China’s policies as well as business and legal environment in companies’ listing prospectuses, according to a «Reuters» report citing unnamed sources.
The July 20 meeting follows related guidance the regulator provided earlier to firms working on listing applications of the past few months. The meeting was attended by CSRC representatives, other government and industry bodies, and more than 10 domestic law firms including major players like Fangda Partners, Han Kun Law Offices and Zhong Lun Law Firm.
The law firms acting as IPO advisors have been asked to drop risk disclosures related to China’s changing economic, political and social conditions, changes in government and regulations, and trade tensions with the US. It has been hinted that failure to comply could result in a red light for listings, the report added.
