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• @.<0 (;.,0( >&/; 9&LL0,06/&./09 ,&7;/(

U&-&9069( %,0L0,06'0

]$/&67 ,&7;/(

E&7;/( $L L&,(/ ,0L3(.F

@/$'P $%/&$6(

J6L$,<./&$6 ,&7;/(

E090<%/&$6 ,&7;/(

\&6$,&/4 (;.,0;$F90, %,$/0'/&$6

36

+,0L0,06/&.F E&7;/( &6 U&LL0,06/ :$,%$,./0 5$,<(882 ,<K 2<K AM,K2

=95I?@*11 1+5?J 1+'.?+.'#

P()(4#$41 4(1+'(C.+(5$

25$)#'1(5$ '(;"+

\#4#67+(5$ '(;"+

O$+(I4(@.+(5$

\(;"+ 5B B('1+ '#B.1*@

b5*'4 1#*+1

M$B5'6*+(5$ '(;"+1

K#+5 5B "5@4#'1 5B 7'#B#''#4 1+5?J

=*;I*@5$; '(;"+

P'*;I*@5$; '(;"+

\#;(1+'*+(5$ '(;"+1

8(-.(4*+(5$ 7'#B#'#$?#

7/17/2019 PE


9/17/201

1

37

\&/&7./&$6 @/,./074

• :$6/,.'/.,&.6 .%%,$.'; – <.W&<&K&67 '$,%$,./0

90L.3F/ ,3F0( &6 /,.6(.'/&$6.F 9$'3<06/(

B%/C$3/ .%%,$.';

E0F&.6'0 $6 .,I&/,./&$6 Y:;&60(0 '$3,/(TZ

38

\&/&7./&$6 @/,./074

• “Investment forum shopping” approach – a “great

escape” to a more PECL,&069F4 '$,%$,./0 F.> ,07&<0

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2

39

Box 1 – “Round-trip Investment” Model

Founders’

Investment Vehicle

Foreign

Investors

SPV

Operating Vehicle

Unregulated

Business

China

Offshore

40

#$%&'(

?) +,0%.,./&$6 .69 @/,./074

7/17/2019 PE


9/17/201

2

41

+,0%.,./&$6 .69 @/,./074

O) B-0,-&0> $L /;0 \[O %,.'/&'0 &6 :;&6.

C :;&6. &( 90L&6&/0F4 $6 /;0 ,.9.,Q &6/0,6./&$6.FF4 .69 9$<0(/&'.FF4

C \$-&67 L,$< 7,006L&0F9 %,$R0'/( /$ <$,0 \[O /,.6(.'/&$6(

C \$,0 &693(/,4 (0'/$,( $%06 /$ L$,0&76 &6-0(/$,(

C H$/ &693(/,&0( &6'F390 /0F0'$<(^ L&6.6'&.F^ 060,74̂ <&6&67^ ,0/.&F^

pharmaceuticals, machinery, automobile …

C #>$CL$F909 %$F&'4 '$6'0,6(

42

+,0%.,./&$6 .69 @/,./074

X) @$<0 I.(&' '$6'0%/( &6 /;0 \[O %,.'/&'0 &6 :;&6.

C J6I$369 \[O -() $3/I$369 \[O

C %3IF&' '$<%.64 -() %,&-./0 '$<%.64

C .((0/ 90.F -() 023&/4 90.F

C /,.6(.'/&$6 <$90(Q (;.,0 %3,';.(0^ (;.,0 (>.%

C -.,&$3( /.,70/(Q @B1(^ 5J1(^ %3,0 9$<0(/&' 06/&/&0(

7/17/2019 PE


9/17/201

2

43

+,0%.,./&$6 .69 @/,./074

:) E0'06/ U0-0F$%<06/( &6 /;0 \[O %,.'/&'0 &6 :;&6.

C Increasing number of “private equity” led deals

C +,$/0'/&$6 $L P04 &693(/,&0( L,$< L$,0&76 /.P0$-0,( – . '.(0 $L 90R. ,3T

C @;.,0 ,0L$,< $L F&(/09 '$<%.6&0(

C :^ D .69 F07.F %0,($6 (;.,0(

C _(&67 (/$'P L$, .'23&(&/&$6(

H$> 9$ /;0(0 ';.670( .LL0'/ /;0 <.,P0/T

S;./ .,0 /;0 &<%F&'./&$6(T

44

Box 2 - Alphabet Soup

Domestic

Exchange

Foreign/Hong

Kong

Exchange

Non-tradable

One share

class

denominated

in RMB

Domestic-

invested

Traded in

RMB -

A Shares

G Shares

Not possible C Shares

Foreign-invested

Traded inforeign

currency – B

Shares

Traded inforeign

currency:

H Shares –

Hong Kong

N Shares –

New York

T, S, L etc.

Not possible

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45

+,0%.,./&$6 .69 @/,./074

U) E0'06/ E073F./$,4 U0-0F$%<06/( &6 /;0 \[O %,.'/&'0 &6 :;&6.

C `0> :$<%.64 =.> *MMA

C `0> @0'3,&/&0( =.> *MMA

C E3F0( L$, \0,70,( >&/; .69 O'23&(&/&$6( $L U$<0(/&' 16/0,%,&(0( I4 5$,0&76

J6-0(/$,( *MMG

C #.P0$-0, E3F0( $L =&(/09 :$<%.6&0( *MMG

C O9<&6&(/,./&-0 \0.(3,0( $6 @/,./07&' J6-0(/<06/ &6 =&(/09 :$<%.6&0( I4 5$,0&76

J6-0(/$,( *MMA

C B/;0,( &)0)^ &6L.<$3( @O51 ̀ $/&'0(

46

+,0%.,./&$6 .69 @/,./074

U) Recent Regulatory Developments in the M&A practice in China (con’d)

C :;&6. &( 0-$F-&67 /$>.,9( . <$,0 ($%;&(/&'./09 F07.F ,07&<0 L$, \[O

/,.6(.'/&$6(

C D$$9 60>(Q

:F0.,0, .%%,$-.F ,023&,0<06/( .69 %,$'093,0(

\$,0 0W%0,&06'09 F$'.F %F.40,( .69 7$-0,6<06/ .3/;$,&/&0(

O9$%/&$6 $L 60> /,.6(.'/&$6.F /$$F( (3'; .( (;.,0 (>.%

C X.9 60>(Q

\$,0 60> F&<&/./&$6( .69 ,0(/,&'/&$6( &<%$(09

O%%,$-.F .3/;$,&/&0( 6$> ;.-0 <$,0 9&(',0/&$6.,4 %$>0,(

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2

47

Box 3 – MOFCOM

• MOFCOM’s discretionary power

- Any deal involving a key industry or well-known brand , or may affect

national economic security shall be filed with MOFCOM (Article 12 of the

M&A Rules 2006)

- Possible key industries include

Nuclear power

Military

Machinery

Power generation/transmission

Shipbuilding

steel

48

Box 3 – MOFCOM

• MOFCOM’s discretionary power

- MOFCOM may stop a deal if it has grounds to believe that it will affect

national economic security – similar to US CFIUS Review

- Vagueness in rules escalates uncertainty in deals

- Coca-cola & Huiyuan

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2

49

+,0%.,./&$6 [ @/,./074

1) S&66&67 @/,./07&0(

C a00% .I,0.(/ $L 60> 90-0F$%<06/(

C :3F/&-./0 F$'.F %.,/60,(

C _690,(/.69 /;0 '$36/0,%.,/4

C :3F/3,.F (06(&/&-&/4 6$/ '3F/3,.F IF&6960((

C O9R3(/ /&<0 F&60( YL$,>.,9 $, I.'P>.,9Z .69 <.6.70 0W%0'/./&$6( >&/; ;$<0

$LL&'0

50

Box 4 – Cultivate local partners

• Watch out for Foreign Corrupt Practices Act issues

- many commercial entitles have State-owned links

- Companies may keep different sets of accounts

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51

#$%&'(

A) B6C/;0CD,$369 E0.F&/4

52

#;0 B6C/;0CD,$369 E0.F&/4

5) `.-&7./&67 /;0 :;&60(0 E073F./$,4 E07&<0 .69 9$&67 90.F( &6 ;0.-&F4 ,073F./09

&693(/,&0(

C J6-0(/&67 &6 ;0.-&F4 ,073F./09 &693(/,&0(

C The Encouraged, Restricted, Permitted and Prohibited or “The Good, Bad and

the Ugly”

C 5$,0&76 $>60,(;&% '.%(

C D$$9 6$<&600 (/,3'/3,0(^ I.9 6$<&600 (/,3'/3,0(

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2

53

Box 5 – Foreign ownership caps

Strategic

Investor

Strategic

Investor

Financial

Investor

Foreign sub of

PRC company

PRC anchor

investor

Public

shareholders

Domestic Bank

Outside China

China

Individual

cap?

Impact ?

Foreign consortium cap ?

54

Box 6 – I got your “number”

Foreign

Publishing

House

PRC

company

Magazine

Name

(publication

number)

Brand Name

Cannibalisation

Copyright Cooperation

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2

55

Box 7 –

“Bad” Nominee Structure – telecom CCF arrangements

Foreign telcoChina

Unicom

Provincial Subsidiary

CooperationJoint Venture !"#$%&'() +,$##-#)&

local

network

56

Box 8 – Value – added telecoms

Founders’

Investment Vehicle

Public

Listco

Operating VehicleFounders

License holder

Unregulated

BusinessRegulated

Business

Nominee

contract

Security and

Cash

Extraction

Contracts

China

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2

57

#;0 B6C/;0CD,$369 E0.F&/4

D) E073F./$,(

.!/0!.

1+20

1+/3

045&(-5

367

1+1+0

89:0

01:0

07:0

02:0

.22

1+66

58

#;0 B6C/;0CD,$369 E0.F&/4

D) Regulators (con’d)

0#)&$%;

.!/0!.

<(=%;

.!/0!.

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3

59

#;0 B6C/;0CD,$369 E0.F&/4

H) @/./0CB>609 16/0,%,&(0(

C E0'06/ 90-0F$%<06/(

C b37$67^ :;06<&67

C U0.F 9,&-0,(

C S;&'; <0<I0, $L /;0 7,$3%T

C U0.F&67 >&/; /;0 H$67 a$67 F&(/09 <0<I0,

C +.,06/ 73.,.6/00T

C @/./0Cowned assets valuation (mandatory, licensed appraising firm, methodology, SASAC’s

'$6L&,<./&$6Z

C +.4<06/ /0,<( YcMN ,3F0Z

60

#;0 B6C/;0CD,$369 E0.F&/4

H) @/./0COwned Enterprises (cont’d)

C @%0'&.F '$6(&90,./&$6(

C U&F&706'0

C +,$'093,0 Y&6-$F-0<06/ $L /;0 .((0/ 0W';.670 '06/,0Z

C #&<&67

C U$'3<06/./&$6

C @$'&.F $IF&7./&$6(C :,$((C%,$-&6'&.F '$6($F&9./&$6

C @$-0,0&76 &<<36&/4

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3

61

Box 9 – The Hong Kong listed member

Foreign

investorsHK listco

SOE

Connected

transactions

Onshore

Operating Vehicle

- Hong Kong Stock Exchange issues

- Disclosure of interests

- Hong Kong Takeovers Code issues

- Insider dealing issues

- Pricing issues and the “halo effect”

62

#;0 B6C/;0CD,$369 E0.F&/4

J) #;0 +3IF&' :$<%.64

C @;.,0 ,0L$,<

C #;0 7$$9 60>(^ /;0 I.9 60>(

C #;0<0 &( '$6-0,706'0

C @%0'&.F '$6(&90,./&$6(

C J6-0(/$, 23.F&L&'./&$6

C +3IF&' I&9 %,$'0((

C =$'PC3%

C U&F&706'0 – &6(&90, /,.9&67 &((30(

C #&<&67 – %,&'&67 .69 .%%,$-.F %,$'0((Y0(Z

7/17/2019 PE


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3

63

#;0 B6C/;0CD,$369 E0.F&/4

J) The Public Company (cont’d)

C #,.9&67 ,0(/,&'/&$6(

C U&('F$(3,0 $L &6/0,0(/(

C :$660'/09 /,.6(.'/&$6(

C =&(/09 :$<%.64 #.P0$-0, E3F0(

C \.69./$,4 BLL0,(

C +.,/&.F $LL0,(

C @/$'P .( .'23&(&/&$6 '3,,06'4

64

#;0 B6C/;0CD,$369 E0.F&/4

d) #;0 +,&-./0 :$<%.64

C \[O E3F0( *MMG

C \3F/&C.706'4 0LL$,/

C O%%,$-.F L$, .'23&(&/&$6( $L P04 &693(/,&0(^ L.<$3( :;&60(0 I,.69(

C U0.F( .LL0'/&67 (/./0 0'$6$<&' (0'3,&/4

C @/$'P 90.F(

C \0,70, :$6/,$F

C \.4 I0 &6'$6(&(/06/F4 .%%F&09 .',$(( :;&6.

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3

65

#;0 B6C/;0CD,$369 E0.F&/4

d) The Private Company (cont’d)

C @%0'&.F :$6(&90,./&$6(

C JL %,&-./&K09^ >.( &/ %,&-./&K09 %,$%0,F4T

C BLL(;$,0 '$6/,$F -() $6(;$,0 '$6/,$F – 3(&67 . ;$F9'$

66

#;0 B6C/;0CD,$369 E0.F&/4

a) J6-0(/<06/ 5369(^ H0970 5369( .69 $/;0, OF/0,6./&-0 J6-0(/$,(

C \00/&67 &6-0(/$, 23.F&L&'./&$6 ',&/0,&.

C +,0R39&'0 .7.&6(/ L&6.6'&.F &6-0(/$,(T

C B%%$,/36&/&0( .69 ,&(P(

7/17/2019 PE


9/17/201

3

Ge

='*$1*?+(5$*@ 054#@1

• E$369C/,&%%&67 &6-0(/<06/ <$90F

• ]J1 <$90F

68

Box 11 – Nominee (or VIE) Structure for Value – addedTelecoms Business

Founders’

Investment Vehicle

Public Investors

Listco

Operating VehicleFounders

License holder

Unregulated

BusinessRegulated

Business

Nominee

contracts

Security and

Cash

Extraction

Contracts

China

Offshore

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3

69

KM, :+'.?+.'#

•

S&90F4 3(09 I4 :;&60(0 0C'$<<0,'0 %$,/.F(^&6/0,60/ (0.,'; 067&60(^ .69 L$,0&76 &6-0(/$,(Q

OF&I.I.)'$<^ @$;3)'$<^ @&6.)'$<^ X.&93)'$<^

f$3P3)'$<^ A!R$I)'$<^ 0=$67)'$<

• E0'$76&(09 I4 H$67 a$67 .69 `0> f$,P @/$'P

1W';.670(

• :$<<0,'&.FF4 (06(&IF0

• H$>0-0,^ &/ ;.( 60-0, I006 /0(/09 &6 :;&60(0 '$3,/(

70

X_#^ >0FFC%F.6609 /,.6(.'/&$6.F (/,3'/3,0( .,0 6$/60'0((.,&F4 ,&(P L,00

• H&7;C%,$L&F0 9&(%3/0 .<$67 OF&I.I.^ f.;$$ .69 @$L/I.6P $-0, OF&%.4

(equivalent to eBay’s PayPal)

• Chinese regulators’ tightening up the regulatory space

5$,0&76 0W';.670( ,3F0( &6 *MMA

\[O E3F0( &6 *MMG

MII’s ValueC.9909 #0F0'$<( X3(&60(( E3F0( &6 *MMG

#.W `$/&'0 g* &6 *MMc

:&,'3F., GM! &6 *MMc

B6F&60 D.<&67 `$/&'0 &6 *MMc

PBOC’s Measures on Online Payment Services in 2010

• “Rationale” of regulatory moves

7/17/2019 PE


9/17/201

3

e!

China’s Extraterritorial Attempt

• General Administration of Taxation’s !"#$%&'# )*+,#-*.,/-*"*. ,/- 012"*"3,#',")* )4 ,/- 5*,-#6#"3-

7*$)2- 8'9 )* :)*;resident Enterprises’ Equity

8#'*34-# 7*$)2- Y:&,'3F., GcgZ

e*


• a04 ,3F0(

S;0,0 . L$,0&76 &6-0(/$, /,.6(L0,( /;0 023&/4 &6 . :;&60(0

,0(&906/ 06/0,%,&(0 &69&,0'/F4 ($ .( /$ .-$&9 %.4&67 /;0

06/0,%,&(0 &6'$<0 /.W $6 &/( &6'$<0 7060,./09 L,$< :;&6.

/;,$37; (0//&67 3% /;0 $LL(;$,0 ;$F9&67 '$<%.64^ /;0

:;&60(0 /.W .3/;$,&/4 <.4 &76$,0 /;0 0W&(/06'0 $L /;0

$LL(;$,0 ;$F9&67 '$<%.64 .69 900< &/ .( . 9&,0'/ /,.6(L0,

$L /;0 023&/4 &6 /;0 :;&60(0 ,0(&906/ 06/0,%,&(0 I4 /;0

L$,0&76 &6-0(/$,)

7/17/2019 PE


9/17/201

3

e8


• a04 ,3F0(</-#- ' 4)#-".* "*=-3,)# >'$,%'& $)*,#)&&"*. 6'#,?@

"*1"#-$,&? ,#'*34-#3 ,/- -A%",? )4 ' !/"*-3- #-3"1-*,

-*,-#6#"3- B? 'B%3"*. ,/- )#.'*"C',")*'& 4)#2 '*1 ),/-#

'##'*.-2-*,3 D",/)%, '*? #-'3)*'B&- B%3"*-33 6%#6)3- 3)

as to avoid the enterprise income tax duty… [the tax

'%,/)#",? $'*E 1-*? ,/- -9"3,-*$- )4 ,/- )443/)#- /)&1"*.

$)26'*? %3-1 4)# ,'9 '##'*.-2-*,F

•

E0(3F/(

e?


• E0.F '.(0( $L 06L$,'0<06/ :&,'3F., Gcg

:;$672&67 /.W .3/;$,&/4

b&6R&.67 /.W .3/;$,&/4

f.67K;$3 :;06790 @/00F #3I0 :$) .69 :.,F4F0

7/17/2019 PE


9/17/201

3

75

Box 12 – Yangzhou Chengde Steel Tube Co.

Carlyle Group Carlyle Marco

HK Co.

Yangzhou Chengde

China

Offshore

Jiangsu Chengde

76

2"($* (1 *+ * ?'511'5*41

• E3F0 $L F.>

• E073F./$,4 /0';6&230(

• +$F&'4 <.P&67

• J90$F$74

• =07.F &6(/&/3/&$6(

• D$-0,6.6'0 23.F&/4

7/17/2019 PE


9/17/201

3

77

#$%&'(

G) H$/CI3//$6 J((30(

H$/ X3//$6 J((30( – D$-0,6&67 =.> [ ]0630YBLL(;$,0 J6-0(/<06/(Z

• M$)#1+6#$+ 45?1 1"5.@4 C# ;5)#'$#4 C/ >X:X TP#@*9*'# 5'

NXfXUS L5$; c5$;S ,$;@(1" @*9 B5' 5BB1"5'# ?567*$(#1

– P5 $5+ *??#7+ &\2S 2*/6*$S bKM @*9

– :($;*75'# 5' Lc @*9 – 4#7#$41S ?"#?J 9(+" M$+#@ @#;*@

• <.'(14(?+(5$R)#$.# 1"5.@4 C# 2*@(B5'$(*S NXfXS ,$;@*$4S

:($;*75'# 5' L5$; c5$; – P5 $5+ *??#7+ &\2S 2*/6*$S bKM )#$.#

– :($;*75'# 5' L5$; c5$; )#$.#

• W$1"5'# ($)#1+6#$+13 ?*1#IC/I?*1#

– H5)#'$($; @*9S )#$.# ;#$#'*@@/ 1"5.@4 C# Y.'(14(?+(5$

9"#'# ?567*$/ ̂ *11#+1 @5?*+#4

78

7/17/2019 PE


9/17/201

4

H$/ X3//$6 J((30( – J6-0(/$, =&.I&F&/4

•OK to give customary ’33 Act purchaser reps &9*''*$+(#1

• Wc +5 *;'## +5 ;()# ?.1+56*'/ 1"*'#"5@4#' '#;(1+'*+(5$

'(;"+1 ($4#6$(B(?*+(5$ 7'5)(4#4 @(*C(@(+/ (1 @(6(+#4 +5

7'5?##41 B'56 5BB#'($;

• O)5(4 5+"#' 7.'?"*1#' '#71R9*''*$+(#1S ($4#6$(B(?*+(5$S

@(*C(@(+/

– P5 $5+ *;'## +5 Y5($+ ^ 1#)#'*@ 5' )(?*'(5.1 @(*C(@(+/

79

H$/ X3//$6 J((30( – J+

• 2567*$/ 7*+#$+1S ?57/'(;"+1S =0R:01 1"5.@4 C#

'#;(1+#'#4 9"#'# '#;(1+'*+(5$ (1 ?5$4(+(5$ +5

)*@(4(+/R#$B5'?#6#$+

• 2567*$/ 1"5.@4 1"59 .1 #67@5/##

?5$B(4#$+(*@(+/R($)#$+(5$ *11(;$6#$+ *;'##6#$+1 1(;$#4

C/ J#/ #67@5/##1 7'(5' +5 ?@51($;

• 2567*$/ 1"5.@4 ?566(+ +5 "*)# *@@ $#9 #67@5/##1 1(;$?5$B(4#$+(*@(+/R*11(;$6#$+ *;'##6#$+1

80

7/17/2019 PE


9/17/201

4

H$/ X3//$6 J((30( – =&23&9&/4

• 0.1+ 7'#1#')# @(-.(4(+/ 5B ($)#1+6#$+ 9R6($(6.6 '#1+'(?+(5$1

• P5 $5+ *??#7+ *$/ 5B +"# B5@@59($;3

– >$4#'+*J($; +5 "5@4 1"*'#1 B5' 6($(6.6 7#'(54

– \WA\R?5I1*@# '(;"+1R+'*$1B#' '#1+'(?+(5$1 5$ 1"*'#1 5'

@(6(+*+(5$1 5$ ?@*11 5B 75+#$+(*@ +'*$1B#'##1

– &'5"(C(+(5$1 5$ *11(;$6#$+ 5B ?5$+'*?+ '(;"+1 9R+'*$1B#' 5B

1"*'#1 TWc +5 ?*')# 5.+ C5*'4 5C1#')#' ̂ B($*$?(*@ ($B5 '(;"+1U

– W+"#' ?5$4(+(5$1R'#1+'(?+(5$1R#$?.6C'*$?#1 5$ +'*$1B#'

• :## ($B'* B5' (11.#1 '#@*+($; +5 '#;(1+'*+(5$ '(;"+1S M&W

@5?J.7R1+*$45BB *;'##6#$+1

81

H$/ X3//$6 J((30( – \.,P0/ =$'P3%V@/.69$LL O7,00<06/(

• Wc +5 *;'## +5 1(;$ @5?J.7 *;'##6#$+ 1.CY#?+ +5 B5@@59($;

?5$4(+(5$1

– O77@(#1 +5 M&W 5$@/ ^ g FhE 4*/1

– O77@(#1 5$@/ (B *$4 +5 #V+#$+ *@@ 4('#?+5'1S 5BB(?#'1S ^ F`

1"*'#"5@4#'1 *@15 @5?J#4 .7

•

!# 6.1+ C# $5+(B(#4 5B *$/ '#@#*1# *$4 7'5?.'# 1*6#'#@#*1# +5 +"# 1*6# #V+#$+

– =#'6($*+#1 *.+56*+(?*@@/ (B $5 M&W 9(+"($ iE 4*/1 *B+#'

4*+# 5B @5?J.7 *;'##6#$+

– 2*')#I5.+ B5' +'*$1B#'1 *65$; *BB(@(*+#1

• Don’t write lockup directly into investment docs

– 0*J# +"# .$4#'9'(+#'1 ?56# +5 .182

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H$/ X3//$6 J((30( – +,00<%/&-0 E&7;/( .69 O6/&C

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• O'+(?@#1 5' 1"*'#"5@4#' *;'##6#$+ 1"5.@4 ;()# #V(1+($;1"*'#"5@4#'1 7'5I'*+* 7'##67+()# '(;"+1 +5 *$/ $#9

(11.*$?#1

• O$+(I4(@.+(5$ '(;"+1 *++*?"($; +5 &'#B#''#4 :"*'#1

– A.@@I'*+?"#+ C*1(1

– !#(;"+#4 *)#'*;# C*1(1

• N*''59IC*1#

• b'5*4IC*1#

• 25$)#'1(5$ \*+(5 O4Y.1+6#$+1

– 0(@#1+5$#1

– \#)#$.# +*';#+1

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• 2567*$/ *'+(?@#1 1"5.@4 ;()# 7'#B#''#4 *77'5)*@ '(;"+1

5)#' B.$4*6#$+*@ @#;*@RB($*$?(*@ 4#?(1(5$1 C/ ?567*$/

– “reserved matters” or “protective provisions” in the

:&O

– P#+#'6($*+(5$ 5B "59 6*$/ )5+#1 #*?" 1"*'# 5B

7'#B#''#4 1+5?J 9(@@ C# #$+(+@#4 +5

– b5*'4 1#*+1

– :.7#'I6*Y5'(+/ *77'5)*@1 TjG` 5' 65'#U

84

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OF$67V:[email protected] E&7;/(

• &.'751#3 7'5)(4# B5' *$ #V(+ 1+'*+#;/

• &'#B#''#4 1"5.@4 *@9*/1 "*)# * \WA\R?5I1*@# '(;"+1 ($

+'*$1B#'1 C/ B5.$4#'1R6;6+

– Won’t give ROFR/CS on Investor’s own shares,

+"5.;"

• :*6# ($ +'*$1B#'1 C/ 5+"#' K21 (B 9# ?*$ ;#+ (+ 9(+"5.+

giving the same rights on client’s shares

• 25$+'5@@($; 1"*'#"5@4#'1 9(@@ 9*$+ 4'*;I*@5$; '(;"+1

• 0($5'(+/ 1"*'#"5@4#'1 9(@@ 9*$+ +*;I*@5$; 5' ?5I1*@#'(;"+1

• M$B5'6*+(5$ '(;"+1

85

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Supreme People’s Court: Jiangsu L*(B. )X H*$1.

:"("#$;

b#(Y($; L(;" 25.'+3 b#(Y($; M$)#1+6#$+ 2567*$/ )X

2*5

86

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PE

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