On January 13, 2015, Zuoli Kechuang Micro-finance Company Limited (“Zuoli Kechuang”, stock code: 06866) was successfully listed on the Main Board of the Stock Exchange of Hong Kong. A total of 300,000,000 shares priced HK$1.3 per share were offered, 30,000,000 to Hong Kong and the other 270,000,000 sold internationally. At the closing of the first trading day, the shares rose by 42%, to HK$1.85 per share.
China Galaxy International Securities (Hong Kong) Co., Ltd. acted as sponsor and a team led by Shanghai-based senior partner Fan Xingcheng acted as PRC legal counsel for Zuoli Kechuang.
Zuoli Kechuang is the first micro-finance company from China that had an H-share IPO and was listed on the Main Board of HKEx. It is also the largest licensed micro-finance company in Zhejiang province.
Micro-finance companies are a new thing in China’s finance industry and are blooming in many places. As laws and regulations are yet to be made to properly regulate the operation of this newly emerged entity, in the course of applying for its HKEx Main Board listing, the attorneys were charged with the tasks of restructuring the company, issuing PRC legal opinions, drafting chapters regarding relevant laws and regulations and summary of articles of association and Chinese laws, giving opinions on legal issues related to China’s micro-finance companies, and replying to rounds of feedback from CSRC on Zuoli Kechuang’s IPO.
The attorneys sorted out relevant regulations and policies in a clear manner and analyzed and provided to-the-point answers to questions from CSRC and HKEx. Their performance was recognized by Zuoli Kechuan (the issuer) and China Galaxy International Securities (Hong Kong) Co., Ltd. (the sponsor). Moreover, the listing was planned not long after the inception of the company (i.e., 28 months later) and it took only nine months to get it successfully listed. This is also a record-breaking marvel.
Beijing Dacheng Law Offices, LLP ("大成") is an independent law firm, and not a member or affiliate of Dentons. 大成 is a partnership law firm organized under the laws of the People’s Republic of China, and is Dentons' Preferred Law Firm in China, with offices in more than 50 locations throughout China. Dentons Group (a Swiss Verein) ("Dentons") is a separate international law firm with members and affiliates in more than 160 locations around the world, including Hong Kong SAR, China. For more information, please see dacheng.com/legal-notices or dentons.com/legal-notices.
