Stevenson, Wong & Co. acted as international counsel for Neijiang Investment Holding Group Co., Ltd. (the “Issuer”) in its successful issuance of CNY 297 million 7.80% bonds due in 2028.

The Issuer is a state-owned enterprise 90% owned by the State-owned Assets Supervision and Administration Commission of Neijiang Municipal Government and 10% owned by Sichuan Provincial Department of Finance. It is the major investment and financing entity of the development and construction in Neijiang City.

Donghai International Securities (Hong Kong) Limited and CCB International Capital Limited acted as the joint global coordinators, joint lead managers and joint bookrunners. Donghai International Securities (Hong Kong) Limited, CCB International Capital Limited, Zhongtai International Securities Limited, CMBC Securities Company Limited, Hong Kong Main Fund Securities Limited and Riches Depot Securities Co., Limited acted as the joint lead managers and joint bookrunners.

Our team was led by our Partner Mr. Rodney Teoh, supported by team members including Associates Ms. Angela Lau, Ms. Audrey Ng and Trainee Solicitor Mr. Austin Kot.

Please contact our Partner Mr. Rodney Teoh for any enquiries or further information.

On 26 June 2023, our Partner Gordon Tsang was invited to speak at the “Going Public is Just the Starting Point – Features and Advantages of the U.S Capital Market U.S Stock Research Forum”.

At the forum, Gordon discussed and compared the listing requirements in different US markets, including Nasdaq Capital Market, Nasdaq Global Market, New York Stock Exchange and NYSE American. He introduced the process and focus of the US IPO project and shared his successful experience in US listings to help the audience better understand the US listing process.

The forum was well received and concluded with an engaging Q&A session involving business leaders, investors, financial and legal professionals.

Please contact Mr. Gordon Tsang for any enquiries or further information.

(中文) 前言

近几年来，由于受到新冠疫情影响，航运交通受阻，不少国际仲裁的庭审都被安排于线上进行。在Sky Power Construction Engineering Ltd v Iraero Airlines JSC [2023]HKCFI1558 一案中，陈美兰法官拒绝案中的被申请人Iraero Airlines JSC (下称 “被申请人”) 在限期过后反对申请人Sky Power Construction Engineering Ltd (下称 “申请人”) 在香港执行伦敦国际仲裁院 (下称“LCIA”) 的仲裁裁决。陈法官进一步指出庭审以在线形式进行并非在香港反对执行仲裁裁决的有效理由。

案件背景

申请人与被申请人的LCIA仲裁庭审 (下称 “该庭审”) 原定于2021年12月进行。然而，因为仲裁庭成员感染新冠肺炎，该庭审被迫押后。双方原本约定该庭审会在2022年2月以 “半在线” (semi-virtual) 的形式举行，即仲裁庭成员身在伦敦而双方及其证人则在莫斯科参与庭审。然而，在2022年1月，申请人提出其证人未能亲身飞往莫斯科，请求将庭审改为 “全在线” (fully virtual) 的形式，即双方各自从其所在地参加庭审。被申请人就此表示反对并要求仲裁庭进一步押后庭审，但仲裁庭以旅游限制为由根据LCIA仲裁规则第14条「避免不必要的延误及开支，提供公正、高效、快速的方法最终解决当事人之间的争议」，批准了申请人全在线庭审的请求。

在2022年9月5日，LCIA仲裁庭就申请人与被申请人之间的争议出具了一份仲裁裁决 (下称 “该裁决”) 。其后，申请人于2022年12月13日向香港高等法院申请在香港执行该裁决，而高等法院也在2023年1月3日批准此申请并发出执行仲裁命令 (Enforcement Order)(下称 “该命令”)。根据该命令，被申请人如有需要可在该命令送达的14天内 (即2023年2月27日或之前) 申请撤销该命令。被申请人的代表律师在2023年3月7日才发出传票要求法庭批准其提交支持撤销该命令或搁置执行该命令的誓章，而此誓章中被申请人提出该庭审以全在线的形式进行不符合双方早前同意的程序，并且导致被申请人未能完整地陈述案情。

高等法院判决

陈法官首先引用Astro Nusantara International BV v PT Ayunda Prima Mitra [2018] 21 HKCFAR 118一案指出法院在决定是否批准逾期申请撤销执行仲裁命令具有广泛而不受限制 (broad and unrestricted) 的酌情权，并应考虑所有有关联的因素。在本案中，陈法官认为，对于是否批准被申请人作出逾期申请的重点考虑因素在于被申请人申请撤销该命令理据的强弱，而她认为被申请人准备作出的申请并无任何成功机会 (no merits)。

陈法官认为本案的双方并无就2022年1月起的庭审同意任何特定的审讯模式，故采用全在线庭审的形式不构成违反双方协议的情况。陈法官指出该庭审适用的LCIA仲裁规则及1996年英国仲裁法均赋予仲裁庭权力采取合适的措施以确保仲裁能公平而迅速地进行，香港法院不会轻易干预仲裁庭对于案件管理的决定。同时，陈法官亦不认为该庭审以全在线的形式进行对被申请人造成了任何实质性的不便，而被申请人也没有在庭审过程中作出相关投诉；即使有任何不便，该些不便之处也同时影响双方，故该庭审中并无出现不公的情况。

判决要点
从疫情开始以来，在线庭审已经成为国际仲裁的常态。本案再次展示了香港法院一贯支持仲裁 (pro-arbitration) 的态度：在没有对仲裁方造成重大不利影响的前提下，香港法院一般不会干涉仲裁庭作出的程序决定，包括举行庭审的模式。有见于大量在疫情期间采用在线庭审的仲裁裁决将可能在香港执行，本案亦确立了此类仲裁裁决在香港的可执行性。

本文由本所合伙人，诉讼及争议解决部主管徐凯怡律师﹑黄晊晄高级律师﹑蔡皓贤实习律师和杨鸿煜律师助理共同撰写。若阁下想了解更多详情，请联络本所徐凯怡律师。

于本文中提供的一切资料仅供参考，不构成任何法律意见，资料亦受制于适用规定及法例不时的更新与修改。若需取得相关法律意见，须咨询法律顾问。

(中文) 前言

在2023年5月18日针对诺熙资本有限公司等人诉北大方正集团有限公司(下称 「北大方正」 ) 四宗案件（以下称「北大方正案」) 颁下了关于认可维好协议 (keepwell deeds)可执行性的关键性判决（案件编号：[2023] HKCFI 1350）之后，夏利士法官于2023年6月15日再次在Citicorp International Limited (下称「花旗集团」) v Tsinghua Unigroup Co., Ltd (清华紫光集团股份有限公司，下称「清华紫光」) [2023] HKCFI 1572 一案（下称「本案」) 做出了第二宗确认维好协议可执行性的判决。

案件背景

清华紫光（发行人）于2015年12月10日起向原告花旗集团（受托人）发行了系列担保债券，由清华紫光的子公司Tsinghua Unigroup International Co. Ltd（清华紫光国际股份有限公司，下称「担保人」）提供担保。发行人、担保人和受托人签署了一份维好协议和回购权益承诺协议（EIPU）。

2020年12月债券到期后，由于清华紫光财务上出现困境，其和担保人未能按照协议赎回债券，花旗集团因此向清华紫光、担保人发出书面通知宣布债券立即到期。2021年7月16日，清华紫光进入重组程序。2021年7月23日，花旗集团以清华紫光违反了维好协议和EIPU的约定，向清华紫光索赔483,843,533美元（约5亿美元）。

案件分析

本案在事实方面与北大方正案存在诸多相似之处，例如：

• 两宗案件被告公司主体的类型相似，都是中国内地的名校校办国有企业；
• 两宗案件均涉及中国内地公司就其发行的债券由其子公司提供担保这类安排；
• 两宗案件涉及的合同文件除了金额和日期等事项外，几乎是相同的，其中维好协议和EIPU均包含由英国法作为管辖法律，受香港法院专属管辖权的管辖条款，还包含要求被告公司尽最大努力获得监管部门的批准，以履行其义务的约定条款。

但本案与北大方正案的区别在于：

清华紫光的债券违约发生在2021年7月16日清华紫光被法院裁定重组之前，而北大方正案的债券违约则是发生在北大方正被裁定重组之后。

香港高等法院判决

虽然存在这一区别，夏利士法官最终判决支持了原告的诉讼请求，判给原告483,843,533美元，包括债券的本金、利息以及相关费用。

本案判决与北大方正案判决基本一致，理由主要如下：

• 法院认为，虽然清华紫光以没有获得必要的监管批准作为主要理由提出抗辩，但是其无法证明其按照维好协议的约定尽了最大努力 (best efforts)，而仍无法获得必要的监管批准；
• 实际上，清华紫光从来没有尽到其最大努力去遵守维好协议和EIPU，包括没有提供任何证据表明其曾考虑以某种方式向发行人或担保人投入资金，从而使其能够履行其在债券或担保项下的义务；
• 此外，清华紫光也没有提供任何关于其2020年底财务状况的证据，也没有试图证明，如果有任何选择可用，以及实施这些选择将面临的困难。

案件意义

本案作为又一宗有关维好协议的标志性案件，其判决结果一方面呼应了北大方正案的判决结果，再次明确地应用了北大方正案中制定的与维好协议有关的原则；另一方面，其再次认可了维好协议的可执行性，明确了香港法院认为维好协议可以提供实质性的信用保障的立场，即维好协议是为债券持有人提供额外担保的真正方法，这对于维护维好协议一方债权人合法权益意义重大。

本文由本所合伙人，诉讼及争议解决部主管徐凯怡律师﹑黄晊晄高级律师和杨鸿煜律师助理共同撰写。若阁下想了解更多详情，请联络本所徐凯怡律师。

于本文中提供的一切资料仅供参考，不构成任何法律意见，资料亦受制于适用规定及法例不时的更新与修改。若需取得相关法律意见，须咨询法律顾问。

Stevenson, Wong & Co. advised Million Treasure International Holdings Limited (the “Offeror”) in relation to (i) the acquisition (the “Acquisition”) of 69.12% of the entire issued share capital of GT Steel Construction Group Limited ( “GT Steel”) and 66,358,999 warrants issued by GT Steel at a total cash consideration of approximately HK$76 million (the “Consideration”); and (ii) the unconditional mandatory cash offers to acquire all the issued shares and outstanding warrants of GT Steel (the “Offers”). The entire issued share capital of GT Steel was valued at approximately HK$110 million.

The Acquisition triggered the Offeror’s mandatory general offer obligation under Rule 26 of the SFC Takeovers Code. As such, the Offeror made a mandatory unconditional cash offer for all the outstanding shares and warrants in GT Steel through its agent, Kingston Securities Limited. The Offers were closed on 4 May 2023. Immediately after the close of the Offers, the Offeror was interested in approximately 69.15% of the entire issued share capital of GT Steel.

GT Steel is an investment holding company and its operating subsidiaries are engaged in the designing, supplying, fabricating and erecting structural steel-works for the construction of buildings including technological plants, industrial buildings, commercial buildings, government institutions and residential buildings and provision of pre-fabricated steel structures or on-site installation services in Singapore.

The Stevenson, Wong & Co. team was led by corporate partners Mr. Hank Lo and Mr. Gordon Tsang , senior associate Mr. Terence Lau, supported by associates Ms. Teresa Yip and Ms. Bethany Zhang.

Please contact Mr. Hank Lo, Mr. Gordon Tsang or Mr. Terence Lau for any enquiries or further information about this transaction.

On 31 May 2023, the Securities and Futures Commission of Hong Kong (the “SFC”) issued a circular (the “Circular”) regarding the transitional arrangements of the new licensing regime for centralised virtual assets trading platforms (“VATPs”) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615) (“AMLO”), which has come into effect on 1 June 2023. Please see our news update on consultation conclusions on proposed regulatory requirements for VATP operators licensed by the SFC published on 23 May 2023 here.

The transitional arrangements apply to VATPs providing trading services in non-security tokens only. As such, for VATPs which intend to provide trading services in security tokens, they will continue be subject to the Hong Kong securities laws (as such the Securities and Futures Ordinance (Cap. 571) (“SFO”)) without transitional arrangement, and should commence their businesses only upon obtaining the relevant licence(s) under the SFO.

Eligibility for transitional arrangements

The transitional arrangements (i.e., a non-contravention arrangement and a deeming arrangement) aim to provide reasonably sufficient time for VATPs which are providing a virtual asset service in Hong Kong before 1 June 2023 and which are prepared to comply with the SFC’s standards to apply for a licence and to review and revise their systems and controls to cater for the applicable legal and regulatory requirements. The SFC expects those who do not plan to apply for a licence to cease any active marketing of their services to Hong Kong investors and they should proceed to an orderly closure.

To be eligible for the transitional arrangements, VATPs must be providing a virtual asset service with “meaningful and substantial presence” (i.e., carrying on a genuine business with genuine presence) in Hong Kong before 1 June 2023 (“pre-existing VATPs”), and individuals must be perform a regulated function for pre-existing VATPs operating in Hong Kong before 1 June 2023. Such VATPs and individuals may continue to provide the virtual asset service in Hong Kong within the first 12 months from 1 June 2023 (i.e., from 1 June 2023 to 31 May 2024) without being in breach of the licensing requirements under the AMLO by virtue of the non-contravention arrangement.

The factors that the SFC will consider in assessing whether a VATP is operating and carrying on a genuine business with a genuine presence in Hong Kong before 1 June 2023 include the following:

• whether it is incorporated in Hong Kong;
• whether it has a physical office in Hong Kong;
• whether its Hong Kong staff exercises central management and control over the VATP;
• whether its key personnel (e.g. those responsible for the operation of the trading system) are based in Hong Kong;
• whether the VATP’s operation is live with independent clients and genuine trading volume in Hong Kong; and
• whether there are other factors (e.g. in relation to the VATP’s trading system set-up, trading arrangements and organisational structure).

On the contrary, VATPs which were not operating in Hong Kong and individuals who perform a regulated function for a VATP operating outside Hong Kong before 1 June 2023 are not eligible for the transitional arrangements. The mere setting up of a company in Hong Kong or only having “shell” operations in Hong Kong would not suffice. They should not commence any VATP business activities in Hong Kong, or actively market any virtual asset service to Hong Kong investors, until they are licensed by the SFC.

Deeming arrangement

Pre-existing VATPs

A pre-existing VATP may be qualified for the deeming arrangement under the AMLO and can be deemed to be licensed from 1 June 2024 to conduct a business of providing a virtual asset service pending the final determination of its license application if it can meet the following deeming conditions:

1. it submits a fully completed online license application to the SFC via WINGS within the first 9 months from 1 June 2023 (i.e., between 1 June 2023 and 29 February 2024);
2. it confirms in the license application that:
   i. It has been providing a virtual asset service in Hong Kong immediately before 1 June 2023;

   ii. It will, on being deemed to be licensed on 1 June 2024, comply with the regulatory requirements applicable to a licensed VATP; and requirements applicable to a licensed VATP;
   iii. It will, on being deemed to be license on 1 June 2024, have arrangements in place to ensure it complies with the regulatory requirements applicable to a licensed VATP;

3. it could prove in its license application to the SFC’s satisfaction that:
   i. It has been providing a virtual asset service in Hong Kong immediately before 1 June 2023; and
   ii. It has a reasonable prospect of successfully showing that it is capable of complying with the regulatory requirements applicable to a licensed VATP; and
4. the SFC has acknowledged receipt in writing that it has received the license application.

If the SFC considers that the VATP license applicant does not meet any one of the above deeming conditions, a no-deeming notice may be issued to the VATP to inform the VATP that the deeming arrangement will not apply to it. The VATP must then close down its business in Hong Kong by 31 May 2024 or by the expiration of the 3 months beginning on the date of issuance of the notice, whichever is later.

If the SFC considers that the pre-existing VATP meets the deeming conditions, the VATP will automatically be deemed to be licensed from 1 June 2024 until its license application is approved, withdrawn or refused (whichever is earlier).

Proposed licensed individuals of pre-existing VATPs

A licensed individual who applies to be a licensed representative (“LR”) and/or a responsible officer (“RO”) of a pre-existing VATP (the “principal”) may be qualified for the deeming arrangement under the AMLO and can be deemed to be licensed from 1 June 2024 to perform a regulated function for the principal if he/she can meet the deeming conditions. The proposed LR or RO must be performing a regulated function in Hong Kong for the VATP at the time of his/her application. If the application is an application of a proposed RO, the applicant must also prove that he/she has been performing a regulated function in Hong Kong for a VATP (whether operating in Hong Kong or elsewhere) immediately before 1 June 2023. In addition, the pre-existing VATP as well as its ROs and LRs should be able to show that they will be capable of complying with all applicable legal and regulatory requirements under the AMLO as if they were formally licensed.

License applications of pre-existing VATPs for the deeming arrangement

Timing for submitting licence applications

A license application submitted after 29 February 2024 will not qualify for the deeming arrangement, and the SFC has no power to grant an extension of the statutory deadline. VATPs that could not submit the application before the deadline must proceed to close down its business by 31 May 2024.

As the SFC may raise requisitions regarding the license application, applications may be returned to applicants to allow them to resolve the fundamental issues before submitting a new application. Hence, pre-existing VATPs are encouraged to submit their applications earlier before the deadline to reserve sufficient time for amendments.

Information to be contained in license applications

A pre-existing VATP is required to provide all the necessary information and documents in its license application, including the VATP’s policies and procedures and the external assessment report. The requirements are summarised as follows:

Dual licences

To avoid contravening any of the licensing regimes and ensure business continuity, the SFC suggested that it would be appropriate for VATPs (together with their proposed ROs and LRs) to apply for approvals under both the SFO and the AMLO and become dually-licensed.

Pre-existing VATPs should submit a completed licence application (with RO applications) for a licence to carry out a business of Types 1 and 7 regulated activities under the SFO together with its application for a licence to carry out a business of providing a virtual asset service under the AMLO.

The arrangements of dual licensing applications are as follows:

• applicants for licences under both the existing SFO regime and the new AMLO regime only need to submit a single consolidated application online and indicate that they are applying for both licenses simultaneously.

• a dually-licensed VATP is required to have at least two ROs licensed under the SFO and the AMLO. For proposed ROs who mainly have virtual asset industry experience or securities-related experience, the SFC will adopt a pragmatic approach in assessing their experience for their dual licence applications.

Analysis and Takeaways

This Circular is released to address the wide-ranging questions that were raised during the consultation period regarding the transitional arrangements of the new licensing regime for VATPs. It is believed that the Circular would provide further guidance on the compliance with the new licensing regime, in particular the interactions between the non-contravention arrangment and deeming arrangements, as well as the duality nature of the SFO and AMLO licences.

As the SFC had emphasised in the Circular, a VATP who intends to rely on the deeming arrangement must submit its full licence application by the statutory deadline of 29 February 2024. Any late submissions by the pre-existing VATPs will not be considered and their businesses must be closed down by 31 May 2024 or by the expiry of the 3 months beginning on the day of the issuance of the no-deeming notice (whichever is later). In order to ensure successful reliance of deeming arrangement, eligible VATPs should consider preparing and finalising the required information and documents for early submission and seek professional assistance if necessary.

Please contact our Partner Mr. Rodney Teoh for any enquiries or further information.

This news update is for information purposes only. Its content does not constitute legal advice and should not be treated as such. Stevenson, Wong & Co. will not be liable to you in respect of any special, indirect or consequential loss or damage arising from or in connection with any decision made, action or inaction taken in reliance on the information set out herein.