China’s leading motorcycle and vehicle manufacturer Lifan Group announced on July 17, 2008 that AIG was approved by MOFCOM to invest around US$90 million in Lifan Group in exchange of its 13.5% share capital. The Zhonglun team, led by Anthony Jing Zhao, organized a multi-discipline task force to represent AIG in this transaction and offer a full spectrum of legal services. William Jia and Sammy Tsia assisted Anthony Zhao in taking charge of the investment-related matters, John Jiang, Jenny Zhang and Paul Lee were responsible for anti-trust related matters, and several other partners also contributed expertise in their respective areas. Zhonglun’s representation showcases its capability to offer a package of comprehensive services which were highly recognized by all relevant parties.
In particular, the transaction constitutes foreign investment in a joint stock company, which had to pass review and examination from six state ministries, led by MOFCOM and including SDRC, CBRC, SAFE, SAT and SAIC, as well as industry association hearings. CBRC’s examination was particularly related to the equity holding by Lifan Group in Chongqing Bank, and the grant of approval after extensive internal reviews set a precedent for similar cases in the future.