On April 6, 2016, a sizable cross-border finance lease transaction worth hundred millions of renminbi was executed between Guangxi Finance Lease Co., Ltd. and Hongcheng Grand Market Co., Ltd.. A Shenzhen-based team advised Guangxi Finance Lease Co., Ltd. on the transaction. The team included associate Huang Qibai, partner Yao Weiqi, and paralegals Wenzhen and Qin Yuge.

The transaction involved a sale-and-leaseback and laws and regulations from three different jurisdictions, i.e., China, Hong Kong, and Singapore. The team, with years of experience in cross-border finance and finance lease, solved multiple legal complexities for the client, including pledge of Singapore-listed stocks, Hong Kong-listed stock rights trusteeship, and deficiency payments in China. The forms of cross-border security were brand new compared with historical finance lease deals in China. The team was also responsible for drafting, translating, reviewing, and revising a large amount of transactional papers, and issuing Chinese attorneys’ opinion letter.

Guangxi Finance Lease Co., Ltd., the lessor, was jointly established by Guangxi Investment Group Financial Holding Co., Ltd. and Guangxi Investment Group International Co., Ltd., with special approval from the government of Guangxi Zhuang Autonomous Region. It is the first state holding Sino-foreign finance lease joint venture. Guangxi Investment Group is an important investor and state-owned assets operator in Guangxi, owning larger volume of assets than any other SOEs in the province. It is also an expert industrial capital and financial capital manager, ranking 199th in the Top 500 Chinese enterprises list with an AAA credit rating.