Mr. Shen Hongshan was selected as one of the Top 15 Capital Markets Lawyers in 2023 ALB China and invited to be interviewed

2023-03-20

On 20 March 2023, the Asian Law Journal ALB announced the list of "Top 15 Capital Markets Lawyers in 2023 ALB China". With rich experience and outstanding performance, Mr. Shen Hongshan, a partner in DeHeng's Shanghai office, was selected.

The following is a collection of views shared by Mr. Shen Hongshan in an interview with ALB and does not constitute any legal advice or opinion.

Be a top capital markets lawyer by continuously learning and contributing

-- An interview with Shen Hongshan, senior partner of DeHeng Law Offices 

ALB: With your rich experience in stock issuance and listing, how do you view the significance of the comprehensive roll-out of the registration-based system? How will this affect demand for capital market legal services?

Shen Hongshan, Managing Partner of DeHeng Shanghai Law Office: In November 2018, General Secretary Xi Jinping announced at the first China International Import Expo that the Shanghai Stock Exchange would set up the STAR Market and pilot the registration-based system. This is a significant move, signaling that the registration-based system reform has entered the implementation stage. Since then, the STAR Market, ChiNext and the Beijing Stock Exchange have successively piloted the registration-based system before it was rolled out across the country on February 17 this year. This is an important milestone in the reform of China's capital market and a new starting point for its healthy, regulated and sustainable development well into the future.

Apart from revamping the stock issuance system, the registration-based system also involves the optimization of stock trading rules, the adjustment of major asset restructuring rules, and the strengthening of the regulatory responsibilities of securities intermediaries. The fundamental thinking behind is to reshape market and regulatory boundaries and clarify the functions and responsibilities of all market players. This move can be said to be the "reform and opening up" of the capital market.

After the implementation of the comprehensive registration-based system, each listing board enjoys greater clarity in terms of its differentiated positioning, the conditions for stock issuance and listing have become more diverse and inclusive, and stock issuance has become more predictable. A series of reforms will stimulate the vitality of different market players, and demand for capital market legal services will increase accordingly. At the same time, the registration-based system reinforces responsibilities on intermediaries, including law firms, and puts forward higher requirements on the work tasks, capabilities and professional code of conduct of capital markets lawyers.

ALB: How can one become a top capital markets lawyer amid new dynamics?

Shen: I think amid new dynamics, one will face many challenges on the way to become a top capital markets lawyer. But you will only fall back if you stop moving forward. Capital markets lawyers should be more proactive in adapting to new changes and continuously innovating themselves, so that they can seize opportunities and make more contributions.

Capital markets lawyers need to have interdisciplinary knowledge. We often say that "capital markets lawyers are the least lawyerlike". In addition to legal knowledge as the professional foundation, they also need to master finance, accounting, tax and other relevant knowledge, and must be 100% passionate about and dedicated to continuous learning.

It is also necessary for capital markets lawyers to proactively understand clients’ development strategies and industries, so as to tailor better services and create value for clients.

ALB: Can you share some of your “secrets” when it comes to leading a team and nurturing capital markets lawyers?

Shen: Capital market legal services are "team business" and require teamwork. It is difficult for capital markets lawyers to thrive without an excellent capital market law firm as the platform. Therefore, capital markets lawyers must have platform awareness and actively contribute to their platforms and build brands and teams. These efforts are in fact part of self-growth.

It is key for a law firm or team to develop their systems and create a talent mechanism that can be duplicated elsewhere. All members in a team must have aligned values, and the team must have a clear plan for the career path, training, remuneration, etc. of young lawyers.

Meanwhile, the building of team culture is something that everyone can intimately feel. Therefore, the care for team members and young lawyers must not be superficial. Only when team members feel sincere care can young talents be attracted and retained to enable long-term development of the team.