DeHeng Secured Full Victory in CIETAC Arbitration for a PE Fund, Winning Over RMB 40 Million in Share Repurchase

2025-10-31

Recently, DeHeng achieved a complete victory in an arbitration case before the China International Economic and Trade Arbitration Commission (“CIETAC”) concerning a share repurchase dispute worth over RMB 40 million between a private equity fund in the semiconductor chip industry (the claimant, i.e., the investor) and the founding shareholders. Thanks to DeHeng lawyers’ professional efforts in the past more than a year, the arbitral tribunal fully supported the claimant’s claims, ruling that multiple founding shareholders bear joint and several repurchase liabilities, and the target company bears joint and several repayment liability for these shareholders’ payment obligations.

As the investor, the claimant initiated the repurchase claim after the invested target company failed to meet the repurchase targets and conditions stipulated in the relevant Shareholder Agreement. The DeHeng team, mandated by the claimant and led by partner Zhang Zhonggang from the Shanghai Office, with primary support from lawyer Ma Jie, provided comprehensive legal services throughout the case.