Asialaw Profiles
The Guide to the legal markets of the Asia-Pacific

Zhong Lun Law Firm is known in the market for its strong banking and capital markets practices. On the equity side, the firm offers a range of services like domestic and foreign advisory on IPOs, pre-IPO restructuring, private placements, as well as regulatory matters. The debt side of the capital markets practice often handles corporate bond issues, and short-term and mid-term bonds.

“Zhong Lun has really built up all of its practices based on the strength of its real estate practice,” says one partner at a rival firm. “Its capital markets practice is a good example of this. It is really the one to watch in this space; it does good work in capital markets.”

This past year, the capital markets partners advised China-based issuer MIE Holdings Corporation (MIE) in its Hong Kong IPO, which was valued at HK$1.29 billion (US$166 million). MIE focuses on operating and developing oil and gas properties, and is an independent upstream corporation. The company presently runs three oil fields in the Songliao Basin.

Partners Limin Chen, Anthony Zhao and Anthony Qiao are all leaders in banking and finance work.

Zhong Lun has long been known as the top firm in China for real estate related work, and this has provided a solid base from which it has been able to launch a leading real estate M&A practice. One partner at a rival firm praises Zhong Lun’s work: “Zhong Lun is really a top firm for real estate M&A. It really knows what it is doing in this area. It has the relationships, and nobody else really comes close.”

In the last year, Zhong Lun’s M&A team represented top developer-client SOHO China on several acquisitions. For example, Zhong Lun represented the company on an agreement to acquire a land project at Sichuan North Road Station of Subway Line 10 in Shanghai’s Hongkou District. This was valued at Rmb1.5 billion (US$232 million) and was SOHO China’s fourth acquisition in 2011. SOHO China now has a presence in seven central business districts including Nanjing West Road, the Bund, Hongqiao Transportation Hub, Huaihai Middle Road, Changshou Road, Sichuan North Road and Xujiahui.

Partner Anthony Qiao is a leading lawyer in the practice.

Zhong Lun is known in the market as an absolute heavyweight in the real estate and construction sectors in China. “You think of Zhong Lun when you think of real estate,” says a partner at a rival firm. “The firm has been experts in that area for a long time, and is really well known in the market.” Zhong Lun advises on major construction projects as well as top energy projects in China.

This past year, the firm represented project company China Windpower Group on a lending syndicate, led by IFC, for a wing power project in China. The project, which was funded by a combination of senior debt and sponsor equity, was China’s first ever wind farm project to get long term project financing from a syndicate of international banks denominated in US dollars.

In 2011, Zhong Lun also advised Rolex as it acquired three floors of a high rise office building in Beijing’s Chaoyang Business District.

Anthony Qiao is highly regarded in the construction and real estate arena.

The dispute resolution team at Zhong Lun is particularly well known for its prowess in advising clients on high stake real estate matters. The firm’s corporate M&A team, which has largely grown based on the strength of the original real estate practice, also brings in mandates for dispute resolution advice across a range of sectors.

As the firm often advises on disputes between major developers and construction companies in China, Zhong Lun is particularly well known for its litigation abilities. The large disputes team, with over 100 lawyers across China, has represented clients on more cases in front of the Supreme People’s Court of China than any other firm.

Zhong Lun has a reputation in the market as a leader in China related capital markets work, and the firm has served as PRC counsel on some of this year’s interesting offerings.

The firm recently advised issuer Jiangsu Lugang Science & Technology on its IPO on the Shanghai Stock Exchange. The company, which manufactures and distributes woollen yarns and fabrics, issued up to 53 million A-shares of common stock in the IPO.

In May 2011, Zhong Lun advised Phoenix New Media as issuer’s PRC counsel on its NYSE IPO, which raised over US$140 million. Zhong Lun has a longstanding history with Phoenix New Media, having formerly advised it on its private equity financing in 2009.