Buyback clauses, as one of the exit mechanisms for investment institutions, have always been a major concern in PE/VC projects. However, in recent years, with the primary market under pressure from various fronts and failing to perform as well as expected, buybacks are being triggered time and again.
In January 2024, Ms. Joyce Zhang and Ms. Aurora Zhang, contractual partners of Llinks, were invited to write an article for the China Business Law Journal (CBLJ). Their article reviews and analyzes the obstacles, possible solutions, and considerations foreign investors face when reducing capital through buybacks from Chinese target companies.
Read the full article in Chinese and English here.
