Taihe Updates | Strengthening the Compliance Safeguard for Investments to Ensure the Steady Development of State-Owned Enterprises — Attorney Ge Rongrong was invited to deliver a specialized training session for Jiangsu Donghe Investment Group Co., Ltd.

This training session is closely aligned with the practical realities of investment operations in state-owned enterprises, focusing on the most common legal risks and the key challenges in SOE financing and investment activities. Drawing on current regulations governing state‑owned asset supervision and the relevant institutional frameworks for SOE investment management, Attorney Ge Rongrong, supported by actual court judgments and typical cases of penalties imposed on state‑owned entities, provided a thorough analysis of external… Key risk factors—including compliance gaps, procedural deficiencies in decision-making, and potential losses of state-owned assets—hidden within equity investments, project collaborations, mergers and acquisitions, and corporate restructuring.

During the training, Attorney Ge Rongrong balanced theoretical rigor with practical applicability, clarifying the procedural rules governing investment decision‑making in state‑owned enterprises and the stringent compliance requirements for implementing the “Three Major Matters” system, while also delineating the red lines and bottom lines of state‑asset supervision. She placed particular emphasis on procedural compliance issues that practitioners in state‑owned enterprises often overlook, underscoring the critical importance of such compliance in mitigating risks of audit liability, administrative accountability, civil damages, and even criminal exposure.

Throughout the training, participants listened attentively and took detailed notes. They unanimously agreed that the program was highly aligned with the investment and financing needs of state-owned enterprises, effectively addressing their knowledge gaps in investment compliance, clarifying previously ambiguous understandings, and providing invaluable guidance for conducting investment activities in a compliant manner and proactively mitigating legal risks going forward.

State-owned enterprises are the backbone of national economic development. As a core business segment, investment operations play a pivotal role in revitalizing assets and expanding operational footprints; accordingly, compliance management is of paramount importance. This specialized training has effectively enhanced participants’ rule-of-law mindset and their ability to anticipate and manage risks, thereby reinforcing the principles of compliant governance in state‑owned enterprise investment and financing activities. Moving forward, Donghe Group will take this training as an opportunity to integrate the key compliance‑management insights into revisions of business policies and project‑process controls, further refining a comprehensive risk‑control framework that spans the entire investment lifecycle. By adopting law‑based, standardized management practices, the Group will safeguard the security of state‑owned assets and lay a robust legal foundation for the company’s high‑quality, sustainable growth.

Attorney Ge Rongrong

Taihe (Nantong) Law Firm

Business Areas: Legal counsel for government agencies, enterprises, and public institutions; resolution of civil and commercial legal disputes (including real estate law matters, property management services, commercial contract disputes, labor‑related disputes, etc.); financial and securities practice (such as additional share offerings by listed companies and trading on the New Third Board); private equity work; investment and M&A; administrative legal services, including administrative reconsideration, administrative litigation, government procurement, handling of public complaints and petitions, and government information disclosure.

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