Securities and Capital Markets Global Outlook

What are the major developments and trends shaping investment opportunities in today’s global markets? What critical challenges lie ahead? Our partners share their perspectives on what to watch for in the year ahead.

“What Matters” Podcast: Trends in Asia Capital Markets

In our podcast, Jason Kuo discusses the capital markets deal structures most popular in the region over the past year, the rise in Hong Kong IPOs, how to overcome barriers to cross-border market participation, and how regulatory changes could impact capital markets going forward.

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Europe: Preparing for Life after Brexit

David Revcolevschi

Despite continued Brexit uncertainty, financial authorities in the UK and continental Europe have been working to ensure markets maintain structural integrity and security. These efforts include recognition of UK clearing houses and the servicing of derivatives contracts whose term extends beyond the Brexit due date of March 29, 2019. These will continue to be handled by UK banks, thanks to legislation passed by a number of European counterparties. The Dutch government has also indicated it will support allowing brokers and traders to continue London operations for a period. Meanwhile, the IPO market has reflected Brexit uncertainty, as well as the impact of the U.S. governmental shutdown, with a slow start to the year. London Stock Exchange data shows that in the year to January 29, just £680,000 has been raised in London IPOs, down £39.3m from the year before. Broader issues, especially a widespread slowdown in Europe and, particularly, Italy’s serious financial troubles, suggest it may be a few months yet before the market recovers its poise.

United States: Introducing the Token Taxonomy Act

Michael Zuppone

According to, there were 1,257 digital token offerings that raised $7.8 billion in 2018. Recognizing the continued importance of cryptographic digital tokens as an emerging instrument of global commerce and finance, Representatives Warren Davidson and Darren Soto introduced bipartisan bill H.R. 7356 to enact the Token Taxonomy Act. If enacted, the bill would provide much-needed clarity as to the treatment of “utility tokens” which, when sold to fund development of a digital platform, software, or other projects, have been judged by the SEC to involve securities offerings. The legislation would remove transactions in functioning consensus protocol tokens, such as altcoins or application tokens, from regulation under the federal securities laws.


Latin America: Impact of Mexico’s IPO Tax Cut

Arturo Carrillo

On January 7, Mexico announced that the tax rate paid by persons on the proceeds of initial public offerings (IPOs) will be cut to 10% from the current 30%, as one of several measures being adopted to increase the number of listings on Mexican stock exchanges and spur growth in Mexico’s financial system generally. Investors reacted favorably, as evidenced by Mexico’s benchmark IPC stock index hitting a near two-month high on the news that day (and remaining relatively positive, though the market continues to be volatile). Although the new IPO tax rate is not available to all shareholders, more companies are likely to seek equity capital markets financing, as controlling shareholders and other market participants have long sought this tax reduction.

Highlights of Our Recent Client Successes



US$1.04 Billion
Advised Zhongyuan Bank on its global offering and H-share IPO on the Main Board of the Hong Kong Stock Exchange. China and Hong Kong



US$1 Billion
Advised Citigroup and Goldman Sachs as the underwriters on the GDR offering by Kakao Corp. Named “Equity Market Deal of the Year 2018” by Asian Legal Business. Korea


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US$1 Billion

Advised Yuzhou Properties on its issuance of senior notes of US$ 425 million, US$375 million and US$200 million. China and Hong Kong


US$400 million

Advised the joint sponsors on the global offering and Hong Kong IPO of Ascletis Pharma, the first biotech company listing under the new Chapter 18A. China and Hong Kong