When carrying out an overseas commercial project, it is necessary to investigate a range of core matters in the host country—such as its political, economic, cultural, legal, tax, and religious environment—particularly the on-the-ground status of the target industry and target company, so as to assess and mitigate potential transaction risks. In addition to routine overseas investment and trade matters, special entities such as listed companies may also be required by regulators, in processes such as private placements or public issuance of convertible bonds, to appoint a law firm to conduct due diligence on overseas companies held by the listed company and to issue a legal opinion.
