Securities & Futures Commission V China Metal Recycling (Holdings) Limited: Regional Conflict of Laws, Judicial Recognition and Hong Kong-China Cross-Border Insolvencies

Using the recently adjudicated landmark case in Hong Kong of Securities and Futures Commission v China Metal Recycling (Holdings) Limited as a launching board the author discusses and analyzes the complexities surrounding cross-border (corporate) insolvencies (“CBIs”) between Hong Kong and Mainland China (“HK-China CBI”). Going forward, HK-China CBI will have a direct bearing on decisions made by Hong Kong and Chinese courts; since they are already increasingly requested to adjudicate on the same issues during a corporate insolvency, a new mechanism is called for in order to provide a practical and economically viable resolution to the regional conflict of laws issue arising from Hong Kong and Mainland China having different insolvency laws in spite of Hong Kong being a part of Mainland China, although a special administrative region within it. A new mechanism should focus on the judicial recognition of judgments and court orders concerning insolvencies of companies with establishments in both Hong Kong and Mainland China; and if a new mechanism is properly implemented, it can more effectively and holistically facilitate resolution of the regional conflict of laws issue that typically arise during the insolvency procedure of a Hong Kong-listed company with subsidiary companies located in Mainland China. Without such a mechanism in place, the provisional liquidators (“PLs”) appointed in Hong Kong will need to devise a more convoluted resolution method in order for them to be approved by the Chinese court before they can take control of the Chinese subsidiary companies. Moreover, without a new mechanism, there will be duplication of insolvency procedures and costs and there may be incentives for forum shopping.postprin

Problems of Judicial Recognition and Enforcement in Cross-Border Insolvency Matters between Hong Kong and Mainland China

This Article first explores whether it is legally possible to extend the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region Pursuant to Choice of Court Agreements between Parties Concerned to cover cross-border insolvency matters between Hong Kong and mainland China and, if so, the advantages and disadvantages of so doing.It then examines other alternatives for facilitating judicial recognition and enforcement of judgments between the courts in Hong Kong and mainland China that focus specifically on cross-border insolvency judgments (including court orders) that concern both Hong Kong and mainland China, such as signing a new arrangement, a special treaty, or a Memorandum of Understanding. It seeks to highlight the deficiencies of the Arrangement as well as discuss the options to remedy those deficiencies. The situation for Hong Kong-China cross-border insolvency cases is opaque due to the lack of local cross-border insolvency legislation in Hong Kong. In China, there is only one article (article 5) of the 2006 Enterprise Bankruptcy Law that concerns cross-border insolvency, but that article is inapplicable to Hong Kong-China cross-border insolvency cases. That article is inapplicable because it applies only to cross-border insolvency cases involving a foreign state. Since Hong Kong is not a foreign state, it is precluded from the article’s application. Also, Hong Kong and China have not adopted the UNCITRAL Model Law on Cross-Border Insolvency. Although internationally accepted soft law standards such as the Model Law can provide institutional guidance to cross-border insolvency matters, it is compatible with Hong Kong-China cross-border insolvency cases only when a third jurisdiction is involved. The lack of a formal judicial recognition mechanism for Hong Kong-China cross-border insolvency judgments creates problems such as legal uncertainty and forum shopping. This Article aims to raise awareness of the difficulties facing practitioners involved in Hong Kong-China cross-border insolvency cases and to share academic perspectives on the issue.published_or_final_versio

Shadow Banking System in China after the Global Financial Crisis: Why Shadow Banks Can Distort the Capital Market Order

This article first examines the composition of the shadow banking system in China and then critically analyses its interconnectivity with the traditional banking system and global capital markets. It argues that whilst shadow bank lending in China contributes to the country’s economic growth, the normal functionality of capital markets could be impaired if shadow banks continue to operate on a high-risk/high-yield business model which could potentially pose a systemic risk. It also addresses the concerns arising from high-leverage shadow bank lending practice and cautions against shadow banks operating in a black hole area that enables them to escape from regulatory purview. The article suggests that future regulatory (law) reform should guide shadow banks towards consumer protection by establishing an effective internal control system, enabling sufficient risk controls and requiring material information disclosure; towards safeguarding capital markets; and towards reducing their high levels of leverage.postprin

Effect of interdiffusion of quantum well infrared photodetector

The intersubband infrared photodetector performance is theoretically analyzed for various stages of interdiffusion in AlGaAs/GaAs quantum well. The absorption strength and responsivity are enhanced for certain extents of interdiffusion and the peak detection wavelength red shifts continuously with a large tunable range from 7 to 38.4 µm. The dark current is at an acceptable value for small diffusion extent. ©1996 American Institute of Physics.published_or_final_versio

Impurity-free intermixing of InGaAs/GaAs-strained multiple quantum well infrared photodetectors

Interdiffusion effect has been investigated in highly strained InGaAs/GaAs multiple quantum well (MQW) IR photodetector. Impurity-free interdiffusion techniques was utilized via rapid thermal annealing (RTA) using electron- beam evaporated SiO2 cap layers at temperature 850 degrees C to study the optical and electrical properties of the interdiffused photodetector. Photoluminescence (PL) spectrum is blue shifted and PL linewidth remains almost the same, indicating no strain relaxation and deterioration of the heterostructure quality. Both transverse magnetic and transverse electric IR intersubband transitions are retained and observed after intermixing. The absorption peak wavelength is red shifted continuously from the as grown 10.20 to the interdiffused 10.5 and 11.17 micrometers , respectively, without appreciable degradation in absorption strength for 5 and 10 s annealing. Annealed responsivity spectra of both 0 degrees and 90 degrees polarization are of compatible amplitude and red shifted but with narrower spectra linewidth. Dark current of the annealed devices is found to be an order of magnitude large than the as-grown one at 77K.published_or_final_versio

Diffused quantum well solar cell

An alternative multi-bandgap solar cell made of diffused quantum well (DFQW) as the absorber is proposed here. The modeling of the spectral response and energy conversion efficiency of the solar cell will be shown. Significant enhancement in energy conversion efficiency is demonstrated when compared to that of the single bandgap cells.published_or_final_versio

Thermal interdiffusion in InGaAs/GaAs strained multiple quantum well infrared photodetector

RTA at 850 °C for 5 and 10 s is carried out to study the effect of interdiffusion on the optical and electrical properties of strained InGaAs/GaAs quantum well infrared photodetector. Photoluminescence measurement at 4.5 K shows that no strain relaxation or misfit dislocation formation occurs throughout the annealing process. Absorption and responsivity peak wavelengths are red shifted continuously without appreciable degradation in absorption strength. The normal incident absorption, which is believed to be the result of band-mixing effects induced by the coupling between the conduction and valence and is usually forbidden in conventional polarization selection rule, is preserved after interdiffusion. Responsivity spectra of both 0° and 90° polarization are of compatible amplitude and the shape of the annealed spectra becomes narrower. Dark current of the annealed devices is not very sensitive to temperature variation and is found to be an order of magnitude larger than the as-grown one at 77K.published_or_final_versio

Basel III and Its New Capital Requirements, as Distinguished from Basel II

From July 1988 when the original Basel Accord, Basel I, was introduced until January 2013 when Basel III implementation began, over the past 25 years, capital adequacy requirements have emerged as the dominant form of regulation for maintaining the financial soundness of banks. The rationale for reserving regulatory capital is to allow a bank, when under financial stress, to draw upon a pool of reserved funds comprised of shareholders’ equity and its retained earnings, providing a buffer against a bank’s unexpected losses. The Basel Committee on Banking Supervision (“Basel Committee”) issued a consultative document in December 2009 titled “Strengthening the Resilience of the Banking Sector,” often referred to by practitioners as “Basel III.” Though a consultative document, the Basel Committee saw it as a set of proposed changes to the Basel II framework that was first issued in 2004. A comprehensive reform package, Basel III draws lessons from the global financial crisis of 2007-2009, one of them being the banking sectors in many countries had built up excessive on- and off-balance sheet leverage that was accompanied by a gradual erosion of the quantity and quality of the capital base. Basel III strengthens and redefines the global capital framework by raising banks’ capital adequacy ratios and requiring banks to build up its capital defenses in periods when credit is at excessive levels, upholding a financially sound banking system that is the backbone of a functional market economy; because a market economy needs a financially sound banking system for raising capital and extending credit. Despite its relatively long five year phase-in period, Basel III is stricter than Basel II; and, Basel III, like its predecessors, does not have enforcement mechanisms due to its soft-law nature. Focusing especially on Basel III’s capital adequacy requirement, this article aims to examine Basel III’s implementation and measures for reducing systemic risk, its improvement from Basel II as well as its impact on trade finance, project finance and small- and medium-sized enterprises (“SMEs”).published_or_final_versio

Gene doctoring: a method for recombineering in laboratory and pathogenic Escherichia coli strains

Background: Homologous recombination mediated by the lambda-Red genes is a common method for making chromosomal modifications in Escherichia coli. Several protocols have been developed that differ in the mechanisms by which DNA, carrying regions homologous to the chromosome, are delivered into the cell. A common technique is to electroporate linear DNA fragments into cells. Alternatively, DNA fragments are generated in vivo by digestion of a donor plasmid with a nuclease that does not cleave the host genome. In both cases the lambda-Red gene products recombine homologous regions carried on the linear DNA fragments with the chromosome. We have successfully used both techniques to generate chromosomal mutations in E. coli K-12 strains. However, we have had limited success with these lambda-Red based recombination techniques in pathogenic E. coli strains, which has led us to develop an enhanced protocol for recombineering in such strains. \ud \ud Results: Our goal was to develop a high-throughput recombineering system, primarily for the coupling of genes to epitope tags, which could also be used for deletion of genes in both pathogenic and K-12 E. coli strains. To that end we have designed a series of donor plasmids for use with the lambda-Red recombination system, which when cleaved in vivo by the I-SceI meganuclease generate a discrete linear DNA fragment, allowing for C-terminal tagging of chromosomal genes with a 6xHis, 3xFLAG, 4xProteinA or GFP tag or for the deletion of chromosomal regions. We have enhanced existing protocols and technologies by inclusion of a cassette conferring kanamycin resistance and, crucially, by including the sacB gene on the donor plasmid, so that all but true recombinants are counter-selected on kanamycin and sucrose containing media, thus eliminating the need for extensive screening. This method has the added advantage of limiting the exposure of cells to the potential damaging effects of the lambda-Red system, which can lead to unwanted secondary alterations to the chromosome. \ud \ud Conclusion: We have developed a counter-selective recombineering technique for epitope tagging or for deleting genes in E. coli. We have demonstrated the versatility of the technique by modifying the chromosome of the enterohaemorrhagic O157:H7 (EHEC), uropathogenic CFT073 (UPEC), enteroaggregative O42 (EAEC) and enterotoxigenic H10407 (ETEC) E. coli strains as well as in K-12 laboratory strains

TRPCs: Influential Mediators in Skeletal Muscle

Ca2+ itself or Ca2+-dependent signaling pathways play fundamental roles in various cellular processes from cell growth to death. The most representative example can be found in skeletal muscle cells where a well-timed and adequate supply of Ca2+ is required for coordinated Ca2+-dependent skeletal muscle functions, such as the interactions of contractile proteins during contraction. Intracellular Ca2+ movements between the cytosol and sarcoplasmic reticulum (SR) are strictly regulated to maintain the appropriate Ca2+ supply in skeletal muscle cells. Added to intracellular Ca2+ movements, the contribution of extracellular Ca2+ entry to skeletal muscle functions and its significance have been continuously studied since the early 1990s. Here, studies on the roles of channel proteins that mediate extracellular Ca2+ entry into skeletal muscle cells using skeletal myoblasts, myotubes, fibers, tissue, or skeletal muscle-originated cell lines are reviewed with special attention to the proposed functions of transient receptor potential canonical proteins (TRPCs) as store-operated Ca2+ entry (SOCE) channels under normal conditions and the potential abnormal properties of TRPCs in muscle diseases such as Duchenne muscular dystrophy (DMD)