Mainland China may have thrown open its doors to investment, but operating there still poses serious legal headaches for companies.
While the legal system has been modernised and made more accessible, the problems involved may still deter some prospective investors.
'I think it's fair to say [China's legal system] is another layer of difficulty facing companies making strategic decisions on whether to invest or increase their investment,' Jonathan Moult, head of Asia Banking and Finance at international law practice Herbert Smith, said.
'It's a real operational problem. Having said that, if you're talking about a major international company that was going to invest, I think it's a problem that they would factor in from the outset.' Companies operating within the special economic zones were no better off, he said. While there were tax breaks and other economic benefits designed to attract international investment, laws were the same as other regions of China - although regulations regarding the establishment of businesses were more flexible and obtaining the necessary approvals more streamlined.
In insolvency cases, a common problem facing banks and creditors involved companies with manufacturing operations on the mainland which operated out of Hong Kong.
'It's interesting because often you have Hong Kong-incorporated entities who have a substantial presence in Hong Kong and who have raised their capital and borrowing here, but whose main business is conducted in the mainland,' Mr Moult said.
That meant it was often difficult for banks and other creditors to take security over a business to which they had lent capital because the valuable sections of the company, such as manufacturing facilities, were situated on the mainland.