12 ASIAN LEGAL BUSINESS CHINA • 亚洲法律杂志-中国版 SEPTEMBER 2023 COVER STORY resource allocation. On the other hand, the business teams implement the compliance requirements in different fields and refine them in a targeted way to achieve both efficiency and effect, and to form a model of matrix management.” With increasing clarity in their status and functions, high-performing in-house teams will also explore and exhibit some unique team “style.” Liang says that Keep’s in-house team has legally trained members but also members with professional backgrounds in engineering, computer science, and foreign languages. “We are an inclusive team. Everyone is responsible for different business areas and has different working styles. However, the style of the whole team is simple and upbeat, with flat management and a cooperative atmosphere. There is no sense of oppression within the team.” “Our principle is that ‘work can be demanding but should not be mentally draining.’ I strive to ensure equality across the whole team and avoid excessive internal competition and internal friction,” says Liang. The Du Xiaoman Legal and Compliance Department has similar traits. “Our team members are highly professional and have interdisciplinary knowledge. Most members hold master’s degrees from top universities at home and abroad, with experiences from traditional finance, Internet finance, consulting firms, large multinational companies, and institutions of higher learning,” says Xing. “Emphasizing continuous learning, our team keeps track of cutting-edge legislation and academic developments at home and abroad. We have published professional articles in a number of conferences and journals and participated in many academic research studies and standard formulation projects. Under the direction and influence of the CEO and CRO, in addition to technical books, I also encourage everyone to read extensively about business management, history, culture, psychology, etc., to improve humanistic quality.” DATA COMPLIANCE As this year’s winning companies hail from different industries, are at varying stages of development, or possess diverse business and regulatory needs, each in-house team naturally has different focus areas. However, they all emphasize compliance as their top priority at the moment. Xing shares that the concept of “big compliance” is highlighted in his team, and compliance and legal functions are integrated. “Du Xiaoman’s BP teams have different divisions of tasks, but each is performing functions related to big compliance as the primary functions.” Liang says Keep always prioritizes compliance. Two months ago, Keep was officially listed on the main board of the Hong Kong Stock Exchange, making it the first sports tech stock. This “highlight moment” is also a recognition of the continuous efforts over the years by the in-house team in compliance since its establishment. As two data-intensive new technology companies where the protection of user data is crucial, both Keep and Du Xiaoman regard data compliance as their highest priority. During the listing process, Keep not only hired multiple firms as corporate lawyers and securities brokerage lawyers but also engaged Global Law Office as its Chinese legal advisor on data compliance, the first of its kind for a Hong Kong IPO. “Data compliance has always been high on the agenda at Keep. We have established a data compliance committee chaired by our CEO who personally leads multiple data compliance projects. In the past two years, the in-house team worked with external law firms to monitor data compliance of all Keep products, classify and manage different data according to the requirements of laws and regulations.” “Although listing has been completed, data compliance work will continue, and we will keep constant track of changes in national laws and regulations. This is not only the compliance requirements of Keep but the responsibility and obligation to users.” Xing has noticed increasingly tightening regulation in data compliance and continuously intensifying law enforcement efforts. Furthermore, the rigor and advancement of data-related legislation in China have been leading the world in many aspects, and huge fines have been meted out. To him, data compliance work itself covers the entire lifecycle management of data, encompassing collection, storage, use, processing, transmission, provision, disclosure, and deletion. “The financial industry where Du Xiaoman operates handles many types of highly sensitive credit information and biometric information, the leakage of which will cause egregious consequences. Quickly identifying data compliance risks and ensuring data compliance have become the sword of Damocles hanging over the company’s head.” According to Xing, Du Xiaoman Legal and Compliance Department takes the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law as the overarching guidance, closely tracks regulatory movements in data protection, establishes a data compliance work blueprint and framework, and focuses on data management, the whole lifecycle of data processing, and the mechanism to respond to users’ personal information rights. NEXT STEP According to Liang, the Keep Legal Department continues to expand its business services to help the company reduce costs and enhance efficiency. “The in-house team has successfully recovered over 10 million yuan through litigation, preventing the company from incurring substantial financial losses.” “Simultaneously, the in-house team has cultivated an efficient partnership with business and technology units after long-term collaboration. We aim to be involved in the development of new services and technologies as early as possible to provide clear directions and opinions.” Du Xiaoman Legal and Compliance Department has also refined its future focus as in-house work continues to deepen. “Du Xiaoman’s corporate compliance and risk management strategy focuses on two aspects. Firstly, we will enhance compliance in line with regulatory trends to complete our transition to compliance tilted towards risk aversion.
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