China using VIE loopholes to raise money from inve

2022-04-05
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China using VIE loopholes to raise money from investors - Today News Post Today News || News Headlines

London [UK], August 9 (ANI): The Chinese companies have been using a loophole for decades to raise money from foreign investors by using a structure called variable interest entity, or VIE.

Usually, when investors purchase a stock, what they’re doing is buying a percentage of the company but that is not the case with Chinese companies listed on the Nasdaq and the New York Stock Exchangeincluding staff and volunteers, reported CNN.

VIE uses two entities to raise money from foreign investors. The first is a shell company based somewhere outside China, usually the Cayman Islands. The second is a Chinese company that holds the licenses needed to do business in the country. The two entities are connected via a series of contractsThe province will send half of its vaccine supply t.

When foreign investors buy shares in a company that uses a VIE, they’re purchasing stock in the foreign shell company — not the business in China, reported CNNs solicitor general is to announce provincial travel restrictions today to help limi.

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