China plans to ban domestic technology companies from going public through the VIE structure.
Bloomberg quoted sources as reporting that China is planning to prohibit companies from listing overseas through the VIE structure, plugging the loophole in overseas financing for the technology industry. Currently listed companies through VIE would need to make adjustments to increase transparency for review, and foreign investment restrictions will become a regulatory focus.
The draft may be finalized as early as this month, but there may be variables.
China is planning to ban companies from going public on foreign stock markets through variable interest entities (VIE), intended in part to address concerns over data security. Companies currently listed in the U.S. and HK that use VIEs would need to make adjustments.
The draft may be finalized as early as this month, but there may be variables.
China is planning to ban companies from going public on foreign stock markets through variable interest entities (VIE), intended in part to address concerns over data security. Companies currently listed in the U.S. and HK that use VIEs would need to make adjustments.
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102758766 : When was this?
Niwde : Is this the old new reported back in early-mid 2021?
102758766 : Few days ago China regulators also said this:
"We don't think that delisting of Chinese firms from the US market is a good thing either for the companies, for global investors or Chinese-US relations," Shen Bing, director general of the China Securities Regulatory Commission's (CSRC) department of international affairs, told a conference in Hong Kong.
"We are working very hard to resolve the auditing issue with US counterparts, the communication is currently smooth and open. There is a risk of delisting of these companies but we are working very hard to prevent it from happening," he added.
102758766 : Forcing companies to delist would also not be wise for China and I think they know this too… it’s equivalent to sending a message to the rest of the world that Chinese companies are uninvestible. Besides, forcing them to list in Hong Kong or Shanghai where the pool of capital is much smaller would be somewhat similar to artificially capping their growth by limiting their access to capital. So much for competition with the US if China chooses to rein in their best performing horses… So I think it doesn’t make sense.
antossiu : Shoot that source. CCP PLEASE SHOT THAT GUY TO DEATH
反指之王 : Maybe it's just Bloomberg bragging about the air. Anyway, sources will never be able to verify