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ID:32703173
大小:552.00 KB
页数:6页
时间:2019-02-14
《【7A版】VIE Structure for Foreign Investment in the PRC May Face Challenges.doc》由会员上传分享,免费在线阅读,更多相关内容在工程资料-天天文库。
1、7A版优质实用文档VariableInterestEntity(VIE)StructureforForeignInvestmentinthePRCMayFaceChallengesbyGuPingThevariableinterestentity("VIE")haslongbeenapopularstructureforforeigninvestorsinsectorsthataresubjecttoChina'sinvestmentrestrictions.VIEshavealsobeenusedasameansbywhichChinesedomesticen
2、titiesareabletolistoverseasoninternationalcapitalmarkets.ThefirstwellknownVIEstructurewasthatofSina.cominits20GGlistingontheNASDAQ.IndeedtheVIEstructureisalsocommonlyknownasthe"SinaStructure".SinausedaVIEasaworkaroundstructuretoavoidrestrictionsonforeigndirectinvestment("FDI")intheva
3、lue-addedtelecomservicessector.Sincethen,bothforeignandChineseinvestorsalikehavereplicatedtheVIEstructureinmanyothersectorsofChina'seconomywhereFDIiseitherrestrictedorprohibitedfromforeigninvestment.Inessence,aVIEreferstoastructurewherebyanentityestablishedinChinathatiswhollyorpartia
4、llyforeignowned(the"ControllingCompany")hasdefactocontroloveranoperatingcompany(the"OperatingCompany")whichholdsthenecessarylicense(s)tooperateinanFDIrestricted/prohibitedsector.AssuchsectorsaresubjecttoinvestmentrestrictionsinChina,foreigninvestorsarenotabletodirectlyinvestintheOper
5、atingCompany.Accordingly,theforeigninvestorsadoptvariouscontractualarrangementsbetweentheControllingCompanyandtheOperatingCompanyinordertoobtaindefacto67A版优质实用文档7A版优质实用文档controlovertheoperationandmanagementoftheOperatingCompany.TheprofitsoftheOperatingCompanywouldalsoflowbacktotheCon
6、trollingCompanyandultimatelybeconsolidatedwiththefinancesoftheControllingCompany.Fordomesticcompanies,especiallycompaniesinrestrictedindustriesthatdon'ttypicallyhavemanyphysicalassets(suchasinternetortelecommunicationscompanies),theVIEstructurewaswidelyusedtoenablecompaniestoobtainfi
7、nancingfromoverseasmarketsthroughoverseaslistings.Gradually,companiesintheheavyindustriesalsostartedtoadopttheVIEstructuretolistoverseas,asdidoffshoreshellcompaniesthatwerelookingtocircumventapprovalrequirementsstipulatedbyChina'sM&ARules(1).Fromaregulatoryperspective,althoughthereis
8、noclearprohi
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