This is "big news" but not really that big.
It confirms the shutdown of the loophole which allowed Chinese business to list overseas without CSRC approval. It does not, for the moment, do anything to VIEs.
bloomberg.com/news/articles/…
It confirms the shutdown of the loophole which allowed Chinese business to list overseas without CSRC approval. It does not, for the moment, do anything to VIEs.
bloomberg.com/news/articles/…
It is important to remember that VIEs like BABA may have "opaque" ownership structure, but that is not necessarily a defining characteristic.
The earliest Chinese companies listed on the NYSE like Sina and China Mobile were themselves VIEs.
The earliest Chinese companies listed on the NYSE like Sina and China Mobile were themselves VIEs.
Further, VIEs have recently listed in HK and this summer saw the mainland's first listing of a VIE ownership company (after the concept was first 'explicitly' endorsed in 2018 with the advent of China Depositary Receipts).
The 2024 Problem looms large. HKEX is gonna be busy.
The 2024 Problem looms large. HKEX is gonna be busy.
And now the CSRC has come out to say that the report is not true.
Maybe.
In any case, it has been many months since a US IPO of a Chinese VIE, and it is pretty clear there won't be any until "things are fixed", and there is probably fire somewhere under the smoke.
Maybe.
In any case, it has been many months since a US IPO of a Chinese VIE, and it is pretty clear there won't be any until "things are fixed", and there is probably fire somewhere under the smoke.
I still think HKEX will be super busy for the next 2+ years.
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