On the foreign legal supervision of the Variable Interest Entity

DOI

10.2991/icpel-18.2018.41How to use a DOI?

Keywords

Variable Interest Entity, legal dilemma, information disclosure, regulatory system

Abstract

The Variable Interest Entity, also known as VIE, usually refers to the separation of a listed company registered overseas and its entity operating in China. The listed company is an overseas company, and the overseas company controls the domestic business entity through agreement. Variable Interest Entities is a way for Chinese companies to achieve overseas listing. In the case that domestic financing channels are not smooth, domestic capital market development is imperfect, and financial support is urgently needed, this kind of listing, chosen as the last resort, has its own rationality in existence and development. Under the premise that companies listed on the VIE structure have already existed in abundance, how to strengthen supervision is an important issue that needs to be solved urgently. This paper intends to start from the Sina listing case to analyze the concept and cause of overseas listing and agreement control mode; secondly, analyze the current status of the regulatory system; then, focus on the harm caused by the lack of supervision; finally, explore different ways to solve the problems in VIE supervision, looking forward to a little inspiration for the theory and practice of the VIE structure.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yusheng Yang
AU  - Keer Zhu
PY  - 2018/10
DA  - 2018/10
TI  - On the foreign legal supervision of the Variable Interest Entity
BT  - Proceedings of the 2018 3rd International Conference on Politics, Economics and Law (ICPEL 2018)
PB  - Atlantis Press
SP  - 176
EP  - 179
SN  - 2352-5398
UR  - https://doi.org/10.2991/icpel-18.2018.41
DO  - 10.2991/icpel-18.2018.41
ID  - Yang2018/10
ER  -