Chinese ADRs are safe from delisting, for now
Chinese ADRs are safe from delisting, for now
On VIE structures, delisting risks and potential workarounds. Estimated reading time: 15 minutes
Disclaimer: Asian Century Stocks uses information sources believed to be reliable, but their accuracy cannot be guaranteed. The information contained in this publication is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions expressed in such publications are those of the publisher and are subject to change without notice. You are advised to discuss your investment options with your financial advisers. Consult your financial adviser to understand whether any investment is suitable for your specific needs. I may, from time to time, have positions in the securities covered in the articles on this website. This is not a recommendation to buy or sell stocks.
Summary
China prohibits foreigners from investing in sensitive sectors such as media, the Internet, education, finance and energy. For that reason, companies in these sectors use variable interest entity structures (“VIE”) when they raise …