Recent articles which have appeared in Forbes and elsewhere include the following:
“Silvercorp Back in Focus”
“With Chinese Internet Shares On Fire, Undervalued FENG Will Shoot Up Next”
“China’s Baidu Is A Buy, Sort Of”
“Deloitte’s China Problem Comes to a Head”
“What Is Youku-Tudo Really Worth?”
Variable Interest Entity (“VIE”) structures were first introduced by Chinese companies listing in the US as far back as the year 2000 when SINA had its initial public offering on the NASDAQ. Effectively the VIE structure means that equity holders have a somewhat indirect financial interest in the revenue and earnings stream and do not actually have a claim on the assets of the company in question.