Financial authorities in Beijing are playing with the idea to give tech firms a faster-track IPO in China, says accounting professor Paul Gillis at his weblog. Taking away some of the cumbersome restrictions for IPO’s in China might lead to the expected ban of variable interest entity or VIE’s, a side-track allowing Chinese firms to list in the US, he suggests.
Category Archives: NYSE
Both Baidu and Alibaba might be the first US-listed Chinese companies whose books are going to be checked buy the US regulator PCAOB, after a decade-long stale-mate where China refused such controls, citing state security. Accounting professor Paul Gillis is carefully optimistic, he tells the Wall Street Journal, but warns it is not yet a done deal.
The Public Company Accounting Oversight Board (PCAOB) will demand companies to identify senior partners of auditors who perform audits from January 31, 2017. But that means also that auditors responsible for hundreds of dodgy Chinese IPO´s in the US will never be identified, writes Beida accounting professor Paul Gillis on this weblog.
A rising number of Chinese companies, listed in the US, are returning home encouraged by rising stock prices. Bloomberg looks at Sequoia Capital China, one of the firm organizing the shift, and accounting professor Paul Gillis gives his take on the trend.
The proposed law for foreign investments is up for discussion, and offshore VIE companies controlled by Chinese would be treated as domestic companies, legalizing current practices. Accounting professor Paul Gillis lists the winners and losers of the proposed law on his weblog.
What is the room for newcomers in China´s e-commerce after Alibaba´s successful IPO? WSJ wealth editor Wei Gu discusses with Jef Walters of Boston Consulting, and finds that massive growth is still possible. Only half of China´s internet users is purchasing online, and mobile is still taking off in a country where most users have mobile.
Despite its close to US$22 billion IPO at the New York Stock Exchange today, business analyst Shaun Rein does not see in Alibaba a real global company. “Its model is not scalable in other large market like the US and Indonesia”, he says at has much work to do at home, especially on mobile where it is lagging.
Will Alibaba use the capital gained from its IPO to expand fast internationally? China consultant Joel Backaler, expert on China´s outbound investments, does not think so, and explains in Forbes why Alibaba will be tied up at the domestic market at least in the short run.
VIE structures are highly scrutinized and Beida professor Paul Gillis is fighting those structures via the Cayman Islands and other tax havens, although they need economic reforms to be iradicated. On his accounting website he looks at the IPO document Alibaba had to file and awards them the golden VIE standard.
Getting listed is notorious difficult for Chinese companies, because getting permissions in mainland China is tough. But there is hope, writes professor Paul Gillis in the Wall Street Journal, as regulators in China and Singapore recently signed an agreement to let private companies list directly. Now such an agreement is needed between China and the US.