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.
Category Archives: IPO
Relaxing capital controls is needed fast, argues Beida professor Paul Gillis at his accounting weblog, as he analyses the position of Chukong Holdings Limited. They filed last week for a US IPO, but also use a so-called variable interest entity (VIE) structure, a source of many problems, argues Gillis.
Sina´s weibo is preparing for an IPO, but business analyst Shaun Rein feels that their valuation is way too high, he tells at Bloomberg TV. Weibo is not longer the hot company it used to be, after a government crackdown and competition by WeChat.
Alibaba´s IPO is nearing, and their latest figures are great, tells business analyst Shaun Rein at Bloomberg TV, boosting even Yahoo´s results. But competition in China by Tencent is growing, making Alibaba not the only player in the country´s e-commerce.
The China Securities Regulatory Commission (CSRC) has fined three Chinese law firms for their shoddy legal work in IPO´s. A positive development in trying to raise the standard of Chinese law firms, writes professor Paul Gillis at his China Accounting Blog. “It´s about time.”
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.
The world´s four largest auditing firms are up in arms, as their China division as the SEC rules against them. But the real victims are their Chinese clients, warns Peking University professor Paul Gillis on his accouting weblog. Not only listed firms, but all companies working with the big four.
Wu Yajun of Longfor properties saw the shares of her company drop because of her divorce, but she is certainly not the first. Financial analyst Wei Gu of Reuters’ Breakingviews looks at divorce as a risk factor for listed companies, or their IPO’s, especially in China.