Friday , November 15 2019
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China VIEs: the scale of exposure

Summary:
In a post Wednesday, Alphaville took a look at the Variable Interest Entity structure that allows Chinese companies to skirt state restrictions on foreign investment, and to list their securities abroad. We posited that this structure, which is technically illegal in China, could be used as a threat if the US sought to impose capital controls on the People’s Republic.During our research we couldn’t quite pin down a definite dollar number for the level of exposure investors have to these equity-aping securities, or the aggregate figure of securities listed outside of China. But we suspected it was high -- at least above tn.So luckily for us, four academics from Harvard got in touch with us overnight to set the record straight. In a paper published in August, Coppola, Maggiori, Neiman, and

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In a post Wednesday, Alphaville

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