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Recently I have been intrigued by the lower prices of Chinese companies and decided to invest into China. But I stumbled open the problem that many Chinese companies you can invest into are VIE’s (Variable Interest Entity).

The company in question: China Resources Land Limited

For example see the following article: https://thediplomat.com/2014/09/no-one-who-bought-alibaba-stock-actually-owns-alibaba/

So, of what I understand of this is that nobody actually owns a piece of the company and if China decides that this system is illegal all investors would lose all their money.

So, I have been trying to find out if the company in question is a VIE or not and if by buying their shares I would actually own a piece of the company. But so far, I could find nothing that tells me how to see if a company is a VIE or not.

So, is there a way to find out if a company is a VIE or not?

  • The article linked suggests that ALL Chinese companies traded outside of China are VIE's or something similar (and subject to the same risk). – Vadim Ponomarenko Jun 6 at 15:33
  • If I am not mistaken it says ALL in the sense of ALL tech companies. Not all companies in general. Also, up it says, "It is illegal under Chinese law for foreigners to own stock in certain categories of companies." so not all categories it appears. I can gamble that a company is a VIE because it is in a certain category, but I can't confirm this in any way (all I can do now is guess) – Morganis Jun 6 at 15:42

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