Houmu Holdings Ltd (HOMU)

[Daybull]

IS THIS HOMU?:
The legal standing of VIEs in China is unclear: The PRC legally prohibits foreign direct investment in certain industries, including many high-tech sectors, and maintains strict controls on foreign exchange and capital flows.
To circumvent these restrictions, mainland Chinese companies interested in raising funds on U.S. exchanges create offshore corporate entities for foreign investment using a complex structure called a variable interest entity (VIE).v
In a March 2019 survey of 182 Chinese companies listed on NYSE and NASDAQ, Paul Gillis, professor of practice
at Peking University Guanghua School of Management, found that 125 of these companies used the VIE structure.