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kindama

09/20/14 10:09 AM

#8914 RE: realfast95 #8913

RE: BABA is a VIE

Good Paul Gillis commentary
http://seekingalpha.com/article/2508575-does-alibaba-change-the-game

"I think all this attention may help to bring a resolution to the VIE situation. I believe that the chance of Chinese regulators banning the VIE structure has fallen below remote."

"Regulatory battles

The difficulties faced by the SEC and PCAOB in enforcing American securities laws on Chinese companies listed in the United States have not been resolved. These issues received far less attention than the VIE structure. The SEC's case against the Big Four accounting firms has not been settled. While an administrative trial judge banned the firms from practice before the SEC, the judgment has been stayed pending appeal before the SEC. If the judgment is ultimately upheld, it could lead to the delisting of all Chinese companies, including Alibaba, from U.S. markets. Similarly, a failure of the PCAOB to obtain the right to inspect auditors could lead to the same result. Such an extreme measure seems far more unlikely after the Alibaba IPO, which has raised the stakes for both US and Chinese regulators to find a compromise."