The Analysis Of VIE Structure's Construction And Demolition

The VIE structure was first created in China's Internet industry.As a new industry,most of the companies in this industry were difficult to obtain recognition from the capital market and it was difficult to raise funds in domestic.On the other side,Because of the company's size,profit and other indicators are difficult to meet the standards of the A-share listing,so they have turned to overseas financing and listing.However,China has clear restrictions on foreign investment in the Internet industry,including the minimum amount of registered capital,the proportion of foreign capital,and the qualifications of foreign shareholders.In order to solve this contradiction,Internet companies have emerged as a result of the VIE structure.By building a VIE structure,companies can not only raise funds and list outside the country,but also bypass domestic policy restrictions.In recent years,with the continuous exposure of foreign institutions to short selling the China concept shares,the negative factors in the overseas market are increasing.However,the structure of the domestic capital market is contantly improving.Not only has the highly valued A-shares,but also has set up a platform for financing-the National Equities Exchange and Quotations,and the Science.and Technology Enterprise Board is also expected to be launched in the near future.Domestic capital markets continue to show advantages,which makes more and more overseas listed companies in China choose to return to domestic listing.Since 2015,there has been a return of VIE companies,one of them is 360 Security Technology Co.,Ltd.As China's largest provider of Internet security services and products,360 Security Technology Co.,Ltd.was completed its initial public offering,listed on the New York Stock Exchange in April 2011.On July 28,2016,360 Security Technology Co.,Ltd.officially completed the privatization and withdrawal of the U.S.market,and achieved domestic listing through the backdoor Jiangnan Jiajie Elevator Co.,Ltd.On January 29,2018,the China Securities Regulatory Commission issued the"Approval of Major Asset Reorganization of Jiangnan Jiajie Elevator Co.,Ltd.and Approval of the Purchase of Assets Jfrom Tianjin Qixin Zhicheng Technology Co.,Ltd.".At this point,Jiangnan Jiajie's major assets reorganization was formally approved by the Securities Regulatory Commission.360 Security Technology Co.,Ltd.just completed its return to A-share listing on February 28,2018,and as an Internet giant company,it has a wide range of attention in the capital market.This paper chooses this case to carry on the research has the realistic representative,also provides the reference for other VIE enterprises that return to the A-share listing in the future.Finally,I hope that through the study of the VIE structure,I can explore the perfect solution of VIE,and provide a reference for the prosperity and stable development of China's capital market.