Research On Risk And Control Of TMT Listed Overseas

The"Variable Interest Entity"structure is literally translated as"Variable Interest Entity"..In 2000,sina company firstly go through the road of VIE str ucture and successfully listed in the United States,after this round VIE structu res will be almost the only way of Chinese TMT companies listed on overseas,among them,there is no lack of Alibaba,Tencent,Shanda,and New Oriental Education&Technology Group such large enterprises.In the many ways of C hinese enterprises listing overseas,only the VIE structure is favored by TMT e nterprises,the main reason is that the VIE structure can help some domestic T MT enterprises effectively avoid the stipulations of Chinese laws on certain ind ustry restrictions,it can also help enterprises to successfully list and raise funds,meantime achieve tax avoidance through legal means.Under the background of the rapid development of Internet technology,the VIE agreement keeps foreign capital,technology and management experience fl owing into China,which makes China has its own independent Internet industry,and in many areas it has promoted rapid change in China,from the governme nt to the whole industry,both domestic and foreign capital,entrepreneurs and I nternet users have benefited greatly.It is no exaggeration to say that the VIE structure has created a multi-win pattern.However,with the rapid development of the VIE structure,in recent years,there have been many cases in China,su ch as "baosteel incident","Alipay crisis","New Oriental being supervised and i nvestigated",etc,which constantly exposed the risks in the VIE structure has le d to the criticism and consideration of different degrees of VIE structure in th e economic and legal circles.Based on the above background,the author hopes to be able to analyze t he typical VIE structure risk cases in practice in recent years,to summarizes th e risks of the VIE structure in China,and put forward some suggestions and measures on how to prevent and deal with VIE structure risks in the future.In particular,firstly,the concept,basic structure and operation mechanism of the VIE structure are explained in detail.Secondly,it illustrates the reasons for the overseas listing of TMT enterprises in China and why the VIE model is selec ted in many overseas listing methods.Then,this paper elaborates on the risks of the VIE structure in terms of economy,law,social culture and individuals,at the same time,the author selected the Alibaba pay treasure to events,century better margins and focus media to return to A shares three typical cases,fro m different aspects further demonstrated the typical risk.Finally,the author puts forward the corresponding risk control measures from the three perspectives of manager,enterprise and government.