Beyond Markets

China prohibits foreign investments in certain industries. Variable Interest Entity (VIE) is a popular business structure that Chinese corporates use to accommodate foreign capital in those restricted industries. Chinese regulators have recently vowed to tighten regulations on American Depositary Receipt (ADR) listings, most of which are in VIE structures. At the same time, US regulators are likely to delist Chinese ADRs after three years of non-compliance with the accounting standards set by the PCAOB, unless China and US reach a resolution before the deadline.
What are the various risks of VIE structures and Chinese ADRs? What are our recommendations for investors? Find out more in this episode with Mark Matthews, Head of Research Asia and Richard Tang, Head of Research Hong Kong and China Strategist.

What is Beyond Markets?

“Beyond Markets” by Julius Baer is a series featuring conversations with experts to share recent market developments, key insights, and strategic inputs from around the globe. In each episode, we cut through the noise to offer practical advice and macro research on today’s shifting economic and market landscape.
The information contained in this podcast is marketing material. Opinions expressed do not constitute independent financial/investment research, investment advice, or an offer to buy or sell securities by Julius Baer. Please refer to www.juliusbaer.com/legal/podcasts for important legal information prior to listening to this podcast.