Thinking About China
Opinion

Variable Interest Entities: China Ponzi Scheme

Variable Interest Entities: China Ponzi Scheme
George Town pictured in Grand Cayman, Cayman Islands, on April 24, 2008. David Rogers/Getty Images
Antonio Graceffo
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Commentary
Since 2000, Chinese issuers have widely used variable interest entity (VIE) structures to raise funds from American capital markets. The structure is often employed in industries in which foreign ownership would be restricted or outright prohibited by Chinese regulators.
Antonio Graceffo
Antonio Graceffo
Author
Antonio Graceffo, Ph.D., is a China economy analyst who has spent more than 20 years in Asia. Graceffo is a graduate of the Shanghai University of Sport, holds an MBA from Shanghai Jiaotong University, and studied national security at American Military University.
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