Chart of the Day: How Overseas-Based DouYu Can Run an Internet Business in China
Video-game livestreaming platform DouYu International Holdings Ltd. filed for a U.S. IPO earlier this week.
DouYu’s largest shareholder is internet giant Tencent Holdings Ltd., which holds 40.1% of the company through its wholly-owned subsidiary Nectarine Investment Ltd.
Like most other Chinese companies that list outside the country, DouYu uses a legal structure called a variable interest entity (VIE) to skirt rigid financial rules that prohibit foreign investment and ownership in some sectors, including the internet business.
In DouYu’s case, the company is incorporated in the Cayman Islands even though it primarily operates in China. Through a wholly-owned Hong Kong-based subsidiary that is owned outright by a unit based in the British Virgin Islands, DouYu controls a company called Wuhan Douyu Culture Network Technology Co. Ltd., located in its hometown of Wuhan, Central China’s Hubei province.
Wuhan Douyu has contracts with two VIEs — Wuhan Ouyue Online TV Co. Ltd. and Wuhan Douyu Internet Technology Co. Ltd. — whose primary purposes is that they hold licenses from regulators to operate in the domestic internet industry. Both VIEs are controlled by DouYu International’s founder and CEO Chen Shaojie.
Contact reporter Mo Yelin (email@example.com)
May 25 18:53
May 25 00:48
May 24 22:24
May 24 18:31
May 24 16:37
May 24 16:03
May 24 15:54
May 24 14:18
May 24 13:52
May 24 11:43
May 24 02:36
May 24 02:29
May 24 02:51
May 23 19:33
May 23 18:53
- 1Former Chief Securities Regulator Put Under Investigation
- 2Exclusive: Saudi Oil Colossus Wants to Shift Its China Business Downstream
- 3New Credit Bureau Finds Good Data Is Hard to Come By
- 4Central Bank Reveals First Step to Unifying Benchmark, Market Rates
- 5Blame U.S. Politicians, Not Companies, Huawei Founder Says, Dismissing Blind Nationalism
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas