Opinion: New VIE Rules — Is the Door Half Open or Half Closed?

Recently, there has been a deluge of new regulations on overseas listings, and variable interest entities (VIEs) remain one of the most watched.

Last week, an official from the China Securities Regulatory Commission (CSRC) told the media that “enterprises that adopt the VIE structure and meet the compliance requirements can be listed overseas after filing.” A few days prior to that, CSRC also issued a public denial after Bloomberg reported a possible ban on the overseas listing of VIE-based companies. Putting those together, some say that Chinese government has officially OK’d the VIE structure and the listing of VIE-based companies. My personal opinion is that this is a misinterpretation.