New York, Beijing, Geneva

Chinese VIE´s not so variable anymore

The subject is heating up

Regarding the future of VIEs in China, it seems at first glance as if there are two camps emerging, the tech companies saying the government supports the structure, and the lawyers saying more and stricter regulation is coming.

Bill Bishop on DigiCha covers the subject regularly as this earlier post shows

He starts with a clear short definition

“VIE´s are a practice where a domestic company, a so-called variable interest entity (VIE), holds the license necessary for operating a business such as running an internet search engine or an e-commerce platform in China, and the foreign-invested company secures control of that domestic business through a set of contracts instead of share ownership.”

The Financial Times saw a problematic development for many Internet in China beginning September Foreign internet presence in China to face scrutiny

The China Accounting Blog has the following to say.

There appears to be significant change in the winds for VIEs.

Rumors being heard all day say it recommends policy changes to bring the VIEs home.

I think the government should

“Recognize the reality that there already is significant foreign investment in prohibited sectors, and find a way to regulate this investment instead of pretending to prohibit it. Prohibition has not worked, and China needs entrepreneurial companies like Baidu, Dangdang, CTrip and Ambow Education. “

Cadwalader has an excellent introduction into the subject

And then there is the potential crackdown on social networks also looming.

Under Pressure from Regulators, Sina’s Chief Comes up with Really Stupid Idea

It’s no secret that social media in China is under fire. The government still hasn’t figured out what the proper regulatory equilibrium is for this industry. Ironically, we know about all of this via government leaks (also known as rumors).The latest rumor, whose circulation ended up contributing to a mauling of Sina’s share price in the U.S. yesterday, is that Weibo service (short messaging/Twitter) operations will require special licensing.

Here are the charts of some well known VIE´s listed in the US.

Submitted by Administrator on Wed, 09/21/2011 - 13:06

WEF Dalian China :Annual-meeting-new-champions-2011

Chinese Premier Wen Jiabao tells the Annual Meeting of the New Champions China will do what it can to contribute to global economic recovery and stability. “I believe China’s economy can achieve longer term, better quality growth,” Wen told more than 1,500 industry, government, technology and civil society leaders gathered at the “Summer Davos” meeting in Dalian. “This will be our new contribution to strong, sustainable global growth.”

Lots of links to recorded and live sessions are found here and on YouTube.

Submitted by Administrator on Fri, 09/16/2011 - 11:10

A look into Americas future

Maps America has more on it,

Submitted by Administrator on Fri, 09/16/2011 - 10:26

On the brakes

Car manufacturers are stuck in reverse gear.

Submitted by Administrator on Wed, 08/24/2011 - 12:37

$AAPL $HPQ With tablets and without.

Submitted by Administrator on Fri, 08/19/2011 - 14:32

China´s next five years.

Eurasia Group summarizes the important points

The next decade for China is arguable just as important, if not more so, than the last three combined.

The curtains on the era of easy "catch-up" growth is being closed, and a transition to a prosperous and equal society

is the fundamental issue facing Beijing.

Failure to implement key portions of the rebalancing agenda will jeopardize China's economic trajectory.

A comprehensive report on China's 12th Five-Year Plan (FYP) from Eurasia Group.

Submitted by Administrator on Fri, 08/19/2011 - 14:24

Where have you been hiding lately ?

Submitted by Administrator on Fri, 08/19/2011 - 13:05

Security software services stocks

Get familiar with botnets and zero day exploits.Endgame X Force and more.

Cybersecurity issues will gain more traction in the future.See article in Bloomberg BW "The Code War".

Current prices (11.07, 56.42, 7.63, 9.82, 35.64,16.91)

Submitted by Administrator on Mon, 08/15/2011 - 17:05

Under water in Shanghai

Heavy rain in Shanghai.The Shanghaiist has the whole story with more photos.

Submitted by Administrator on Fri, 08/12/2011 - 16:15

US Financials continuous price slide

Submitted by Administrator on Wed, 08/10/2011 - 18:24

Wreckless politicians

STRATFOR is writing about this subject too.

Submitted by Administrator on Wed, 08/10/2011 - 11:24

Electricity output and growth in China

The relationship may be not as simple.

The WSJ has more on it

Submitted by Administrator on Fri, 07/29/2011 - 17:44

ChinaDailyNews, July 2011

THE FREIGHT TRAIN THAT IS CHINESE OIL DEMAND….

...like the China story. I’ve consistently harped on the fact that the US economy is no longer the engine of growth in this cycle. Back in early 2009 I wrote: “For a long time the world economies have played second fiddle to the U.S. You often hear “when the U.S. sneezes the world catches a cold”.

China Digital Media Readings For 2011-07-28

...Websites in China See Falling Prices, Tencent Rising | Penn Olson http://bit.ly/rbKqV5 groupon a disaster in china # Powered by Twitter Tools

China Pacific falls on sale

...China Pacific Insurance Group fell the most in a year in Hong Kong trading after the Carlyle Group sold about US$1 billion of its holdings in the insurer in the third such sale since December.

Slick presentation can't fend off sovereign fund questions

...by the China Investment Corporation, the country's US$410 billion sovereign wealth fund, is an impressively slick document

Chinese Online Gaming and Voice Service Provider Duowan Plans U.S. IPO

...portal in China and developer of online voice based gaming tool YY, plans to list in the U.S. this year, web portal sohu.com reported, citing an unnamed person familiar with the matter.

A summary of other interesting news for the month of July please is here.

Submitted by Administrator on Fri, 07/29/2011 - 14:13