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China set to make tech VIEs unviable, closing foreign ownership loophole

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Alibaba IPO application Seven years ago in New York, it gave many investors the first taste of a variable interest entity (VIE). This circumvented Beijing’s ban on foreign ownership of Internet assets.

Since the first Chinese Internet IPO in 2000, start-ups wanting to go public have set up a VIE offshore company. They lived primarily in the Cayman Islands and had a series of contracts that “simulated” the ownership of Chinese companies.

Alibaba Future investors were worried What they actually own at the time, and whether Chinese regulators can wipe them out on the whim of changing the rules.

This has never happened, but regulators are committed to closing the loopholes in the future by blacklisting the use of VIE for companies in sectors with data-intensive or national security concerns. Seems to be doing.

This list is produced by state planners, the Department of Commerce, securities regulators, central banks and other authorities. Report Ryan McMorrow and San Yu, And may be released as early as this month. “VIE isn’t completely dead, but it’s essentially dead. [for future purposes]”A source said.

This change has happened during the last year’s crackdown on the tech sector and culminated last week with an announcement by Ride Hailing Group Didi Chuxing. Will be delisted From the New York Stock Exchange.

The new move may actually be reassuring to existing VIE foreign investors, as this may no longer be a gray area. According to lawyers, blacklists that exempt existing structures could help fully justify VIE’s legal contracts governing hundreds of Chinese tech companies.

Foreign investors will miss new opportunities, but China’s own technology industry can ultimately suffer the most. Rex says.. Beijing has been actively promoting big data self-sufficiency, but its efforts are being driven by early-stage private companies that can use large amounts of money from international investors. Unless the government provides its own substantive financial support, the government’s technical ambitions can take much longer to come to fruition.

Internet of Things (5)

1. AWS outages frustrate Adele fans
Amazon Web Services, Amazon’s cloud division, outage, Ripple on the online economy A devastating service used by millions of people on Tuesday. Most distraught was a fan of British singer Adele, who wanted to snap Ticketmaster’s first ticket to her next Las Vegas settlement. Richard Waters’ latest column Let’s see how new AWS innovations can turn every business into a cloud company.

2. Apple reaches a quiet ceasefire regarding data usage
Apple has allowed app developers to collect data for targeted advertising from a billion iPhone users. This is an unconfirmed shift that allows companies to follow a much looser interpretation of the controversial privacy policy. Patrick Magee reports..this week’s #techAsia newsletter The festive season is turning into a nightmare for Apple, and it says it’s missing millions of units on its iPhone and iPad due to lack of parts.

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3. Smart cars contribute to chip shortage
The shift to electricity and autonomous driving in the automotive industry is set to conflict with the needs of engineers for the same high-end chips. I’m writing June Yun.. From behind the handle of the latest electric model FT reporter talks about cars, Technology, and top companies and countries.

4. Facebook removes business page linked to Myanmar Army
Meta, the company that owns Facebook and Instagram Deleted pages, groups, accounts Represents a company controlled by the Myanmar Army, which seized power in February. The move took place the day after a group of representative Rohingya refugees from the United States and the United Kingdom filed a lawsuit seeking $ 150 billion from the company.

5. After Covid Blow, Monzo returns to orbit
UK digital bank Monzo’s rating Soared to $ 4.5 billion, More than 200% increase from the beginning of the year as thousands of new customers doubled their revenue. The rising valuation follows the $ 500 million funding round led by the Abu Dhabi Growth Fund.

Technical Tools — Kanye and Kano Stem Players

With this soft flesh-colored silicon device, you can remix your music in real time. The latest album of Ye (formerly Kanye West), Donda, is recorded. Write Christina Cridle..

Musicians have launched a pebble-shaped mixer with Kano, a London-based computing startup. The player can adjust four different stems or tracks of the song. For example, one stem may contain bass, another vocal, and another stem may contain drums or sound effects. You can change the volume and speed, reverse it, create loops, and add effects. The lines are illuminated with color, carefully selected by you and respond to touch with a little vibration.

When you’re done tinkering, you can lock the stem to record a new track on your device and download it from its website (stemplayer.com Also kanyewest.com).

You can also upload your own songs to the player. This splits the audio into four stems. Players struggled with this a bit when we tried it. Did not separate tracks or upload MP3s.

It’s fun and creative to play and you can see the excitement of up-and-coming musicians and producers. But $ 200 is still expensive for a beige computer with some glitches.

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China set to make tech VIEs unviable, closing foreign ownership loophole Source link China set to make tech VIEs unviable, closing foreign ownership loophole

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