IF YOU want to study how the legal title to assets worth many billions of dollars changes hands in China, then peer carefully at page 116 of Alibaba's new annual report. The text is dense and you may have to put a cold towel on your head and read it several times. The gist is that the Chinese internet giant is reforming its legal structure, which uses a fragile and ingenious device known as a variable interest entity (VIE). Alibaba's attempt to make its VIEs safer is to be welcomed and will be w...
IF YOU want to study how the legal title to assets worth many billions of dollars changes hands in China, then peer carefully at page 116 of Alibaba's new annual report. The text is dense and you may have to put a cold towel on your head and read it several times. The gist is that the Chinese internet giant is reforming its legal structure, which uses a fragile and ingenious device known as a variable interest entity (VIE). Alibaba's attempt to make its VIEs safer is to be welcomed and will be w...
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