U.S. SEC Warns of Investment Risks Involving Variable Interest Entity Structure
September 22, 2021 The U.S. Securities and Exchange Commission (SEC) issued an alert to investors this week warning about potential risks in investing in U.S.-listed companies that have contracts with but no control over operating entities in China. This arrangement is commonly known as a variable interest entity (VIE) structure under which the U.S.-listed company’s wholly owned subsidiary in China…