China is preparing a blacklist to restrict the main channel used by start-ups to attract international capital and list overseas, the Financial Times reported, in a bid to limit foreign shareholding in the next generation of tech companies.
The blacklist will target new companies in sensitive sectors that use so-called variable interest entities (VIEs) – used by Alibaba and Tencent among others – for their China businesses. The changes are not expected to apply to existing VIE structures.
Read the full report: Financial Times.
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