Analysis of Financing Risks for the Issuance of CDR by Red-Chip Enterprises

-Take Company Nine as an Example

DOI

10.2991/978-94-6463-304-7_39How to use a DOI?

Keywords

Chinese depositary receipts; financing risk; VIE architecture

Abstract

With the launch of the Science and Technology Innovation Board, China has, for the first time, allowed red-chip enterprises with VIE structure and AB shares to land in China’s capital market by issuing Chinese Depositary vouchers. Based on the perspective of financing, from the perspective of financing risk, comprehensively considering the CDR issuance and trading process and the VIE structure, we found two key risk points: the VIE risk, the depository risk, and liquidity risk in the trading process, the two key risk points run through the financing process. Due to the particularity of the VIE architecture, investors should be fully alert to its possible legal loopholes. Finally, this paper puts forward relevant suggestions from the perspective of relevant regulators, issuers, and investors.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Liqing Liu
PY  - 2023
DA  - 2023/12/04
TI  - Analysis of Financing Risks for the Issuance of CDR by Red-Chip Enterprises
BT  - Proceedings of the 3rd International Conference on Digital Economy and Computer Application (DECA 2023)
PB  - Atlantis Press
SP  - 363
EP  - 376
SN  - 2589-4900
UR  - https://doi.org/10.2991/978-94-6463-304-7_39
DO  - 10.2991/978-94-6463-304-7_39
ID  - Liu2023
ER  -