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Crackdown on US listings: Will China close $1.6tn VIE loophole?

Variable interest entities used by Alibaba and Didi poised as next target

Didi Global and FANG+ Index components Alibaba Group Holding and Baidu all listed in New York using variable interest entities.   © Reuters

SHANGHAI/NEW YORK -- A method used by top Chinese companies to offer shares in the U.S. while skirting restrictions on foreign listings risks coming into regulators' crosshairs as Beijing ramps up oversight.

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