SEC probe raises uncertainty over VIE structures

The role of an investment vehicle commonly used by mainland companies, the variable interest entity (VIE), is gaining attention for all the wrong reasons. The announcement in July last year of a US Securities and Exchange Commission (SEC) investigation into New Oriental Education & Technology has reignited discussion over VIEs. While the SEC has indicated it will not object to New Oriental's use of a VIE structure, the well-publicised scrutiny has shaken general market confidence in the structure.

via Business feed http://www.scmp.com/business/china-business/article/1133845/sec-probe-raises-uncertainty-over-vie-structures