Investor risk lurks in legal structure of China IPOs: lawyers

As the US market for Chinese stock offerings revives, some experts are warning that American investors could be left out in the cold if a company faces problems, due to an unusual business structure employed by many Chinese companies.

The structure, known as a variable interest entity, or VIE, is designed to let companies bypass Chinese government bans on foreign ownership in some business sectors.

via Business feed http://www.scmp.com/business/money/markets-investing/article/1267794/investor-risk-lurks-legal-structure-china-ipos