Arrize is particularly experienced in helping Chinese companies restructure for overseas capital market (Hong Kong or US) public listing. This entails restructuring to set up an overseas-holding so-called “Red-Chip Structure”. It requires a number of carefully planned and precisely executed procedures, conforming to legal and accounting requirements, mitigated for tax implication, and often backed by bridge capitals. 

In areas where foreign direct investment is restricted in China, a Chinese local company would adopt VIE (Variable Interest Entities) structure when trying to be listed abroad. VIE structure allows a foreign holding company to effectively have complete control over and to secure all the benefit out of the operation of a local Chinese company. In this way the IPO of the foreign holding company can include the entire China operations in the restricted area.

• Red-Chip Structure
• VIE Structure