Correct me if I'm wrong, but VIEs are used to give shareholders voting rights. Owners of the shares are still contractually bound to receive profits, even if they lose voting rights. BABA doesn't give dividends, but TCEHY does, so owners would still receive the 0.1% dividend yield, even if they are no longer able to vote on corporate decisions.
We already see nonvoting shares in tech companies like SNAP or Alphabet class C. Alphabet's C shares trade at a 2% discount to A shares. By analogy, I claim that we could expect BABA or TCEHY to drop by 1-5% depending on how much people value the voting power vs. economic rights.
Submitted June 06, 2017 at 11:47PM by ccc45p http://ift.tt/2sBZImk
