This is the second part of a two-part article. The first
appeared in the September 2007 IFLR
If the China Unicom CCF (China-China-Foreign) investment
debacle represents a dramatic failure of the CCF structure,
then sina.com and sohu.com represent a more
successful version of essentially the same structure. What made
the difference? Cynics would say that it is because Chinese
regulators do not want to interfere with the fundamental
structure of a high-profile listed company in China, for fear
of upsetting investor sentiment towards all Chinese public
companies listed internationally.
And in this case the cynics would in large measure be right.
If Chinese regulators were to tamper with the CCF structure of
a couple of high-profile public companies, the global press
would paint them as having no respect for the rule of law, and
international investor confidence in Chinese listed companies
would plummet. No one wants to be...