Winner
In 2013, Alibaba Group went public on the Nasdaq stock market. With its sky rocketing sales revenue and profit, Alibaba is a clear winner. A key reason in Alibaba’s success is its effective use of foreign capital and know-how. But the Chinese government restricts foreign investment and control of the TMT industry. So how did Alibaba take advantage of foreign investment in such regulatory environment? The answer lies in its variable interest entity (VIE) structure.