Long Way Home – Dismantling a Red Chip Structure

Traditionally, international private equity houses making growth capital investments in Chinese businesses have invested via an offshore holding company. Together these holding companies are referred to as a “quasi red chip” corporate structure. In recent months, investors attracted by the substantially higher P/E ratios offered by the A-share market have considered bringing offshore ownership back onshore. Orrick attorneys discuss the procedures for and potential benefits of this move.