Alibaba’s Jack Ma is giving up ownership of Chinese entities – here’s what that means

VIEs are a way to sidestep restrictions in certain Chinese industries deemed sensitive, such as energy, technology and telecoms

Alibaba's executive vice-chairman Joe Tsai speaks during the company's annual investor’s day event in Hangzhou, China on September 18, 2018. Photo: SCMP/Chow Chung-yan

In a securities filing in July, Alibaba Group disclosed that executive chairman Jack Ma will be stepping away from the company’s variable interest entities. This was disclosed about a month before Ma announced a succession plan with a transition period of a year.

What is a variable interest entity (VIE) and what companies use it?

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