ChinaFIG - What's a Special Purpose Vehicles (SPVs)?

ChinaFIG is a professional services firm with consultants specializing China investment policies and assisting Chinese companies to pursue IPOs.

How do Special Purpose Vehicles (SPVs) relate to Chinese IPO’s?
ChinaFIG consultants have the expertise and experience to provide IPO consulting service for companies that want to go to IPO within China or overseas. They suggest that Chinese companies who have the intention to pursue an oversea IPO should be familiar with the concept of SPV.

Assets, whether they be currency or companies, cannot be freely transferred outside of China. For this reason, in order to take a Chinese company public overseas, the government requires that an SPV be created in the country which the IPO is to take place.  The SPV is in essence a holding company, formed with the specific purpose of transferring Chinese assets into and taking it public.