Toro DD in Beijing: Day 1

[chenlica]

Also note Thank you Toro. Another question to ask has been raised by Dr. Gillis(your accounting authority) in an newer post: He writes: "So, how did that $145 million get there? Given China’s exchange controls I see only one way to get dollars into a VIE. That is to find someone inside China who has a big pile of RMB and who wants to exchange it for dollars. So, you find Mr. Wang who has 650 million renminbi. We won’t ask how he got it. Mr. Wang could go to the bank and exchange $50,000 per year. If he had 2,097 friends help him, each taking out $50,000, he could get the money out in one year. Or, to do it all at once you could offer to deposit $100 million in Mr. Wang’s Hong Kong account if he will deposit his 650 million renminbi in your China account. (You can get a great exchange rate this way as well). There are a number of variations on this approach (Rocky Lee suggested one in the article that has also been used by public companies). There are middlemen who do these transactions. A lot of wealth has left China in this fashion, all in violations of China’s exchange controls. But perhaps NQ Mobile found a better, legal way to do it. I am all ears." Any thoughts on this aspect? 5 Nov, 03:44 PMReply! Report AbuseLike0 Toro Investment Partners Comments (109) We are of course all over it, since that is a topic we agree is important, and will report back as we gain enough of an understanding to address it responsibly. We have a meeting set up tomorrow for this specific purpose. More importantly than our opinion will be what Shearman and Sterling and Deloitte think of that post, of course. That will come out when the investigation concludes. But we will share our view shortly, stay tuned. here is new article by Dr Gillis http://www.chinaaccountingblog.com/weblo...obile.html

that 50,000 per year limit is for personal allowance like travel abroad, study or simply pleasure visit. im sure the exchange control works differently for companies. these are so many import and export companies in this country, no way each of them using friends' yearly allowance to receive foreign currency!