Sounds like you want to engineer a disguised takeover of those Nasdaq companies for Chinese buyers.
Sorry are you just trying to get around SEC scrutiny for Chinese investors buying out US companies? This is something you should NOT even contemplate being involved with.
It is not to get around the scrutiny for Chinese Investors. My interactions with the Chinese firms is primarily related to operating the SPV entities. The Chinese firms are not purchasing an existing real business, but rather a formerly dormant shell. We are acting as the SPV party, and facilitating the purchase of the Chinese Entity, not the other way around. This is traditionally done in the market.
Why do you need multiple firms. One would do right?
The purpose is for other funds is that these firms would be structured differently for our investor's risk appetite if it works out. These funds either are structured for investments into Nasdaq entities, or crypto operations, therefore the risk profile, and likely regulations are at play. So this sort of plays into why I am looking to just offshore the entities in an area where it will be easy for financial transactions.
Why not just use a US company or a HK company?
Taxes are the primary reason, as I am looking for a jurisdiction that will allow certain transactions within the individual PE entities. In addition Hong Kong has some restrictions on the trading of some securities, and while they may be legal in the United States, it may run into some issues there
This is straight forward.
Yes after reviewing my message I realized that it was redundant. Late night while out doesn't make the most coherent of messages hahaha
Why? ns2
The primary reason is that these entities maybe transferred or sold to another party in the future. I would rather avoid the tax consequences of the transactions, or perhaps the regulations from the investments in the Crypto industry. This is something that my partners in Hong Kong had specified in regards to crackdown on crypto currency investment. As I also have some involvements with mainland Chinese firms (unrelated to the NASDAQ SPV entity), held under my name, I would rather not show up on the radar there if you know what I mean...
Again straight forward
See above. I suppose also the main thing here is to have a perhaps a BVI account and firm, I just do not have enough experience there in that regard. So I would like to see which would be the best suited for my operations.
Ok now whats going on here? This is not within your control and is down broker and their AML obligations.
This is more related actually to my holdings in mainland China, rather than the SAR. I would like to avoid the double whammy, in terms of operational smoothness. I don't want to have future problems popping up.
You really need to explain purpose of your actions here. Bottom line is you got Chinese buying up US companies via a sham PE company with notes and bonds engineered I guess to convert and gain some or all ownership. Then you want to remain off the books and furthermore you want very little SARs filed by broker.
So let me clarify
1. My partners and I will be the partners that operate SPVs or OTC market shells, and we will be essentially either fixing up these entities before the acquisition prior to using these vehicles to acquire Chinese firms. Of course we will be raising the funds for these SPVs to do so, while in the case of the OTC shells, we are essentially finding an acquisition target.
The purpose of creating multiple PE firms is to raise funds for different ventures, and in addition, investing our own funds in there. So lets say for the example of the OTC Shells, we would be willing to finance them to either help clean it up, or if a firm from Mainland China be merged in, we would also be willing to finance them at a future point. The funds also will be used to finance Nasdaq firms once they have been operating, providing any capital that they may need to run. Of course we will be filing any insider reports, as I don't intend to hide the relationship that the parties may have had (in this case, acquiring the private firm). We will not make any guarantees to finance them, nor any promises of any future benefit. I fully anticipate that these firms be considered at arms length to the entity, and I am just preparing for that case.
So to sum it all up (and I do apologize for the poor wording, as rereading this over sober, even I would report or consider this as conspiracy lol), I am primarily worried about the Chinese government taking actions against myself for the investments made in these firms, either through a blacklist, or some other means...
And while of course we can just setup a US entity (HK is out of the picture due to the proximity and mainland involvement there encroaching), the taxes on the transactions isn't beneficial, in addition I am also worried about crypto regulations expanding here, and rather than having to make the decision at that point, I would rather do it all now, and get all the tax, regulatory, political benefits that an offshore entity can provide.
Thank you Martin, hopefully this answers your questions, and my apologies about the substandard writing of the first post. It does truly look suspicious without the other concerns and reasonings behind it.
Unless I have got your actions wrong - which I doubt I would stay away from such involvement. The US Federal government is no joke and this is not gray area stuff or minor shady stuff this is full on conspiracy under Federal law 😕.
Last edited: Jul 25, 2021
