Actually, the Alibaba that is being listed does not have an underlying business. The stock represents ownership of a Cayman Islands variable interest entity th

Actually, the Alibaba that is being listed does not have an underlying business. The stock represents ownership of a Cayman Islands variable interest entity that has a contractual claim on the actual Alibaba's profits. This is not a new trick. It's a longstanding loophole in the Chinese law barring foreign ownership of certain companies. But it's also not exactly risk-free: http://dealbook.nytimes.com/2014/05/06/i-p-o-revives-debate-over-a-chinese-structure http://dealbook.nytimes.com/2014/05/06/i-p-o-revives-debate-...