so a Chinese structure are often the only ones available. The advantages are obvious though - the founder's income taxes will be minimized, while the shares are still being held in a vehicle that passes muster with exchange regulators. Zhang is quick to point out though that this doesn't protect the share owner from all risks. As the laws on taxation of trusts are not stipulated, people taking advantage of trust structures are essentially "taking advantage of the regulator's ambiguity."
But that could turn the opposite way, and suddenly leave you liable if a court decides to define your liability.
