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The aim of the article: The purpose of this article is to discuss theoretical issues concerning the nature of the Variable Interest Entity (VIE) structure and to analyze the scale and functioning of companies using this structure to issue securities on foreign exchanges. The main research hypothesis was that the VIE structure is widely used by Chinese companies to issue securities on international stock exchanges. Methodology: The basis of the research material are academic articles, reports of institutions and corporations, journal articles and other sources, as well as statistical data of companies collected on stock exchanges. Through analysis of stock market data, the authors sought to identify the number of companies operating under the VIE structure and determine the amount of capital invested on the largest international stock exchanges. Results of the research: Empirical research indicates that the VIE structure is used by Chinese companies operating in sectors of the Chinese economy restricted by the authorities in order to issue securities, and thus raise the necessary capital for further development. The results indicate the large amount of accumulated capital, the huge number of entities involved in their operation, as well as the high risk associated with the investment.

This article is focused on the participation of emerging market economies in the international capital market. The author analyses the recent trends of international capital flows as well as specifies the threats of capital inflows to borrowing countries.

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This paper reviews the theoretical functions, history, and policy problems raised by the international capital market. The goal is to offer a perspective on both the considerable advantages the market offers and on the genuine hazards it poses, as well as on the avenues through which it constrains national policy choices. A duality of benefits and risks is inescapable in the real world of asymmetric information and imperfect contract enforcement. I argue, however, that in confronting the global capital market there is no reason to depart from conventional economic wisdom. The way to maximize net benefits is to encourage economic integration while attacking concomitant distortions and other unwanted side-effects at, or close to, their sources.

Economic interconnection among the European countries influenced the birth of a single economic space with a common monetary policy. In addition, the abolition of the gold standard represented an important external factor that followed the same path. In parallel with these processes, the conditions were created for developing a Eurocurrency market which favoured financial integration of Europe, as well as the creation of a single European currency. In accordance with such economic flows, Eurocurrency market emerged as a distinguished international financial market, crucial for the development of international banking. Thus, business entities were allowed to access the capital which represents the transfer of the international accumulation of the exporting country onto the European capital market, thereby resulting in more efficient financing of the member states. Thanks to similar economic effects, these processes of European monetary integrations have become imperative to other countries in the region.