Barron's comment on Qudian ($QD)'s IPO and its VIE structure

Barron’s article on Qudian IPO - China IPO Qudian Opens With a Bang

Investors are clearly throwing caution to the wind, based on the IPO pricing. Qudian uses a variable interest entity (VIE) accounting structure, which means investors own the entity but voting rights are restricted, much like another massively successful Chinese IPO, Alibaba Group Holding (BABA), whose shares have soared 102% this year. The structure is widely used by Chinese companies in businesses where foreign investment is limited if the enterprise is viewed as strategic.
It functions through a mobile application, and has a partnership with Alibaba's Alipay to distribute cash and collect payments, and Alibaba affiliate Ant Financial -- a potential competitor -- owned an effective stake in Qudian of nearly 13%