Chinese stocks may start exiting the U.S. in two years, warns Asian Corporate Governance Association

that regulators from the United States and China are progressing toward a cooperation plan on U.S.-listed Chinese stocks.Many Chinese firms have used the variable interest entity structure to list stateside. That's done by creating a listing through a shell company, often based in the Cayman Islands, in effect preventing investors in the U.S.-listed shares from having majority voting rights over the Chinese company.

For now, the Chinese government appears "willing to live" with the VIE structure despite it existing in a "very gray area" that does not technically comply with China's national policy on foreign ownership of sensitive sectors, Allen said.

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