SEC to Set New Disclosure Requirements for Chinese
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Posted On: 07/30/2021 5:46:02 PM
SEC to Set New Disclosure Requirements for Chinese Company IPOs
https://www.wsj.com/articles/sec-to-set-new-d...1627651546
Tied to the VIE (Chinese shell company) scam
Partial story>>>
WASHINGTON—The Securities and Exchange Commission will increase scrutiny of Chinese companies that aim to sell shares in the U.S. following new restrictions from China’s government on companies that raise capital offshore.
SEC Chairman Gary Gensler said Friday he has asked agency staff to seek specific disclosures from Chinese firms before signing off on regulatory filings that precede an initial public offering. He also called for additional reviews of filings for companies with significant China-based operations.
The SEC’s plans mark the latest sign that economic relations between the U.S. and China are continuing to cool under the Biden administration, which in some cases has expanded on the Trump administration’s pressure on Beijing. For decades, financial and trade ties between the two countries had grown closer, with U.S. investors particularly hungry to gain exposure to fast-growing Chinese companies.
Mr. Gensler linked Friday’s announcement to the Chinese government’s recent tightening of restrictions on local firms’ ability to raise money abroad. Earlier in July, Chinese regulators launched a cybersecurity probe into ride-hailing company Didi Global Inc. shortly after it went public in the U.S. Major Chinese tech companies, including Alibaba Group Holding Ltd. and Tencent Holdings Ltd. , lost hundreds of billions of dollars in combined market value in July as investor concern mounted over a barrage of regulatory pressure from Beijing.
https://www.wsj.com/articles/sec-to-set-new-d...1627651546
Tied to the VIE (Chinese shell company) scam
Partial story>>>
WASHINGTON—The Securities and Exchange Commission will increase scrutiny of Chinese companies that aim to sell shares in the U.S. following new restrictions from China’s government on companies that raise capital offshore.
SEC Chairman Gary Gensler said Friday he has asked agency staff to seek specific disclosures from Chinese firms before signing off on regulatory filings that precede an initial public offering. He also called for additional reviews of filings for companies with significant China-based operations.
The SEC’s plans mark the latest sign that economic relations between the U.S. and China are continuing to cool under the Biden administration, which in some cases has expanded on the Trump administration’s pressure on Beijing. For decades, financial and trade ties between the two countries had grown closer, with U.S. investors particularly hungry to gain exposure to fast-growing Chinese companies.
Mr. Gensler linked Friday’s announcement to the Chinese government’s recent tightening of restrictions on local firms’ ability to raise money abroad. Earlier in July, Chinese regulators launched a cybersecurity probe into ride-hailing company Didi Global Inc. shortly after it went public in the U.S. Major Chinese tech companies, including Alibaba Group Holding Ltd. and Tencent Holdings Ltd. , lost hundreds of billions of dollars in combined market value in July as investor concern mounted over a barrage of regulatory pressure from Beijing.
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