MARKETS SEC gives Chinese companies new requirements…

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  • Last month, SEC Chair Gary Gensler asked for a “pause” in U.S. initial public offerings (IPOs) of Chinese companies and sought more transparency about these issues.
  • Chinese listings in the United States came to a standstill after the SEC freeze.

The U.S. Securities and Exchange Commission (SEC) has started to issue new disclosure requirements to Chinese companies seeking to list in New York as part of a push to boost investor awareness of the risks involved, according to a document reviewed by Reuters and people familiar with the matter.

Some Chinese companies have now started to receive detailed instructions from the SEC about greater disclosure of their use of offshore vehicles known as variable interest entities (VIEs) for IPOs; implications for investors and the risk that Chinese authorities will interfere with company operations.

Last month, SEC Chair Gary Gensler asked for a “pause” in U.S. initial public offerings (IPOs) of Chinese companies and sought more transparency about these issues. Chinese listings in the United States came to a standstill after the SEC freeze. In the first seven months of 2020, such listings reached a record $12.8 billion, as Chinese companies capitalized on the soaring U.S. stock market.

www.cnbc.com/2021/08/23/sec-gives-chinese-companies-new-requirements-for-us-ipo-disclosures.html

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