The US Securities and Exchange Commission (SEC) will require Chinese companies to disclose additional information before approving their listing applications. SEC Chairman Gary Gensler said that the staff of the agency will have to ensure that Chinese companies seeking to list in the United States have obtained permission from the Chinese government for their listing in the United States if necessary. At the same time, according to legal requirements, US regulators must be able to Review their audit records during the year.
Gensler said in the statement, “I believe that such disclosure is critical to informed investment decisions and is at the core of the SEC’s mission to protect investors in the U.S. capital markets.”
Earlier, Reuters quoted sources as reporting that the US Securities and Exchange Commission has stopped processing mainland companies’ registrations for IPOs and other securities sales in the US, and at the same time has formulated new guidelines for investors to regulate the risks of new regulatory crackdowns in the mainland.
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Reuters quoted sources as saying that the SEC has required companies to stop submitting any securities issuance registration applications until the SEC can provide specific disclosure guidelines on the risks faced by companies in China, but there is no clear timetable for the introduction of the guidelines.
Since the beginning of the year, the scale of China’s listing in the United States has reached 12.8 billion U.S. dollars (approximately 99.2 billion Hong Kong dollars). However, since the online ride-hailing giant Didi Chuxing (US: DIDI) went public, it has been subject to review and supervision by the mainland regulators. A number of Chinese concept stocks that are going to be listed will also be temporarily put on hold. The mainland technology network and the private education industry are further affected. Regulatory crackdown.
SEC Commissioner Allison Lee said on Tuesday that Chinese companies listed in the United States must disclose to investors the risks of the Chinese government’s intervention in their business as part of their regular reporting obligations.
CNBC previously reported that Chinese companies can continue to use the variable interest entity (VIE) structure for cross-border listings, and China will continue to allow Chinese companies to list in the United States, provided that the company meets the listing requirements.
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