The U.S. SEC mandates Chinese companies to disclose more information

Translated by: MOS Translation Team – Ayu

Chinese companies that listed on U.S. stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their auditing inspections, the Securities and Exchange Commission (SEC) said on December 2. Meanwhile, the new regulations also require all Chinese companies listed in the United States through variable interest entities to strengthen the disclosure of their relevant information.

Relevant reports showed that the Communist China has always refused inspections by overseas regulators of its domestic accounting firms. As a result, the rule advances a process that could lead to more than 200 companies being kicked off U.S. exchanges and could make some Chinese companies less attractive to investors.

It is understood, the new rules implement a law passed by Congress in December 2020 that aims to ensure foreign companies listed in the United States, in particular Chinese companies, comply with U.S. rules.

Reference: 美国SEC要求在美上市中共公司披露信息

Proofread: Xiequyuan
Edited: Xiequyuan
Posted by: Xiequyuan

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