SEC Raises The Disclosure Bar For China-Based IPO Seekers

By Al Barbarino (July 30, 2021, 7:54 PM EDT) -- The U.S. Securities and Exchange Commission on Friday announced a series of new disclosure requirements that will make it harder for Chinese companies to launch IPOs in the U.S., answering calls by lawmakers who say the Chinese government may be intentionally exploiting U.S. investors.

China-based operating companies will be required to disclose if investors are buying shares tied to shell companies, to reveal "detailed financial information" about their shell company structures and to be upfront about the potential impacts of Chinese government actions on their financial performance, SEC Chair Gary Gensler said in a statement. 

"I have asked staff to seek...

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