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SEC Chief Blocks Chinese IPOs Until Risks Better Disclosed

  • Gensler wants companies to reveal more after China crackdown
  • Beijing has been tightening its grip on private businesses
Updated on

The U.S. Securities and Exchange Commission, responding to Beijing’s clampdown on private industry, has halted initial public offerings of Chinese companies until they boost disclosures of risks posed to shareholders.

SEC Chair Gary Gensler said the Chinese government’s recent actions, including its enhanced security reviews of firms seeking foreign listings, are “relevant to U.S. investors.” He said he’s asked the SEC staff to seek additional disclosures from Chinese firms before signing off on their registration statements to sell stock.