Here’s What Some Chinese Firms Are Adding to U.S. IPO Filings

  • SEC is pushing for disclosures of offshore structures, risks
  • IPO hopefuls awaiting approvals start to update information

The U.S. Securities and Exchange Commission headquarters in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg
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Chinese firms planning to list on American exchanges are slowly starting to tackle increasingly detailed queries from the U.S. Securities and Exchange Commission, which has been pushing for full disclosure of political and regulatory risks they face in their home country.

A camellia-seed oil producer, whose modest $20 million share sale is awaiting approval, updated its filing Monday to spell out its offshore corporate structure and its so-called “variable interest entity.” An electronic components seller, which filed for an initial public offering in New York on Monday, said that it conducts a substantial majority of its business through units and a VIE in China.