SEC to Demand All China Firms Say More About Investor Risks
- Requirement to apply to companies already trading in U.S.
- Gensler lays out plan for enhanced disclosure in interview
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The Securities and Exchange Commission will demand that the more than 250 Chinese companies trading in U.S. markets better inform investors about political and regulatory risks, expanding a dictate that it recently imposed for firms seeking initial public offerings.
SEC Chair Gary Gensler said in a Tuesday interview that he envisions the enhanced disclosures being included in corporations’ annual reports beginning early next year. The new details would likely include information about the businesses’ shell-company structures, he added.