Hong Kong Firms Start Flagging China Risks in U.S. Filings
- FWD Group, AMTD among IPO hopefuls adding unusual disclosures
- SEC is seeking more transparency after Beijing’s smackdown
Police officers stand guard in front of the skyline at Tsim Sha Tsui in Hong Kong, China.
Photographer: Paul Yeung/BloombergHong Kong-based companies with little to no presence in mainland China are the latest to warn about the risks they face from Beijing’s crackdown on businesses, in a further sign of enhanced disclosures sought by American regulators in filings for U.S. initial public offerings.
Billionaire Richard Li’s FWD Group Holdings Ltd. filed last week for its long-awaited market debut, saying in its prospectus that it has “no substantive operations” on the mainland. Still, Chinese laws -- if applied -- could have a material impact on its business, it added. AMTD Digital Inc., a unit of former UBS Group AG dealmaker Calvin Choi’s AMTD Group Co., made no mention of such risks in its earlier filings in May and July, but added similar warnings in an Aug. 30 update.