see url:
https://www.reuters.com/article/us-usa-sec-china/u-s-listed-chinese-companies-must-disclose-government-interference-risks-sec-official-idUSKBN2EW22F
see full story...
Quote<<<
WASHINGTON (Reuters) - Chinese companies listed on U.S. stock exchanges
must disclose the risks of the Chinese government interfering in their
businesses as part of their regular reporting obligations, a top U.S.
Securities and Exchange Commission official said on Monday.
Democratic commissioner Allison Lee’s comments are the first by an SEC
official since Chinese regulators launched a massive cyber probe of
ride-hailing giant Didi Global last week, just days after its $4.4
billion New York listing, wiping 25% off its share price.
Chinese authorities have cracked down on other U.S.-listed Chinese
companies and may require tutoring firms to become non-profits,
according to a Bloomberg report that hit shares in the sector, including
New York-listed TAL Education Group and Gaotu Techedu Inc.
Some policymakers worry Chinese firms are systematically flouting U.S.
rules, which require public companies to disclose to investors a range
of potential risks to their businesses.
“Public companies must disclose significant risks which, for China-based
issuers, may sometimes involve risks related to the regulatory
environment and potential actions by the Chinese government,” Lee, who
served as acting head of the SEC from late January to mid-April, told
Reuters in an interview.
The Wall Street Journal has reported that Didi had been warned by
regulators to delay its initial public offering and to address its cyber
security. Didi has said it had no knowledge of the investigation prior
to its listing.
>>>End of Quote
