Connect with us


Chinese companies listed in US must disclose risks of government interference – SEC official




Commissioner Allison Lee Attends US Securities and Exchange Commission Public Meeting to Propose Change to Decades-Old Definition of “Accredited Investor” to Allow More Americans to Buy Company Stock private, in Washington, USA, on December 18, 2019. REUTERS / Erin Scott / File photo

WASHINGTON, July 26 (Reuters) – Chinese companies listed on US stock exchanges must disclose risks of Chinese government interference in their activities as part of their regular reporting obligations, a senior Securities and Exchange official said on Monday Commission.

Democratic Commissioner Allison Lee’s comments are the first from an SEC official since Chinese regulators launched a massive cyber investigation into ride-sharing giant Didi Global last week, just days after its listing of 4, $ 4 billion in New York, wiping out 25% of its share price. Read more

U.S. officials have cracked down on other Chinese companies listed in the U.S. and may require tutoring companies to become nonprofits, according to a Bloomberg report that hit industry stocks, including TAL Education Group (TAL.N) and Gaotu, listed in New York. Techedu Inc (GOTU.N). Read more

Some policymakers fear that Chinese companies will routinely flout US rules, which require state-owned companies to disclose to investors a range of potential risks to their companies.

“State-owned enterprises should disclose material risks which, for China-based issuers, can sometimes involve risks related to the regulatory environment and potential actions by the Chinese government,” said Lee, who has served as interim chief of the SEC from late January to mid-April. , Reuters told Reuters in an interview.

The Wall Street Journal reported that Didi had been warned by regulators to delay his initial public offering and address his cybersecurity. Didi said he had no knowledge of the investigation prior to his enrollment.

Lee declined to say whether the SEC has opened an investigation into Didi for potential breaches of disclosure.

“We must always ensure that investors are fully informed about material risks, such as the risks that we have seen recently related to China,” Lee said.

An SEC spokesperson said that as a general rule, the SEC conducts investigations on a confidential basis and does not recognize the existence or non-existence of any investigation unless or until charges are made. filed.

For the past decade, policymakers in Washington have focused on bringing Chinese companies listed in the United States into compliance with the rules of the United States Public Company Accounting Oversight Board. Last year, Congress passed a law that would exclude Chinese companies from U.S. stock exchanges unless they adhere to U.S. auditing standards. Read more

But regulators have generally not focused on Chinese companies’ disclosure issues. Some lawmakers are asking the SEC to devote more resources to the issue.

“US regulators need to ensure that US investors and workers are protected from the type of non-market behavior that leaves US investors burnt out,” Senator Bill Hagerty, who sits on the Senate Banking Committee, said in a statement. to Reuters.

“This includes complying with the auditing requirements of the Public Company Accounting Oversight Board, as well as investigating whether there has been sufficient disclosure about the serious potential investment risks associated with such a centrally controlled economy,” said Hagerty.

Additional reporting and writing by Michelle Price; Editing by Dan Grebler

Our standards: Thomson Reuters Trust Principles.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]