The chair of the U.S. Securities and Exchange Commission said on Friday that he had asked staff to mandate certain disclosures from offshore issuers associated with China-based operating companies before registration statements can be declared effective.
Gary Gensler also said in a statement that the new disclosures will require Chinese companies tell the regulator and investors whether certain actions could affect the firm’s “financial performance and the enforceability of the contractual arrangements.”
Reuters earlier on Friday exclusively reported that the agency has stopped processing registrations of U.S. initial public offerings and other sales of securities by Chinese companies while it crafts new guidance for disclosing to investors the risk of a new regulatory crackdown by Beijing.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
Never miss a story! Stay connected and informed with Mint.
our App Now!!