Reuters quoted sources as reporting that the U.S. Securities and Exchange Commission (SEC) has stopped processing mainland companies’ registrations for IPOs and other securities sales in the United States, and at the same time formulating new guidelines for investors to regulate the risks of new regulatory crackdowns in the mainland.
Reuters quoted sources as saying that the SEC has required companies to stop submitting any securities issuance registration applications until the SEC can provide specific disclosure guidelines on the risks faced by companies in China, but there is no clear timetable for the introduction of the guidelines.
Since the beginning of the year, the scale of China’s listing in the United States has reached US$12.8 billion (approximately HK$99.2 billion). However, since the online ride-hailing giant Didi Chuxing (US: DIDI) went public, it has been subject to review and supervision by mainland regulators. A number of Chinese concept stocks that are going to be listed will also be temporarily put on hold. Regulatory crackdown.
United States Securities and Exchange Commission (SEC) commissioner Allison Lee said on Tuesday that Chinese companies listed in the United States must disclose to investors the risks of the Chinese government’s intervention in their business as part of their regular reporting obligations.
The SEC spokesperson did not respond.
CNBC previously reported that Chinese companies can continue to use the variable interest entity (VIE) structure for cross-border listings, and China will continue to allow Chinese companies to list in the United States, provided that the company meets the listing requirements.
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