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SEC Gives Chinese Companies New Requirements For US IPO Disclosures

News Snapshot:

[difficult for its companies to IPO] in the US, the US has decided to make it that more challenging too. According to Reuters, the SEC has started to issue new disclosure requirements to Chinese companies seeking to go public in New York as part of a push to boost investor awareness of the risks involved. “Please describe how this type of corporate structure may affect investors and the value of their investment, including how and why the contractual arrangements may be less effective than direct ownership, and that the company may incur substantial costs to enforce the terms of the…

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