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SEC Chief Blocks Chinese IPOs Until Risks Better Disclosed (2)

July 30, 2021, 5:10 PM

The U.S. Securities and Exchange Commission, responding to Beijing’s clampdown on private industry, has halted initial public offerings of Chinese companies until they boost disclosures of risks posed to shareholders.

SEC Chair Gary Gensler said the Chinese government’s recent actions, including its enhanced security reviews of firms seeking foreign listings, are “relevant to U.S. investors.” He said he’s asked the SEC staff to seek additional disclosures from Chinese firms before signing off on their registration statements to sell stock.

“I believe such disclosures are crucial to informed investment decision-making and are at the heart of the SEC’s mandate to protect ...

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