Senate Bill Seeks Risk Warning on Certain Chinese Firms’ Stocks

A bipartisan Senate bill would require the US Securities and Exchange Commission to make clear the potential risk of investments in variable interest entities linked to companies based in China and other foreign countries.

• The bill, introduced by Republican Rick Scott and Democrat Chris Van Hollen, calls for the use of stock trading symbols to identify variable interest entities trading on US exchanges and require broker-dealers to provide risk-warning labels on a potential lack of legal recourse for investors taking stakes in such entities
• NOTE: Many Chinese firms have listed in the US through variable interest entities; investors would buy ...