America ‘tighten’ Ipo Regulations With Chinese Enterprises

After asking Chinese companies to pause IPO in the United States in late July, the US Securities Commission and Exchange (SEC) recently announced the new regulations on information transparency for these China company wants to list at the New York Stock Exchange.0: 00/3: 10 Southern President SEC GARY GENSLER.Theo Reuters, some Chinese companies have started getting detailed instructions from SEC on publicizing more of the use of special ownership models when offering shares for the first time (IPO), the impacts on investors and the possibility of Chinese authorities will can Cards into the company's operations.Theo Reuters, with this decision, the US wants to enhance the level of awareness of investors on possible risks. According to statistics, since January - 7/2020 , IPOs of Chinese companies have mobilized a record amount of 12

.8 billion USD, when these companies enlist at the US stock market, the US stock market gained strongly. At the end of July, Sec announced will temporarily Stop for IPO Chinese businesses on US stock exchanges until these businesses are more clearly demonstrated than the risks that shareholders may encounter. SEC's decision is given after Chinese officials declare Dad will strengthen monitoring of domestic companies listed abroad, including network security security assessments
SEC Gary Gensler said he asked SEC staff to recommend businesses China announced full information before approving their profile. "I believe such information is very important to make accurate investment decisions and the focus of the investor protection policy In the US stock market, SEC President emphasized more. Intimate Gensler pays special attention to Chinese businesses using shell company to "spleen through" header limited rules Foreign investors owned shares in the fields of Beijing. SEC chairman expressed worry that normal investors may not recognize they grasp Stock in a sheath company rather than an operating company and based in China.sec is currently facing pressure from the US government in strengthening monitoring of medium companies National before Didi Global's incident plunged after the IPO in the United States in early July. Approved the concerns of the network security agency about the user data that Didi is holding, the company has promoted IPO at New York Stock Exchange (USA) on June 30, earning $ 4.4 billion. This is one of the largest IPOs of a Chinese company in the US. However, as soon as Didi Global completes IPO, Chinese officials announce tightening and limiting this app to add more guests new products. This has caused its shares to fall deeply, leading to the value of capitalization "Evaporate" tens of billions of dollars
The US policy makers later urged the SEC investigative Didi Global to find out whether this company There are Chinese people who have investigated without announcing the risks that US investors are expected to face or not. Didi Global is still subjected to a large pressure when there is news for Beijing will consider Impress the penalty of "unprecedented" to the company, including administrative financing, suspending a number of activities or considering bringing DIDI to a state-owned investor. Do not exclude the case of DIDI forced to cancel posting or recovering the stocks released in the US. According to Bloomberg's source, the Beijing suggests that Didi Global decides IPO in the US despite the objections of the authorities Chinese cyberspace (CAC) is a challenge to the Beijing government.Minh Dogtheo Reuters

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