The U.S. Securities and Exchange Commission has blocked initial public offerings from Chinese companies until they provide more disclosure about investment risks.
SEC chair Gary Gentler has asked staff to seek additional disclosures from Chinese firms before approving IPO filings, according to a statement.
Gentler underlined China’s recent crackdown on foreign listings and enhanced cybersecurity review as «relevant to U.S. investors».
«I believe such disclosures are crucial to informed investment decision-making and are at the heart of the SEC's mandate to protect investors in U.S. capital markets,» Gensler said on Friday.
More Chinese IPO Pressure
The SEC’s latest move adds further pressure for Chinese companies seeking to list abroad after tightened processes for cybersecurity reviews hit internet platforms including, most notably, ride-hailing giant Didi which is reportedly considering to go private.
Just a little more than seven months into 2021, this year is already the second-best on record for Chinese IPOs in New York with at least $15.7 billion raised, according to Bloomberg data, surpassing all of 2020.
