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US to Tighten Listing Limits on Overseas Companies
US Securities and Exchange Commission is considering to demand more disclosure from overseas companies that want to get listed in the US but have business contacts with countries on US's embargo list. Law experts have warned Chinese companies listed in the US to pay close attention to the matter and be fully prepared.
According to Hong Kong Commercial Daily, if the decision is made, overseas companies listed in the US will be required to disclose whether they have business activities in any country blocked from US investment, including Iran, Iraq, Libya, the Sudan, DPRK, Myanmar and Cuba. The US has for the first time linked up its financial market with diplomacy so closely.
Therefore the Commission would examine all files and documents of companies that have business in said countries, while in the past it only selected some disclosure documents for examination. According to American law, the Commission is entitled to require for more detailed information revealed from these companies although it has no right to delist any company that has business activities in certain country.
By PD Online staff member Li Heng
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