[Asia Economy Reporter Kim Suhwan] A commissioner of the U.S. Securities and Exchange Commission (SEC) has demanded that all Chinese companies listed on the U.S. stock market disclose information regarding business risks arising from Chinese government regulations.
On the 26th (local time), Allison Lee, an SEC commissioner, stated in an interview with local media, "Chinese companies listed on the U.S. stock market must disclose information about various business risks stemming from the regulatory environment imposed by the Chinese government."
She added, "We must focus on ensuring that U.S. investors are aware of various risk information, including recently identified risks related to the Chinese government."
However, Lee did not respond to reporters' questions about whether the SEC is currently investigating whether Didi Chuxing violated disclosure regulations.
An SEC spokesperson said that all matters related to investigations of listed companies are confidential and that they cannot confirm whether an investigation is underway until an actual indictment is made.
This statement comes amid a sharp decline in the stock prices of most Chinese companies listed on the U.S. stock market, following the Chinese government's intensified regulatory pressure on its domestic big tech companies, including an antitrust investigation into Didi Chuxing.
Previously, after the Chinese government forcibly removed the smartphone application of its largest ride-sharing company, Didi Chuxing, from domestic app stores and launched a stringent antitrust investigation, Didi Chuxing's stock price listed on the U.S. stock market has fallen by more than half from its peak as of this date.
Some critics argue that the U.S. government’s failure to establish separate regulations regarding disclosure information for Chinese companies listed on its stock market has exacerbated the Didi Chuxing incident.
U.S. Senator Bill Hagerty of the Senate Banking Committee urged, "Regulators must ensure that American investors and workers are protected from anti-market behavior," and called for "an investigation into whether companies from countries with strong central government control, like China, have sufficiently disclosed investment risk information."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
