The China Securities Regulatory Commission has reportedly warned law firms to avoid negative language regarding China-related business risks in offshore IPO documents. Failure to comply could result in withheld regulatory approval for the IPOs. The guidance, offered during a closed-door meeting on July 20, follows informal advice provided to firms handling listing applications in recent months. This move comes as the US SEC increases scrutiny of China-listed companies and requires additional details about the Chinese government's role in their operations. As a result, forthcoming US share offerings by Chinese companies may be delayed or cancelled, due to the requirement for full risk disclosure and new Chinese regulations prohibiting negative comments about Chinese laws, policies, business environments, and judicial situations in listing documents.
top of page
bottom of page