SEC investor bulletin: Chinese companies operating under a US listing

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Frankieg48336
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SEC investor bulletin: Chinese companies operating under a US listing

Post by Frankieg48336 »

[Title was "US companies with significant operations in China" --admin LadyGeek]

I found this warning on investor.org about US companies with significant operations in China. The articles says you can check 4k reports etc to see if a company operates in this manner. I wonder if this is how most sp500 companies operate in China?

https://www.investor.gov/introduction-i ... lletins-95
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JoMoney
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Re: US companies with significant operations in China

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Frankieg48336 wrote: Fri Oct 22, 2021 4:39 am... I wonder if this is how most sp500 companies operate in China?

https://www.investor.gov/introduction-i ... lletins-95
No, this isn't how any of the companies in the S&P 500 are structured.
This is about other "China Stocks" that get listed on US exchanges to represent Chinese stocks that US investors wouldn't otherwise be allowed to invest in (they would not meet the requirements to be part of the S&P 500). These stocks/securities go through the process to get listed on a US exchange so they can be sold to US investors, which involves all kinds of financial disclosures to the SEC, the company/stock claims they have agreements with a Chinese company to share profits in an equity-like way with the share owners, but those agreements are not enforceable in the US, nor in China, and might even be illegal in China.
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Re: SEC investor bulletin: Chinese companies operating under a US listing

Post by LadyGeek »

^^^ I retitled the thread. The OP can retitle the thread further by editing the Subject: line in Post #1.
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Frankieg48336
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Re: US companies with significant operations in China

Post by Frankieg48336 »

JoMoney wrote: Fri Oct 22, 2021 8:27 am
Frankieg48336 wrote: Fri Oct 22, 2021 4:39 am... I wonder if this is how most sp500 companies operate in China?

https://www.investor.gov/introduction-i ... lletins-95
No, this isn't how any of the companies in the S&P 500 are structured.
This is about other "China Stocks" that get listed on US exchanges to represent Chinese stocks that US investors wouldn't otherwise be allowed to invest in (they would not meet the requirements to be part of the S&P 500). These stocks/securities go through the process to get listed on a US exchange so they can be sold to US investors, which involves all kinds of financial disclosures to the SEC, the company/stock claims they have agreements with a Chinese company to share profits in an equity-like way with the share owners, but those agreements are not enforceable in the US, nor in China, and might even be illegal in China.
Thank you for clarifying.
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