Gensler Warns of Chinese Company Risks After SEC Crackdown
- SEC chief reiterates calls for more disclosures of risks
- U.S. officials must also be able to inspect audits, he says
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U.S. Securities and Exchange Commission Chair Gary Gensler issued his most direct warning yet on Monday about the risks of investing in Chinese companies.
Gensler said in a video message that there is a lot that American investors don’t know about some Chinese companies that are listed on U.S. stock exchanges. His remarks come just weeks after the regulator halted initial public offerings of Chinese companies until they boost disclosures and warned investors may not be aware that they are actually buying shares of shell companies instead of direct stakes in Chinese businesses.