The fraudulent incident of Ruixing Coffee (Nasdaq: LK) continues to ferment. After the Nasdaq Exchange notified Ruixing Coffee of delisting, the US Securities and Exchange Commission (SEC) said it would hold a round table to discuss investment in emerging markets risk.
On May 19, the US Securities and Exchange Commission announced that it will organize investors and other market participants, regulators and industry experts to hold the above meetings on July 9. Round table.
The SEC said that in the past 10 years, US investors and US capital markets have generally increased their exposure to companies that have substantial business in emerging markets, including China– The largest emerging market and the second largest economy in the world. Investment in emerging markets will bring significant information disclosure, financial reports and other risks to US investors. It is worth noting that although the U.S. securities laws and regulations applicable to emerging market companies listed on U.S. exchanges are the same (or similar) as those applicable to U.S. listed companies, due to the inability of U.S. regulators to examine these rules and regulations The compliance and implementation of these rules and regulations often have very different actual effects.
The round table will discuss how to raise investors ’awareness of these risks and what additional measures can be taken to mitigate these risks.
The round table will be held remotely, open to the public via webcast, and will be archived for later viewing.
On the same day, SEC Chairman Jay Clayton said in an interview with CNBC on May 19: “Many smaller companies in the world want to go public in the US, I think this is A recognition mark. If people regard it as a good quality certification (Good Housekeeping Seal of Approval), we should raise the standard so that they are eligible for a good quality certification. “
Jay Clayton also said that investors should cheer on“ efforts to raise the standards of emerging markets that wish to list in the United States ”, indicating that he supports Nasdaq ’s proposal to ask Ruixing to delist.
According to Reuters reports, people familiar with the matter said that Nasdaq will announce new restrictions on initial public offerings (IPOs), which will make some Chinese companies even more It is difficult to list on the NASDAQ exchange.
Informed sources said that although the NasdaqChinese companies will not be explicitly mentioned in the adjustment of the listing rules, but the move is largely due to concerns about the lack of accounting transparency for some Chinese companies that are expected to IPO.
Informed sources said that the new listing rules will require companies in some countries, including China, to raise the $ 25 million threshold for financing at IPO, or at least after the listing A quarter of the market value. At the same time, Nasdaq will also require audit companies to ensure that their international branches comply with global standards. Nasdaq will also check the audit of the accounts of Chinese companies that are expected to IPO.
NASDAQ has announced some listing restrictions last year, seeking to limit the IPO of small Chinese companies. The trading volume of these companies is often small because most stocks are held by a few insiders. Such low stock liquidity makes it difficult for these companies to attract many large institutional investors, and large institutional investors are exactly what Nasdaq wants to cater to.