SEC Releases Sample Letter on Disclosure Obligations of China-Based Companies

The SEC’s Division of Corporation Finance has posted to its Web site a sample illustrative letter for “China-based companies” (i.e., “companies based in or with a majority of their operations in the People’s Republic of China”). Typical areas of focus of the SEC’s comments to China-based companies include:

• Disclosure requirements under the Holding Foreign Companies Accountable Act.
• “[M]aterial risks related to the role of the government of the People’s Republic of China . . . in the operations of China-based [c]ompanies.”
• “[M]aterial impacts of certain statutes.”