Although China-based Issuers that access the U.S. public capital markets generally have the same disclosure obligations and legal responsibilities as other non-U.S. issuers, the Commission’s ability to promote and enforce high-quality disclosure standards for China-based Issuers may be materially limited. As a result, there is substantially greater risk that their disclosures may be incomplete or misleading. In addition, in the event of investor harm, investors generally will have substantially less access to recourse, in comparison to U.S. domestic companies and foreign issuers in other jurisdictions.

This guide discusses some of the potential risks associated with investments in China-based Issuers. It also highlights related disclosure considerations that these issuers should consider as they seek to fulfill their disclosure obligations under the federal securities laws.

Review the guidance on the SEC's website.