The Securities and Exchange Commission announced the move Friday after Beijing said it would step up its supervision of Chinese companies listed overseas, including reviews of their cybersecurity. SEC Chair Gary Gensler pointed in particular to Chinese businesses that use shell companies to get around Chinese rules blocking foreign ownership for their industries. Under these deals, the Chinese business forms a shell company in the Cayman Islands or somewhere else. The shell company has no ownership of the Chinese company. Several big-name Chinese companies have seen their stocks tumble recently as Beijing has stepped up regulation of their data protection and security.

Source: Mint July 30, 2021 19:07 UTC