SEC published Sample Letter to China-Based Companies

美国证券交易委员会公司财务部发布《致中国公司函样本》

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        On Dec 20, 2021, Division of Corporation Finance of SEC publish Sample Letter to China-Based Companies. Recent events have highlighted the risks associated with investing in companies that are based in or that have the majority of their operations in the People’s Republic of China (China-based companies). The Division of Corporation Finance believes that more prominent, specific, and tailored disclosure about these risks, and companies’ use of the variable interest entity (VIE) structure specifically, is warranted to provide investors with the information they need to make informed investment decisions and for companies to comply with their disclosure obligations under the federal securities laws.

        In light of these concerns, the Division is issuing comments to China-based companies seeking more specific and prominent disclosure about the legal and operational risks associated with China-based companies. The Division’s comments focus on the need for clear and prominent disclosure regarding the structure of the company, including the relationship between the entity conducting the offering and the entities conducting the operating activities, risks associated with a company’s use of the VIE structure, and the potential impact on the company’s operations and investors’ interests if such structure were disallowed or the contracts were determined to be unenforceable. The Division’s comments also focus on additional legal, regulatory, and enforcement risks that may apply to investments in China-based companies, such as the potential impact of the Holding Foreign Companies Accountable Act and related rules and any necessary PRC permissions a China-based company may need to operate its business or offer securities to foreign investors.

The illustrative sample letter contains sample comments that, depending on the particular facts and circumstances, the Division may issue to China-based companies. The Division urges companies to consider these sample comments and additional regulatory developments in this area as they prepare their disclosure documents.

       2021年12月20日，美国证券交易委员会公司财务部发布《致中国公司函样本》。他们认为最近的事件凸显了投资于设在中国或大部分业务在中国的公司(中国公司)的相关风险。公司财务部认为，对于这些风险的更突出、更具体、更有针对性的披露，以及公司具体使用可变利益实体(VIE)结构，有权向投资者提供作出明智投资决策所需的信息，并使公司遵守联邦证券法规定的披露义务。

       鉴于这些担忧，该部门正向中国公司发表意见，要求披露与中国公司有关的法律和经营风险的更具体和突出的信息。该部门的意见集中于明确和突出披露公司结构的必要性，包括进行发行的实体和进行经营活动的实体之间的关系，与公司使用VIE结构相关的风险，如果这种结构被禁止，或合同被确定为不可执行，将对公司的运营和投资者的利益产生潜在影响。该部门的评论还关注了在中国投资公司可能面临的额外法律、监管和执法风险，例如《外国控股公司问责法》(Holding Foreign Companies accountability Act)和相关规定的潜在影响，以及中国公司在经营其业务或向外国投资者提供证券时可能需要获得的任何必要的中国许可。

        说明性样本信包括有样本意见，根据具体事实和情况，该部门可向中国公司发出样本意见。敦促各公司在拟备披露文件时，会考虑这些样本意见和在这些方面的相关监管情况。