(New York News) People familiar with the matter revealed to the American media that Chinese law firms were required to disclose the wording of China's economic risk disclosure and avoid mentioning negative changes in the economy.
According to the Wall Street Journal report on Friday (August 11), people familiar with the matter said that officials of the China Securities Regulatory Commission requested some Chinese law firms at a closed -door meeting held last month to go public in Chinese company companies to go public abroad.In the document, dilute the wording of the disclosure of China's economic risks.
Officials require lawyers to avoid mentioning "negative changes" when describing the Chinese economy, but it should be called "constantly changing".Officials also suggested not to say that China's administrative and judicial procedures may be delayed, but only point out that the Chinese legal system is different from other jurisdictions.
The guidelines received by lawyers also include not to say that "Chinese laws and regulations will change without notice", but that "Chinese laws' sometimes change may change."
After the China Securities Regulatory Commission released a new regulations for Chinese companies in March this year, it has been reviewing the proposed listing plans and information disclosure of enterprises.After these documents are approved, companies can go to the United States or Hong Kong for an IPO.
Discover the risk of legal protection, or cause trouble for the enterprise
The Wall Street Journal pointed out that the risk of fans may cause trouble to listed companies and their lawyers, because disclosure of risks is that protecting listed companies can avoid legal lawsuits after the stock price has fallen sharply.
Chen Zhiwu, a professor of finance at the University of Hong Kong, who had served as a member of the International Counselor of the China Securities Regulatory Commission, said: "As long as the issuer of the stock clearly discloses the advantages and disadvantages, even if those bad things really happen, they will not be held accountable."
