Firms will also have to specify in their annual reports additional information about the operating company and any shell companies used to trade, including:
• The percentage of shares that are owned by a government entity
• Whether government entities have a controlling financial interest
• The name of each member of the Chinese Communist Party who sits on the board
The SEC rule lays out the process for imposing an initial trading ban on firms after three years of non-compliance, as required by the 2020 law.
--With assistance from Matt Turner.
This article was provided by Bloomberg news.