SEC Division of Corporation Finance Issues Sample Letter to China-Based Companies

On December 20, 2021, the Securities and Exchange Commission’s Division of Corporation Finance (Division) issued the Sample Letter (Letter) to companies based or having the majority of their operations in the People’s Republic of China (China-based Companies). The Letter requires China-based Companies to disclose in their public filings “more prominent, specific and tailored” risks associated with investing in these companies in compliance with their disclosure obligations under the federal securities laws and to enable investors to make informed investment decisions.