On May 19th, the SEC announced that it will hold its staff roundtable on July 9th. This roundtable permits the staff to hear the opinions of investors, regulators, industry experts, and other market participants on the risks of investing in emerging markets, including China.
US investors and the US capital markets have increased exposure to companies with significant operations in emerging markets over the last decade. These emerging markets include China, which is the largest emerging market and the world’s second largest economy. Investments in emerging markets entail significant disclosure, financial reporting, and other risks for US investors. While the US securities laws and regulations applicable to emerging market companies listed on US exchanges are the same as (or comparable to) the laws and regulations applicable to US public companies, the practical effects often are substantially different. This is often due to the fact that US regulators cannot inspect for compliance and enforce these rules and regulations.
The SEC roundtable will explore ways to raise investor awareness of the risks involved with investing in emerging markets as well as potential additional steps that can be taken to mitigate them. The roundtable, which was previously scheduled to be held on May 4th, will now be conducted by remote means due to the ongoing pandemic. It will be open to the public via live webcast and will be archived for later viewing. Further details on the agenda and participants will be posted on the SEC’s website along with additional information, including prior statements and actions in this area as well as public views submitted to the staff.
Members of the public who wish to provide views on the risks of investing in emerging markets may submit their opinions electronically to EmergingMarkets@SEC.gov or use the internet submission form. Comments can be submitted both in advance of or after the roundtable. Information that is submitted will be posted on the SEC’s website, and all comments received will be posted without change. If you wish to submit a comment, be advised that the SEC does not redact or edit personal identifying information from comment submissions. Submit only information that you wish to make publicly available.