December 2006

By Barbara A. Jones

According to the U.S. Securities and Exchange Commission’s Web site, there are currently 144 domestic Chinese companies registered with the Commission. This number is deceiving, however, since more and more Chinese companies are entering the U.S. through business combinations with U.S. domestic listed companies or through off-shore holding companies, utilizing the wholly-owned foreign enterprise (WOFE) structure. While the end result is the same — a listing on a U.S. exchange — the decision to “domesticate” in the United States or remain a “foreign private issuer” can have significant ramifications for the company’s ongoing regulatory compliance obligations. Foreign private issuers continue to enjoy certain levels of relief from the U.S. compliance regime by virtue of the fact that they are also required to comply with their local, or “home country”, reporting requirements.

Subscribers: click here for the full story

Non-Subscribers: click here to subscribe

Pay per view ($15.00)