The heat is on for newly confirmed SEC chairman Paul Atkins to crack down on Chinese companies

The listing ignored some interesting language in Alibaba’s “prospectus” (the official document for the IPO), which discloses “risks related to doing business in the People’s Republic of China,” where the “economy differs from the economies of most developed countries in many respects including the extent of government involvement . A US listing on the famed “Big Board” goes a long way in getting US investors to buy the stock, even as critics allege those shares finance the economic might of one of the most repressive regimes on Earth. That’s a special type of stock held by the CCP that he believes gives it control over these companies outside of US disclosure rules, a charge Alibaba has faced in the past.

Author: Charles Gasparino

---