WASHINGTON—The U.S. Securities and Exchange Commission (SEC) on Monday issued its latest warning to people looking to invest in Chinese companies listed in the United States.
In an alert to investors, the SEC detailed the potential risks in putting money into U.S.-listed companies that have contracts with but no control over a Chinese entity, known as a variable interest entity (VIE). It is the most recent move by the agency to address concerns that Chinese companies are flouting rules for accessing U.S. markets.
