Investors are strongly encouraged to consult the SEC’s list to understand which companies are affected and how many consecutive years an issuer has been identified. There are significant risks if you invest in a Commission-identified issuer, including possible illiquidity and significant loss of value in any shares owned.”What happens to my shares if there is a trading prohibition?After a company has been a Commission-identified issuer for three consecutive years, the SEC will issue an order prohibiting the trading of the company’s securities on any national securities exchange or in the over-the-counter market in the United States. Trading in the company’s securities will cease once the trading prohibition in the order becomes effective. Investors holding these securities will have severely limited opportunities to sell the securities, potentially affecting the value of the securities significantly.”
This is a post from today about HFCAA. From a speech by YJ Fischer in May: “All of this needs to happen before the end of the year when the PCAOB must reassess its 2021 determination on non-compliant jurisdictions.” in early November 2022.
I wanted to get this community's reaction to this: do we think an agreement will be reached before November, what should we do with our existing holdings, is the HKEX the only option, are there brokers you recommend to have access to HKEX, etc. I really hope that an agreement is reached between CSRC and PCAOB, I'm skeptical and therefore worried. Personally I am very disappointed in HFCAA depriving retail investors of access to dominant companies trading at cheap multiples while institutional investors will continue to have access. This may not be the best subreddit given the potential for lowbrow comments, but curious for any suggestions given this SEC bulletin from today being the most recent “guidance” the SEC has provided.
Leave a Reply