Effective July 10, 2017, the Securities & Exchange Commission ("SEC") began allowing all companies to submit non-public, draft registration statements for initial public offerings ("IPOs"). Why make this significant change? In altering the disclosure requirements, the SEC hopes to reduce organizations’ exposure to market fluctuations while going through the IPO process, rationalize the filing process so that compliance is less burdensome and expensive for small organizations, and further streamline disclosures to make them more meaningful and useful to investors.
The SEC’s new rule is largely an effort to reverse the decline in IPOs, encourage more public offerings, among both U.S. and foreign companies, on U.S. exchanges, and provide investors with access to a wider range of small, successful companies in which to invest. While this ruling may encourage more companies to consider (or reconsider) listing within the U.S. market, for foreign issuers, numerous complexities remain that should be considered.
Back in January of 2017, the Securities & Exchange Commission (SEC) announced a significant expansion of its cooperation framework with Hong Kong's Securities and Futures Commission (SFC), as the SEC seeks to effectively protect U.S. investors from fraud and trading abuses in increasingly globalized capital markets.
The new framework expands on the agencies' 1995 Enforcement Cooperation MOU and 2002 IOSCO Multilateral MOU. It provides for significant information-sharing and enforcement cooperation including, but not limited to, investment advisers, broker-dealers, securities exchanges, market infrastructure providers, and credit rating agencies. With this expanded cooperation framework, the SEC is signaling that market players cannot evade the reach of U.S. law simply by operating from an offshore location.
By Drew Bernstein
In 2016 China emerged as the world’s most active player in cross-border M&A, with $225.4 billion of outbound deals, more than doubling the prior record of $102 billion in 2015 according to Dealogic. While the pace of dealmaking has slowed in 2017 as the government seeks to stanch the outflow of capital, China has arrived as a major player. The types of assets Chinese buyers are seeking has shifted from primarily energy and resource plays a few years ago to now focus on globally recognized brands and advanced technologies.
Given the very powerful demographic dynamics in China, we should expect that healthcare is likely to become one of the most active sectors for both M&A and innovative partnerships in the years to co
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By Drew Bernstein
In just a few decades, China produced the second largest population of wealthy and ultra-wealthy in the world. Today, China ranks a fast-rising #2 in both the number of millionaires (2.4 million vs. 7.1 million in the U.S.)* and billionaires (213 vs. 536 in the U.S.) ** globally. China’s top 1% own over one-third of total assets, quite astonishing in a putatively socialist country where most of the largest companies are still state owned enterprises.
By Drew Bernstein
Following a number of successful listings by Chinese technology companies in the past six months, U.S. investors are eagerly awaiting the planned listing of Alibaba. The world’s largest e-commerce company will be the largest Chinese offering to date and perhaps displace Facebook as the largest technology IPO of all time.
Investment banks are jostling for a place at the banquet table for a slice of what might be a $200 billion market cap valuation, and hoping that investors’ appetites will be far from satisfied. If the price pops, Alibaba could be followed closely by JD.com, Sina’s Weibo, and a host of other smaller Chinese companies, which will seek to take advantage of the festive mood to launch on the U.S. stock markets.
One group of investors that is surprisingly enthusiastic about this new crop of Chinese public companies are the China short sellers.