New SEC Rule Allows All Companies to File Confidentially for IPOs

    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.

    In SEC Audits, Audit & Assurance Services

    SEC Steps Up Cooperation with HK SFC — Hong Kong in the Sights of U.S. Short-Selling Funds

    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.

    In China short-selling

    Looming Demographic Crisis Will Fuel Boom in China Healthcare M&A

    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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    In M&A Advisory, Chinese Healthcare Industry, China demographic trends

    The Challenges of Auditing Abroad

    In China Financial Due Diligence, Internal Audit & Compliance, Advisory, Audit & Assurance Services

    Get to know MarcumBP

    MarcumBP is a top-ranked provider of SEC audit, accounting, and consulting services to Chinese companies listed in the U.S. capital markets.

    We provide financial due diligence and forensic accounting services for overseas investors and companies seeking to invest in China. And we offer comprehensive services to Chinese companies and individuals for overseas expansion, including cross-border M&A, global tax strategy and compliance, capital verification, financial due diligence, real estate, and EB-5 investment services.

    To view a video about our practice please look below.

     

     

    In China Financial Due Diligence, Risk Management & Internal Control, Audit & Assurance Services, China M&A

    Five Keys to Attracting Chinese Financing

    By Drew Bernstein

    As China steps up as a major deal player, companies and advisers need to be able to view the world through Chinese eyes

    In just the past few years China has gone from the world’s largest destination for capital investment, to a net exporter of capital. This flood of outbound investment is a game changer for the global economy, and needs to factor into the strategy of every company that is seeking access capital or maximize value for its assets.
    In China Financial Due Diligence, Cross Border M&A, China Joint Ventures

    The Coming Chinese Invasion: Why Wealthy Chinese Are Investing in US Assets

    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.

    In EB-5 Advisory Services, Cross Border M&A, China Real Estate Investment

    Pulling Back the Curtain on China Short Sellers

    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.

    In Forensic Accounting, China short-selling, short sellers
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