Chinese firms' New York listings face greater scrutiny in new Senate bill

Rick Scott, a Republican, and Chris Van Hollen, a Democrat, said they'd introduced legislation to crack down on so-called variable interest entities that Chinese businesses commonly use for listings

The shell companies that Chinese companies often use to list shares in New York would face heightened scrutiny from American regulators under a new bill in the US Senate.

Rick Scott, a Florida Republican, and Chris Van Hollen, a Maryland Democrat, said on Thursday that they’d introduced legislation to crack down on so-called variable interest entities, or VIEs, that Chinese businesses commonly use for US listings. The bipartisan plan, which would need to clear several hurdles to become law, is the latest move in Washington to pressure companies based China to disclose more information to American investors.

Securities and Exchange