MONTH-IN-BRIEF (May 2020)
Developments Relating to Investments in Emerging Markets
By Thomas W. White, Retired Partner, WilmerHale
Issues related to investments in securities of companies based in or with significant operations in emerging markets continue to be a focus of the Securities Exchange Commission (“SEC”) as well as Congress. Although they address emerging markets generally, these actions appear to specifically target China, the largest emerging market and the world’s second largest economy.
In April, SEC Chairman Jay Clayton, PCAOB Chairman William Duhnke and several members of the SEC Staff issued a public statement about emerging market investments. Following up on this statement, Chairman Clayton announced on May 4 that the SEC staff will hold a roundtable on the risks of investing in emerging markets, including China. The roundtable will be held by remote means on July 9.