SAFE Act

New disclosure rules for China ties

If enacted, exchanges would have to require issuers to disclose China ties before listing. Issuers would also disclose this information in each annual report filed under section 13(a). Disclosures would say whether China gave money or support, like subsidies, loans, tax breaks, or procurement benefits. If support exists, issuers would explain conditions tied to it, such as export rules or required purchases. Issuers would report any Chinese Communist Party committees inside the company and which employees sit on them. They would also name officers or directors who hold or held CCP or PRC government positions, with titles and locations. The SEC would have 180 days after enactment to adopt rules needed to implement these disclosures. This would increase investor transparency but could raise compliance and reporting costs for companies and exchanges.