Understanding “Abnormal Operations” in China

In 2014, regulations outlining information disclosure requirements for Chinese companies created a List of Companies with Abnormal Operations (“the Abnormal Operations List”; 企业经营异常名录). The list includes companies that have failed to comply with information disclosure requirements.

There are four circumstances under which a company would be added to the list:

  • Failure to publicize annual reports within the prescribed time frame;
  • Failure to publicize other required information within the prescribed time frame;
  • Publicized information conceals facts or involves falsification;
  • Failure to contact the company at its publicized registered address.

PSA’s brief on this topic explains the compliance implications of a third party’s inclusion on this list.

Download Whitepaper

PSA Due Diligence

With more than twenty years of global experience, PSA has deep experience in due diligence, completing due diligence assignments in more than 100 countries each year.

Learn more about PSA due dilligence Get in touch with us
Other Services

Investigations

Advisory

Featured insights
Understanding “Abnormal Operations” in China

In 2014, regulations outlining information disclosure requirements for Chinese companies created a List of Companies with Abnormal Operations (“the Abnormal Operations List”; 企业经营异常名录). The list includes companies that have failed to comply with information disclosure requirements.

There are four circumstances under which a company would be added to the list:

...

Managing Cross-Border Asset Tracing and Recovery Investigations

Asset recovery in international fraud cases can present considerable challenges and risks. After building a case and pursuing recoveries across diverse jurisdictions, victims may still recover only pennies on the dollar. In this episode, Martin Kenney of Martin Kenney & Co. shares his unparalleled insights into creating layered strategies and managing multidisciplinary...

Supply Chain Due Diligence and OFAC

As companies work to rebuild global supply chains, PSA examines the case of e.l.f. Cosmetics, Inc. and its fine for sanctions violations. The DOJ found that these violations occurred because of a “largely inadequate” compliance program. The individual unit cost of the items were low,  and only limited elements of...

How can we help you?

Get in touch with us or inquire with our experts.

Subscribe to receive updates and insights

Better Intelligence Podcast

Copyright © 2022 Pacific Strategies and Assessments | All Rights Reserved