In 2014, new regulations outlining information disclosure requirements for Chinese companies created a list of companies with abnormal operations (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:

  1. Failure to publicize annual reports within the prescribed time frame;
  2. Failure to publicize other required information within the prescribed time frame;
  3. Publicized information conceals facts or involves falsification;
  4. 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.

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With more than 20 years of experience spanning the globe, PSA has deep experience in information disclosures in China and other areas of corporate investigations. PSA’s unique capabilities in investigations and global information gathering allow it to rapidly and expertly support your company’s due diligence processes. To learn more about how PSA’s Due Diligence services can mitigate corruption risks for your company, visit our Third-Party Due Diligence page or contact info@psagroup.com.