KENNEDY, BANKING COMMITTEE COLLEAGUES TO SEC: CHINA-LINKED COMPANIES EXPLOIT OUR RULES, CREATE RISKS FOR AMERICAN INVESTORS

WASHINGTON, March 20 -- Sen. John Kennedy issued the following press release:

Sen. John Kennedy (R-La.), a member of the Senate Banking Committee, joined Sens. Tim Scott (R-S.C.), Elizabeth Warren (D-Mass.) and 15 bipartisan Banking Committee colleagues in pointing out the dangers posed by China-linked firms that hide their corporate structures using variable interest entities (VIEs).

In a letter to Securities and Exchange Commission (SEC) Chairman Paul Atkins, the Banking Committee members called for the SEC's Cross-Border Task Force to Combat Fraud to address concerns about how Chinese corporations can exploit VIE structures to conceal violations of American investors' privacy and Chinese Communist Party influence.

"We welcome the SEC...