China Called Out in U.S. Warning Over Emerging Market Investing

(Bloomberg) — When it comes to companies exposed to emerging markets — most notably China — investors should beware the lack of visibility into their books, U.S. Securities and Exchange Commission Chairman Jay Clayton said Tuesday.Foreign jurisdictions aren’t maintaining adequate standards of investor protection, and the U.S. has little control over that, Clayton and other officials said in a strongly worded statement. The group also underlined a longstanding point of conflict: that the main U.S. accounting watchdog can’t inspect the work that Chinese auditors do for companies that sell stock in American markets.“In many emerging markets, including China, there is substantially greater risk that disclosures will be incomplete or misleading” and substantially less