Former US SEC chair calls for companies to disclose China risk

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Big US public companies should start disclosing their exposure to China as part of a pilot program to allow investors and policymakers to see potential risks, Jay Clayton, former chair of the US securities regulator, told lawmakers on Tuesday.

He proposed that companies with market capitalizations above $50 billion or with China-based revenues or costs above $10 billion unveil their exposure to the world’s second biggest economy.

He also recommended those companies explain how their operations would be affected in the event of a disruption in US-China economic ties.