Elon Musk, Tesla Motors CEO, tells the Reuters Global Tech Summit that he'll talk to politicians who back local car dealers trying to keep Tesla from selling directly to consumers. Video
BEIJING - Activity in China's vast manufacturing sector weakened further in June to a 9-month low as new orders faltered, a preliminary survey of purchasing managers showed on Thursday, reinforcing signs of tepid economic growth in the second quarter.
DETROIT - A new company hopes to make the car-buying process easier for consumers and more efficient for dealers by bringing cars to buyers for test drives, avoiding the need to spend hours at a dealership.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.
SEC to issue warning on reverse mergers
WASHINGTON (Reuters) - The U.S. Securities and Exchange Commission is on the verge of releasing an investor bulletin outlining the risks involved with reverse mergers, SEC spokesman John Nester said on Thursday.
The bulletin, which will be released as soon as Thursday, comes amid a rash of accounting scandals involving China-based companies that are listed on U.S. exchanges. The SEC is conducting a broad investigation into the accounting irregularities and audits of Chinese and other foreign companies.
Some of these companies have gained access to the U.S. markets by merging with merging with shell companies here, even though most of their operations are overseas. The probe has led to trading suspensions, and in some cases, auditors for the companies have resigned.
Nester said the bulletin will describe reverse mergers and identify the risks of investing in them. It will also highlight the recent actions by the SEC to suspend trading in some of these companies.
(Reporting by Sarah N. Lynch, editing by Gerald E. McCormick)
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