PRC Risk Transparency Act

HR 9162, the PRC Risk Transparency Act, requires U.S. public companies and large investment funds with significant ties to China to disclose detailed information about their China exposure to investors. Covered companies (with 5%+ revenue/capital/supply chain tied to China and $1B+ market cap) must report annual disclosures on revenue sources, capital investments, supply chains, and business relationships with Chinese entities on sanctions lists or government-linked organizations. Investment funds with $500M+ assets must file quarterly reports on their exposure to Chinese-connected companies and potential risks from sudden market access loss due to U.S.-China tensions. The disclosures aim to inform investors about financial vulnerabilities related to China, including scenarios where U.S. sanctions could disrupt operations. These requirements apply to all covered entities without imposing new restrictions on business activities.