WASHINGTON—The U.S. Securities and Exchange Commission (SEC) on Monday issued its latest warning to people looking to invest in Chinese companies listed in the United States. In an alert to investors, the SEC detailed the potential risks in putting money into U.S.-listed companies that have contracts with but no control over a Chinese entity, known as a variable interest entity (VIE). It is the most recent move by the agency to address concerns that Chinese companies are flouting rules for accessing U.S. markets. In July, the agency said it will not allow Chinese companies to raise money in the United States unless they fully explain their legal structures and disclose the risk of Beijing interfering in their business. Earlier this year, the agency began rolling out a new law, aimed at China, that would kick foreign companies off U.S. stock exchanges if they do not comply with U.S. auditing standards. …