Chinese Securities Supervisory Body Seeks To Boost Cooperation With The United States

BEIJING, Aug.1 (Reuters) – China’s securities regulator on Sunday said it would seek to cooperate more closely with its U.S. counterpart and support overseas listings, after U.S. regulators tightened corporate disclosure Chinese authorities and expressed concern about Beijing’s regulatory measures.

The China Securities Regulatory Commission (CSRC) said in a statement that it has taken note of the new US Securities and Exchange Commission (SEC) disclosure requirements for Chinese company listings and that the two sides should “respect the spirit of mutual respect”. and “strengthen communications on the regulation of stocks related to China.”

The CSRC has always been open to companies that choose where to go public and “China’s basic national policy of pushing forward with reform and openness is unwavering, and financial openness to the outside world will continue,” he said. he declared on his website.

The SEC said on Friday it would require Chinese companies to disclose “uncertainty over future actions by the Chinese government that could significantly affect the financial performance of the operating company,” before allowing them to lift capital in the US stock markets. Read more

Chinese issuers must also disclose whether they have been denied permission from Chinese authorities to list on U.S. stock exchanges and the risks that such approval could be denied or revoked, the SEC added.

China has tightened its regulatory grip on overseas share issuance after launching a cybersecurity investigation into ride-sharing giant Didi Global Inc (DIDI.N) last month, just days after its IPO At New York.

The Chinese cabinet said on July 6 that it would strengthen supervision of all Chinese companies listed overseas.

In the wake, China’s cyberspace regulator said any business with data for more than one million users should come for a cybersecurity exam before looking for listings overseas. China’s central bank also said that non-bank payment companies must report their overseas listing plans.

Reporting by Yingzhi Yang and Cate Cadell; Editing by Edmund Klamann

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