Recently, the United States Securities Regulatory Commission (SEC) announced the detailed rules for the implementation of the “Foreign Company Accountability Act,” and individual companies announced their delisting from the United States, which aroused widespread concern in the market. In response to this, the spokesperson of the China Securities Regulatory Commission said in a reporter’s question on December 5 that the China Securities Regulatory Commission has noticed these situations and is also concerned about the market’s concerns about China-US audit and supervision cooperation and the prospects for domestic companies to go public in the United States in the next step. The China Securities Regulatory Commission and relevant regulatory authorities have always maintained an open attitude towards companies choosing overseas listing locations, and fully respected companies’ independent choice of listing locations in compliance with laws and regulations.
“Recently, individual media reports that Chinese regulatory authorities will prohibit agreement-controlled (VIE)-structured companies from listing overseas and promote the delisting of Chinese companies listed in the United States. This is completely misunderstanding and misunderstanding.” The spokesperson said that it is understood that some domestic companies Companies are actively communicating with domestic and foreign regulatory agencies to promote listing in the United States.
Regarding China-US audit supervision cooperation, the spokesperson revealed that recently, the China Securities Regulatory Commission, the US SEC, the US Public Company Accounting Oversight Board (PCAOB) and other regulatory agencies have been frank and constructive in resolving the problems in the cooperation. Communication, and positive progress has been made in promoting cooperation on some key issues.
“We believe that as long as the regulatory agencies of both sides continue to conduct dialogue and consultations based on the principles of mutual respect, rationality, pragmatism, and professional mutual trust, they will be able to find a cooperation path that is acceptable to both sides.” The spokesperson said that China and the United States share in China. Cooperation in the field of audit supervision has been carried out, and effective cooperation methods have been explored through pilot inspections, which has laid a good foundation for cooperation between the two parties. However, in recent years, some political forces in the United States have politicized capital market supervision, suppressed Chinese companies listed in the United States for no reason, and forced Chinese companies to delist. This not only violates the basic principles of market economy and the concept of the rule of law, but also harms the interests of global investors. And the international status of the U.S. capital market is a kind of “lose more” approach, which is not good for anyone.
“In today’s highly globalized capital market, it is even more necessary for regulators to deal with audit and supervision cooperation issues in a pragmatic, rational, and professional manner. Forcing Chinese companies listed in the United States to delist from the market should not be a responsible policy option.” The news The spokesperson said that the China Securities Regulatory Commission will continue to maintain candid communication with US regulatory counterparts, and strive to resolve the remaining issues in the audit and regulatory cooperation as soon as possible.
The spokesperson said that for some time, relevant Chinese regulatory authorities have introduced a series of policies and measures to promote the standardized development of platform economies, the main purpose of which is to regulate monopolistic behavior, protect the rights and interests of small and medium-sized enterprises and data security, personal information security, and eliminate financial supervision. A vacuum prevents the disorderly expansion of capital. In response to these new problems and new tests, regulatory agencies in various countries are also trying to adopt different regulatory measures to promote a healthier and more sustainable development of the platform economy. Therefore, the relevant policies issued by the Chinese government are not a suppression of specific industries or private enterprises, nor are they necessarily related to overseas listing activities of enterprises.
The spokesperson introduced that in the process of implementing relevant regulatory measures, the relevant Chinese regulatory authorities will unswervingly promote reform and opening up, adhere to the “two unshakable”, and coordinate the relationship between investors, enterprises, and regulators. Further improve the transparency and predictability of policy measures.