The spokesperson of the China Securities Regulatory Commission answers reporters' questions
Q: 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.
Does the SFC have any comment on this?
What are your views on China-US cooperation in audit supervision and the prospects for domestic companies to go public in the United States in the next step?
A: We have noticed these situations, and we are also concerned about the market's concerns about China-US audit and supervision cooperation and the prospects of domestic companies going 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 a complete misunderstanding and misunderstanding.
As far as we know, some domestic companies are actively communicating with domestic and foreign regulatory agencies to promote listing in the United States.
In terms of Sino-US audit supervision cooperation, recently, the China Securities Regulatory Commission has conducted candid and constructive communications with regulatory agencies such as the US SEC and the US Public Company Accounting Oversight Board (PCAOB) on solving problems in the cooperation, and discussed some key issues. Positive progress has been made in advancing cooperation.
We believe that as long as the regulatory agencies of both sides continue to carry out dialogues and consultations based on the principles of mutual respect, rationality, pragmatism, and professional trust, they will be able to find a cooperation path that is acceptable to both parties.
In fact, China and the United States have been cooperating in the field of audit and supervision of China's concept stocks, and they have also explored effective cooperation methods through pilot inspections, laying 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.
For a period of 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, data security, and personal information security, eliminate the financial regulatory vacuum, and prevent capital disorder. expansion.
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.
In the process of implementing relevant regulatory measures, the relevant Chinese regulatory authorities will unswervingly promote reform and opening up, adhere to the "two unwavering", coordinate and handle the relationship between investors, enterprises, and regulators, and further enhance the transparency of policy measures And predictability.
The China Securities Regulatory Commission will also 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.