China Securities Regulatory Commission responded that five Chinese concept stocks were identified by the United States as having delisting risks
China News Service, Beijing, March 11 (Liu Wenwen) The U.S. Securities and Exchange Commission (SEC) recently released news that five U.S.-listed companies were identified as “relevant issuers” with delisting risks in accordance with the Foreign Company Accountability Act.
In this regard, the official website of the China Securities Regulatory Commission released a message in the early morning of the 11th, responding by answering reporters' questions, saying that it firmly opposes the wrong practice of some forces politicizing securities supervision.
Under the Foreign Company Accountability Act, the SEC said it has the right to delist a foreign-listed company from an exchange if it fails to file reports required by the U.S. Public Company Accounting Oversight Board for three consecutive years.
The bill requires U.S.-listed foreign companies to file documents with the Securities and Exchange Commission that the company is not owned or controlled by a foreign government, and requires those companies to comply with the auditing standards of the U.S. Public Company Accounting Oversight Board (PCAOB).
The amendments also require foreign issuers to provide certain additional disclosures for themselves and any incorporated foreign operating entities in their annual reports.
The SEC finalized the "pre-delisting list" on March 8, including BeiGene, Yum China, Zai Lab, Shengmei Semiconductor, and Chi-Med.
The five companies can provide evidence to the SEC before March 29, and if they cannot prove that they do not meet the conditions for delisting, they will be included in the "determined delisting list."
In response to the above situation, the head of the relevant department of the China Securities Regulatory Commission responded, "We have noticed this situation. This is a normal step for the US regulatory authorities to implement the "Foreign Company Accountability Law" and related implementation rules."
"We have expressed our attitude on the implementation of the "Foreign Company Accountability Law" many times before. We respect foreign regulators to strengthen the supervision of relevant accounting firms in order to improve the quality of financial information of listed companies, but firmly oppose some forces that make securities supervision political We have always adhered to the spirit of openness and cooperation, and are willing to solve the problem of inspection and investigation of relevant firms by the US regulatory authorities through regulatory cooperation, which is also in line with the international practice.” The head of the relevant department of the China Securities Regulatory Commission said.
The person in charge of the relevant department of the China Securities Regulatory Commission said that recently, the China Securities Regulatory Commission and the Ministry of Finance have continued to communicate and dialogue with the American Public Company Accounting Oversight Board (PCAOB) and have made positive progress.
"We believe that through joint efforts, the two sides will be able to make cooperation arrangements as soon as possible in line with the legal provisions and regulatory requirements of the two countries, jointly protect the legitimate rights and interests of global investors, and promote the healthy and stable development of the two countries' markets." (End)