China News Agency, Beijing, June 5 (Huang Yuqin and Li Jingze) against US Secretary of State Pompeo recently warned Chinese companies against further so-called "financial fraud", Chinese Foreign Ministry spokesman Geng Shuang said at a regular press conference on June 5. China has always maintained a "zero tolerance" attitude towards listed companies' financial fraud. The US side's statement that Chinese companies do not abide by relevant US rules is to be generalized.
A reporter asked a question. US Secretary of State Pompeo said recently that he “welcomes Nasdaq to strengthen stricter supervision” and warned Chinese companies not to engage in “financial fraud”. What's China's response?
Geng Shuang said that we have taken note of the relevant position of the US. The Chinese government has always advocated that whenever a company is listed, listed companies should strictly abide by the relevant laws and regulations of the place where they are listed, perform their information disclosure obligations accurately and completely, and protect the legitimate rights and interests of investors. China has always maintained a "zero tolerance" attitude towards listed companies' financial fraud. This position is consistent and clear. The US side’s statement that Chinese companies do not abide by the relevant US rules is comprehensive.
Geng Shuang said that indeed some Chinese companies have recently experienced some financial fraud, but this does not fully represent all Chinese companies listed in the United States. Some of the recent remarks and practices of Chinese companies against Chinese companies are obviously biased.
"In fact, the regulatory agencies of China and the United States have carried out a number of cooperation in the field of audit supervision of cross-border listed companies. The fact is that the relevant regulatory agencies of the United States are not willing to solve the problems." Geng Shuang said, Words and deeds are political manipulations of regulatory issues, forcing Chinese companies to withdraw from the US will seriously damage the interests of US investors."
Geng Shuang emphasized that we look forward to the United States’ sincerity in resolving the issue, and in accordance with international practice in cross-border audit supervision, to resolve differences in an equal and cooperative manner and truly protect the interests of investors. (Finish)