Chinanews.com, August 8th. According to the website of the China Securities Regulatory Commission, the heads of relevant departments of the China Securities Regulatory Commission answered reporters' questions on the issue of the "Report on Protecting American Investors from Major Risks of Chinese Companies" issued by the US President's Financial Market Working Group on the 8th. The person in charge pointed out: Having noticed the relevant reports of the United States, solving common concerns through dialogue is the only way to achieve a win-win situation for both parties. Only in this way can we create a good environment for the healthy and orderly operation of the global capital market.
The questions and answers are as follows:
Q: Recently the US Department of the Treasury released on its official website the "Report on Protecting American Investors from Major Risks of Chinese Companies" by the President’s Financial Markets Working Group, targeting jurisdictions where the US Public Company Accounting Oversight Board (PCAOB), including China, cannot conduct inspections. , It is recommended that companies from these jurisdictions raise the listing threshold, strengthen information disclosure requirements, strengthen investment risk warnings, and require companies listed in the United States to meet the relevant requirements of PCAOB inspections by January 1, 2022 at the latest. How does the SFC comment on this?
A: We have taken note of the relevant reports from the US. We always believe that in today's highly globalized capital market, strengthening the supervision of information disclosure of listed companies and improving the professional ethics and practice quality of auditors are important means to protect the legitimate rights and interests of investors. It is also the common responsibility of global securities regulatory agencies. It must be strengthened Cross-border regulatory cooperation is implemented. Therefore, starting from the common interests of both parties, open dialogue and cooperation is the right way to solve the problem.
In fact, the two sides have always maintained communication and interaction. Since 2019, the Chinese regulatory authorities have repeatedly communicated with the US Securities Regulatory Commission (SEC) and the American Public Company Accounting Oversight Board (PCAOB) on the joint inspection plan of accounting firms, and demonstrated their full sincerity in cooperation. Recently, on August 4, 2020, the Chinese regulatory authority sent an updated proposal to PCAOB based on the latest needs and ideas of the United States. We believe that resolving issues of common concern through dialogue is the only way to achieve a win-win situation for both parties. Only in this way can we create a good environment for the healthy and orderly operation of the global capital market.
It should be noted that China has never prohibited or prevented relevant accounting firms from providing audit work papers to overseas regulatory agencies. As mentioned in the U.S. report, the Chinese securities regulators have so far provided the U.S. securities regulators with audit work papers for many Chinese companies listed in the United States. We believe that the essence of Chinese laws and regulations is that the exchange of information such as audit work papers should be conducted through supervisory cooperation channels, which is a common practice in line with international practices.