CSRC Spokesperson Answered Reporter Question Regarding Recent Statement by the U.S. SEC
Reporters: A recent statement by the U.S. Securities Exchange Commission (SEC) outlined additional disclosure requirements for China-based companies seeking to list on the U.S. securities market. What is the CSRC’s comment on this matter?
CSRC Spokesperson: The capital markets in China and the U.S. both have global significance and are increasingly interconnected. As growing numbers of companies, investors, and financial services providers are participating in each other’s markets, strengthening regulatory cooperation is the inevitable path. We’ve taken notice of the recent statement made by the SEC, especially the new disclosure requirements for registration filers. It is our belief that Chinese and U.S. regulators shall continue to enhance communication with the principle of mutual respect and cooperation, and properly address the issues related to the supervision of China-based companies listed in the U.S., so as to form stable policy expectations and create benign rules framework for the market.
The CSRC has always been open to companies’ choices to list their securities on international or domestic markets in compliance with relevant laws and regulations. Regardless of their listing venues, companies shall abide by applicable laws, regulations, and regulatory requirements in both their listing jurisdiction and operating jurisdiction. Currently, Chinese authorities are taking measures to promote orderly development of certain industries. The purpose of these measures is to balance development with security and enhance sustainable development of market entities. In the course of policy-making and implementation, the CSRC will communicate and engage closely with different stakeholders including investors, companies and relevant authorities to further promote transparency and certainty of policies and implementing measures of them.
China is unswervingly committed to its basic state policy of reform and opening-up. The financial services sector of China will open wider to the outside world and more opening-up measures will be rolled out to serve the high-quality development of China’s capital markets.
Since 2021, the Chinese economy has witnessed sustained and stable recovery and steady growth. Many promising companies are growing rapidly in China, which are potential high-quality issuers in capital markets. In an improving market ecosystem, listed companies that have solid operating performance and good corporate governance will naturally attract global investors. We see great certainty in the prospects of sustainable and healthy development of China’s capital markets.