Yi Huiman said that the listing of Chinese equities in the United States is an important manifestation of New Yorks function as a global financial center, which has played a very good role in further enriching asset selection in the local market and improving investment returns of global investors, and is a win-win good thing.
Yi Huiman pointed out that in the post epidemic period, under the environment of global liquidity, all major financial markets may face the situation of asset shortage, and the competition for high-quality listing resources will be more intense. Some political forces in the United States forced the delisting of Chinese stocks, which will inevitably lead to the result of double loss or multiple loss.
For the recent financial fraud of Ruixing coffee, Yi Huiman said that it could not represent all the listed companies in China. Financial fraud is the cancer of the capital market, and it is also the target of the Chinese and foreign regulators. In view of the regulatory problems of some cross-border listed companies such as Ruixing coffee, strengthening cross-border cooperation is the right way to solve the problems. Recently, Arthur Levitt, former chairman of the Securities Regulatory Commission (SEC), wrote a special article and proposed to strengthen cross-border regulatory cooperation between China and the United States. We agree with him very much.
As of now, the CSRC has provided audit working papers for 14 listed Chinese companies in the us to the SEC and PCAOB, and three to the SEC in 2019 alone, said Mr. Yi.
Joint inspection and audit of working papers are important to fight against international capital market crimes, but these are only an important link or carrier of cross-border regulatory cooperation. More importantly, it is necessary to establish a high degree of mutual trust between regulators through full communication and cooperation, and on this basis, jointly establish a law enforcement alliance to combat cross-border securities crimes, said Yi Huiman. Lack of trust and cooperation can not solve the problem of effectively cracking down on financial fraud.
Yi Huiman said that since 2019, China Securities Regulatory Commission has made clear to PCAOB that it has agreed to carry out consultations on the joint inspection mode, and has repeatedly taken the initiative to put forward specific proposals to PCAOB, but the US side has not given positive feedback so far. After years of practice and running in, joint inspection in accordance with international practice should be a feasible path. We hope to continue to promote cooperation with the US in this direction on the basis of pilot projects.
PCAOB is always welcome to sit down with us. We believe that the basis of cooperation between the two sides is greater than their differences. As long as we start from the goal of solving problems and carry out equal consultation in a professional way, we will be able to find a satisfactory and appropriate path for cooperation between the two sides. We have full confidence to resolve our differences through cooperation. Yi Huiman said so.
In the past 40 years, Hong Kong, China, has played an irreplaceable and unique role in the reform and opening up of the mainlands capital market, said Yi. We should see that Hong Kong is not only the Hong Kong of China, but also the Hong Kong of the world. In this sense, giving full play to the position and role of Hong Kong as an international financial center will benefit China, the world and our new era. Yi Huiman said.
For the relationship between Shanghai and Shenzhen stock exchanges and Hong Kong stock exchange, Yi Huiman said that moderate competition is conducive to development and innovation. The three stock exchanges in the mainland and Hong Kong will have some degree of competition objectively, but cooperation is still the mainstream, and the development of the Shanghai Shenzhen Hong Kong stock connect is the best example.
Will speed up
Yi Huiman said that since this year, the opening of Chinas capital market has not slowed down due to the epidemic and Sino US friction, but has been accelerating. China Securities Regulatory Commission cancelled the restrictions on the proportion of foreign shares of futures companies, securities companies and fund management companies in advance, and China and the United States promised the smooth implementation of the first phase of economic and trade agreement.
During the 2019 Lujiazui forum, on behalf of China Securities Regulatory Commission, I announced nine policies and measures to further expand the opening up of capital market, six of which have been implemented, involving one participation and one control of foreign institutions, qualification requirements of shareholders, qualification of fund custody, comprehensive promotion of full circulation of H shares, increase of specific futures varieties, etc.; the other three have also made important progress , the new QFII / rqfii regulations will be promulgated soon, and the opening of the exchange bond market will be accelerated. Yi Huiman said.
I firmly believe that expanding the opening up of the financial industry and financial market is not only an important way to optimize the market ecology and improve the industry level, but also an important means to jointly cope with the current global risk challenges. We sincerely welcome overseas financial institutions and investors to invest in China. Yi Huiman said.
In terms of the going out of Chinese institutions, Yi Huiman said that there seems to be no threshold for Chinese institutions to enter the US industry, but the actual regulatory requirements are very high. Especially after the financial crisis in 2008, there are more mother-in-law in charge of supervision, some of which belong to the CSRC, and some belong to the Federal Reserve. Some powerful securities institutions in our country have a certain relationship with banks. When they come to the United States, they will be regarded as bank holding company. They must abide by the bank holding company law of the United States, and be supervised by the Federal Reserve, including the approval and issuance of business licenses and the reporting and disclosure of information. The regulatory threshold is quite high, which is also internationalized up to now One of the reasons why its difficult for domestic securities companies with good business to obtain underwriting licenses in the United States.
In recent years, the CSRC has also been negotiating with the US side. The banks are not actually involved in the management of these securities companies. They are very independent. We hope that the Federal Reserve and other regulatory authorities can fully consider these realities and support Chinese securities institutions in the US exhibition industry. Previously, the Federal Reserve also had some precedents for granting exemptions in this regard. We will also actively promote this matter. Yi Huiman said.
For the Shanghai Luntong, Yi Huiman said that the UK attaches great importance to the financial cooperation between China and the UK and has a very positive attitude in promoting the development of the Shanghai Luntong. The cross-border listed companies under the Shanghai Luntong are all locally listed and market tested companies. Investors can rest assured of the quality of listed companies. At present, the Shanghai Luntong stock connect is running smoothly.
Speed up the promotion of Chinese characteristics
For the financial fraud of listed companies, Yi Huiman said that the CSRC adheres to the principle of zero tolerance, strong system and strict crackdown on the financial fraud of listed companies. The newly revised Securities Law has greatly increased the punishment for information disclosure violations. Chinas accounting law has made strict requirements on accounting audit business, and the criminal law which is being revised will greatly improve the sentencing of financial fraud.
Yi Huiman said that these efforts will help to form a three-dimensional and organic system of administrative law enforcement, civil recovery and criminal punishment, which are linked and supported by each other, form an effective deterrent to counterfeiters, significantly improve the market ecology, and ensure the stability of Chinas capital market along the road of rule of law and integrity.
Extended reading and development and Reform Commission issued the central budget of 3.5 billion yuan in two batches to support Hainan free trade port national network information office to interview Zhang Bincheng, Secretary of the Party committee and chairman of Shaanxi Nuclear Industry Group Co., Ltd. in 10 live network platforms such as Huya and douyu. Source: Securities Daily net responsibility editor: Yang Qian_ NF4425