In May this year, the head of the relevant departments of the China Securities Regulatory Commission (CSRC) answered a reporters question about the passage of the Accountability Act of foreign companies by the Senate of the United States Congress. From the perspective of the bill and the comments of relevant people in the US Congress, some provisions of the bill are directly aimed at China, rather than based on professional considerations of securities regulation. We firmly oppose this politicization of securities regulation.
The head of the relevant departments of the CSRC said that the act requires that foreign issuers who fail to meet the inspection requirements of the public company accounting oversight board (PCAOB) on accounting firms for three consecutive years shall be prohibited from trading their securities in the United States. In this regard, we believe that the bill completely ignores the fact that the Chinese and US regulators have been working hard to strengthen audit supervision cooperation for a long time. China has always attached great importance to China US cooperation in capital market audit supervision. In 2017, China assisted PCAOB to carry out a pilot inspection on a Chinese accounting firm. Since 2019, China has repeatedly proposed to PCAOB specific proposals for joint inspection of accounting firms. We look forward to a positive response from US regulators and call on both sides to speed up the joint inspection of relevant accounting firms through equal and friendly consultation and in accordance with the international practice of cross-border audit regulatory cooperation.
The bill will damage the interests of both sides. It will not only hinder foreign companies from listing in the United States, but also weaken global investors confidence in the US capital market and its international status. High quality listed companies are important resources for competition in capital markets of various countries. I believe that international investors will make their own wise choices according to their own best interests.
Source: responsible editor of global network: Yang Bin_ NF4368