SFCs latest response! The U.S. politicizes securities regulation at the expense of others

category:Finance
 SFCs latest response! The U.S. politicizes securities regulation at the expense of others


Chinas foreign ministry has responded to the foreign company Accountability Act twice in a row. Chinas Foreign Ministry spokesman Hua Chunying said that the United States has adopted a discriminatory policy against Chinese companies, which is a political crackdown on Chinese enterprises. If the case is finally enacted, it will seriously weaken the confidence of global investors in the U.S. capital market, and eventually damage the international status of the U.S. capital market and its own interests. It is hoped that the US side can see the situation clearly and provide a fair, just and non discriminatory environment for foreign enterprises to invest and operate in the United States, instead of setting up barriers at all levels. Of course, China will take necessary measures to safeguard its legitimate rights and interests.

SFCs latest response

The U.S. House of Representatives unanimously passed the foreign company Accountability Act on December 2 local time, and will be sent to the White House for the president to sign the legislation into effect after it is passed by the house of Representatives, Xinhua reported.

According to the foreign company Accountability Act, if a foreign issuer fails to meet the inspection requirements of the public company accounting oversight board (PCAOB) on accounting firms for three consecutive years, its securities are prohibited from trading in the United States, and additional disclosure requirements are put forward for foreign companies. The US Senate passed the bill in May this year.

Since the beginning of this year, China and the United States have exchanged views on information disclosure. In response to the US Senates adoption of the accountability act on foreign companies in May, the head of the relevant departments of the China Securities Regulatory Commission (CSRC) responded on May 24 that 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.

In August this year, the U.S. Treasury released the report of the U.S. presidents financial market working group on protecting U.S. investors against major risks of Chinese companies on its official website. In view of the jurisdictions that the U.S. public company accounting oversight board (PCAOB), including China, is unable to carry out inspection, it is suggested that the listing threshold of companies from these jurisdictions should be raised, the information disclosure requirements should be strengthened and strengthened It also requires the listed companies in the United States to meet the relevant requirements of PCAOB for inspection no later than January 1, 2022.

The Ministry of foreign affairs responded twice in a row

In fact, the Ministry of foreign affairs of China has responded to the foreign company Accountability Act twice in a row.

Chinas Foreign Ministry spokesman Hua Chunying responded at a regular Foreign Ministry press conference on December 2 that the United States has adopted a discriminatory policy against Chinese companies, which is a political crackdown on Chinese enterprises. In todays highly globalized capital market, the right way to solve the problem is to strengthen dialogue and cooperation between relevant parties on issues such as strengthening cross-border regulatory cooperation and protecting the legitimate rights and interests of investors. We firmly oppose the politicization of securities regulation. It is hoped that the US side can provide a fair, just and non discriminatory environment for foreign enterprises to invest and operate in the United States, instead of trying to set up various obstacles.

On December 3, Hua Chunying again responded that the US action is only a concrete action of the United States to suppress Chinese enterprises politically, and it is also a concrete manifestation of the hope of curbing Chinas development. China has always believed that in todays highly globalized capital market, the right way to solve the problem is to strengthen cross-border regulatory cooperation, protect the legitimate rights and interests of investors, and strengthen foreign cooperation. If the case is finally enacted, it will seriously weaken the confidence of global investors in the U.S. capital market, and eventually damage the international status of the U.S. capital market and its own interests. It is hoped that the US side can see the situation clearly and provide a fair, just and non discriminatory environment for foreign enterprises to invest and operate in the United States, instead of setting up barriers at all levels. Of course, China will take necessary measures to safeguard its legitimate rights and interests.

Xinhua International Review:

Politicizing securities regulation will do harm to others and others

The bill is obviously discriminatory and is a political crackdown on Chinese enterprises. The act requires that foreign issuers are prohibited from trading in the United States if they fail to meet the public company accounting oversight boards inspection requirements for accounting firms for three consecutive years.

Analysts believe that the bill, while applicable to companies in any country, is aimed at Chinese companies listed in the US, such as Alibaba, pinduoduo and PetroChina. Chinese companies listed in the United States, in accordance with the relevant laws and regulations of the United States to prepare financial statements, fulfill the obligation of information disclosure. It is actually a problem in the field of cross-border regulatory cooperation that the U.S. regulators cant check the Chinese accounting firms that provide audit services for Chinese Listed Companies in the United States. However, the bill is not based on the professional consideration of securities regulation, and ignores the fact that the regulatory agencies of China and the United States have been working hard to strengthen the cooperation in audit supervision for a long time. Some of the provisions are directly aimed at China, and the intention of political repression is obvious.

Under the banner of protecting the interests of investors, the bill poses great risks to the interests of investors. Listed companies from China are one of the most important groups of foreign listed companies in the US stock market, with a total market value of more than one trillion US dollars. However, the listing of these companies in the United States may cause damage to the interests of Chinese investors. ABN has warned that if the bill forces some Chinese companies to privatize, it will have a negative impact on investors. In todays highly globalized capital market, the listing of Chinese enterprises in the United States is a free choice of the market and a win-win move. It is hoped that the US side will give up political prejudice and strengthen dialogue and communication with China on issues such as strengthening cross-border regulatory cooperation and protecting the legitimate rights and interests of investors, so as to provide a fair, just and non discriminatory environment for foreign enterprises to invest and operate in the United States. Source: Securities Times editor in charge: Wang Xiaowu_ NF

Under the banner of protecting the interests of investors, the bill poses great risks to the interests of investors. Listed companies from China are one of the most important groups of foreign listed companies in the US stock market, with a total market value of more than one trillion US dollars. However, the listing of these companies in the United States may cause damage to the interests of Chinese investors. ABN has warned that if the bill forces some Chinese companies to privatize, it will have a negative impact on investors.

In todays highly globalized capital market, the listing of Chinese enterprises in the United States is a free choice of the market and a win-win move. It is hoped that the US side will give up political prejudice and strengthen dialogue and communication with China on issues such as strengthening cross-border regulatory cooperation and protecting the legitimate rights and interests of investors, so as to provide a fair, just and non discriminatory environment for foreign enterprises to invest and operate in the United States.