China Hits Back At New U.S. Securities Regulations
What’s new: The China Securities Regulatory Commission (CSRC) said Sunday in a statement (link in Chinese) that it opposes the U.S.’ practice of politicizing securities regulation, in response to a bill the U.S. Senate approved last week that could lead to some Chinese companies being barred from listing on U.S. stock exchanges.
The CSRC said that some provisions of the bill are directly pointed at China rather than based on professional considerations of securities regulation. It also said the bill harms the interests of both sides, and undermines global investors’ confidence in U.S. capital markets and its international status.
What’s the background: The bill, approved by unanimous consent on Wednesday, would require companies listed on U.S. exchanges to establish that they are not under the control of a foreign government.
“Specifically, an issuer must make this certification if the Public Company Accounting Oversight Board is unable to audit specified reports because the issuer has retained a foreign public accounting firm not subject to inspection by the board,” according to a summary of the bill. “Furthermore, if the board is unable to inspect the issuer’s public accounting firm for three consecutive years, the issuer’s securities are banned from trade on a national exchange.”
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