THE memorandum of understanding between the China Securities Regulatory Commission and the US Securities and Exchange Commission is a welcome development.
It poses no threat to Hong Kong's status as a key recipient of China listings.
A wide exposure to regulatory regimes across the globe, including North America, Europe and Australasia, can only enhance the mainland regulator's ability to understand some of the complex issues and myriad interests involved when trying to solve problems of securities regulation.
Hong Kong exchange chief executive Paul Chow Man-yui said earlier in the year that such a development was positive.
He argued that the chance of another regulatory regime outside our time zone taking over as the primary listing vehicle for mainland overseas listings was negligible.
In any case, Beijing would not allow it. And overseas international institutions like to see healthy domestic investor support and liquidity before deciding to dip their own toes in overseas tranches.