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ChinaDiplomacy

China’s securities watchdog reaches out to US in Didi crackdown aftermath

  • CSRC says regulators in both countries should strengthen communication about China-related stocks
  • It says it remains open to choices of listing destinations for Chinese companies

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China’s securities regulator says it wants better communication with its US counterpart over listing requirements for Chinese companies. Photo: Reuters
Linda Lew
China’s securities watchdog is seeking greater communication with its US counterpart over listing requirements for Chinese companies amid fresh disclosure demands from the United States for China-based firms.

“The securities regulators of the two countries should uphold the spirit of mutual respect, strengthen communication on regulating China-related stocks, and find appropriate solutions to create sound policy expectations and a sound regulatory environment for financial markets,” the China Securities Regulatory Commission (CSRC) said on Sunday.

The statement came after the US Securities and Exchange Commission (SEC) on Friday halted Chinese companies from raising money on US financial markets until they improved disclosures of risks to shareholders.

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It followed Beijing’s launch of a cybersecurity investigation into ride-sharing giant Didi Chuxing last month just days after its US stock listing, a move that sent its share price plummeting and prompted the SEC to voice concerns about Beijing’s regulatory moves.

The CSRC said greater regulatory cooperation between the two countries was an “inevitable choice” as investments in each other’s capital markets became intertwined.

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It also said it had long been open to choices of listing destinations for Chinese companies.

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