BEIJING: China’s securities regulator said on Sunday that Beijing’s recent policy moves were not aimed at specific industries or private firms, and did not necessarily pertain to companies being listed. Foreigner Market.
China has imposed sweeping regulatory crackdown on Internet companies, for-profit education, and real estate developers, among others, in recent months.
“The main purpose of (those moves) is to regulate monopolies, protect the interests of small and medium-sized firms and protect data security as well as personal information security,” China securities regulatory commission (CSRC) said in a statement.
The cyberspace regulator had proposed that companies with more than one million users in China must undergo a security review before sending user-related data abroad or listing shares abroad.
Chinese ride-hailing giant Didi Global on Friday said it plans to delist from the New York Stock Exchange and pursue a Hong Kong listing five months after its launch.
The Securities Regulatory Commission said it has taken note of new rules introduced by the US Securities and Exchange Commission (SEC) asking Chinese companies to provide details of their ownership structure and audit.
The CSRC said that certain media reports that China would potentially ban companies with a VIE (Variable Interest Entity) structure from US listings are a matter of complete misunderstanding and (misreading).
The VIE structure, widely used by tech firms, was created two decades ago to circumvent regulations restricting foreign investment in sensitive industries such as media and telecommunications.
The commission said the CSRC policies are not meant to crack down on specific industry or private firms and “have no essential linkage with foreign listing of companies”.
It said the commission has learned that some Chinese companies are actively communicating with domestic and foreign regulators to go public in the United States. CSRC will respect the choice of listing locations of the firms based on compliance, it said.
The Securities Commission said it has had clear, constructive communication with the SEC and the Public Company Accounting Oversight Board, and has made positive progress in promoting cooperation on some key issues.
However, it is noted that some forces in the US have “politicised” capital market supervision and threatened Chinese companies to exit the country in recent years, which is against the principles of the market economy and against global investors. damages, as per the statement.
The CSRC said it would continue to communicate with its US counterpart to resolve the remaining issues in the audit and regulatory areas at the earliest.
China has imposed sweeping regulatory crackdown on Internet companies, for-profit education, and real estate developers, among others, in recent months.
“The main purpose of (those moves) is to regulate monopolies, protect the interests of small and medium-sized firms and protect data security as well as personal information security,” China securities regulatory commission (CSRC) said in a statement.
The cyberspace regulator had proposed that companies with more than one million users in China must undergo a security review before sending user-related data abroad or listing shares abroad.
Chinese ride-hailing giant Didi Global on Friday said it plans to delist from the New York Stock Exchange and pursue a Hong Kong listing five months after its launch.
The Securities Regulatory Commission said it has taken note of new rules introduced by the US Securities and Exchange Commission (SEC) asking Chinese companies to provide details of their ownership structure and audit.
The CSRC said that certain media reports that China would potentially ban companies with a VIE (Variable Interest Entity) structure from US listings are a matter of complete misunderstanding and (misreading).
The VIE structure, widely used by tech firms, was created two decades ago to circumvent regulations restricting foreign investment in sensitive industries such as media and telecommunications.
The commission said the CSRC policies are not meant to crack down on specific industry or private firms and “have no essential linkage with foreign listing of companies”.
It said the commission has learned that some Chinese companies are actively communicating with domestic and foreign regulators to go public in the United States. CSRC will respect the choice of listing locations of the firms based on compliance, it said.
The Securities Commission said it has had clear, constructive communication with the SEC and the Public Company Accounting Oversight Board, and has made positive progress in promoting cooperation on some key issues.
However, it is noted that some forces in the US have “politicised” capital market supervision and threatened Chinese companies to exit the country in recent years, which is against the principles of the market economy and against global investors. damages, as per the statement.
The CSRC said it would continue to communicate with its US counterpart to resolve the remaining issues in the audit and regulatory areas at the earliest.
,