People pass by the office building of China Securities Regulatory Commission in Beijing. File photo: VCG

Chinese and US securities regulators should step up communication on the supervision of US-listed Chinese companies in a spirit of mutual respect and win-win cooperation to seek solutions and foster policy predictability within an institutional environment, a spokesperson for the China Securities Regulatory Commission (CSRC) said on Sunday.

The comment came after the US Securities and Exchange Commission (SEC) issued a statement on Friday, saying that IPO filings by issuers associated with China-based operating companies won't be declared effective unless they provide certain disclosures, for example business descriptions and detailed financial information.

Companies affected by the new US rule are China-based operating companies that are structured as variable interest entities.

The CSRC spokesperson said that agency was aware of the SEC's statement, especially new disclosure requirements involving Chinese companies seeking to list in the US.

"We have always maintained an open attitude for Chinese companies' choice about where to get listed, and we support companies' choices between international and domestic markets in line with laws and regulations," the spokesperson said.

Companies should comply with relevant laws and supervisory requirements of the countries where they are listed and operate, the spokesperson added.

Chinese regulators are also enforcing standard regulations for certain industries aimed at fostering sustainable development and facilitating the sound development of market players.

"In the formulation and enforcement of policies, the CSRC will closely communicate with relevant government agencies to appropriately deal with the relations among investors, enterprises and supervisors, and will enhance the transparency and the predictability of policies," the spokesperson said.

China's determination to boost reform and opening-up stands firm, and the country's financial services sector will continue to open up, said the spokesperson, noting that more solid opening-up measures will be released to facilitate the high-quality development of China's capital market.

On Friday, the Political Bureau of the Communist Party of China Central Committee also proposed to reform supervision of Chinese companies seeking to list overseas.

The move is a concrete measure to improve the regulatory system in accordance with the changing situation and to standardize relevant enterprises' behavior. It also reflects China's unswerving determination to fully utilize domestic and international resources and push forward opening-up efforts, said a Xinhua News Agency editorial.

Along with profound changes across the global economic and financial landscape, new business models and technologies will continue to emerge, leading to new requirements on the supervision of companies listed overseas. 

This is a new issue facing regulators across the globe and the relationship between opening-up and security must be carefully handled, said the editorial.

Global Times