US slammed for putting 17 other Chinese companies at risk of delisting
Pedestrians wearing face masks walk past the New York Stock Exchange in New York, United States. Photo: Xinhua
The U.S. securities regulator’s latest decision to add 17 more U.S.-listed Chinese companies to a list of companies subject to delisting shows continued U.S. crackdown on Chinese companies and is not conducive to bilateral cooperation on regulatory issues, a Chinese expert said on Friday.
The U.S. Securities and Exchange Commission (SEC) on Thursday added the fifth group of U.S.-listed Chinese companies to its so-called tentative list for possible delisting. A total of 17 Chinese companies listed in the United States have been added to the list, including BEST Inc and Li Auto Inc. So far, the SEC has added five batches of Chinese companies to the provisional list, citing the law on the liability of foreign companies, which came into force in December 2020.
“At a time when Chinese and U.S. regulators are engaged in discussions about audit cooperation, the SEC’s decision to add Chinese companies one after another to the so-called provisional list for a possible delisting is not conducive to” bilateral cooperation on regulatory issues, Dong Shaopeng, an expert advisor to the China Securities Regulatory Commission, told the Global Times on Friday.
The regulatory departments of China and the United States have had differences over audit issues for Chinese companies listed in the United States for years; however, positive signals have recently emerged regarding the talks.
“At present, the bilateral negotiations are going very well, and we believe that the relevant uncertainties regarding Chinese companies listed in the United States will soon be resolved,” said Fang Xinghai, vice chairman of the China Securities Regulatory Commission. (CSRC), at Boao. Forum for Asia (BFA) Annual Conference 2022 on Thursday.
On April 2, the CSRC also announced changes to cross-border regulations for overseas-listed Chinese companies in a draft regulatory document dealing with confidentiality and document management for overseas listings, which , experts say, shows China’s continued good faith efforts to resolve the audit dispute with the United States while protecting national security.
However, the US side seems to have arbitrarily stuck to its own positions, Dong said, adding that the US should respect China’s jurisdiction and the bilateral regulatory memorandum previously reached between the two sides and should not take any measures against Chinese companies solely on the basis of their national laws.
Chinese companies listed in the United States, on the other hand, are encouraged to “go home” and seek listing on the Chinese mainland or Hong Kong stock exchanges, if they face discriminatory regulatory measures. in the United States, Dong said.
In recent years, in order to ward off political risks in the United States, many Chinese companies listed in the United States have conducted dual listings, mainly choosing Hong Kong as their secondary listing market. Such a trend will also hurt US financial markets, experts said.