US securities legislation ‘political crackdown’ on Chinese firms: FM

Source: Global Times Published: 2020/12/3 18:14:17

A trader works at the New York Stock Exchange in New York, the United States, on May 13, 2019. (Photo: Xinhua)

A bill passed on Wednesday by the US House of Representatives that could block Chinese corporate listings in the US stock market is a concrete action taken to politically crack down on Chinese companies and contain China's development, Foreign Ministry spokesperson Hua Chunying said on Thursday.

China has long believed that with capital markets highly globalized, the correct path to solve problems would be to have all concerned parties strengthen cross-border regulatory cooperation in a frank and sincere manner, protect investors' legitimate rights, and enhance international cooperation, Hua told a regular news conference.

The bill, passed by the Senate in May, bars foreign listings if they have failed to comply with the US Public Accounting Oversight Board's audits for three years in a row.

The China Securities Regulatory Commission said earlier this year that China had never prevented accounting firms from providing audit working papers to overseas regulatory institutions, but such an exchange of information ought to be done through regulatory cooperation.

 "We resolutely oppose the US move to politicize securities supervision," the spokesperson remarked, adding that if the bill comes into force, it would severely undermine global investors' confidence in the US capital market, damage the international clout of the US market, and harmful to the US' self-interest.

Hopefully, the US can make an appraisal of the situation and provide a fair, equitable and non-discriminatory environment for foreign firms investing and operating in the US, rather than creating a set of barriers, Hua said, noting that China would certainly adopt necessary measures to safeguard its own justified and lawful rights. 

Global Times 


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