China: US law on audits and regulations will harm both sides

A new US legislation could prevent some Chinese companies from listing their shares on American exchanges unless they follow standards for US audits and regulations. (AFP file photo)

• ‘We are firmly opposed to the act of politicizing the securities regulation’

SHANGHAI: China’s securities watchdog on Sunday condemned a US law that could block Chinese firms from US securities exchanges, saying it politicized regulation and would damage both countries.
The US Senate passed legislation on Wednesday that could prevent some Chinese companies from listing their shares on US exchanges unless they follow standards for US audits and regulations.
“We are firmly opposed to the act of politicizing the securities regulation, as the content of some terms in the act directly target China rather than considering professional securities regulations,” the China Securities Regulatory Commission (CSRC) said in a statement on Sunday.
The act will harm the interests of both countries, as it not only hinders foreign companies from going public in the United States, but will also weakens global investors’ confidence in US capital markets, the CSRC said.
The act disregards the fact that Chinese and US regulatory institutions have long strived to strengthen cooperation on audits and regulations, the CSRC added.
The CSRC said it hoped the United States would work toward forging a consensus with China as soon as possible to jointly protect the rights and interests of investors.