Monday 2 August 2021 11:37 am

China securities watchdog seeks closer cooperation with US after Didi crackdown

The China Securities Regulatory Commission (CSRC) has said it will enhance communication with its US counterpart on overseas listing after US regulators tightened disclosure for Chinese companies.

The Chinese securities regulator said it had noticed the US Securities and Exchange Commission’s (SEC) new disclosure requirements for Chinese companies’ listings.

It added the two sides should “continue to enhance communication with the principle of mutual respect and cooperation” and properly address the supervision of China-related stocks.

The CSRC said it has always been open to companies choosing where to list their securities.

“China is unswervingly committed to its basic state policy of reform and opening-up. The financial services sector of China will open wider to the outside world, and more opening-up measures will be rolled out to serve the high-quality development of China’s capital markets,” it said.

The SEC announced on Friday it has frozen registrations of Chinese companies for IPOs on US markets while formulating new rules to require Chinese companies to disclose the risks faced from Beijing that could affect their financial performance.

The move came after Chinese authorities banned ride-hailing giant Didi Chuxing from onboarding new users and launched an investigation into the company allegedly violating user privacy, just days after its $4.4bn New York IPO in late June.

Meanwhile, Beijing continues its regulatory crackdown on other technology and private education companies with large amounts of data at their disposal. It plans to uproot how Chinese companies are listed on foreign markets.

Last week, Chinese music streaming giant Tencent slumped 16 per cent of its shares after Beijing ordered the company to end its exclusive music licensing agreements with record labels worldwide.