Chinese companies free to choose listing venues, but must obey laws - regulator
Reuters
Published Jun 10, 2021 04:28AM ET
SHANGHAI (Reuters) - China's top securities regulator said on Thursday that Chinese companies are free to choose their listing locations but they must abide by local laws and regulations.
Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC), also called for closer cooperation among global watchdogs on law enforcement.
"Some companies want to list overseas, and some overseas-listed companies are willing to come home. This is natural phenomenon, and we're generally supportive to both," Yi told a financial forum in Shanghai.
"Wherever companies list, they must ... respect the law, and respect investors."
A growing number of U.S.-listed Chinese companies are conducting secondary listings in Hong Kong, as U.S. regulators threaten to remove them from American exchanges unless they meet U.S. auditing requirements in three years.
Meanwhile, some cases of fraud by Chinese companies had dented investor confidence in U.S.-listed Chinese firms.
"Global regulatory bodies need to strengthen cooperation in law enforcement ... and join forces in cracking down on illegal behaviors," Yi said.
He brushed aside concern that China was tightening domestic initial public offerings (IPOs).
"We think that there's no tightening, or loosening," Yi said, citing data showing a 37% rise in domestic IPO fundraising during the first five months of the year.
What Chinese regulators had done was merely to tighten scrutiny on underwriters and raise the bar for tech listings, in a bid to prevent reckless capital expansion, he said.
In the commodities market, Yi said that global liquidity excesses, economic imbalances, and the demand-supply gap had colluded to push up commodity prices, making risk hedging important.
Yi urged global compilers of commodity price benchmarks to improve the way they make indexes.
"We call on relevant international organisations to set up a more rigid and scientific index-compiling mechanism," he told the conference.
That would "improve the efficiency of price discovery, which is conductive to the stability and safety of the global value chain".
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.