China's regulator expressed its discontent with a new bill that would tighten listing rules in the USA, describing the move as a politicization of securities rules.
"We firmly oppose such politicization of securities regulation", the CSRC said in an issued statement.
The proposed legislation would not only prevent foreign companies from listing in the USA but also weaken global investors' confidence in US capital market, it said. The White House released a report last week a spelling out a "fundamental reevaluation" of relations with China, which then said Sunday that political forces in the US are pushing the two powers into a new Cold War.
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The legislation still needs to pass the House of Representatives and be signed by President Donald Trump.
"For too long, Chinese companies have disregarded USA reporting standards, misleading our investors", said Democratic senator and the bill's co-sponsor Chris Van Hollen in a statement issued last week.
"We facilitated PCAOB's inspection over a Chinese accounting firm in a pilot program in 2017 and have provided for several times specific proposals to the PCAOB on conducting joint inspections over Chinese accounting firms since 2019".
The CSRC has responded to a U.S. bill that could subject the 233 Chinese companies listed in the United States to PCAOB oversight in their audits, or delisting for noncompliance.
The proposed Act will harm the interests of both China and the U.S., impede foreign issuers from listing in the United States, undermine global investors' confidence in USA capital markets, and weaken USA markets' worldwide standing, the CSRC said.
"We look forward to a positive response from the USA regulatory agencies, and call on both parties to expedite the joint inspection of accounting firms through equal and friendly consultations and to draw on common worldwide practices of audit supervisory cooperation". High-quality listed companies are a key resource for competition in the capital markets of various countries.
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