SHANGHAI :
China Is Ready to Put in Work to Help Its US-Listed Firms, CSRC Vice Chair Says
Chen Juan
DATE:  Jun 19 2020
/ SOURCE:  Yicai

(Yicai Global) June 19 -- China’s securities regulator is willing to cooperate with the US to help resolve issues with Chinese firms listed across the Pacific, according to its Vice Chairman Fang Xinghai.

“We are willing to solve the problem,” Fang said at the Lujiazui Forum, which started in Shanghai yesterday. “Solutions do exist.”

US regulators are concerned that Chinese companies pose a major risk to American investors, with many failing to maintain their initial share price, and others, such as supposed Starbucks rival Luckin Coffee, fabricating hundreds of millions of dollars in revenue.

The US Senate passed a bill last month requiring companies listed in the country to prove that they are not “owned or controlled by a foreign government” and mandated they adhere to stricter audit requirements, a move that could squeeze out a number of Chinese firms and was widely considered as targeting companies from Asia’s largest economy.

Chinese firms listing in the US is not only good for these companies and their development, but a way for American investors to reap higher investment returns, Fang said in their defense.

He also discussed how China could take action to spur a new wave of globalization that could boost the economies of China and the rest of the world.

China could use its transformation of Shanghai into an international financial hub as a way to spur the opening up of the nation’s financial markets, Fang suggested, also proposing the country internationalize the yuan and look at making it more convertible so global investors can more easily acquire yuan-denominated assets in Shanghai.

Editor: James Boynton

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Keywords:   Lujiazui Forum,Fang Xinghai