(Yicai Global) Sept. 2 -- China's securities watchdog will push forward the legislative process for new regulations on overseas listings, its vice chairman said a week after Chinese and US authorities reached a landmark deal permitting auditors to inspect accountancy firms within each other’s jurisdictions.

China will implement the agreement reached with the United States and introduce a new filing system for companies whose main business is in China but are registered offshore and plan to list on overseas markets, Fang Xinghai said at a financial forum today.

The deal inked last week was a major step toward resolving long-standing auditing issues between China and the US that threaten to force about 200 Chinese companies off US bourses.

“The successful signing of the audit and regulatory cooperation agreement between China and the US on cross-border listed companies is an important step in removing the obstacles that have existed for many years for Chinese companies to go public in the US,” Fang said.

Fang also said the China Securities Regulatory Commission will issue new rules to strengthen regulation and risk prevention in an open environment, enhance the monitoring of cross-border capital flows, maintain the normal operation of the capital market, and build a predictable international regulatory environment for the high-level opening-up of the financial market.

The CSRC will further bolster cooperation between the mainland and Hong Kong capital markets and financial regulators through three measures, Fang said. Firstly, by working to expand the China-Hong Kong Stock Connect scheme through the inclusion of more eligible stocks.

Secondly, by supporting Hong Kong to introduce Chinese yuan stock trading counters and promote the currency’s internationalization by studying how to improve them. And lastly, by promoting the launch of Hong Kong treasury bond futures to accelerate the opening-up of the domestic government bond futures market, and coordinate development between the two places.

Editor: Futura Costaglione