CSRC: US bill to delist Chinese companies politicizes market regulations – Global Times

China’s Global Times recently conveyed Sunday’s comments from the China Securities Regulatory Commission (CSRC) while attacking the US bill to delist Chinese companies.

Key quotes

The bill is jeopardizing the interest of both sides. It is deterring foreign companies from being listed in the US and is weakening international investors’ confidence in the US’ capital market.

The bill would require foreign-owned companies to establish they are not controlled by a foreign government, and would need to submit to an audit review by the Public Company Accounting Oversight Board (PCAOB). If the US regulators cannot inspect a company’s audits for three consecutive years, it will be banned from trading on the US market. 

Chinese companies make up most of the foreign entities listed in the US, and some of the biggest ones, including China National Petroleum Corporation and China Mobile, are state-owned. 

The bill passed the Senate on Wednesday and was introduced to the House of Representatives by Democratic Representative Brad Sherman on the same day. 

The Trump Administration is trying to squeeze Chinese companies out of the US market,” Dong said, “It is sabotaging its self-claimed free market, and is irresponsible to the investors.

CSRC said it is looking forward to a positive response from the US regulator, and hopes negotiations will be equal and friendly.

FX implications

Amid the current US-China tussle, the news adds to the market’s worries and heavies the risks in turn. Even so, USD/JPY seesaws around 107.60 by the press time of early Asian morning on Monday.