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CSRC to Ease Overseas Listings

The China Securities Regulatory Commission (CSRC) will promote China-US cooperation on audit supervision and accelerate the launch of new overseas listing rules, said Yi Huiman, the Chairman of the CSRC.

While addressing the third meeting of the China Association for Public Companies’ representatives, Human said efforts will be made to create a predictable “international regulatory environment for high-level opening-up of the capital market.”

The commission supports local companies using domestic and overseas markets to develop, and it will speed up efforts to make new regulations concerning offshore issuance and listing effective, and keep the channel of overseas listing open, Yi said.

Yi also said China will launch a new round of capital market opening-up measures at an early date, including increasing the accessible securities in stock connect programs between mainland and Hong Kong exchanges, expanding and improving the Shanghai-London Stock Connect, and making more futures products available to international investors.

China’s efforts to smooth the channel for Chinese companies listing overseas will help anchor market expectations and boost investor confidence, though it will take time and effort to totally resolve the audit dispute with United States’ regulators, according to various experts.

On April 2, China announced a draft revision of confidentiality rules for Chinese companies listing overseas, paving the way for China-US cooperation on auditing supervision.

The draft rules scrap a requirement that on-site inspections related to overseas-listed Chinese companies should be mainly conducted by Chinese regulators or rely on their inspection results. 

In December, the commission also unveiled draft rules on domestic regulations relating to Chinese companies listing overseas.