China’s stock market watchdog has moved to ease tensions with its American counterpart, which has tightened the rules for Chinese companies listing in New York.
The US Securities and Exchange Commission (SEC) said on Friday that it would require Chinese businesses to disclose more about their ownership structures and relations with the state before being allowed to float in the US.
This followed a steep sell-off in a range of US-listed Chinese tech stocks in response to Beijing’s campaign to curb the sector’s powers.
Last month China launched a data security investigation into Didi Chuxing, the country’s dominant ride hailing app, just days after it listed in the US. The inquiry sent Didi’s stock tumbling. Shares in Chinese online education companies fell on the US stock market last week after a crackdown against the profitable tutoring industry.
Yesterday, the China Securities Regulatory Commission said it and its US counterpart should “uphold the spirit of mutual respect” and “strengthen communications on regulating China-related stocks”.
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It said that it had always been open to Chinese companies listing abroad and that the “national policy of advancing reform and opening up is unswerving”.
The SEC had said it would require Chinese companies to disclose “uncertainty about future actions by the government of China that could significantly affect the operating company’s financial performance”.
