China securities regulator stresses dialogue with US for achieving win-win results

BEIJING - China’s top securities regulator said Saturday that resolving issues of common concern through dialogue is the only way to achieve win-win results, when responding to a recent US report released by the President’s Working Group on Financial Markets.

The so-called “Report on Protecting United States Investors from Significant Risks from Chinese Companies” has recommendations such as enhancing listing standards on US exchanges for access to audit work papers. Strengthening the supervision of listed companies’ information disclosure and improving auditors’ professional ethics and their practices are important means to protect the legitimate rights and interests of investors, the China Securities Regulatory Commission (CSRC) said on its website.

Starting from common interests of both sides, China and the United States should carry out open dialogue and cooperation, it said. The two sides have maintained communication and interaction, the CSRC said, adding that Chinese authorities have shown full cooperation sincerity by repeatedly communicating with the US Securities and Exchange Commission and the Public Company Accounting Oversight Board (PCAOB) on joint inspections of accounting firms since 2019. On Aug. 4, the Chinese side sent updated proposals concerning the joint inspections to the PCAOB based on the latest needs and ideas of the US side, it said. “Resolving issues of common concern through dialogue is the only way to achieve win-win results,” said the CSRC. “Only by doing so can a sound environment for the healthy and orderly operation of the global capital market be created.” China has never prohibited or prevented relevant accounting firms from offering audit work papers to overseas regulators, the CSRC said. The country’s securities authorities have provided the audit work papers of several US-listed Chinese companies to the US securities authorities, as mentioned in the US report, it said. The exchange of information including that of audit work papers should be conducted through regulatory cooperation channels, which is an internationally accepted common practice, the CSRC said. (Xinhua)