China's CSRC downplays overseas delisting fear after stock plunge

[BEIJING] China's securities watchdog said on Sunday (Dec 5) that it respects companies' choices on where to list their stock while again denying reports of a possible ban on one method of overseas stock listings.

The China Securities Regulatory Commission (CSRC) also said in a statement that reports are "completely misleading" that regulators are promoting that firms drop their US listings. Some domestic companies are actively working with Chinese and foreign regulators to have shares listed in the US, the agency said.

The agency said in a statement last Wednesday it was not true that China would stop overseas listings of firms using a variable interest entity structure. Bloomberg News reported that such a ban is in the works, citing people familiar with the matter, an effort in part intended to address data-security concerns.

Meanwhile, CSRC said on Sunday that recent Chinese policies to regulate online platforms were aimed at curbing monopolies and ensuring data security. The rules will not target a particular industry or just the private sector, and they are not necessarily linked to overseas listings, said the CSRC.

The watchdog also called for pragmatic China-US cooperation on audit oversight, stressing that forcing US-listed Chinese companies to delist is not a responsible policy option. "Positive progress" has been made in talks on regulatory cooperation between the CSRC and the US securities and accounting regulators, the agency said.

BLOOMBERG