In response to Beijing’s clampdown on private industry, SEC Chair Gary Gensler asked staff to seek additional disclosures from Chinese firms before signing off on their registration statements to sell stock. China had earlier proposed new rules requiring virtually all companies wanting to list in a foreign country to undergo a cybersecurity review, a move that would vastly increase oversight over its private enterprises.
China’s securities regulator called for talks with its American counterpart after the US Securities and Exchange Commission halted the initial public offerings of Chinese companies.
The China Securities Regulatory Commission is seeking to step up communication with the SEC to find a suitable resolution, it said in a statement Sunday, Aug 1, after the US regulator said it would suspend any Chinese IPOs until companies improved their risk disclosures. The Chinese watchdog called for mutual respect and collaboration on the issue.
