China's securities regulator says willing to tackle US regulatory issue via cooperation

BEIJING -- China is willing to tackle the issue of inspection and investigation by US regulators on relevant accounting firms through regulatory cooperation, the country's top securities regulator said Friday.

The China Securities Regulatory Commission (CSRC) made the remarks after the United States Securities and Exchange Commission identified five US-listed Chinese companies as issuers that risk being delisted.

CSRC noted that the latest move was a normal procedure of implementing the Holding Foreign Companies Accountable Act and relevant rules by US regulators.

"We respect supervision from overseas watchdogs on accounting firms for the purpose of improving the financial disclosure quality of listed firms, but stand firmly against the wrong practice of politicizing securities regulation by certain forces," it said.

China has always maintained an open and cooperative attitude toward carrying out the regulatory cooperation, CSRC said, adding that such cooperation is in line with international practices.

It said that positive progress has been achieved recently after communication and dialogues with the Public Company Accounting Oversight Board of the US side.

"We are confident that the two sides, with joint efforts, will work out cooperation arrangements that meet the legal and regulatory requirements of the two countries as soon as possible, so as to protect the rights and legitimate interests of global investors and promote healthy and steady market development in the two countries," the regulator said.