China Securities And Regulatory Commission Is In Talks With Foreign Bank To Soothe Economic Concerns

The China Securities and Regulatory Commission (CSRC) met this week with the executives of top western banks and asset managers to reassure them about the country’s economic prospects after regulatory crackdowns in 2021, three sources said on Friday.

Fang Xinghai, the vice-chairman of the CSRC, hosted the virtual meeting with more than a dozen foreign financial institutions on Tuesday, said the sources, who have direct knowledge of the meeting but declined to be identified as they were not authorized to speak to the media.

Fang reassured the meeting participants that China will achieve “respectable growth” in 2022 as it prioritises economic growth for this year, one of the sources told Reuters.

The CSRC did not immediately respond to Reuters request for comment.

Fang told the executives that China and the United States were making progress in coordinating regulations governing Chinese companies listed in New York and there could be a “positive surprise” by June or earlier, the source said.

The U.S. Securities and Exchange Commission (SEC) said last month that Chinese companies that list on U.S. stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their auditing inspections.

The rule advances a process that could lead to more than 200 companies being kicked off U.S. exchanges and could make some Chinese companies less attractive to investors.

– Reuters