China Securities Watchdog Seeks Communication With U.S. On IPOs

The China Securities Regulatory Commission (CSRC) has said that it will initiate talks with its U.S. counterpart and support overseas listings after the U.S. Securities and Exchange Commission halted the initial public offerings of Chinese companies, Reuters reports. 

• The CSRC is looking forward to increasing its communication with the U.S. Securities and Exchange Commission (SEC) to find a suitable resolution regarding Chinese companies' listings. 
• On Friday, the SEC said that it would suspend any Chinese IPOs until companies improved their risk disclosures. 
• According to SEC, Chinese issuers must disclose if they were denied permission from Chinese authorities to list on U.S. exchanges and the risks of such an approval being denied or rescinded.
• The Chinese watchdog has called for mutual respect and collaboration on the issue.
• "China's basic national policy of advancing reform and opening-up is unswerving, and the financial opening to the outside world will continue," CSRC said in a statement.
• CSRC also said that it sees the prospects for Chinese capital markets as predictable, sustainable, and healthy.
• On July 6, China's cabinet said that it would strengthen supervision of all Chinese firms listed offshore.
• The central bank of China has said that non-bank payment firms must report plans for overseas listings.