A CSRC official met with executives of Western banks, saying China and the US are making progress in coordinating regulations governing New York-listed Chinese companies, according to Reuters.
China and the United States were making progress in coordinating regulations governing Chinese companies listed in New York and could see a "positive surprise" by June or earlier, a China Securities and Regulatory Commission (CSRC) official told Western banking executives, Reuters said today, citing people familiar with the matter.
Fang Xinghai, the vice-chairman of the CSRC, held a virtual meeting this week with executives from more than a dozen top Western banks and asset managers in an effort to reassure them about the country's economic prospects after a regulatory crackdown in 2021, according to the report.
Fang told attendees that China will achieve "respectable growth" in 2022 as it prioritizes this year's economic growth, according to the report.
For US-listed Chinese companies, the ongoing standoff between Chinese and US regulators over audit papers has become a major uncertainty they have been facing.
A number of companies, including Xpeng Motors, Li Auto, Baidu and Alibaba, have listed in Hong Kong in the past year or two as a response to potential risks.
Nio has yet to list in Hong Kong, though it is considering a secondary listing in Singapore as early as this year, IFR said on January 26, citing people familiar with the matter.
With a Hong Kong listing in limbo, Nio has begun considering a Singapore listing, the IFR report said, adding that Nio will not abandon its Hong Kong plans entirely and will continue discussions with Hong Kong regulators.
Battered by a series of uncertainties, the KraneShares CSI China Internet ETF (KWEB) that tracks the leading Chinese Internet stocks listed in the US and Hong Kong, has fallen 52 percent last year.
So far this year, stocks of US-listed Chinese companies continue to sell off as uncertainty continues and the Federal Reserve signals a tightening of monetary policy.
The KWEB was down about 8 percent this month, while electric vehicle company stocks have been sold off even more severely, with Nio down 33 percent this month, Xpeng down 35 percent and Li Auto down 27 percent.
Nio, Xpeng, Li Auto: What could get their stocks out of slump?
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