Chinese securities regulator responds after more firms placed on SEC list for possible delisting

Whether the companies are actually delisted in the next two years will ultimately depend on the progress and outcome of the US-China audit and regulatory cooperation, the CSRC said.

The China Securities Regulatory Commission (CSRC) responded after the US Securities and Exchange Commission (SEC) placed more Chinese companies on a provisional list of potential delistings.

The CSRC said in a question-and-answer session today that it understands that the SEC's listing of companies at risk of delisting is a normal part of the US regulator's enforcement of the Holding Foreign Companies Accountable Act (HFCAA).

Whether a company is actually delisted in the next two years will ultimately depend on the progress and results of the US-China audit and regulatory cooperation, the CSRC said.

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The CSRC said it took note of a recent interview with SEC Chair Gary Gensler about the audit and regulatory cooperation between the two sides, and as Gensler said, the regulators on both sides have had a thoughtful, respectful and productive dialogue.

Since last August, CSRC Chairman Yi Huiman and Gensler have held three video conferences to discuss the resolution of the remaining issues in the US-China audit regulatory cooperation, according to the CSRC.

The Chinese side and the US Public Company Accounting Oversight Board (PCAOB) have had several rounds of frank, professional and efficient talks that have generally gone well, and communication between the two sides will continue, the CSRC said.

Both sides have the will to resolve differences and issues, and the final outcome will depend on the wisdom and initial intentions of both sides, the CSRC said.

On Wednesday, the SEC added Futu Holdings, Nocera, iQIYI, Baidu, and CASI Pharmaceuticals to the provisional list of issuers identified under the HFCAA for the third update of the list.

On March 23, Weibo Corporation was added to the list.

On March 8, the SEC first released the list, which included five companies - BeiGene, Yum China, Zai Lab Limited, ACM Research, and HUTCHMED - that have now been added to the conclusive list of issuers identified under the HFCAA.