Wednesday, May 03, 2006
SEC Cooperating with Chinese Regulators
The SEC announced yesterday that it has entered into an agreement with China's Securities Regulatory Commission (CSRC) to increase collaberation between the two agencies. The press release is here.
SEC Chairman Christopher Cox noted that "China's equity markets are making significant progress" but that "regulatory process must be coupled with strong, consistent enforcement and channels for international cooperation." CSRC Chairman Shang noted that "The US market is an important listing venue for Chinese enterprises" and regular dialogue between the SEC and CSRC will "prove to be mutually beneficial." This is particular true as the number of dually-listed companies continues to increase.
The objectives of the agreement between the SEC and CSRC are to:
1. identify and discuss regulatory deveopments of common interest for public companies in each other's markets;
2. improve cooperation and the exchange of information; and
3. continue and expand training and technical assistance programs provided by the SEC to the CSRC.
The SEC and CSRC will discuss corporate governance reforms, the convergence of accounting standards and use of information technology in coming months.