A Chinese supervisor says government policies are not directly linked to foreign IPOs by Reuters

BEIJING (Reuters) – China’s defense ministry said Sunday that Beijing’s latest policies have not only targeted factories or private companies, and have not been actively involved with companies seeking to register in foreign markets.

China has committed serious crimes https://www.reuters.com/business/china-wall-street-regulatory-crackdown-not-aimed-restricting-private-firms-2021-09-20 in recent months on internet companies, education of profit, and builders, among others.

“The main purpose of the (move) is self-regulating, protecting the interests and security of small and medium enterprises, as well as the protection of personal information,” China Securities Regulatory Commission (CSRC) said. .

A cyberpace administrator requested companies with more than one million users in China to have a security check before posting information about users abroad or ranking shares abroad.

China’s chief analyst Didi Global said on Friday it was planning to withdraw from the New York Stock Exchange, just five months after its launch, following the Hong Kong list.

The Securities and Reconciliation Commission (IEC) said it had identified new rules that the US Securities and Exchange Commission (SEC) required Chinese companies to disclose details of their ownership and research.

Other media reports that China has banned companies with VIE (Variable Interest Entity) on the US list are “completely misunderstood and (to) read incorrectly,” the CSRC said.

The VIE model, which is widely used by professional companies, was developed over the past two decades to avoid foreign currency restrictions in complex industries such as media and telephones.

CSRC policies should not confuse private companies or companies as well as “non-affiliated companies outside the country,” the agency said.

It said the committee had learned that some Chinese companies were actively cooperating with domestic and foreign regulators in order to make public declaration in the United States. The CSRC will respect the companies’ choice of sites to register following, it said.

The security committee said it had received clear, encouraging messages from the SEC and the Public Company Accounting Oversight Board, and had done well in promoting consensus on some key issues.

However, it also said that some US forces have “politically” regulated the stock market and threatened Chinese companies to be expelled from the country in recent years, which violates economic principles and harms investors around the world, according to him.

The CSRC will continue to work with its American counterpart to address the remaining audit issues and areas of urgency.