There are long-standing differences between China and the United States on auditing and supervision of China Stock Exchange. At the end of 2020, Trump signed the Foreign Company Accountability Law, which directly detonated the discussion that "China Stock Exchange will face collective delisting". In the past two years, with the help of this domestic law, the US has constantly threatened China Stock Exchange with a "delisting timetable". In particular, some "decoupling factions" in the United States politicize the supervision of the capital market and even form the impulse of "decoupling" between China and the United States, which often stigmatizes China's various initiatives. As of the end of July this year, the US Securities Regulatory Commission has listed 159 China stocks on the "pre-delisting" list according to the US Foreign Company Accountability Act.
Obviously, if you don't step on the brakes of this trend, it will definitely bring about a lose-lose situation. In the past few decades, with the tide of economic globalization, a large number of China enterprises went public in the United States, which not only broadened their own financing channels, but also brought investment opportunities to American investors. China Stock Exchange has become an important carrier of Sino-US economic exchanges and interests. As of March this year, * * * has listed 26 1 China companies in the United States, with a total market value of about 1.3 trillion US dollars, of which the market value held by American institutional investors is about 200 billion US dollars. Once China Stock Exchange is forced to withdraw from the market, it will not only hurt China's interests. China and the United States can sit down and negotiate and find a rational and pragmatic plan, which reflects the responsibility and wisdom of the regulatory authorities of both sides.
At the same time, it also shows once again that differences and differences between China and the United States are normal and should not be used as an excuse to move towards all-round confrontation. As long as China and the United States uphold an objective, pragmatic and mutually respectful attitude, they can find ways to negotiate the things that should be negotiated well and do the things that should be done well, which is in line with the law and the people's hearts.
In order to promote the solution of the problem, both China and the United States have made some adjustments during the consultation process, which is also reasonable. From beginning to end, China emphasized that we should respect the supervision of relevant accounting firms by overseas regulators in order to improve the quality of financial information of listed companies, and oppose the wrong practice of politicizing securities supervision by some forces. At the same time, China has taken the initiative to consolidate the information security responsibility of listed companies through a series of laws and regulations, and eliminated some risks that should not have happened in advance. This is equivalent to opening the window rhythmically after installing the fence, which not only caters to the needs of supervision, but also prevents Chinese enterprises from "streaking" and endangering national security, effectively coordinating openness and security.
In addition, China and the United States can reach a cooperation agreement on audit supervision, which also provides useful enlightenment for the current Sino-US relations, that is, as long as they adhere to the principle of mutual benefit, China and the United States have the ability to reach solutions that satisfy each other's concerns on some important and sensitive issues. It should be noted that in this cooperation, the United States has the need to strengthen enterprise supervision, and China has the need to safeguard national security. It is commendable that both sides' concerns have been understood and respected, and each other's needs have been met through wise arrangements. This is a symbolic case, and it is also worth learning from some critically ill patients who abuse "national security" in the United States.
The continued listing of Chinese stocks in the United States is beneficial to investors, listed companies and both China and the United States, and it is a win-win institutional arrangement. China's understanding of this point has always been sober, and his efforts are tangible. The development of the situation also proves China's judgment. Some people have ulterior motives to blame China for the Sino-US friction, which goes against the facts and is despised by people. China responded to all these distortions and smears with practical actions, and also sent a clear signal to all kinds of enterprises: China firmly supports enterprises to choose their own listing sites according to their own wishes, and our determination to expand high-level opening to the outside world will not change, nor will our efforts to actively integrate into the global market, and China will only open wider and wider.