The China Securities Regulatory Commission (CSRC) and the United
States Securities and Exchange Commission (SEC) agreed on Tuesday
to increase cooperation and collaboration through an enhanced
bilateral dialogue.
CSRC Chairman Shang Fulin and SEC Chairman Christopher Cox
signed terms of reference at the SEC headquarters in Washington
that establish the structure of the enhanced dialogue and
discussion subjects for the agenda during 2006.
"In developing capital markets in China, we attach great
importance to cooperation with American markets and American
regulators. The US market is an important listing venue for large
Chinese enterprises," said Shang.
He said American investment banks have a big market share in
underwriting overseas-listed Chinese companies, and about one-third
of the foreign partners of joint venture securities companies and
fund management companies in China come from the United States.
The CSRC and SEC have had very good collaboration and
cooperation in cross-border enforcement and training, he said.
"I believe, with the conclusion of the CSRC-SEC terms of
reference, regular dialogues will further enhance our collaborative
relations and prove to be mutually beneficial," said the CSRC
chairman.
On his part, Cox said China's equity markets, barely 15 years
old, are making significant progress. The CSRC and the SEC have a
key role in facilitating this progress, through rules that promote
high quality disclosure, fair and orderly markets, and efficient
capital formation.
"I am pleased that today we are memorializing the strengthening
of cooperation and collaboration between the SEC and the CSRC
through the formalization of a dialogue between our Commissions,"
he said.
Cox and Shang met in Beijing in October 2005, when the two
expressed their desire to work together to protect investors in the
United States and China and to establish a framework for dialogue
between their respective commissions.
The new dialogue, to take place through regular contacts among
senior staff and between the chairmen of the SEC and CSRC, has
three primary objectives -- to identify and discuss securities
markets regulatory developments of common interest; to improve
cooperation and the exchange of information in cross-border
securities enforcement matters; and to continue and expand upon the
existing program of training and technical assistance provided by
the SEC to the CSRC.
(Xinhua News Agency May 3, 2006)