CHINA’S securities regulator said yesterday it will seek more communication with its U.S. counterpart regarding Chinese stocks listed on Wall Street and will support overseas listings, after U.S. regulators tightened disclosure for Chinese firms.

The China Securities Regulatory Commission (CSRC) said in a statement that it had taken note of the U.S. Securities and Exchange Commission’s new requirements for disclosure regarding Chinese firms’ listings.

“The regulatory authorities of the two countries should strengthen communication on the supervision of U.S.-listed Chinese stocks and find proper solutions while upholding the spirit of mutual respect and win-win cooperation,” the CSRC said, adding that the two sides should create proper policy expectation and institutional environment for the market.

The U.S. Securities and Exchange Commission announced Friday that it will not allow Chinese companies to raise money in the United States unless they fully explain their legal structure and disclose potential business risks.

China has all along adopted an open-minded approach to listing locations, the CSRC said, adding that companies should be compliant with the laws and regulations where they are operating.

The CSRC said that the current scrutiny over certain industries is aimed at coordinating development and safety. The securities regulator will carry out close communication with relevant departments to further improve transparency and predictability of policies.

China has been tightening its regulatory oversight of the country’s firms’ overseas share issuance after it launched a cybersecurity probe into ride-hailing giant Didi Global Inc. last month, just days after its listing in New York.

A total of 418 Chinese companies are listed on U.S. stock exchanges and Chinese listings in the United States have reached a record US$12.8 billion so far this year, according to Refinitiv data.

In its statement, the CSRC also reiterated a pledge to open up the country’s financial industry and said that it sees the prospects for Chinese capital markets as predictable, sustainable and healthy. (SD-Agencies)