China's securities regulator called for talks with its American counterpart after the U.S. Securities and Exchange Commission increased disclosure requirements for initial public offerings of Chinese companies amid nearly a $1 trillion share sell-off last week.
The China Securities Regulatory Commission is seeking to step up communication with the SEC to find a suitable resolution, it said in a statement Sunday, after the U.S. regulator said it would require Chinese companies seeking listings to improve risk disclosures. The Chinese watchdog called for mutual respect and collaboration on the issue.
In response to Beijing's clampdown on private industry, SEC Chairman Gary Gensler asked staff to seek additional disclosures from Chinese firms before signing off on their registration statements to sell stock. China had earlier proposed new rules requiring virtually all companies wanting to list in a foreign country to undergo a cybersecurity review, a move that would vastly increase oversight over its private enterprises.
Shares on the mainland and Hong Kong continued to drop Monday. The Shanghai Composite Index fell 0.5% while the Hang Seng Index dropped 0.2% as of 10 a.m Hong Kong time. Tencent Holdings and Meituan both lost more than 3%.