The Securities and Exchange Commission (SEC) and the China Securities Regulatory Commission (CSRC) yesterday met in Washington to sign a Memorandum of Understanding to further cooperation between the two regulatory bodies.
The dialogue between the regulators will now focus on corporate governance reforms, convergence of national accounting standards with International Financial Reporting Standards, and the use of information technology to enhance the usefulness of reported of financial information.
“The SEC’s continuing efforts to build an open, cooperative and constructive dialogue between these two regulators will further ensure a vibrant and liquid capital market. We appreciate their efforts,” says David Strongin, vice president and director for international finance at the Securities Industry Association (SIA) in New York. “Ongoing cooperation on regulatory issues and removing roadblocks to foreign involvement in China’s financial system will benefit both nations. China’s massive capital demands are best met through the global markets, and America’s multinational financial firms can provide both technical expertise and an array of financial products and services to prospective Chinese clients.”