The Securities and Exchange Commission (SEC) and China Securities Regulatory Commission (CSRC) yesterday met in Washington to sign a Memorandum of Understanding to further cooperation between the two regulatory bodies. The ongoing dialogue will 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, among other issues. The Securities Industry Association (SIA) has been keenly interested and deeply involved in financial modernization in China, having hosted a conference in China on that nation’s capital markets. Both the People’s Bank of China and the China Securities Regulatory Commission joined the October 2005 event as “supporters.”
“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,” said David Strongin vice president and director for international finance at SIA. “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.”
Below is the URL for the SEC’s press release.
http://www.sec.gov/news/press/2006/2006-63.htm
