China’s securities regulator called for talks with its US counterpart after the US Securities and Exchange Commission (SEC) halted the initial public offerings (IPOs) of Chinese companies.
The China Securities Regulatory Commission (CSRC) is seeking to step up communication with the SEC to find a suitable resolution, it said in a statement yesterday, after the US regulator said it would suspend Chinese IPOs until such companies improved their risk disclosures.
The Chinese watchdog called for mutual respect and collaboration on the issue.
SEC Chairman Gary Gensler said the Chinese government’s recent actions, including its announcement of enhanced security reviews of firms seeking foreign listings, are “relevant to US investors.”
He said he has asked SEC staff to seek additional disclosures from Chinese firms before signing off their registration statements to sell stock.
“I believe such disclosures are crucial to informed investment decisionmaking and are at the heart of the SEC’s mandate to protect investors in US capital markets,” Gensler said in a statement on Friday.
China’s crackdown, including banning a swath of private education companies from making profits, has triggered a dramatic selloff in shares as investors reassess how far the government will go in tightening its grip on the economy. Losses in Chinese tech and education stocks have surpassed US$1 trillion since February.
The SEC has faced intense pressure from Washington to increase scrutiny of Chinese companies as shares of Didi Global Inc (滴滴) have plunged following its US IPO last month.
Right after the listing, China announced it was conducting a security review and restricting the ride-sharing company from adding new customers.
US lawmakers have urged the SEC to investigate Didi to find out whether the company knew what steps China was considering and if it failed to disclose those risks to US investors.
Chinese companies listing in New York have been a lucrative source of revenue for Wall Street banks that underwrite the deals. This year is already the second-best on record for such listings, with companies raising at least US$15.7 billion — more than the entire amount last year, according to data compiled by Bloomberg.
However, China proposed new rules earlier this month requiring that nearly all companies seeking to list overseas undergo a cybersecurity review, a move that would significantly enhance its oversight.
That tighter grip has thrown a wrench into the listing plans of many Chinese start-ups, which have flocked to the US for its deeper capital markets, more streamlined listing processes and broader investor base.
There are about 70 companies from China in the pipeline to go public in the US, data compiled by Bloomberg show, but some of them are being deterred by tighter scrutiny from Beijing.
China has always adopted an open-minded approach to listing locations, the CSRC said yesterday, adding that the scrutiny over certain industries is aimed at coordinating development and safety.
The CSRC will attempt to improve transparency of its policies, it said, while adding that it sees the prospects for Chinese capital markets as predictable, sustainable and healthy.
Bankers in Hong Kong skipped the summer break as an artificial intelligence (AI)-fueled rush for capital sent share sales to a record, defying a bruising selloff in the city’s stocks. Initial public offerings (IPOs), placements and block trades raised US$47.5 billion in July to last month, the biggest haul ever for the period, data compiled by Bloomberg showed. That pushed fundraising this year above US$92 billion and within reach of the US$112.5 billion record set in 2021. AI has been at the heart of Hong Kong’s deal revival, but this summer brought a new level of intensity. Chinese companies raised ever-larger sums
SILICON ISLAND: When asked about geopolitical tensions, Lisa Su said that ‘Taiwan is absolutely critical to the semiconductor supply chain, and very, very critical for AMD’ Advanced Micro Devices Inc (AMD) CEO Lisa Su (蘇姿丰) yesterday said the company plans to “substantially” increase manufacturing capacity next year through its Taiwanese supply chain, particularly with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), as surging demand for artificial intelligence (AI)-related processors continues to outstrip supply. “It is a very exciting time right now for all kinds of compute, and especially on the CPU [central processing unit] side,” Su said during a visit to Taiwan. “The overall market has increased a lot in 2026, and so we have also increased our own supply and capacity in 2026, but I can
INDUSTRY STANDARD: Most global semiconductor companies have tied employee bonuses directly to corporate profits, the union said, urging Micron to do the same Micron Memory Taiwan Co’s (台灣美光) Taoyuan union secured strike authorization yesterday after a six-day vote, ramping up pressure on management to build a reasonable profit-sharing mechanism. Before the strike, the Taoyuan union “encourages” members to join a protest in Taipei on Oct. 19, union chairman Jerry Lin (林哲瑞) told a news conference in Taipei. The union did not rule out staging a snap strike, Lin said. The union has 2,258 registered members, with 88.3 percent backing the strike, he said. The vote comes as Micron’s board of directors is meeting today and tomorrow in the US. The union expects the board to respond
Elon Musk said his business empire would build and operate Terafab independently, quashing speculation about industry leader Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) swooping in to run his ambitious chipmaking venture. Based in Texas, the Terafab project is Musk’s effort to break into the business of fabricating chips, in service of his companies Tesla Inc and SpaceXAI. While Musk had said that he was in discussions with TSMC, the trillionaire clarified in an X post yesterday that the only matter under consideration is for TSMC potentially leasing some part of the planned site and would not involve any operational role. “Maybe TSMC
RSS