Chinese Communist Party Reiterates Commitment to Opening of Capital Markets as Sino-US Economic Tensions Intensify

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China’s state-owned media has sought to reiterate the government’s commitment to the further opening of Chinese capital markets, just following a move by the US Securities and Exchange Commission (SEC) to step up scrutiny of Chinese companies listed on American bourses.

The SEC announced last week that it would require Chinese companies listed in the US to disclose government ownership and control as well as provide evidence of auditing inspections, in move that some analysts said could diminish their appeal in the US market or even lead to their removal from American exchanges.

Chinese official media has since responded directly to the decision, with the Chinese Communist Party’s (CCP) Economic Daily publishing an opinion piece entitled “Bilateral Opening of Capital Markets Will Not Change” (资本市场双向开放不会改变).

“China’s capital markets uphold and advance reform and opening, connection and linkage with offshore markets, and integration and joint-victory,” said the opinion piece by Jin Guanping (金观平) published on 8 December.

“[China] uses actual action to enable the Chinese market to become a world market and a commonly shared market, and will continually drive for the establishment of an open global economy.

“As the world’s two largest economies, China and the US bear special international responsibilities and duties, and possess broad and vital common interests…they should abandon a zero sum mentality, and use an attitude of mutual respect and professional trust to strengthen dialogue on topics such as cross-border regulation and the protection of investor rights and interests.”