Securities Cross-border Supervision in China: Difficulties and Improvement Proposals

This chapter identifies the challenges at the regulatory level which contribute to understanding Chinese cross-border listed companies’ continuous disclosure performance in Australia. Where information asymmetry is unavoidable for cross-border listed companies, considering that the securities offering and the operations of the company are in two different jurisdictions, an effective securities cross-border supervision regime is the cornerstone of regulations enabling cross-border listed companies’ continuous disclosure compliance. This chapter examines the Luckin Coffee Scandal in order to highlight existing problems with Chinese securities cross-border supervision. Following a brief review of the current securities cross-border supervision regime in China, the chapter undertakes a comparative analysis of Australia’s securities cross-border supervision regime to identify underlying issues with the current Chinese regime and offer corresponding reform suggestions.