SOX Center

China’s top banking regulator said Thursday that U.S. market regulations, including the increasingly-criticized Sarbanes-Oxley act, are the “right and correct response to the market.”

Tightened U.S. securities regulations in the wake of high-profile corporate collapses such as Enron should not be reversed, to stem the tide of global companies looking elsewhere to list their shares, said Liu Mingkang, chairman of the China Banking Regulatory Commission.

“To my American friends, I say ‘Don’t worry,’” Liu said at a lunch in Davos, where the World Economic Forum’s Annual Meeting is taking place.

The “quality of markets is of key importance - sooner or later,” Mingkang said.

China’s own market regulations are on course to catch up with the rest of the world’s best practices, he said.

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