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China’s securities regulator refuted media reports that said the regulator is planning for a three-tiered system to help Chinese companies avoid potential U.S. delisting in a statement to CNBC.

What Happened: China Securities Regulatory Commission (CSRC) denied the Financial Times report that said Xi Jinping’s government is preparing a system to separate U.S.-listed Chinese companies into three groups based on their data sensitivity level.

The FT report had said that system would help some of the U.S.-listed Chinese companies like Alibaba Group Holdings BABA, Nio Inc NIO, and Tencent Holdings TCEHY come into compliance with the U.S. regulatory demands to be able to inspect audit papers.

See Also: China’s Easing Regulatory Relaxations Will Likely Trickle Down Across Tech Companies Including Alibaba – Here’s How

The Chinese regulator said it had not researched any such plans and that the companies should comply with data security and listing rules, regardless of whether they were going public in China or abroad, according to CNBC.

The regulator further added that other information about ongoing discussions with the U.S. regulators should come from official announcements.

Earlier, the U.S. Securities and Exchange Commission named specific U.S.-listed Chinese companies that were at a risk of facing a potential delisting from U.S. stock exchanges under the Holding Foreign Companies Accountable Act (HFCAA) law.

The law threatens to kick Chinese companies off U.S. bourses if they fail to comply with auditing rules set by the U.S. Public Accounting Oversight Board.

Read AlsoWhich Chinese Firms Face Delisting From US Stock Exchanges?

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