Selena Li and Xie Yu

HONG KONG, (Reuters) – The China Securities and Regulatory Commission met with top bank executives and asset managers this week to reassure them on the nation’s future economic prospects following regulatory crackdowns in 2021. Three sources claimed that Friday was reported by three people.

Fang Xinghai (CSRC Vice Chair) hosted the virtual meeting Tuesday with representatives of more than a dozen international financial institutions, according to those who knew the details. They declined to name the source as they are not permitted to discuss the matter with the media.

BlackRock, a leading firm in the United States (NYSE:), has senior executives. Credit Suisse (SIX,), Fidelity Global, Goldman Sachs(NYSE:), JPMorgan [NYSE:], Morgan Stanley According to two sources, UBS (NYSE: ) was present at the meeting.

One source said that Fang assured the participants of the meeting that China would achieve “respectable” growth in 2022.

Fang said also that China’s leaders understood the impact of the 2021 regulatory changes, but were determined to bear the consequences. The source said that 2022 would be an entirely different year. There will be several significant events in this year’s year including the crucial once-in five-years Communist Party Congress.

The CSRC didn’t immediately reply to a request for comments.

Fidelity, UBS and other companies declined to comment. However, they did not respond immediately to requests for comment.

China’s regulator called for the meeting in light of the relative slowdown in global growth. This was despite the country’s struggles with COVID-19 and the dimming prospects for its property sector.

From a year ago, the economy experienced a 4% increase in fourth quarter. This was its lowest expansion in 1 1/2 years. China’s central banking has begun to reduce interest rates and inject more money into the financial sector in an effort to support the economy.

The CSRC also wanted to know if foreign financial institutions would change their asset allocations to China due to rising U.S. rates.

After Wednesday’s open discussion, Powell of the Federal Reserve opened up to speculation about five more rate hikes in 2019.

Fang told executives also that China and America were progressing in co-ordinating regulations for Chinese companies listed in New York. He said there might be a positive surprise by June, or even earlier.

The U.S. Securities and Exchange Commission said last month that Chinese companies that list on U.S. stock exchanges must disclose whether they are owned or controlled by a government entity and provide evidence of their auditing inspections https://www.reuters.com/business/us-sec-mandates-foreign-companies-spell-out-ownership-structure-disclose-2021-12-02.

The rule will lead to over 200 companies being removed U.S.-based exchanges. This could potentially make Chinese businesses less appealing for investors.