Cybersecurity
China Tightens Rules on Foreign IPOs in New Blow to Tech Firms
- Firms with data on over 1 million users will be affected
- The move could drive companies to list in Hong Kong: analyst
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China proposed new rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review, a move that would significantly tighten oversight over its internet giants.
Companies holding data on more than 1 million users must now apply for cybersecurity approval when seeking listings in other nations because of the risk that such data and personal information could be “affected, controlled, and maliciously exploited by foreign governments,” the Cyberspace Administration of China said in a statement on Saturday. The cybersecurity review will also look into the potential national security risks from overseas IPOs, it said.