Singapore — China will propose new rules prohibiting companies with large amounts of sensitive consumer data from being exposed in the United States, people familiar with the matter said. ..
In recent weeks, Chinese stock regulators have told some companies and international investors that new rules will ban Internet companies holding a set of user-related data from listing abroad. Regulators said the rule was intended for companies seeking an initial public offering in a foreign country through a unit established abroad.
A China Securities Regulatory Commission official said companies with less sensitive data, such as the pharmaceutical industry, are more likely to get approval from Chinese regulators for foreign listings.
The new rules could help Beijing exercise more control over the complex corporate structure that China’s largest tech companies use to circumvent foreign investment restrictions. Chinese leaders consider areas such as the Internet, telecommunications, and education sensitive to political or national security concerns.
Chinese technology giants, including Alibaba Group Holding Limited, Didi Global Inc. and Tencent Holdings Limited, have taken advantage of this corporate structure known as a variable interest entity to attract foreign capital and go public.
China plans to ban US IPOs on data-intensive tech companies
Source link China plans to ban US IPOs on data-intensive tech companies