Starting next month, China will push for some companies with large amounts of user data to get approval from regulators to list in foreign exchanges.
- The network security assessment process will be implemented by the Cyberspace Administration of China (CAC) on Feb.15 as the nation continues to expand regulation on its tech industry.
- Internet platforms that hold personal information of over 1 million users will be required to apply for a network security review with the regulators before unveiling IPO overseas.
- The rules are targeted at companies that perform data processing activities that could hamper national security.
- If CAC is satisfied that a company’s data processing activities do not endanger national security, the overseas listing will be allowed to proceed.
Beijing has come up with a series of new regulations on the technology sector in the last year as it seeks to control the power of tech giants and eliminate anti-competitive behavior.
CSI 300 Index down -0.46%Source: CNBC
