Singapore – China will propose new rules banning companies with large amounts of sensitive consumer data from being made public 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 prohibit internet companies that have a range of user-related data from listing abroad. Regulators said the rules target companies seeking foreign offers through units based abroad.
A China Securities Regulatory Commission official said companies with less sensitive data, such as the pharmaceutical industry, are more likely to receive approval from Chinese regulators for foreign listings.
The new rules could help Beijing exercise greater control over the complex corporate structure that China’s largest tech companies use to circumvent restrictions on foreign investment. Chinese leaders view areas such as the Internet, telecommunications, and education as sensitive to political or national security concerns.
Chinese tech giants including Alibaba Group Holding Limited, Didi Global Inc., and Tencent Holdings Limited, have taken advantage of this corporate structure known as a floating rate entity to raise foreign capital and go public.
China plans to ban US IPOs on data-intensive tech companies