Chinese squeeze on IPOs overseas for companies in the country: Beijing has announced that its groups that hold the data of more than 1 million users must now seek prior approval from the Cyber Security Authority when they intend to go public outside the country as a result of strengthening oversight of the country’s tech giants.
Focus on personal data
The new rule is necessary due to the risk that such personal data and information could be “maliciously influenced, controlled and exploited by foreign governments,” the Authority said in a statement. The cybersecurity review will also examine potential national security risks from overseas IPOs.
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Authorities issued a strong warning to the nation’s largest companies this week, promising to step up oversight of data and directory security overseas. 37 Chinese companies have been listed in the United States so far this year, surpassing last year’s total, and have raised a total of $ 12.9 billion, according to data compiled by Bloomberg.
The Didi case
The new move by Beijing is one of the most concrete steps taken so far to limit the ability of tech companies to raise capital abroad in the wake of what has already been done by groups like Alibaba, Baidu and Didi.
The authorities have accelerated the crackdown on foreign prices after Didi himself carried out his debut on Wall Street, despite the fact that he had already been asked to delay plans three months ago.