China to strengthen overseas listing supervision- PingWest

China to strengthen overseas listing supervision

Chinese government urges regulators to further deepen cross-border cooperation over audit supervision, which would affect homegrown companies seeking to sell shares overseas.

Details: Rules for overseas listings will be revised,  the government said in new guidelines released Tuesday through state-owned Xinhua News Agency, while publicly-traded firms will be held accountable for keeping their data secure. 

Regulators need to amend laws and regulations on data security, cross-border data flow, and other confidential information management, the guidelines said, adding that China also will step up its regulatory oversight of companies trading in offshore markets.

Context: The move came as Chinese regulators stepped up scrutiny of data security for technology companies.

The Cyberspace Administration of China (CAC) ordered China’s app stores to remove ride-hailing app Didi for download just days after its IPO in the U.S. The regulator alleged Didi had illegally collected users’ personal information and asked the company to fix the problems.

Then, citing data security risks, the internet regulator has opened a cybersecurity review into Yunmanman and Huochebang, companies under New York-listed Full Truck Alliance and Boss Zhipin.

SHARE