China regulator proposes cybersecurity review for some firms planning Hong Kong IPOs
Written by on November 14, 2021
November 14, 2021
BEIJING (Reuters) -China’s cyberspace regulator on Sunday published draft rules proposing that companies planning Hong Kong initial public offerings be required to apply for cybersecurity inspections, if they handle data that concerns national security.
The Cyberspace Administration of China’s (CAC) latest draft proposals on online data security management follow a proposed regulation in July that any company with data for more than 1 million users must undergo a security review before an overseas listing of its shares https://www.reuters.com/world/china/china-widens-clampdown-overseas-listings-with-pre-ipo-review-firms-with-large-2021-07-10.
China has been broadly pushing more companies to list domestically.
Its cyberspace regulators have also been imposing tighter restrictions on data collection and storage https://www.reuters.com/world/china/china-step-up-supervision-overseas-listed-companies-2021-07-06.
(Reporting by Roxanne Liu, Brenda Goh and Shivani Singh; Editing by Edmund Klamann)