China orders cyber security review of some companies seeking overseas listings Reuters

© Reuters. File picture: The logo above the office of the China National Internet Information Office (CAC), Beijing, China, July 8, 2021. REUTERS/Thomas Peter

Authors: Brenda Goh and Scott Murdoch

Shanghai/Hong Kong (Reuters)-China said on Tuesday that it will implement new rules to strengthen supervision of how its platform companies make overseas listing plans or use algorithms, a move that will further strengthen Beijing’s control of its huge technology industry.

China’s National Internet Information Office said that it will implement new regulations from February 15th, requiring platform companies with more than 1 million user data to conduct security reviews before their stocks are listed overseas.

It stated in a separate statement that from March 1st, it will also implement the rules governing the use of algorithm recommendations.

Both sets of rules were proposed last year and are expected to affect a large number of companies, such as TikTok owner ByteDance, e-commerce giant Alibaba (New York Stock Exchange:) Group and more smaller participants.

CAC’s move comes at a time when a series of regulatory changes in China over the past year have inhibited companies’ interest in listing overseas, but bankers hope that the new rules will provide more certainty in 2022.

In Hong Kong, it fell 0.36% on Tuesday, and the city’s technology index fell 1.44%.

The share price of Hong Kong Exchanges and Clearing Co., Ltd., the operator of the Hong Kong Stock Exchange, recently fell 1.9%, after a 2.4% drop after the news was announced.

Justin Tang, head of Asia research at United First, an investment consultant, said: “If this is not retrospective, then it will only affect companies that are interested in going public, not companies that are already listed. Having said that, companies in the latter camp already have a lot of ideas. Up.” Singapore partner.

One week after China’s national planner stated that it would require regulatory permission, the CAC changed -Dec 27, 2021 For overseas Chinese listing in sensitive industries, Beijing strives to establish part of a new overseas listing review framework.

In addition, the China Securities Regulatory Commission (CSRC) proposed to tighten the rules on December 24 On December 24, 2021, to manage Chinese companies listed overseas, they are required to file with the agency first, under a system that also involves close coordination between various regulatory agencies.

CAC first proposed a cyber security review in July -10, indicating that it will focus on the risk of data being affected, controlled or manipulated by foreign governments after overseas listing.

The new rules for the use of algorithm recommendation technology were first proposed in August last year. Rights and strengthen oversight of news providers using such technologies.

China’s cyberspace regulators are imposing stricter restrictions on data collection and data storage. The authorities have also promoted the company’s domestic listing more broadly.

Two other sets of new regulations, the “Data Security Law” and the “Personal Information Protection Law” covering data storage and data privacy respectively, came into effect last year.

Disclaimer: Converged Media I would like to remind you that the data contained in this website may not be real-time or accurate. All CFDs (stocks, indices, futures) and foreign exchange prices are not provided by exchanges, but by market makers, so prices may be inaccurate and may be different from actual market prices, which means that prices are indicative and not Suitable for trading purposes. Therefore, Fusion Media is not responsible for any transaction losses that you may suffer as a result of using this data.

Converged Media Fusion Media or anyone related to Fusion Media will not be liable for any loss or damage caused by relying on the data, quotations, charts, and buy/sell signals contained in this website. Please fully understand the risks and costs associated with financial market transactions. This is one of the most risky forms of investment.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *