Chinese firms to undergo data security reviews before listing overseas
Category: #headlines  | By Nikita Chaurasia  | Date: 2022-01-05 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Chinese firms to undergo data security reviews before listing overseas
  • China plots stricter cyber security norms for tech firms planning to list overseas.
  • Firms will be required to file for cybersecurity reviews before listing on any foreign stock exchange.

China’s cyberspace regulator recently announced that new rules requiring companies with more than one million users' data to undergo a security evaluation before offering their shares abroad, would take effect on February 15.

According to statements posted on its WeChat account, the Chinese Cyberspace Administration (CAC) stated that such companies should file for cyber security reviews before submitting listing applications to foreign securities regulators.

Companies will not be allowed to list abroad if the evaluation concludes that national security could be jeopardized. The new norms aim at implementing strict rules for regulating offshore listings.

Notably, the CAC announcement triggered a slump in Hong Kong stock prices. The Hang Seng Index slid 0.36%, while the city's tech index fell 1.32%.

Shares of Hong Kong Exchanges and Clearing Ltd., slumped 1.8%, post the 2.4% fall after the announcement.

The CAC recommended the guidelines in July, stating that a  security review will shed light on the harmful effects of data being impacted, manipulated or controlled, by foreign governments following overseas listings.

New guidelines restricting the use of algorithm recommendation technology will take effect on March 1, as indicated in a separate announcement by the CAC.

These measures, which were first proposed in August of last year, will force organizations to provide consumers with the ability to turn off their services and will tighten control of news organizations that utilize such technology.

China's cyberspace officials are also implementing stringent data collecting and storage norms for data protection. Meanwhile, authorities continue to push for more companies to list on domestic exchanges.

It is worth noting that last year, two new sets of rules, the Data Security Law and the Personal Information Protection Law, came into effect, covering data storage and data privacy, respectively.

Source Credit-

https://www.straitstimes.com/asia/east-asia/china-to-order-cyber-security-reviews-for-some-firms-seeking-overseas-listings

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

PM Liz Truss to launch comprehensive review of UK’s visa policy

PM Liz Truss to launch comprehensive review of UK’s visa policy

By Nikita Chaurasia

Newly appointed Prime Minister Liz Truss is considering doing a complete review of Britain's visa system, as the nation struggles with severe labor shortages in vital industries. Business leaders across the UK have reportedly praised the decision...

UAE: Entrepreneurs and investors can benefit from visa reforms

UAE: Entrepreneurs and investors can benefit from visa reforms

By Nikita Chaurasia

The visa and business reforms by the UAE will open new prospects for investors, entrepreneurs, IT specialists, job seekers, and tourists, according to credible sources. This will reportedly benefit the region’s economic growth. Business Link...

Flipkart introduces new tech and design upgrades ahead of holiday season

Flipkart introduces new tech and design upgrades ahead of holiday season

By Nikita Chaurasia

Flipkart, India's indigenous online marketplace, is reportedly offering customers an improved shopping experience on its widely popular app. To better serve various client groups that are exploring e-commerce during the holiday season, Flipkar...