A major Chinese company with data on more than a million users must pass a security review before issuing shares on foreign stock exchanges, the country’s Internet regulator said Saturday. ..
China’s Cyberspace Administration has announced that the State Council, the Chinese Cabinet, and the Central Committee of the Chinese Communist Party need a new regulatory system to crack down on foreign listings that previously escaped strict government oversight. It took place less than a week after I said it.
Xi Jinping president of administration, AmericaMore than 30 Chinese companies raised a record $ 12.4 billion in the first half of this year, according to Dealogic data.
The CAC Edict confirms its position as a strong presence under the new regulatory system for China’s overseas listing. Regulators will notify you if an IPO applicant passes a data security review within 60 business days, but if there is disagreement, the process can take twice as long.
On July 2, China’s Internet regulators instructed Didi Chuxing, China’s largest ride-hailing service group, to stop registering new users. Data security rationaleJust days after completing a $ 4.4 billion IPO on the New York Stock Exchange.
The CAC wanted Diddy to at least delay the US IPO, but had no legal authority to enforce it. Regulators were concerned about group data, including: place A number of sensitive government buildings and equipment may be acquired by foreign regulators.
The United States has passed a law that requires foreign companies to comply with domestic audits or face delisting within three years, but Beijing has ordered Chinese groups not to do so. US politicians have pointed out Didi as justification for scrutinizing New York-listed Chinese companies.
Diddy’s stock 20 percent Tuesday, the first day of trading after CAC intervention.
CAC also banned the download of the main app of the car carrier group last Sunday. The night before, it expanded the ban to an additional 25 Didi-related apps.
As another sign that China’s tech giant has cracked down, the country’s market regulators rejected Tencent’s proposed merger on Saturday.
The State Market Regulatory Authority said the merger of two US-listed Tencent units, DouYu and Huya, will create an entity that will control more than 70% of the market.
Tencent, which also operates the popular WeChat messaging app and China’s largest online payment service, merged in October just weeks before the Xi administration blocked Jack Ma’s $ 37 billion initial public offering. Proposed. Ant group, Would have been the biggest ever. The total market value of DouYu and Huya is $ 5.3 billion.
Ant’s IPO block was the first salvo of a widespread crackdown involving high-tech giants such as Ma’s e-commerce flagships Alibaba, Tencent, and Didi.
Tencent, Didi’s third-largest shareholder with a 6.8% stake, accepted the regulatory decision regarding the DouYu-Huya merger and said it would “fulfill our social responsibility.” Tencent was previously fined for not seeking regulatory approval for some acquisitions.
This is the first time market regulators have blocked a domestic merger, said Scott Yu, an antitrust expert in Beijing’s Zhong Lun Law Firm. “It will be more cautious for other companies to assess antitrust prospects,” he said.
Despite the crackdown, Tencent’s business is booming. For the first quarter, we were above our expectations of 25% year-on-year. To increase In terms of revenue, it will be RMB135 billion ($ 20.8 billion).