China said it would tighten rules for companies looking to sell shares overseas and tighten oversight of overseas listed companies, measures that could hamper attempts by local firms to raise funds in the states. United
The change comes as Chinese regulators are stepping up scrutiny of tech companies, including recently-listed US-listed rideshare company Didi Global Inc.
The government said in new guidelines released Tuesday by the state-run Xinhua News Agency that regulators should deepen cross-border cooperation on audit oversight and amend laws and regulations “on data security, data flow. cross-border and other confidential information “.
The guidelines were drafted against the backdrop of “profound changes in the economic and financial environment”, amid what authorities described as growing anarchy in the capital market that has made regulatory oversight more difficult, a he declared.
In recent days, a unit of the Chinese cybersecurity regulator said it has launched reviews of data security in popular mobile apps operated by Didi, Full Truck Alliance Co. and Kanzhun Ltd. .