Regulators in China are considering pushing data-rich companies to give over management and supervision of their data to third-party organizations if they intend to list on US stock markets, sources told Reuters. The move comes as part of Beijing’s unprecedented scrutiny of private sector firms.
The regulators believe bringing in third-party information security firms, ideally state-backed, to manage and monitor IPO hopefuls’ data could effectively limit their ability to transfer Chinese onshore data overseas, one of the people told Reuters.
That would help ease Beijing’s growing concerns that a foreign listing might force such Chinese companies to hand over some of their data to foreign entities and undermine national security, added the person.
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