China is tightening rules on non-domestic listings for the country’s growing start-ups as part of an ongoing regulatory campaign to increase control over the tech sector, reports the Financial Times. Under the proposed guidelines, companies hoping to sell shares abroad would be required to register with the country’s securities regulator, which would review their listing plans and co-ordinate with other agencies to ensure they comply with Chinese laws, such as on data security.
The proposals would empower authorities to block companies from listing overseas if they thought the share sales would threaten national security and would also ban companies from holding international share offerings if they had internal disputes or other unsettled issues.
The new measures, which are contained in a consultation paper from the China Securities and Regulatory Commission, follow months of policy uncertainty for overseas-listed Chinese groups that has weighed on their share prices. One main index tracking Chinese groups listed in the US is down 45% this year.
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