China regulator proposes cybersecurity review for some firms planning Hong Kong IPOs

FILE PHOTO: A woman takes pictures in front of high-rise buildings in the Central financial district after sunset in Hong Kong, China March 30, 2021. REUTERS/Lam Yik

BEIJING (Reuters) -China’s cyberspace regulator on Sunday published draft rules proposing that companies planning Hong Kong initial public offerings be required to apply for cybersecurity inspections, if they handle data that concerns national security.

The Cyberspace Administration of China’s (CAC) latest draft proposals on online data security management follow a proposed regulation in July that any company with data for more than 1 million users must undergo a security review before an overseas listing of its shares here.

China has been broadly pushing more companies to list domestically.

Its cyberspace regulators have also been imposing tighter restrictions on data collection and storage here.

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