(CNBC) The Cyberspace Administration of China will compel firms holding personal information of at least one million users to seek network security review before listing overseas.
The directive, effective on February 15, targets firms carrying out data processing activities likely to expose the country’s national security.
The move happens when China is tightening the rope on its tech sector, with firms given the go-ahead if their data processing activities are proved unlikely to threaten its national security.
The network security review, proposed in 2021, will be an addition to the data protection law passed by China in the same year.
China’s move happens amid the growing popularity of tech IPOs in Hong Kong, even as some firms such as Didi initiate steps to delist from New York over conflicts with Beijing.
CSI 300 is down -0.46%.
