The headquarters of DiDi in Beijing Photo: VCG
It is said to be the first Chinese firm known to have pulled back from overseas IPO plans since China's cybersecurity regulator's review on the country's top ride-hailing firm Didi Chuxing just two days after its New York debut.
If the draft rules are implemented, domestic firms that have originally planned to conduct a listing abroad are likely to postpone due to the uncertainties ahead and might reconsider the market where they finally go public, an insider of a state-owned investment bank, who asked to remain anonymous, told the Global Times on Sunday.Ĭhinese medical data group LinkDoc Technology has shelved plans for an IPO in the US amid the clampdown on overseas listings, Reuters reported Thursday, citing sources with direct knowledge of the matter. The CAC is seeking public comments on the draft revision through to July 25 and it was not immediately clear when the draft rules will come into effect. "Data handling and overseas IPOs" are newly added to suspected behaviors that are deemed to potentially harm or do harm national security. Any of the 13 agencies that suspects a risk to national security can initiate a cybersecurity review. "It is very timely to set up such a threshold at this moment," Dong Shaopeng, an advisor to the China Securities Regulatory Commission (CSRC), told the Global Times, noting that the rules make protecting users' data and ensuring China's information security a "premise" for Chinese companies seeking IPOs abroad.Ī new member - the CSRC - was added to the national cybersecurity review work mechanism, which previously composed of 12 national agencies, per the draft revision. The draft rules outlined specific steps and materials for a cybersecurity review, including an analysis on national security by the company and all procurement documents, current or future agreements as well as IPO materials prepared to be submitted. There is no room for compromise," Liu said. "This is in line with the basic principles of safeguarding national information security. The threshold of a million users, as clarified by the new rules, means almost all platforms operating in China which aspire to sell shares abroad need to go through a cybersecurity review," Liu Dingding, a Beijing-based internet sector analyst, told the Global Times. "In the Chinese market, there are countless internet platforms that have stored the information of over 10 million or even 100 million users. Most notably among the draft revision released Saturday is that all internet product and service providers that collect data of more than a million users must file for review and approval before seeking an IPO abroad. It was the first time that the Cyberspace Administration of China (CAC) released a draft amendment and sought public opinion on the cybersecurity review measures since June last year, when the original measures became effective. Regulators' tightening scrutiny on internet firms, which have been inclined to seek IPOs in the US market over recent years, came at a crucial moment that the potential risks posed by data breaches have been amplified along with the value those companies generated as China pushes ahead with digitization in various industries, analysts told the Global Times, adding that it will be impossible now to bypass local regulations via overseas listings.
Didi linkdoc ipotimes crack#
It marked another crucial step in China's broader efforts to ensure data security amid growing China-US tensions as Washington continues to crack down on Chinese firms. China has tightened cybersecurity reviews for internet companies that seek IPOs in the overseas markets with a set of draft rules, including a new threshold that businesses holding data of more than a million users in China must undergo a regulatory review before applying for an overseas IPO, which indicated the country's resolve to rein in potential national security risks brought by domestic businesses that own oceans of data amid their cross-border operations.
0 kommentar(er)
