🇨🇳 internet firms may soon need gov’t approval for fundraising

The Cyberspace Administration of China (CAC) is proposing to require the country’s large internet companies to win approval before going through with any fundraising activity, Reuters reported. 

Firms with more than 100 million users or over US$1.6 billion in revenue will be covered by the recently-drafted guidelines. Companies connected to sectors in the National Development and Reform Commission’s negative list will also have to get the CAC’s go signal.

The development comes weeks after the regulatory body required cybersecurity checks for firms looking to go public outside of China. However, it is unclear if the proposal affects private funding rounds and pre-IPO fundraises.

Last year, Chinese tech firms have taken numerous regulatory hits. Players in the edtech, gaming, and ecommerce spaces are just some of those affected by the state crackdown on internet giants.

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