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Sources: China mulls stricter guidelines for firms seeking IPOs overseas

Briefing
Your roundup of Asian tech and startup news that matter

Miguel Cordon · 7 May 2021 · 1 min read

Sources: China mulls stricter guidelines for firms seeking IPOs overseas

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“China’s securities regulator is weighing tighter rules for companies seeking to list in Hong Kong or overseas, a move that could hit technology firms already smarting from months of clampdowns,” Bloomberg reported, citing people familiar with the matter.

Details:

The China Securities Regulatory Commission (CSRC) is considering requiring companies to submit listing documents locally before seeking initial public offerings abroad, the sources said.
With the move, the regulator aims to prevent leaks of any sensitive information that might be related to or affect national security, the sources added. The CSRC has issued a denial of the claim without elaborating.

Context:

The potential change will affect homegrown giants such as Didi Chuxing and ByteDance that are currently seeking foreign IPOs.
China’s current rules require all locally registered firms and some with offshore registrations to get CSRC approval.

Editing by Collin Furtado and Eileen C. Ang

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