The Cyberspace Administration of China will apply new rules to companies that store data from more than 1 million users.
China’s cyberspace regulator announced it would introduce new rules starting February 15, requiring platform companies with data from more than one million users to go through a security clearance before listing their stocks overseas.
The Cyberspace Administration of China (CAC) also said Tuesday that such firms should seek cybersecurity reviews before filing listing applications with overseas securities regulators, according to statements posted on their WeChat account.
Companies are not allowed to be listed abroad if the review reveals that national security could be compromised, it said.
It was the latest in a series of recent regulatory changes ordered by the Chinese government to tighten offshore listing rules.
Hong Kong stocks weakened on the CAC news. The Hang Seng Index fell 0.36 percent in early trading Tuesday, and the city’s technology index fell 1.32 …