SHANGHAI — Chinese companies seeking to list overseas will be subjected to regulatory screening by Beijing authorities if they have over 1 million users with registered personal information, the country’s internet regulator said on Saturday.
The decision marks China’s first big move in its crackdown on offshore listing by Chinese firms. China is home to a number of companies with millions of registered online users. The clampdown will likely affect many companies and cast a shadow over the country’s tech sector.
On Saturday, the Cyberspace Administration of China began taking public comments regarding the revision of its network safety review measures. The revised proposal includes a new clause which states that companies holding the personal information of over 1 million individuals must undergo a security review when listing overseas.
Chinese companies will also be required to submit materials regarding their initial public offerings.
A “special review,” which is conducted when there is a disagreement among authorities, has previously been completed within 45 days but will now be extended to three months, as China aims to tread carefully in its evaluations.