China to enforce cybersecurity reviews for firms seeking overseas listings

China will put enforce new rules that will further probe how its platform companies make plans to list abroad or use algorithms, Reuters reports.

From February 15, the Cyberspace Administration of China (CAC), will implement new rules that require platform companies with data for more than 1 million users to undergo a security review before listing their shares overseas.

From March 1, the CAC will also implement rules governing the use of algorithm recommendation technology.

A week earlier, China’s state planner said it would demand regulatory clearance for overseas Chinese listings in sensitive sectors.

In the same vein, China Securities and Regulatory Commission (CSRC) proposed on Dec. 24 tightening rules governing Chinese companies listing abroad by requiring them to submit filings to the agency first.

Reuters recounts that the CAC first proposed the cybersecurity reviews in July, saying they would put a focus on the risks of data being affected, controlled or manipulated by foreign governments after overseas listings.