New Chinese Data Regulations

Chinese regulators consider strict data management requirements for companies looking to list stocks in foreign markets. Under the proposed plan, third-party data security firms would handle the data of these companies when they plan IPOs on overseas indices. Further crackdowns by the Chinese government have already damaged investor confidence and torpedoed stock prices. As the CSRC and CAC prevent overseas listings pending new regulations, some say this plan will limit the transfer of Chinese data to offshore partners, damaging the country’s social and financial stability.