Thu. Jan 27th, 2022

China’s cybersecurity administration will apply new rules to firms that hold data for more than 1 million users.

China’s cyber regulator said it would implement new rules from February 15 requiring platform companies with data for more than one million users to undergo a security review before listing their shares overseas.

The Cyberspace Administration of China (CAC) also said on Tuesday that such firms should apply for cyber security reviews before submitting listing applications to foreign security regulators, according to statements published on their WeChat account.

Companies will not be allowed to list abroad if the review finds that national security could be affected, it said.

This was the latest move a series of recent regulatory changes ordered by the Chinese government to tighten foreign listing rules.

Hong Kong shares weakened on CAC news. The Hang Seng index fell 0.36 percent in early trading on Tuesday, and the city’s technology index lost 1.32 percent.

Shares in Hong Kong Exchanges and Clearing Ltd, the operator of the Hong Kong Stock Exchange, last fell 1.8 percent, after falling as much as 2.4 percent after the announcement.

Stricter restrictions

The CAC proposed the rules for the first time in July, saying the security review would focus on the risks of data being influenced, controlled or manipulated by foreign governments to overseas listings.

New rules governing the use of algorithm recommendation technology will also be implemented from March 1, the CAC said in a separate statement.

Those rules, which was first proposed in August last year, will require companies to give users the right to turn off the service and will also intensify oversight of news providers using such technology.

China’s cyber regulators impose stricter restrictions on data collection and storage. Authorities are also urging companies to list domestically.

Two other new sets of rules, the Data Security Act and the Personal Information Protection Act, which cover data storage and data privacy, respectively, came into effect last year.

Source link

By admin

Leave a Reply

Your email address will not be published.