China will require technological companies wishing to go to the Hong Kong stock exchange, to check for resistance to cyberatics. Such an ultimatum is nominated due to the tightening of control over information collected by the technical gigagants, reports Bloomberg.
Before IPO (primary public placing actions), companies will have to receive the approval of China cybersecurity management. New rules are due to the expansion of legislation in which the requirements for data security and confidentiality on the Internet are now prescribed. The government plans to control observance by private companies accepted cybersecurity measures.
New rules may cause discontent: technological firms expected to enter the IPO on the Hong Kong Stock Exchange, since the US regulators also began to study new listings more carefully. The US regulators plan to exclude from the quotation lists of the American stock exchanges of companies whose auditors refuse to discover their reporting for supervisory authorities. Such measures can lead to the conclusion of Chinese securities with the US Exchange for almost two trillion dollars from 2024.
Chinese online companies collecting data and related to national security will also have to receive approval from the authorities before mergers, divisions and restructuring. Without permission of regulatory bodies, tehnogygants will not be able to create foreign headquarters.
On the intention to protect user confidentiality and data security The National Bank of China reported in early October 2021. The Chairman of the regulator and Gan promised that the country would continue to introduce new measures against companies from the Financial Technology Sector.