Chinese regulatory authorities are developing options to allow their technological giants to conduct primary public offering of shares (IPO) on American stock exchanges. While the most appropriate seems to be the solution in which companies will allow to sell if they are transferred management and supervision of personal data of users to third-party firms with state institutions. This reports Reuters with reference to its sources.
The authorities hope that due to controlling data of Chinese citizens will not be abroad and will not undermine the national security of the country. Regulators work together with representatives of the IT industry. In case of adoption of new rules, they will begin to act in September.
Spring Cyberspace Administration (CAC) of China recommended companies with a major range of users and no longer hold an IPO in the United States. The DIDI taxi call service ignored the warning and went to the IPO in New York, where 4.4 billion dollars attracted. In a few days, the Cyberspace Administration accused the company in violating the Customer Data Collection Act and deleted 26 applications from virtual stores, including the main, having collapsed the shares of more than a quarter. Now the shares of DIDI traded $ 7.2 per piece, although at the time of the IPO they cost $ 14 per piece.
In Didi, they stated that they had placed stocks, since regulatory authorities were recommended to postpone the IPO, but not prohibited. The remaining market participants accelerated the signals of the authorities. Bytedance, which owns the social network Tiktok, has undergone an indefinite period of IPO on the New York Stock Exchange.
In mid-August, the State Regulatory Administration (SAMR) issued a draft rules aimed at combating unscrupulous competition in the network. Among the measures – to oblige companies to open negative feedback and prohibit redirect customers to your site while those browsing the product or service elsewhere. After the release of the document IT-Giants, Tencent and Alibaba fell almost five percent.