Chinese regulators are reportedly considering allowing U.S. listings for data-rich companies if they hand over data management and supervision duties.
Regulators cited fears over foreign listed Chinese firms potentially being forced to hand over data to foreign entities that could undermine national security, according to a «Reuters» report citing unnamed sources.
Authorities suggested that third party security firms – ideally state-backed – could limit firms' ability to transfer Chinese onshore data overseas.
Timeline: September
Advisors are hopeful that a formal framework for the data handover rules could be delivered in September through a final decision has yet to be made.
According to the report, officials have also discussed the plan with capital market participants.
Year-to-date, a total of 37 Chinese companies have raised $12. 6 billion via U.S. IPOs, according to Dealogic data, nearly doubling the $6.6 billion raised during the same period last year.
