Beautiful Virgin Islands

Monday, Sep 01, 2025

China Reportedly Planning to Ban User Data-heavy Tech Giants From Being Listed on Wall Street

China Reportedly Planning to Ban User Data-heavy Tech Giants From Being Listed on Wall Street

New financial rules and the closing of regulatory loopholes in both China and the US have already put over $2 trillion in Chinese company assets on Wall Street at risk, with the battle for the market taking place amid the intensification of a broader China-US conflict involving trade, technology, and geopolitics.

The China Securities Regulatory Commission (CSRC), the agency responsible for overseeing the securities industry in the People’s Republic, is working on new rules that would effectively stop Chinese firms which work with large amounts of sensitive user data from issuing initial public offerings (IPOs) on the US stock market, The Wall Street Journal reports, citing sources said to be familiar with the plans.

According to the newspaper’s sources, CSRC officials have been quietly telling some Chinese companies and foreign investors that the new rules would prevent firms from listing abroad via specially-created divisions incorporated outside China. The regulations are expected to affect strategic sectors including internet companies, telecommunications firms and education sector enterprises. However, some sectors, including companies in the pharmaceutical industry, are not expected to be as greatly affected in situations where their data is "less sensitive."

The new rules are said to be part of the Chinese government broader plans, unveiled earlier this year, to prevent Chinese companies from sidestepping national restrictions on foreign investment into China by setting up what are effectively shell companies abroad which are formally separate from, but factually completely accountable to, their China-based parents.

According to officials, on top of new rules targeting companies in sensitive industries, regulators are also expected to set up a new supervisory framework under which firms looking to issue IPOs would require approval from a cross-ministry committee, with that process expected to be up and running sometime in the coming months. The committee is expected to include members of the CSRC itself, plus the Cyberspace Administration of China (the country’s internet watchdog) and other relevant ministries.

The rules for the data-heavy companies are reportedly expected to be implemented sometime in the fourth quarters of 2021, but have yet to finalised. WSJ’s sources say the CSRC has asked some Chinese companies with plans to issue IPOs abroad to hold off on doing so.

Last month, US media estimated that over $2 trillion in value from the 250+ Chinese companies listed on Wall Street may be swept away if the Variable Interest Entity (VIE) loophole – the means by which Chinese firms have been able to get around the Asian nation’s strict policy on foreign ownership, is closed. Over the past two decades, Chinese companies have carefully listed on the US stock market using VIEs, tantalised by the prospects of easy cash from American investors, who have expressed an eagerness to invest in the world’s industrial powerhouse.

Chinese authorities’ efforts to tame tech companies – particularly those working in telecoms, high tech, and media – have put the VIE system under threat. At the same time, American regulators have passed their own restrictions aimed at increasing oversight over Chinese firms, with the US Securities and Exchange Commission recently ordering PRC companies listed on Wall Street to disclose risks related to possible Chinese government interference in their business. Last year, US lawmakers passed the so-called "Holding Foreign Companies Accountable Act," which requires firms listed on US exchanges to publicly declare that they are not owned or controlled by any foreign government, and allow themselves to be audited.

The US and other Western nations and corporations have severely criticised the Xi Jinping government over its recent efforts to close tax loopholes, improve regulatory regimes and introduce ‘rule of law’ reforms aimed at eliminating corruption and optimising administration. Beijing has generally ignored these criticisms, which have rung hollow following decades of complaints by Western businesses themselves about China’s lack of regulation and rule of law in business.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
×