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China’s CAC orders pre-IPO security review for firms with over 1m users
- Saturday | 10th July, 2021
SHANGHAI (Reuters) – The Cyberspace Administration of China (CAC) said on Saturday any company with data for more than 1 million users must undergo a security review before listing its shares overseas, broadening a clampdown on its large “platform economy”. The security review will put a focus on risks of data being affected, controlled or manipulated by foreign governments after overseas listings, China’s cyberspace regulator said, posting the proposed rules on its website. China’s cyberspace regulators are imposing tighter restrictions on data collection and data storage. Two new sets of rules, the Data Security Law and the Personal Information Protection Law, which cover data storage and data privacy respectively, are set to go into effect this year. Saturday’s announcement will also require firms to submit the IPO materials they plan to file for review.
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