Who is next?
The draft rules issued by the cyberspace administration require platforms with more than one million users to submit a cybersecurity review before listing overseas.
This may have a chilling effect on the future listing of Chinese companies, because they will think twice and cause anger in Beijing.
This has also swept various start-ups in China’s huge consumer market.
Bike-sharing platform Hello Inc said in a regulatory document on Wednesday that it would cancel the planned Nasdaq IPO. Not long before this, the popular Pinterest-like app Xiaohongshu shelved similar plans.
Nonetheless, officials seemed shocked by the reaction to their latest move. According to Bloomberg News, on Wednesday, regulators convened a last-minute meeting of senior bankers to ease concerns about crackdowns.
The move was made after several local media republished the official Xinhua News Agency’s comments on Wednesday night, which stated that “the foundation for the development of China’s capital market is still solid.”
Shares of hard-hit technology and tuition companies rose on Thursday, while the Hong Kong and mainland markets both soared after being hit hard earlier this week.
