China Seeks to Ban Data-Rich Firms From U.S. IPOs, DJ Says
- New rules may take effect late 2021 and exempt drug firms
- Beijing has already brought the U.S. IPO train to a halt
A public screen with an image of the Shanghai city skyline in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
China will propose new regulations to block companies with large amounts of sensitive consumer data from floating shares in the U.S., Dow Jones reported, citing people familiar with the matter.
China’s stock market watchdog has told companies and investors the envisioned rules will prohibit firms from listing abroad, particularly those seeking a foreign IPO via overseas-incorporated entities. Sectors with less sensitive information, such as pharmaceuticals, remain likely to win approval for an IPO, Dow Jones reported.