Mainland Firms’ Hong Kong Listings Could Face National Security Reviews as China Releases Draft Data Management Rules

What’s new: Mainland firms seeking to list in Hong Kong would be subject to review by China’s cyberspace watchdog under new draft rules on data collection and management released by the regulator for public comment Sunday.

If enacted, the rules could create new headwinds for data rich firms that had pivoted their capital-raising plans to Hong Kong, after Beijing made clear that listings outside China were now subject to heightened scrutiny to see if they were exporting data that could affect national security.