Caixin Explains: What China’s New Cybersecurity Review Rules Mean for IPOs

China will implement a more stringent cybersecurity review process next month for data-rich companies seeking “foreign listings” (国外上市) as regulators step up scrutiny over the troves of data that underpin the growing influence of domestic internet companies.

The revamped Measures for Cybersecurity Review (link in Chinese), unveiled Tuesday by the Cyberspace Administration of China (CAC) and backed by 12 other government agencies, will go into effect Feb. 15. The new regulations will supersede review measures implemented in June 2020 that established the requirement for a cybersecurity review.