China’s Internet regulator said on Saturday that large Chinese companies with more than 1 million user data need to pass security reviews before issuing stocks on overseas stock exchanges.

Less than a week before the State Council, the Cabinet of China, and the Central Committee of the Communist Party of China expressed the need for a new regulatory system to regulate overseas listings, the State Internet Information Office of China released the news. Previously, overseas listings were not subject to strict government supervision.

Xi Jinping’s government cares most about listing United StatesAccording to Dealogic, more than 30 Chinese companies raised a record US$12.4 billion in the first half of this year.

The decree of the China Securities Regulatory Commission confirmed its position as a powerful entity under the emerging regulatory regime for overseas listings in China. The regulator will notify IPO applicants who have passed the data security review within 60 working days, but if there are disagreements, the process may take twice as long.

On July 2, China’s Internet regulator notified Didi Chuxing, China’s largest online car-hailing group, to stop registering new users. Data security reasonsJust days after it completed its $4.4 billion IPO on the New York Stock Exchange.

CAC had hoped that Didi would at least postpone its IPO in the United States, but had no legal power to force it to do so.Regulators are concerned about the organization’s data, including location Information on sensitive government buildings and installations can be obtained by foreign regulatory agencies.

The United States has passed legislation to force foreign companies to comply with domestic audits within three years, otherwise they will face forced delisting, but Beijing has ordered Chinese companies not to do so. U.S. politicians pointed out that the Didi incident was a reason to strengthen supervision of Chinese companies listed in New York.

Didi shares fell more than 20% On Tuesday, they traded on the first day after CAC’s intervention.

Last Sunday, CAC also banned the download of the main application of the ride-hailing group. The night before, it extended the ban to another 25 Didi-related apps.

As another sign of increasing pressure on Chinese technology giants, the country’s market regulator on Saturday also rejected Tencent’s proposed merger, which would create a dominant video game streaming media operator.

The State Administration for Market Regulation said that the merger of two US-listed Tencent subsidiaries Douyu and Huya will create an entity that controls more than 70% of the market.

Tencent also operates the popular WeChat messaging app and one of China’s largest online payment services. It proposed a merger in October, just a few weeks before the Xi Jinping government blocked the $37 billion initial public offering of Jack Ma’s Internet finance platform. Ant Group, It will be the largest ever. The combined market value of Douyu and Huya is US$5.3 billion.

The blockade of Ant Financial’s IPO is the first wave of a widespread crackdown that has put technology giants including Jack Ma’s e-commerce flagship, Alibaba, Tencent and Didi into trouble.

Tencent, the third largest shareholder of Didi, with a 6.8% stake, said that it has accepted the regulator’s decision on the merger of Douyu Huya and will “fulfil our social responsibility.” Tencent had previously been fined for failing to seek regulatory approval for certain acquisitions.

Scott Yu, an antitrust expert at Beijing Zhonglun Law Firm, said that this is the first time that market regulators have blocked domestic mergers and acquisitions. “This will make other companies more cautious when evaluating antitrust prospects,” he said.

Despite the blow, Tencent’s business is still booming.25% year-on-year growth in the first quarter is better than expected increase Revenue reached 135 billion yuan (US$20.8 billion).

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