ECONOMY

China to Revise Rules and Strengthen Supervision of Overseas Listings


China said it would tighten rules for companies seeking to sell shares abroad and strengthen oversight of overseas-listed companies, moves that could hinder attempts by homegrown firms to raise money in the U.S.

The shift comes as Chinese regulators intensify scrutiny into technology companies, including ride-hailing firm Didi Global Inc., that recently listed in the U.S.

The government said in new guidelines released Tuesday through state-run Xinhua News Agency that regulators need to deepen cross-border cooperation over audit supervision and amend laws and regulations “on data security, cross-border data flow and other confidential information management.”

The guidelines were drafted in the context of “profound changes in the economic and financial environment,” amid what authorities described as mounting lawlessness in the capital market that had made regulatory oversight more challenging, it said.

In recent days, a unit of China’s cybersecurity regulator said it launched data-security reviews into popular mobile apps operated by Didi, Full Truck Alliance Co. and Kanzhun Ltd. , which raised close to $7 billion in total from U.S. initial public offerings in June.

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