Daily Management Review

China to step up oversight of companies trading abroad


China has vowed to step up oversight of companies that list their securities in other countries. Earlier, the Chinese regulator demanded the removal of Didi, a service that had recently raised more than $4bn in an IPO in New York, from app stores.

Chinese authorities will step up oversight of companies that have placed their securities in other countries as well as cross-border data flows. This was announced by China's State Council, reports Reuters. 

In addition, the authorities have promised to crack down on illegal activities in the securities market and punish those who fraudulently issue securities, manipulate the market or engage in insider trading, the agency noted.

Late last week, the China Cyberspace Administration (CAC) demanded that the Didi taxi service be removed from app shops. The investigation came two days after the company's IPO on the New York Stock Exchange, in which it raised about $4.4 billion. China's Uber lost $22 billion in capitalisation amid the authorities' demand.

CAC has also launched an investigation into recruitment website Zhipin.com, as well as truck call services Huochebang and Yunmanman. Full Truck Alliance, which emerged from the merger of Huochebang and Yunman, and Kanzhun, which owns Zhipin.com, entered the US stock market in June, Reuters noted. 

source: reuters.com