Chinese companies seeking to go public in Hong Kong will reportedly not be subject to a «formal» cybersecurity review, in a move that will exempt the city from tighter rules on overseas listings.
China plans to exempt companies listing in Hong Kong from first seeking the cybersecurity regulator’s approval, according to a «Bloomberg» report citing unnamed sources.
The latest guidance provides clarification for earlier concerns about whether or not the city would be subject to tighter rules applied to overseas listings, such as the need for a review if a company has a tech platform with 1 million users or more.
The Cyberspace Administration of China (CAC) will still vet firms in the city for compliance with local laws but they will be exempt from a «formal review».
«Less Onerous»
According to the report, the plans were outlined by Chinese officials in a recent meeting with bankers with the latter viewing the latest changes as beneficial for Hong Kong in terms of reduced onerousness compared to listing in the U.S.
All listings, including those in Hong Kong, will also require approval from the China Securities Regulatory Commission under the new framework, the report added.
