Chinese companies are set to face more even more pressures when listing abroad following a statement from the country’s cabinet that signaled tighter supervision.
China will increase supervision over Chinese firms listed offshore, according to a statement from the State Council underlining a focus on cross-border data flows and security as well as illegal activities in the securities market such as fraudulent issuances, market manipulation and insider trading.
The rule changes will empower domestic regulators to have influence over Chinese firms seeking to go public on foreign stock exchanges.
The decision by Chinese authorities to revise listing rules follows ride-hilling giant Didi’s $4.4 billion market debut in New York last week.
Shortly after Didi’s IPO, the Cyberspace Administration of China (CAC) launched a probe against the firm and banned it from accepting new users during the review.
Didi’s stock price has fallen by a around quarter to $12.49 from its post-IPO peak of $16.40.