WSJ: Chinese regulator can single-handedly block US listing of companies

The Cyber ​​Security Administration (CAC) of China has taken the lead in determining which local companies can list their shares overseas. This is reported by The Wall Street Journal with reference to its own sources.

The regulator has already ordered the removal of the Didi service app from all national online retailers following its US IPO, and has also announced an investigation into two more Chinese IT companies that have listed their shares on US exchanges. Now, according to sources, it is the CAC who will have the decisive right to vote in decisions on the admission of listing of Chinese companies abroad, and especially in the United States. The growing influence of CAC is due to the desire of the authorities to address the lack of coordination between regulators, which has already led to confusion around the Didi IPO. The Cybersecurity Authority asked the company to postpone the listing, but economic and financial regulators supported the project. As a result, without receiving an outright ban, Didi’s management decided to hold an IPO.

Kirill Sarkhanyants

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