Monday, June 27, 2022
  • Login
198 Japan News
No Result
View All Result
  • HOME
  • BUSINESS NEWS
  • VIDEO NEWS
  • FEATURED NEWS
    • JAPAN US TRADE NEWS
    • JAPAN EU NEWS
    • JAPAN UK NEWS
    • JAPAN INDIA NEWS
    • JAPAN RUSSIA NEWS
    • JAPAN GULF NATIONS NEWS
    • JAPAN AFRICA NEWS
    • JAPAN EGYPT NEWS
    • JAPAN NIGERIA NEWS
    • JAPAN MEXICO NEWS
    • JAPAN BRAZIL NEWS
    • JAPAN THAILAND NEWS
    • JAPAN INDONESIA NEWS
  • CRYPTO
  • POLITICAL
  • TECHNOLOGY
  • JAPAN AGRICULTURE NEWS
    • JAPAN MANUFACTURE NEWS
    • JAPAN AGRICULTURE NEWS
    • JAPAN IMMIGRATION NEWS
    • JAPAN UNIVERSITY NEWS
    • JAPAN EDUCATION NEWS
    • JAPAN VENTURE CAPITAL NEWS
    • JAPAN JOINT VENTURE NEWS
    • JAPAN BUSINESS HELP
    • JAPAN PARTNESHIPS
  • ASK IKE LEMUWA
  • CONTACT
198 Japan News
  • HOME
  • BUSINESS NEWS
  • VIDEO NEWS
  • FEATURED NEWS
    • JAPAN US TRADE NEWS
    • JAPAN EU NEWS
    • JAPAN UK NEWS
    • JAPAN INDIA NEWS
    • JAPAN RUSSIA NEWS
    • JAPAN GULF NATIONS NEWS
    • JAPAN AFRICA NEWS
    • JAPAN EGYPT NEWS
    • JAPAN NIGERIA NEWS
    • JAPAN MEXICO NEWS
    • JAPAN BRAZIL NEWS
    • JAPAN THAILAND NEWS
    • JAPAN INDONESIA NEWS
  • CRYPTO
  • POLITICAL
  • TECHNOLOGY
  • JAPAN AGRICULTURE NEWS
    • JAPAN MANUFACTURE NEWS
    • JAPAN AGRICULTURE NEWS
    • JAPAN IMMIGRATION NEWS
    • JAPAN UNIVERSITY NEWS
    • JAPAN EDUCATION NEWS
    • JAPAN VENTURE CAPITAL NEWS
    • JAPAN JOINT VENTURE NEWS
    • JAPAN BUSINESS HELP
    • JAPAN PARTNESHIPS
  • ASK IKE LEMUWA
  • CONTACT
No Result
View All Result
198 Japan News
No Result
View All Result
Home JAPAN MANUFACTURE NEWS

Subtle word choice in China’s IPO rules revives hope for Hong Kong

by 198 Japan News
January 4, 2022
in JAPAN MANUFACTURE NEWS
Reading Time: 3 mins read
A A
0
Share on FacebookShare on Twitter


A subtle word choice in China’s revamped rules for overseas listings is stoking speculation that authorities may make it easier for companies to list in Hong Kong than in other offshore financial hubs.

China’s top internet regulator published final regulations Tuesday requiring all companies with more than a million users seeking “foreign” listings to undergo a rigorous data security review starting Feb. 15. That’s a notable change from a related November notice, when the same watchdog mentioned Hong Kong listings specifically as requiring scrutiny if they involved matters of national security, and also employed the term “overseas” — often used to describe Hong Kong, a semi-autonomous Chinese city.

The wording has revived hopes that companies seeking Hong Kong listings won’t automatically be required to undergo a formal data security review. It would be welcome news to investors and the Asian financial center, long the destination of choice for Chinese businesses seeking capital and a global presence.

The pace of major IPOs all but dried up in 2021 after a plethora of government agencies launched a concerted effort to rein in tech giants — by far the biggest capital-raisers abroad.

Companies seeking Hong Kong listings are “not required” to seek approval on data security based on the regulations finalized Tuesday, said Chen Jihong, a data security lawyer at Beijing-based Zhonglun Law Firm. That underscores Beijing’s heightened support toward Hong Kong and growing confidence about its control over the former British colony, he added.

“Chinese regulators believe data security risk in Hong Kong is not as high as overseas markets,” Chen said. “The Hong Kong capital market will definitely see more opportunities as a result.”

Representatives for the Cyberspace Administration of China didn’t respond to calls seeking comment. An official at a separate agency handling enquiries for Tuesday’s notice said the rules shouldn’t encompass Hong Kong listings because “the city isn’t a foreign country.”

From Alibaba Group Holding Ltd. to Tencent Holdings Ltd., China’s largest corporations have for two decades employed a range of structures to attract the foreign capital that’s been key to their rapid ascent over the past decade. The rush to list abroad in turn generated billions of dollars for not just technology firms but also their Wall Street backers.

Then Beijing tightened the spigot in 2021. As part of efforts to exert greater control over the troves of data that underpin their growing influence, the CAC in July proposed legislation requiring companies to undergo data security vetting before going public — days after Didi Global Inc. proceeded with a Hong Kong IPO despite its objections. Neither Tuesday’s finalized regulations nor the original draft specify a requirement for Hong Kong listings.

At the same time, the American securities watchdog has threatened to toss Chinese companies off bourses unless they comply with U.S. auditing requirements, encouraging more IPO candidates to seek floats closer to home.

Regardless of the CAC’s position, dealmakers now have to grapple with uncertainty on several fronts, and Hong Kong listees must still jump through a number of regulatory hoops. Shares in bourse operator Hong Kong Exchanges & Clearing Ltd. slid 1.1% on Tuesday.

Just last month, separate agencies unveiled sweeping regulations governing overseas share sales by the country’s firms, including requiring companies in a swath of industries to seek official waivers before floating overseas. And the securities watchdog now has the power to veto any share sale abroad it deems a threat to national security.

Also in question is the “Variable Interest Entity” model, which employs overseas-registered entities to bypass restrictions on foreign investment. Pioneered by Sina Corp. and its investment bankers during a 2000 IPO, regulators have only started acknowledging their existence in a series of pronouncements and new rules over the past year, though it’s still unclear if Beijing considers them legal.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW

You might also like

Global commodity shock enters next phase with recession test

Less than 3% of Japan firms exiting Russia, lowest among G7: survey

U.S. recession would be ‘necessary price’ to defeat inflation, IMF chief says

PHOTO GALLERY (CLICK TO ENLARGE)

  • Pedestrians cross a busy intersection in Causeway Bay in Hong Kong on Tuesday. | AFP-JIJI



Source link

Tags: ChinaschoiceHonghopeIPOKongrevivesrulesSubtleword
Share30Tweet19

Recommended For You

Global commodity shock enters next phase with recession test

by 198 Japan News
June 26, 2022
0

Commodities will get intense scrutiny for the rest of 2022 after a first half dominated by the supply turmoil and inflationary shocks unleashed by Russia’s attack on Ukraine....

Read more

Less than 3% of Japan firms exiting Russia, lowest among G7: survey

by 198 Japan News
June 26, 2022
0

Less than 3% of Japanese companies operating in Russia have decided to withdraw following its invasion of Ukraine — the lowest proportion among the Group of Seven nations,...

Read more

U.S. recession would be ‘necessary price’ to defeat inflation, IMF chief says

by 198 Japan News
June 25, 2022
0

Washington – With inflation rising sharply, and the Federal Reserve raising interest rates, the United States is facing an increased risk of a downturn, IMF Managing Director Kristalina...

Read more

Sapporo U.S.A. to acquire Stone Brewing as it moves to speed up global expansion

by 198 Japan News
June 24, 2022
0

Sapporo U.S.A., a subsidiary of the major Japanese beer-maker, on Friday announced a $168 million acquisition of Stone Brewing, an iconic U.S. craft brewery. The acquisition, slated to...

Read more

Probe calls SMBC Nikko trading scandal ‘unjust act’

by 198 Japan News
June 24, 2022
0

SMBC Nikko Securities Inc. said Friday an investigation panel looking into the major Japanese brokerage’s trading scandal has called it an “inappropriate and unjust act,” adding that the...

Read more
Next Post

South Korea's conservatives falter in election race

China's Economy Could Overtake US Economy by 2030

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

Gravitas: China retaliates after Biden's Taiwan comment

37

Live news updates: Blockade Australia climate protests across Sydney; at least 12 Covid deaths | Australia news

June 27, 2022

G7 leaders to ban Russia gold imports and monitor more assertive China

June 27, 2022

At G7, Kishida targets China with warning over taking ‘wrong lessons’ from Ukraine war

June 27, 2022

Coronavirus pandemic latest: June 27, 2022

June 26, 2022

Trilateral meeting between leaders of S.Korea, US, Japan in Spain during NATO summit

June 26, 2022

Gold ban will cost Russia $19 billion US

June 26, 2022
198 Japan News

198 Japan News will provide the latest news update as the government facing a growing challenging in preventing Japan from breaking apart along ethnic and religious lines.

198massmedia Group. USA. 3821 Dominion Drive, Dumfries, USA. 22026.

Toll Free 1 888 642 8433.
Contact: info@198japannews.com

LATEST UPDATES

Live news updates: Blockade Australia climate protests across Sydney; at least 12 Covid deaths | Australia news

G7 leaders to ban Russia gold imports and monitor more assertive China

At G7, Kishida targets China with warning over taking ‘wrong lessons’ from Ukraine war

Coronavirus pandemic latest: June 27, 2022

Trilateral meeting between leaders of S.Korea, US, Japan in Spain during NATO summit

Gold ban will cost Russia $19 billion US

City shifts, curriculum tweaks, gig work: how TCS, Accenture, IBM et al. are managing staffing blues

Pakistan Democratic Movement chief says he is ‘responsible for Imran Khan’s ouster’

RECOMMENDED

G-20 pandemic fund may start operating at end of June: Indonesia

Coronavirus pandemic latest: June 25, 2022

Coronavirus pandemic latest: June 24, 2022

Japan’s shochu capital becomes new hot spot for whisky

U.S. dollar rises amid economic data

U.S. dollar slips as euro, sterling rise

In Japan… People Eat From Conveyor Belts

Japan’s fashion item rental startup AirCloset files for IPO – BRIDGE

Copyright © 2021 198 Japan News.

No Result
View All Result
  • Browse the latest updates from Japan
  • Landing Page
  • Buy JNews
  • Support Forum
  • Contact Us

Copyright © 2021 198 Japan News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In