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China tech

China to put overseas-listed tech companies on shorter leash

Tougher oversight poses market decoupling risk for IPO hopefuls

Didi shares slumped as much as 25% in U.S. pre-market trade ahead of their first session since the Cyberspace Administration of China ordered the company's app be removed from app stores.   © Reuters

SHANGHAI/NEW YORK -- Beijing will ramp up supervision of Chinese companies on overseas markets and new listings, citing concerns about information security in plans unveiled Tuesday after authorities launched investigations into U.S.-listed tech names such as Didi Global.

Authorities aim to crack down on illegal activity in the securities market, China's State Council cabinet and the Communist Party's General Office said in a joint opinion released via Xinhua News Agency. Beijing will enact legislation and rules covering cross-border data flows and management of sensitive information, they said.

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