China introduces new rule for some firms to undergo cybersecurity review before overseas listings

• Internet firms holding the data of more than 1 million users will have to undergo a network security review before overseas IPO from February 15

• The news rules are aimed at firms that carry out data processing activities that could affect national security

China on Tuesday said the government will enforce new rules to increase its oversight on some Chinese companies with large amounts of user data, planning to list overseas, in the latest move to tighten its grip on its sprawling technology sector.

The security review process, which was first proposed last year by the Chinese government, will be implemented by the increasingly powerful Cyberspace Administration (CAC), and the new rule will come into effect from February 15.