Restrictions will affect large organizations, which store a large size of user data, tells WSJ. Beijing wants to introduce new rules by the end of the year, in the fourth quarter.
The agency responsible for information security has already approved two new requirements last week.. 1-oe - comply with national laws. 2-oe — ensure data security in critical industries: technologies, connection, The money, transport, energetics.
At the moment, almost all organizations from China, similar as Alibaba or JD.com, enter the American stock exchange through subsidiaries registered in offshore zones. In this way, companies get out of the zone of action of state laws.. Now the Cabinet of Ministers intends to close this loophole.
The American side makes similar demands. The US Securities and Exchange Commission asks organizations from China to inform about the risks before the IPO, related to ownership structure and likely regulatory intervention. And also follow the American accounting standards. On the other, as the committee said, companies are threatened with delisting.
Masters assess the capabilities of organizations from China differently. According to Mark Mobius, founder of Mobius Capital Partners, actions of regulators allow financiers to buy shares at low prices. “When companies, like Alibaba, down thirty percent, there is an opportunity to acquire these companies, so that the reaction of the market, may be, was superfluous ", - said Mobius.
Ray Dalio has a similar position, enlarged?? investment in China. The financiers are wrong, when they call the actions of the Chinese authorities "anti-capitalist", says the managing director of Bridgewater Associates.
But Oxford economist George Magnus disagrees with Dalio.: "I think, Dalio is wrong. He has a big business in China., what else to say to him? So-called growth stocks will not and should not be traded as growth stocks., because they were politicized. Fall of Chinese stocks, which we have seen since February, sustainable. I do not think, that tech companies should be ranked as before ", Magnus added..
