Chinese regulators are making arrangements for data-rich companies that want to IPO in the US to transfer data management and control to third parties. We can say that the regulation, which will bring a serious control on overseas public offerings, is also a control element for the private sector. This is very intense; Although it is within the scope of antitrust regulations, it will actually have a limiting effect in terms of public offering funding sources to be obtained from the US; which will undermine the power of the Chinese private sector, especially in terms of world domination. This concerns the technology sector, which is strong in terms of formal data usage. Software-based companies will see the repercussions of these anti-monopoly regulations.
While the government in China is making regulations to limit the use of data by technology companies; It’s also debatable how much the state might be able to put a limit on it, along with a widespread oversight rule. Therefore, this includes potential risks regarding the financial performance of companies if they are subject to a strict control mechanism. Because access to data constitutes an important operational potential of this sector. It also limits the potential in the context of networking, in an environment where the new user influence and demand for digitalization are increasing. Another problem is that this is subject to limitation for overseas IPO. Because quality funding is a necessity of the market today. A total of 37 Chinese companies have raised $12.6 billion through U.S. public offerings so far this year, nearly double the $6.6 billion raised in the same period last year.
The rationale for the event is this: For example, the government-owned Weston Information Industry Inc. to carry out the data management and monitoring activities of Didi. State agency; It will have access to Didi’s servers across the country to monitor data collection, use and transfer. The aim here is; To prevent the data from falling into the hands of foreign institutions. So the template is more or less like this. This regulation, which will come into effect on November 1, also concerns companies such as Ant Group, Tencent, JD.com.
Kaynak Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
