Subtle Word Choice in China IPO Rules Revives Hope for Hong Kong
- Debate over whether listings there subject to data scrutiny
- IPO dealmakers remain confused over regulatory scope
A pedestrian walks along a promenade in front of the city's skyline in Hong Kong, China.
Photographer: Paul Yeung/BloombergA 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.