According to a press report, China's government wants to tighten the reins on technology companies further.

A ban on IPOs in the US is planned for Chinese companies that have large amounts of sensitive consumer data, wrote the Wall Street Journal (WSJ) on Friday, citing people familiar with the matter.

This is likely to affect tech companies in particular.

Such a step had already become apparent recently.

In July, for example, the Chinese government announced significantly tighter controls on Chinese companies traded on the stock exchange abroad: According to a State Council document, the new rules are aimed at "data security, cross-border data flow and the management of confidential information".

In addition, it was said at the time that future IPOs would have to be specially approved.

The background to this is the government's concern that Chinese companies traded abroad could be forced by the local authorities to make their growing amounts of data available.

China's securities regulator also wants to close previous regulatory loopholes that Chinese tech giants have used to enter the US or Hong Kong stock exchanges via investment companies in tax havens such as the Cayman Islands or the British Virgin Islands, as the Bloomberg news agency recently reported .

Keywords: