China is moving to plug regulatory gaps that for decades allowed technology giants like Alibaba Group Holding Ltd and Tencent Holdings Ltd to sidestep restrictions on foreign investment. In July, regulators proposed rules that would require nearly all companies seeking to list in foreign countries to undergo a cybersecurity review. (File pic: Shanghai stock exchange building)
SHANGHAI: Officials in China’s financial capital of Shanghai are closing a route used for decades by companies operating in the technology sector to draw foreign investment.
Startups that have recently applied to Shanghai’s National Development and Reform Commission (NDRC) for permission to inject money into affiliated entities incorporated in places like the Cayman Islands are being turned away, according to people familiar with the matter.
Limited time offer:
Just RM5 per month.
