China to make internet giants take permission before raising funds, investing
Story highlights
Chinese regulators in almost all sectors of its economy have been increasingly assertive. These rules are likely to increase oversight on internet companies
Chinese cyberspace regulator has drafted new rules that would require large internet companies to obtain its permission before making investments or undertaking fundraising activities.
The proposed requirements from the Cyberspace Administration of China (CAC) will apply to any platform company with more than 100 million users, or with more than 10 billion yuan ($1.58 billion) in revenue, they said.
Any internet firm involved in sectors named on the negative list issued by China's National Development and Reform Commission (NDRC) last year will also need to apply for approval, said Reuters quoting sources.
Some internet companies have already been briefed, they added, and the draft rules are still subject to changes.
The sources declined to be identified as the information was not yet public. The CAC did not immediately respond to a Reuters request for comment.
The proposed rules would intensify the oversight from China's increasingly assertive regulators, who have over the past year reined in formerly freewheeling internet giants in areas from dealmaking to their handling of user data.
It was not immediately clear what types of investments or fundraisings could be impacted. One senior technology industry executive said there were concerns whether it would be applied to private market investments, such as pre-IPO private funding rounds.
(With inputs from agencies)