China’s central bank asks non-bank payment firms to report overseas IPOs

REUTERS/Petar Kujundzic

China’s central bank on Friday said that non-bank payment firms must report plans for overseas initial public offerings and other major events, the latest move in a widespread regulatory squeeze on the country’s tech firms.

The shifting regulations first scuttled a $37 billion listing planned by Alibaba fintech affiliate Ant Group late last year and extended to ride-hailing giant Didi Global earlier this month, just days after its New York Stock Exchange debut.

Non-bank payment firms should report both domestic and overseas listing plans, the People’s Bank of China (PBOC) said in a statement.

The requirement applies to payment firms with a variable interest entity (VIE) structure, which has been widely adopted by internet companies and allows them to bypass the lengthy domestic listing process and raise funds overseas.

Payment firms should also explain the “detailed arrangement” of their VIE structures if seeking an overseas listing, it said.

In addition, they should report data breaches which involve more than 500 clients or 5,000 sets of clients’ data, or investments of more than 5% of its total net assets.

China’s cabinet said on July 6 that it would strengthen supervision of all Chinese firms listed offshore, broadening a clamp-down on its large “platform economy”.

Following suit, China’s cyberspace regulator said later the same week that any company with data for more than 1 million users must undergo a security review before listing its shares overseas.

China’s online payments ecosystem is dominated by Ant’s Alipay and Tencent Holdings’ WeChat Pay.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.