On Friday, Chinese tech stocks swooned for the nth time, sending the Hang Seng index into bear market territory, after Beijing approved a new privacy law to prevent data collection by domestic technology companies. As we reported then, China's most powerful legislative body, the Standing Committee of the National People's Congress, passed the Personal Information Protection Law that will go into effect on Nov.1. The move sent tech stocks plunging and leaving investors bewildered over the intensity of Beijing's regulatory crackdown that has slammed countless sectors.
It turns out that when it comes to control over data, Beijing is nowhere near done and late on Friday Reuters reported that as part of Beijing's unprecedented scrutiny of private sector firms, Chinese regulators are considering pressing data-rich companies "to hand over management and supervision of their data to third-party firms" if they want to list in the U.S.
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