China’s tightening scrutiny of U.S.-traded data-heavy companies is raising the prospect of more share sales in Hong Kong, even though the city’s stock exchange is known for having stricter requirements than U.S. bourses.
Under a newly revised regulation, Chinese companies holding the personal information of 1 million or more users have to seek a government cybersecurity review before a foreign share flotation. “Foreign” under the rule doesn’t include Hong Kong, suggesting an opportunity for the exchange.