China Raises More Regulatory Hurdles For Alibaba, Other Chinese Tech Giants
China's cyberspace regulator has drafted new guidelines mandating the country's internet behemoths obtain its approval before undertaking any investments or fundraisings, Reuters reports.
China's internet giants include Alibaba Group Holding Ltd (NYSE: BABA), Baidu Inc (NASDAQ: BIDU), Tencent Holdings Ltd (OTC: TCEHY) and JD.com Inc (NASDAQ: JD).
Related Content: Why Are Alibaba Shares Trading Lower Premarket?
Cyberspace Administration of China's (CAC) guidelines will apply to any platform company with over 100 million users or plus 10 billion yuan ($1.58 billion) in revenue.
Any internet firm involved in sectors named on the negative list issued by China's National Development and Reform Commission last year will also need to apply for approval.
The CAC previously issued a new set of rules, to take effect from Feb. 14, that require platform companies with data on more than 1 million users to undergo security reviews before they list overseas.
BABA Price Action: BABA shares were trading 0.21% higher at $128.87 midday Wednesday.
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