By
staff writer
April 17th, 2024
The report comes at a time when the Chinese regulatory authorities are imposing strict measures on local tech companies over concerns of data security.
Short video-streaming app TikTok’s parent company ByteDance is preparing for an IPO in Hong Kong by early 2022. The report comes just at a time when Chinese authorities extend their crackdown on technology companies.
ByteDance: Public Listing in Hong Kong
In recent months, Chinese regulators have also stepped up the scrutiny on its local tech sector. However, the report from Financial Times notes that TikTok is taking all measures to address regulatory concerns.
The publication also reported that ByteDance has been taking measures to address data security concerns flagged by regulators. The company has submitted its filings to Chinese authorities and currently undergoing a review process. Quoting a source familiar with the matter, the FT publication reported:
“We are expecting final guidance from ByteDance in September. They are submitting all the filings with Chinese authorities right now and are going through the review process”.
However, confirming to Reuters, a ByteDance spokesperson called the FT report inaccurate. The spokesperson declined to comment anything further in this regard.
Back in April 2021, the Beijing-based company confirmed that it had no plans to go public. Besides, the company had put its plans of offshore listing on hold for an indefinite period.
As said, the report comes at a time when Chinese technology companies are under severe pressure. Last month, Chinese President Xi Jinping announced sweeping regulatory reforms for its $100 billion education tech sector. This resulted in a massive sell-off of the Chinese tech stocks.
China Asking for Cyber Security Review
Amid its recent crackdown measures, Beijing has proposed a cybersecurity review for all companies willing to list abroad. Since July 2021, the Chinese government is effectively is freezing all foreign listings to safeguard data security.
On the other hand, China’s anti-crypto stand is only getting stronger. Back in May 2021, China introduced a sweeping crackdown on crypto miners operating in the country. This has led to crypto miners fleeing to overseas markets like North America and Europe.
It looks like local tech companies are already taking the utmost care on this matter. Last month, TikTok announced a ban on crypto-related promotional materials and videos. In its updated policy, the video streaming giant banned marketing of financial products and services on its platform.
On the other hand, Google updated its crypto exchange and wallets ad policy. The tech giant now allows all regulated crypto players to advertise on its platform.