China will step up supervision of Chinese firms listed offshore, its cabinet said on Tuesday, days after Beijing launched a cybersecurity investigation into ride-hailing giant Didi Global Inc. on the heels of its U.S. stock market listing.
Under the new measures, China will improve regulation of cross-border data flows and security, crack down on illegal activity in the securities market and punish fraudulent securities issuance, market manipulation and insider trading, the cabinet said in a statement.
China will also check sources of funding for securities investment and control leverage ratios, it said.
The move comes amid China’s sweeping clampdown on its massive and online “platform economy”, which has been the target of antitrust investigations and penalties as well as increased scrutiny of data security and privacy, and as U.S.-China tensions have spread to capital markets.
