Authority wants to prohibit US IPOs

Beijing is set to issue new rules to prohibit companies with large amounts of sensitive consumer data from going public in the US, according to a report. China’s stock market regulator has told companies and investors that the proposed rules are intended to block an initial public offering (IPO) of shares overseas, Bloomberg reported, citing information from financial news provider Dow Jones. According to the report, the ban would mainly apply to companies seeking IPOs through companies registered abroad. Sectors with less sensitive information, such as pharmaceutical companies, will still be able to obtain approvals for a US IPO, according to the report.