- 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.
