Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Politics
Anusuya Lahiri

Alibaba And Other Chinese Stocks Go Jittery As China Tightens Rules On Overseas Data Transfer

  • The Cyberspace Administration of China (CAC) sought public feedback on draft rules governing the transfer of personal data overseas, Reuters reports.
  • Under the draft rules, companies collecting personal data would be responsible for the legality, legitimacy, the need for the data, scope, and security of overseas transfers.
  • The draft also covers methods of handling personal information by domestic processors and overseas recipients.
  • Lately, China has emphasized the risks to national security inherent in transferring user data overseas. The draft rules aim to bolster a data security law implemented last year September.
  • Organizations also require approval for cross-border transfer of core and essential data via a unique mechanism.
  • Companies ranging from Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc (NASDAQ:BIDU), and JD.com, Inc (NASDAQ:JD) collect troves of user data. 
  • The app of online recruitment services company Kanzhun Ltd (NASDAQ:BZ) and two apps of the logistics platform Full Truck Alliance Co Ltd (NYSE:YMMresumed new user registrations. The apps were under review by China's cyberspace regulator.
  • The Chinese government recently expressed support for the domestic tech industry, which had been undergoing intense scrutiny.
  • Price Action: BABA shares traded lower by 1.41% at $114.39 on the last check Thursday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.