Data-rich firms may be banned from IPOS in US

China will propose new regulations to block companies with large amounts of sensitive consumer data from floating shares in the US, Dow Jones reported, citing people familiar with the matter.

China’s stock market watchdog has told companies and investors the envisioned rules will prohibit firms from listing abroad, particularly those seeking a foreign IPO via overseas-incorporated entities.

Sectors with less sensitive information, such as pharmaceuticals, remain likely to win approval for an IPO, Dow Jones reported.