China drafts new data measures; tech stocks fall

China published new draft measures on Thursday aimed at bolstering its new data security law, including definitions of what it considered “core” and “important” data.

China implemented the Data Security Law on Sept 1. which requires all companies in China to classify the data they handle into several categories and governs how such data is stored and transferred to other parties. But lawyers have criticised its ambiguities including its lack of definitions for data. Thursday's draft measures describe in detail three categories of data — ordinary data, important data, and core data. The authorities describe ordinary data as data with a minimal ability to impact society at large, or that will affect a small number of individuals or enterprises.

Important data is defined as data that poses a threat to China's national and economic interests or impact the rights of individuals and organizations, and has an “obvious cascading effect” across a range of industries and enterprises.

Core data, is defined as data that poses a “serious threat” to China's national and economic interests.

Chinese technology stocks dropped on Thursday after state media ratcheted up calls for a deepening of regulation of online platforms to tutoring firms. The Hang Seng Tech Index fell 1.3 per cent, inching toward the lowest since its official launch that was hit last month. Stocks tracked overnight weakness in the sector’s American depository receipts after the South China Morning Post’s report that China’s scrutiny of video gaming content is getting stricter.