Benzinga | Aug 24, 2021 04:01PM EDT

China's Regulator Says Tech Crackdown Is Not Aimed At Threatening Foreign IPOs

* Cyberspace Administration of China (CAC) VP Sheng Ronghua has defended the country's critical information infrastructure protection rules, Reuters reported.

* In a State Council briefing, Ronghua clarified that the regulations aim towards ensuring national security and do not threaten overseas IPOs. The regulations will come into effect with the data protection law.

* China's domestic tech crackdown recently sent the tech stocks into a jittery mode.

* Bloomberg reports that Chinese firms have started terming their offshore corporate structure as variable interest entities (VIE) to dodge the U.S. SEC queries on China's political and regulatory risks.

* Chinese firms commonly use VIEs to bypass Beijing's restrictions on foreign ownership and have attracted SEC scrutiny following China's plans to revise overseas listing norms.

* Yesterday, the market lauded JD.com Inc (NASDAQ:JD) and Pinduoduo Inc's (NASDAQ:PDD) quarterly earnings results.

* Price Action: BABA shares closed higher by 6.59% at $171.70 on Tuesday.