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 JD and Pinduoduo Inc's PDD quarterly earnings results.
Price Action: BABA shares closed higher by 6.59% at $171.70 on Tuesday.