Asian Tech Press -- China has tightened regulation of U.S.-listed Chinese stocks, triggered by a series of concerns about Chinese technology companies going public in the United States.

The listing of Didi Chuxing in the U.S. has triggered a strong backlash from Chinese regulators. The Chinese top ride-hailing company has raised about $4.4 billion in its U.S. initial public offering (IPO) last Tuesday.

Following the regulatory initiatives issued on Didi, China's two highest-level offices, the General Office of the Central Committee of the Chinese Communist Party (the Central Office) and the General Office of the State Council, issued the "Opinions on Strictly Cracking Down on Illegal Securities Activities in Accordance with the Law", which singled out tighter regulation of U.S.-listed Chinese companies.

The Opinions require government regulators to take practical measures to respond well to risks and unexpected situations for foreign-listed Chinese companies and to promote the construction of relevant regulatory systems.

In addition, the Opinions also saw amendments to the Special Regulations on the Overseas Offering and Listing of Shares by Joint Stock Limited Companies, issued by the State Council of the PRC on 4 August 1994.

The modifications clarify the responsibilities of in-country industry authorities and regulators, and require strengthening cross-sectoral synergies in supervision.

The successful listing of Didi in the U.S., which bypassed national regulation, has led the Chinese government to believe that there were shortcomings in regulating companies' listing in the U.S.

To this end, the Opinions specifically emphasize the need to improve regulations and laws related to data security, cross-border data flow, and management of classified information.

Beijing realized that it should urgently revise regulations on strengthening management of confidentiality and files related to overseas offering and listing of securities, and enforced the principal responsibilities for information security of overseas-listed companies.

The release of the Opinion is obviously immeasurably bad news for U.S.-listed technology companies that are built on Internet technology, big data, etc.

Some analysts believe that in this case, it will probably be very troublesome for Chinese technology companies to go public in the US in the future.