Beijing’s heightened scrutiny on the foreign listings of Chinese companies could further incentivize them to list on home soil in Hong Kong, potentially increasing Hong Kong listings work at the expense of the U.S.

On Saturday, the Cyberspace Administration of China (CAC) proposed to update a year-old regulation to explicitly require Chinese companies listing abroad undergo a cybersecurity review before doing so. The proposal came a few days after the cybersecurity regulator launched reviews into the data collection practices of three Chinese tech companies that recently listed in the U.S.: Didi Chuxing, Full Truck Alliance Co. and Kanzhun Ltd.