Shares of several Chinese companies, including Alibaba Group Holding Ltd (NYSE:BABA), are trading lower in reaction to new Chinese cybersecurity rules set to take effect in February.
Beginning Feb. 15, the Cyberspace Administration of China (CAC) will implement new rules requiring internet companies with data from more than 1 million users to undergo a network security review before listing on public markets overseas.
According to the CAC, the rules are aimed at companies that carry out data processing activities which could affect national security.
Once the Chinese regulator determines that a company's data processing activities do not threaten national security, the company can move forward with an overseas listing.
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Alibaba operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
BABA Price Action: Alibaba has traded as low as $108.70 and as high as $274.29 over a 52-week period.
The stock was down 3.2% at $116.55 at time of publication.
Photo: courtesy of Alibaba.
