ByteDance, the Chinese owner of TikTok, has put on hold indefinitely its plans to list offshore after government officials told the company to focus on addressing data-security risks, people familiar with the matter told the Wall Street Journal.
The Beijing-based social-media giant was last valued at USD 180 billion in a funding round in December. It had been weighing an initial public offering in the US or Hong Kong, according to the paper's sources.
However, founder Zhang Yiming decided it would be wiser to put the plans on ice in late March after meetings with regulators. The latter asked the company to focus on addressing data-security risks and other issues, the people familiar with the matter said. Other reasons for delaying included an opening for CFO at the group.
The Cyberspace Administration of China, the nation’s internet regulator, and the China Securities Regulatory Commission didn’t respond to requests for comment, the WSJ said.
Chinese authorities have been tightening enforcement of data-protection, security and competition regulations at the country’s technology companies since November. One concern in Beijing has been that data collected by China’s tech companies could be compromised as a result of greater disclosure associated with a US listing. The authorities have also been cracking down on improper collection and use of data to protect consumers’ interests.
