Briefing: Tencent-backed WeDoctor backpedals on plans for overseas listing
Jun 20, 2019
China’s WeDoctor shelves overseas listing over data concerns – Financial Times
What happened: Tencent-backed WeDoctor, an online medical platform that connects patients and doctors, is considering listing on Shanghai’s new Nasdaq-style equity board, according to sources cited by the Financial Times. The company was initially seeking an overseas initial public offering but backpedaled due to increasingly strict data sovereignty laws in China. Data-heavy companies, especially those involved in healthcare, worry that overseas listings may result in greater disclosure requirements and scrutiny.
Why important: China’s data rules call for personal data to be held domestically. Financial Times sources claim that companies listed overseas are concerned about greater risk of data leaks to other nations. Meanwhile, entrepreneurs and healthcare startups holding contracts with the Chinese government are increasingly concerned about having to choose between working with the government or accepting international funding. Against the backdrop of the expanding US-China trade and tech war, opinions have become sharply polarized.