• China's cyberspace regulator has drafted new guidelines mandating the country's internet behemoths obtain its approval before undertaking any investments or fundraisings, Reuters reports.

  • China's internet giants include Alibaba Group Holding Ltd (NYSE: BABA), Baidu Inc (NASDAQ: BIDU), Tencent Holdings Ltd (OTC: TCEHY) and JD.com Inc (NASDAQ: JD).

  • Related Content: Why Are Alibaba Shares Trading Lower Premarket?

  • Cyberspace Administration of China's (CAC) guidelines will apply to any platform company with over 100 million users or plus 10 billion yuan ($1.58 billion) in revenue.

  • Any internet firm involved in sectors named on the negative list issued by China's National Development and Reform Commission last year will also need to apply for approval.

  • The CAC previously issued a new set of rules, to take effect from Feb. 14, that require platform companies with data on more than 1 million users to undergo security reviews before they list overseas.

  • BABA Price Action: BABA shares were trading 0.21% higher at $128.87 midday Wednesday.

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