China will tighten rules on overseas IPOs, but won't ban them entirely

China is planning to tighten restrictions for Chinese companies that want to list overseas, but the government won't ban them from trading abroad altogether.

The securities regulator proposed late Friday that any firm that wants to go public in another country has to register with the agency first, and then meet a set of requirements set forth by government officials.

"Domestic enterprises issuing and listing overseas shall strictly abide by laws, regulations and relevant provisions on national security such as foreign investment, cybersecurity and data security, and earnestly fulfill the obligations of national security protection," the China Securities Regulatory Commission said in its proposal.