During A-share, Hong Kong Stock Exchange and US IPO reviews, regulators, brokerages and law firms conduct thorough inspections on enterprise network security, data security, internal control audit and business continuity. Deficiencies in information security will directly lead to inquiry delays, suspension of listing applications or rejection. Domestic IPOs must comply with Cybersecurity Law, Data Security Law, PIPL, Classified Protection of Cybersecurity and ISO27001. US-listed firms need to meet SOX internal control audit standards, while Hong Kong IPOs must follow HKEX cybersecurity guidelines and cross-border data compliance rules. Management documents alone cannot pass on-site inspections; standardized security hardware must be deployed to build a traceable technical defense closed loop. This article breaks down mandatory regulatory requirements in five compliance dimensions and matches corresponding essential security devices.
1. Network Boundary Security & Zone Isolation Compliance Requirements
IPO Regulatory Requirements: Networks must be segmented into external internet, office zones, financial core zones, R&D zones and production zones to block ransomware and penetration attacks from external networks. Employees’ unauthorized internet behaviors shall be controlled. DDoS attack defense capability is mandatory. Remote branches and home office staff can only access internal systems via encrypted tunnels; direct public network access to financial and customer data systems is prohibited. Full traffic logs must be retained for at least 6 months. Financial and transaction systems require independent security partitions to prevent lateral data leakage of revenue and client information.
Matching Security Devices:
1. Next-Generation Firewall (NGFW): Integrated IPS, antivirus and application control functions to divide security zones and isolate cross-area traffic;
2. Internet Behavior Management Gateway: Restrict unauthorized access to cloud disks and social media, store complete internet logs and generate compliance audit reports automatically;
3. SSL VPN / Zero Trust SASE Gateway: Enable encrypted remote access with least privilege control;
4. Anti-DDoS Traffic Cleaning Device: Mitigate CC and SYN flood attacks to ensure stable operation of official websites and trading platforms.
2. Privileged Operation & Account Permission Audit Compliance Requirements
IPO Regulatory Requirements: The principle of least privilege must be implemented. Administrator accounts for servers, databases and financial systems shall be centrally managed. All operation records must be fully recorded and replayable. Shared and long-term idle admin accounts are forbidden. High-risk database operations such as mass data export or deletion trigger real-time alerts. SOX and ISO27001 demand tamper-proof privileged operation logs retained for 3–7 years for audit traceability.
Matching Security Devices:
1. Bastion Host (Operation Security Gateway): Proxy all server and database maintenance operations with full video recording and MFA authentication;
2. IAM Identity Access Management Platform: Full lifecycle account management to recycle permissions of resigned and outsourced personnel;
3. Database Audit Gateway: Monitor database query, export and deletion activities, alert bulk extraction of financial and customer data.
3. Data Leakage Prevention & Personal Information Protection Compliance Requirements
IPO Regulatory Requirements: Customer data, order records, financial statements and R&D drawings are core listed assets. Enterprises must prevent data leakage via USB disks, emails and screenshots. Personal information collected via Apps and mini-programs shall be classified and protected; cross-border data transmission without official approval is banned. Prospectuses must disclose comprehensive data security control measures, otherwise regulators will issue repeated inquiry letters.
Matching Security Devices:
1. DLP Data Loss Prevention System: Deployed on terminals, email gateways and network egress to block unauthorized external transmission of sensitive files;
2. Cloud Desktop Virtualization Platform: Financial and R&D staff access virtual desktops with all data stored on backend clusters without local data landing;
3. Transmission Encryption Gateway: Encrypt cross-regional and cross-border business data to satisfy cross-border data security assessment rules.
4. Unified Log Audit, Threat Monitoring & Endpoint Security Compliance Requirements
IPO Regulatory Requirements: Logs from all security devices, business systems and endpoints shall be aggregated centrally to analyze abnormal login, brute force attacks and malware intrusions. Unified endpoint defense is required to stop lateral spread of trojans and ransomware. Regular vulnerability scanning and remediation with complete rectification records are mandatory. All security incidents must be traceable and reviewable for Classified Protection, SOX and ISO27001 audit evidence.
Matching Security Devices:
1. SIEM Security Information & Event Management Platform: Aggregate full logs from firewalls, bastion hosts, DLP and EDR to correlate security risks and generate audit reports;
2. EDR Endpoint Detection & Response System: Deployed on all office terminals to detect ransomware and control peripheral device access;
3. Vulnerability Scanner: Periodically scan servers and network equipment, output rectification checklists and archive repair records;
4. WAF Web Application Firewall: Protect official websites and business APIs against SQL injection and XSS attacks.
5. Business Continuity, Disaster Recovery & Physical Computer Room Security Compliance Requirements
IPO Regulatory Requirements: Core financial and transaction systems must have disaster recovery capacity with clear RTO and RPO indicators. Regular backup and recovery drills with archived records are required. Computer rooms need physical isolation and access control to avoid intentional damage to core servers and storage. Long-term system outages will lead to disclosure defects of operational risks.
Matching Security Devices:
1. Backup Storage / Hyper-Converged Storage All-in-One: Automatically back up financial databases with offsite replicas and minute-level recovery capability;
2. UPS Uninterruptible Power Supply & Dual Hot-Standby Firewalls: Eliminate single points of failure to guarantee 7×24 system operation;
3. Biometric Access Control & Video Surveillance for Computer Rooms: Record all personnel access for physical security audit.
In conclusion, information security inspection is a mandatory precondition for IPO applications. Regulators do not accept paper-based management systems alone. A complete set of security hardware must be deployed to form an evidence-based technical defense chain covering network boundaries, privileged access, data leakage prevention, endpoint threat monitoring and disaster recovery. Archived audit logs, operation videos and vulnerability rectification records serve as core supporting materials for on-site inspections by brokerages and stock exchanges, lowering inquiry risks and ensuring smooth listing progress.
Abstract
IPO listing reviews impose strict inspection standards on five core security dimensions: network, data, operation, endpoint and disaster recovery. Domestic enterprises must comply with Classified Protection 2.0, data security laws and ISO27001, while overseas listed firms additionally satisfy SOX internal control and cross-border data compliance rules. This article elaborates mandatory regulatory clauses dimension by dimension and matches essential security hardware including NGFW, bastion hosts, DLP, SIEM, EDR, cloud desktops and disaster recovery storage. The hardware portfolio builds a traceable, verifiable technical defense closed loop with complete audit logs, operation recordings and vulnerability rectification archives, mitigating risks of regulatory inquiries and application suspension to support smooth on-site security audits by brokerages and exchanges.