China is on the verge of closing a loophole, making it illegal for companies to go public overseas.

Many Chinese tech companies have used the VIE structure as a loophole to go public on foreign markets. This allows them to raise substantially more capital by tapping into international investors.

According to Bloomberg, sources close to the matter say Beijing is preparing to close that loophole, although the China Securities Regulatory Commission said such reports are not true.

If Bloomberg’s sources are correct, the move would have major repercussions on the Chinese tech industry, as well as investors around the world.