China Expands Data Security Investigation of US-Listed Tech Companies

A unit of China’s cybersecurity regulator released data security reviews of apps operated by two Chinese companies listed in the United States, days after announcing a similar investigation into ride-sharing giant Didi Global Inc.

The latest action targets two trucking apps operated by Full Truck Alliance Co. and an online recruiting app owned by Kanzhun Ltd. Both companies went public in the United States in June. Like Didi, they were ordered to stop adding users while the probes were done.

On Monday, the China Cybersecurity Review Office, under the China Cyberspace Administration, said it had started a data security investigation on the Yunmanman, Huochebang and Boss Zhipin apps. He said the review aims to prevent national data security risks, maintain national security and protect public interests.

Shares of SoftBank Group Corp., whose Vision Fund owns stakes in Didi Global and Full Truck Alliance, fell 5.4% in Monday’s trading on the Tokyo Stock Exchange. The Hang Seng Tech Index, an indicator of Hong Kong-listed tech stocks dominated by large Chinese companies such as Tencent Holdings Ltd., fell 2.3%.

Didi raised $ 4.4 billion in its initial public offering last week, while the Full Truck Alliance raised $ 1.6 billion and Kanzhun raised $ 912 million in early June, according to regulatory documents. The prices of its US depository receipts all rose above their IPO prices on its commercial debuts, although Didi’s New York-listed securities fell 5.3% on Friday after the recent regulatory action.

Source: WSJ

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