China Expands Data Security Investigation of U.S.-Listed Tech Companies


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A unit of the Chinese cybersecurity regulator launched data security reviews of applications 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 have been ordered to stop adding users while the surveys are being conducted.

On Monday, China’s Cyber ​​Security Review Bureau, under China’s Cyberspace Administration, said it had opened a data security investigation into the Yunmanman, Huochebang and Boss Zhipin apps. He said the review was aimed at preventing national data security risks, maintaining national security and protecting public interests.

Shares of SoftBank Group Corp., of which Vision Fund owns stakes in Didi Global and Full Truck Alliance, fell 5.3% on Monday on the Tokyo Stock Exchange. The Hang Seng Technology Index, an indicator of Hong Kong-listed technology stocks and dominated by large Chinese companies such as Tencent Holdings Ltd., fell 1.8%.

Didi raised $ 4.4 billion when it went public last week, while Full Truck Alliance raised $ 1.6 billion and Kanzhun raised $ 912 million earlier in June, according to regulatory documents. The prices of their U.S. certificates of deposit all exceeded their IPO prices when they debuted on the stock exchange, although Didi’s New York-listed securities fell 5.3% on Friday after the recent regulatory action.

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