China expands data security investigation of US-listed tech companies

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A unit of China’s cybersecurity regulator has launched data security reviews of apps run by two US-listed Chinese companies, days after announcing a similar investigation into Didi Global Inc.

The latest action targets two truck recall apps operated by Full Truck Alliance Co. An online recruitment app owned by Kanzhun Ltd., has also been launched. Like Didi, they were ordered to stop adding users while investigations are underway.

On Monday, the China Cyber ​​Security Review Office, which is under China’s Cyberspace Administration, said it had launched a data security investigation into applications Yunmanman, Huochebang and Boss Zhipin. She said the review aims to prevent national data security risks, preserve national security and protect public interests.

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

Didi raised $4.4 billion in its initial public offering last week, while Full Truck Alliance raised $1.6 billion, and Kanzhun raised $912 million earlier in June, according to regulatory filings. Prices of all American Depositary Receipts rose above IPO prices on their commercial debut, although New York-listed Didi securities fell 5.3% on Friday after the latest regulatory action.

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