Didi Falls Premarket as China Investigations for US Listed Companies Jolt Investors

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HONG KONG – Chinese regulatory investigations into three technology companies shortly after their US listings surprised global investors, exposing the risks of owning shares in fast-growing companies that have come under Beijing’s microscope.

On Tuesday morning, newly listed Didi Global Inc’s US depositary receipts fell 22% in early pre-market trading, after the Chinese cybersecurity regulator dealt the passenger transportation giant a second blow two days after launching a data security review on Friday.

A unit of the regulator on Monday also announced investigations into the data security of popular mobile apps operated by Full Truck Alliance Co. and Kanzhun Ltd. US markets were closed on Monday for the 4th of July holiday.

The three companies raised nearly $7 billion in total from US initial public offerings in June, and their shares surged when they first went public.

Chinese passenger summoning app Didi, Full Truck Alliance platforms, and Kanzhun online recruiting app were asked to stop adding users while reviews were being made. China’s cyberspace administration has asked app store operators to stop Didi’s China and said the Beijing-based company had collected personal information “in violation” of the country’s laws and regulations.

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