China Widens Security Probe to Two More U.S.-Listed Firms
The Chinese government widened its probe of the country’s technology industry to two more U.S.-listed companies, targeting Full Truck Alliance Co. and Kanzhun Ltd. soon after launching a review into Didi Global Inc.
The Cyberspace Administration of China said Monday new user registrations at the two companies’ online platforms will be halted during the probe in the interests of preserving national and data security. The move follows a similar action by the CAC to order the removal of Didi from Chinese app stores due to serious violations related to its collection and use of personal information.
The probe applies to truck-hailing company Full Truck Alliance’s Huochebang and Yunmanman services, and Kanzhun’s online-recruiting tool Boss Zhipin. Like Didi, the companies had their stock-market debuts in the U.S. in recent weeks.
Beijing has been curbing the growing influence of China’s technology corporations, concerned about the handling of the troves of information they collect. The scrutiny has intensified as the companies have expanded their investor bases beyond China by doing initial public offerings in the U.S.
Huochebang and Yunmanman merged to create Full Truck Alliance, China’s biggest truck-hailing platform that operates along similar principles to ride-sharing apps like those offered by Didi and Uber Technologies Inc. The company, backed by SoftBank Group Corp. and Tencent Holdings Ltd., raised $1.6 billion in its U.S. offering last month. Its shares are little changed since the debut.
Boss Zhipin owner Kanzhun raised $912 million in its U.S. IPO in June. Built around a mobile app that connects job seekers and employers, it runs China’s largest online hiring platform, according to its prospectus. Its monthly active users grew to 24.9 million in the first quarter of 2021 from 14.5 million a year earlier. Kanzhun, also backed by Tencent, has nearly doubled since it started trading.