China is following other tech groups after Didi’s demise

Beijing has stepped up its demolition of technology platforms, targeting other US-listed companies after ordering the removal of its Didi Chuxing-affiliated group from Chinese stores in a move that sent technical divisions to collapse.

The Cyberspace Administration of China on Monday announced that it was investigating Boss Zhipin, an online registrar, and Chinese automotive programs Yunmanman and Huochebang, which merged in 2017 to form the Full Truck Alliance. Platforms are not allowed to register new users while they are being screened.

The CAC announcement cited violations of China’s cyber security laws, with little to do.

Shipping efforts sent earthquakes through Asian markets on Monday. The Japanese company SoftBank, of which Vision Fund is the largest Didi company, fell 5.4%, while Alibaba and Tencent’s online groups fell 2.9% and 3.7%, respectively, in Hong Kong.

Didi’s shares fell 5.3% On Friday, two days after the company was listed on the New York Stock Exchange, it has he grew up $ 4.4bn on the largest list by a Chinese company in the US since Alibaba in 2014.

The overthrow of the Chinese cyber security company on Didi and others has begun to offend the country’s top technology companies, demanding laws that have not previously been applied to cyber security. Chinese financial and security regulators are in competition with them already reined in companies including Ant Group and Alibaba, two billionaires Jack Ma’s online administration, and Meituan ecommerce group.

Like Didi, Full Truck Alliance and Boss Zhipin were drafted in New York in June, raising $ 1.6bn and $ 912m, respectively.

The three groups are Chinese business leaders, and all are supported by Tencent, China’s most important technology group, which has he avoided the worst of law enforcement.

The CAC said the tests were being carried out in line with the new cyber routes launched on June 1 which encouraged monitoring of companies using infrastructure that could affect national security.

“[Chinese] The claims of the authorities in recent months make it clear that the first responsibility of companies is to ensure that before they go abroad they are more secure, “said Kendra Schaefer, a technical analyst at Trivium, a research company in Beijing. if their house is worthy.

The seizure began on Friday when the CAC announced it was investigating Didi, urging the company to stop registering new users and drivers on its program.

Sunday, CAC ordered Didi to remove him from Chinese stores. The company responded that it would “firmly establish” the interests of the authorities.

The latest collapse came after 34 Chinese companies secured a $ 12.4bn floating New York float at the end of 2021. more than two-thirds of Chinese groups have come down below their first public offering price.

U.S. regulators have been closely monitoring Chinese companies that have been listed in the country since then Luckin Coffee made hundreds of millions of dollars by selling frauds that added to the long-standing fears of counting and visibility tests.

Under a law enacted in December, Chinese companies traded on American exchanges faces the threat of release from prison Unless he gives U.S. officials the opportunity to read accounts, which is banned by Beijing.