HONG KONG—China’s regulatory probes into three technological know-how companies soon after their U.S. listings have caught world traders off guard, exhibiting the risks of possessing shares in fast rising firms that have occur beneath Beijing’s microscope.
On Tuesday, the American depositary receipts of freshly shown Didi Global Inc. tumbled 20% after China’s cybersecurity regulator delivered a next blow to the journey-hailing giant two days immediately after launching a assessment of its information protection on Friday.
A device of the regulator experienced also announced Monday details-protection probes into popular cellular apps operated by Whole Truck Alliance Co. and Kanzhun Ltd. , whose ADRs fell 18% and 17%, respectively, on Tuesday. U.S. markets ended up shut Monday for the July Fourth getaway.
The three providers had raised shut to $7 billion in full from U.S. first general public choices in June, and their shares rose upon their trading debuts.
Didi’s Chinese journey-hailing app, Complete Truck Alliance’s two truck-hailing platforms and Kanzhun’s on the net-recruiting app were requested to halt including end users although the critiques acquire location. The Cyberspace Administration of China instructed app-retail store operators to take down Didi’s China service and said the Beijing-based firm had collected particular info “in violation” of the country’s legal guidelines and rules.