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China Widens Data-Security Probe of U.S.-Listed Tech Companies – The Wall Street Journal

A unit of China’s cybersecurity regulator launched data-security reviews of apps operated by two U.S.-listed Chinese companies, days after announcing a similar probe into ride-hailing giant Didi Global Inc.

The latest action targets two truck-hailing apps operated by Full Truck Alliance Co. and an online recruiting app owned by Kanzhun Ltd. Both companies went public in the U.S. in June. Like Didi, they were ordered to stop adding users while the probes are conducted.

On Monday, China’s Cybersecurity Review Office, which falls under the Cyberspace Administration of China, said it had begun a data-security investigation into the apps Yunmanman, Huochebang and Boss Zhipin. It said the review is aimed at preventing national data-security risks, maintaining national security and protecting public interests.

Shares in SoftBank Group Corp. , whose Vision Fund owns stakes in Didi Global and Full Truck Alliance, fell 5.4% in Monday trading on the Tokyo Stock Exchange. The Hang Seng tech index, a gauge of Hong Kong-listed technology stocks that is dominated by large Chinese companies such as Tencent Holdings Ltd. , fell 2.3%.

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 their American depositary receipts all rose above their IPO prices upon their trading debuts, though Didi’s New York-listed securities dropped 5.3% on Friday after the recent regulatory action.