By Dhirendra Tripathi
Investing.com – The American Depositary Receipts of Chinese online recruitment firm Kanzhun (NASDAQ: BZ ) tumbled by more than 10% in Tuesday’s premarket trading as its main app was subjected to a regulatory clampdown similar to that on ride-hailing giant Didi Global (NYSE: DIDI )
The Cyberspace Administration of China has stopped it from onboarding any more users until it is satisfied that its data collection and retention complies with national law.
“The company plans to conduct a comprehensive examination of cybersecurity risks and continue to enhance its cybersecurity awareness and technology capabilities,” Kanzhun said in a press release.
Apart from the suspension of new user registration of the ‘BOSS Zhipin’ app in China, the company said it is operating normally.
Kanzhun joins the list of tech-based companies in China whose operations are under review by the CAC . With many Chinese internet companies listed in the U.S., there are concerns in the communist country over the trove of user data they may have to share as part of disclosure norms of the Securities and Exchange Commission.
Didi (NYSE: DIDI ) is under a similar review. The Chinese regulator told app stores over the weekend to take the ride-hailing app of their platforms. Didi shares were down by over 20% in premarket today.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.