China’s Cyberspace Administration recommends ride-hailing app Didi to re-list in Hong Kong as it wraps up its data security review. The internet regulator has also urged the same for two other U.S.-listed Chinese companies, Full Truck Alliance Co. and Kanzhun Ltd. It is believed this is to prevent sensitive user data from ending up in the hands of U.S. regulators and make it easier for Chinese investors to access fast-growing domestic companies.
- In June, all three companies went public, with Didi and Full Truck on the NYSE and Kanzhun on the Nasdaq market.
- In July, China launched a cybersecurity investigation into the companies as a matter of national security.
- China asked Apple and Google to pull the Didi app from their platforms.
- This was part of a larger crackdown on tech companies in the country over anti-competition and anti-trust practices.
- Findings from the investigation are expected to be delivered as soon as next month.
- Chinese authorities are expected to propose new rules that will prohibit foreign listings of Chinese companies with sizeable sensitive user data.