(Bloomberg) --
China pledged to increase scrutiny of data practices at listed companies, firing another warning shot at the country’s technology giants just days after announcing a cybersecurity probe of Didi Global Inc.
The State Council said in a statement Tuesday it will crack down on securities violations, and increase supervision of Chinese companies listed overseas. It also said it will revise rules for overseas listings, without elaborating. The warning comes after the Cyberspace Administration of China said it found serious violations in Didi’s collection and usage of personal information, without giving details.
On Tuesday, Didi plummeted about 30% in pre-market trading, four days after it completed the second-largest initial public offering by a Chinese firm in U.S. history. The probe into China’s ride-hailing leader stunned investors and industry executives, hammering the Hong Kong shares of peers from Tencent Holdings Ltd. -- one of Didi’s largest backers -- to Alibaba Group Holding Ltd. and Meituan.
Investors worry that the latest security-based probes have opened a new front in President Xi Jinping’s broader campaign against China’s internet giants that began in November with the collapse of Jack Ma’s Ant Group Co.’s $35 billion IPO and subsequent antitrust investigations into Alibaba and Meituan.
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2021 Bloomberg L.P.
