HONG KONG—China’s regulatory probes into three technology companies shortly after their U.S. listings have caught global investors off guard, showing the risks of owning shares in fast-growing businesses that have come under Beijing’s microscope.
On Tuesday morning, the American depositary receipts of newly listed Didi Global Inc. tumbled 22% in early premarket trading, after China’s cybersecurity regulator delivered a second blow to the ride-hailing giant two days after launching a review of its data security on Friday.
A unit of the regulator had also announced Monday data-security probes into popular mobile apps operated by Full Truck Alliance Co. and Kanzhun Ltd. , whose ADRs fell 16% and 10%, respectively, in premarket trading. U.S. markets were closed Monday for the July Fourth holiday.
The three companies had raised close to $7 billion in total from U.S. initial public offerings in June, and their shares rose upon their trading debuts.
Didi’s Chinese ride-hailing app, Full Truck Alliance’s two truck-hailing platforms and Kanzhun’s online-recruiting app were ordered to stop adding users while the reviews take place. The Cyberspace Administration of China told app-store operators to take down Didi’s China service and said the Beijing-based company had collected personal information “in violation” of the country’s laws and regulations.
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