Kanzhun ADRs Slump as Regulators Give It the Didi Treatment

imageStock Markets48 minutes ago (Jul 06, 2021 06:02AM ET)

(C) Reuters.

By Dhirendra Tripathi – 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.

Kanzhun ADRs Slump as Regulators Give It the Didi Treatment

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