On July 5th, the Chinese government issued an announcement on launching a network security review for Yunmanman, Huochebang and BOSS Zhipin.
In order to prevent national data security risks, the Chinese government has carried out network security reviews on the three companies in accordance with national security laws. During the review, users are unable to register.
BOSS Zhipin is the largest online recruitment platform in China, which was recently listed in the US on June 11 this year. As of the close of July 2, EST, it closed down 2.13% to US $36.31, with a total market value of US $14.522 billion.
Jiangsu Manyun Software Technology Co., Ltd. (Yunmanman) and Guiyang Huochebang Technology Co., Ltd. (Huochebang) are the leading freight dispatching platforms in China. In November 2017, they jointly announced a strategic merger to establish Full Truck Alliance, which is also known as the freight version of Didi.
Full Truck Alliance began trading in the US on June 22. According to the company’s prospectus, as of June 22, 2021, SoftBank, Sequoia China and All-Stars Investment were its largest institutional investors, with shareholding ratios of 20.3%, 6.6% and 4.5% respectively. As of the close of last Friday, the share price of Full Truck Alliance closed at US $19.02, with a total market value of US $20.66 billion.
Last Friday, the Chinese government also launched a network security review on Didi Chuxing, during which new users were stopped from registering. According to the announcement, the “Didi Chuxing” App owned by the company has serious problems in collecting and using personal information in violation of laws and regulations, and notified app stores to remove it. Didi expects that this will adversely affect its revenue in the Chinese market.
Affected by the news, Meituan fell by more than 5% today, the lowest since June 17th. Tencent fell 2%.