China to step up supervision of overseas-listed companies (updated)

KANZHUN

06/07/2021 12:37

(Changes sourcing, adds details, background)
    BEIJING, July 6 (Reuters) - China will step up supervision
of Chinese firms listed offshore, its cabinet said on Tuesday,
days after Beijing launched a cybersecurity investigation into
ride-hailing giant Didi Global Inc  DIDI.N  on the heels of its
U.S. stock market listing.
    Under the new measures, China will improve regulation of
cross-border data flows and security, crack down on illegal
activity in the securities market and punish fraudulent
securities issuance, market manipulation and insider trading, a
statement by China's cabinet said.
    China will also check sources of funding for securities
investment and control leverage ratios, it said.
    Earlier on Tuesday, Didi shares slumped as much as 25% in
U.S. pre-market trade ahead of their first session since the
Cyberspace Administration of China ordered the company's app be
removed from app stores in the country just days after its $4.4
billion listing on the New York Stock Exchange.  urn:newsml:reuters.com:*:nL5N2OI1N7  
    U.S.-listed Chinese companies including Full Truck Alliance
 YMM.N  and Kanzhun Ltd  BZ.O  were also set to open lower on
Tuesday after the CAC on Monday announced cybersecurity
investigations into their affiliated businesses.
    

 (Reporting by Colin Qian, Judy Hua, Kevin Yao and Tony Munroe;
Editing by Andrew Heavens and Carmel Crimmins)
 ((kevin.yao@thomsonreuters.com; +8610 5669 2128;))