Chinese Regulators Nudge Didi Toward Hong Kong Listing


SINGAPORE—China’s internet watchdog suggested ride-hailing giant

Didi Global Inc.


DIDI 0.70%

and two other U.S.-listed tech firms explore listings in Hong Kong, as Beijing wraps up cybersecurity investigations into the companies, people familiar with the matter said.

The Cyberspace Administration of China, which in July started data security reviews into apps operated by the three companies, broached the idea in recent conversations with executives from Didi, logistics platform

Full Truck Alliance Co.


YMM 1.81%

and online recruitment firm

Kanzhun Ltd.


BZ 1.04%

, the people said. The three companies went public in June after raising nearly $7 billion in total.

Authorities are expected to deliver findings after the probes conclude as soon as next month, the people said.

Enticing Chinese tech companies trading abroad to list at home or in Hong Kong has been a national priority in recent years. Beijing is concerned that data-rich companies could pose political or national security risks by answering to regulators in the U.S. Having another listing in Hong Kong would mean any eventual delisting from the U.S.—either by choice or as a result of regulatory pressure—would be less disruptive to companies and their investors.

A listing in Hong Kong could also allow mainland Chinese investors to more easily invest and profit from the growth of these fast-expanding companies. U.S-listed firms like

Alibaba Group Holding Ltd.

and

Baidu Inc.

have pursued share offerings in the city in the past two years.

Chinese authorities are planning to propose new rules that would ban companies with large amounts of sensitive consumer data from going public in the U.S., The Wall Street Journal has previously reported.

The cybersecurity reviews, which were launched days after Didi went public in the U.S., are part of a broader crackdown on China’s internet industry, one that has swept up technology giants Alibaba and

Tencent Holdings Ltd.

Over the past year, Chinese regulators have come down hard on what they characterize as monopolistic and unfair practices in the nation’s consumer-internet industry, and they have introduced new rules governing data protection and public listings abroad.

A customer prepared to collect a bicycle from a Didi service in Hangzhou, China, earlier this year.



Photo:

Qilai Shen/Bloomberg News

The Cyberspace Administration of China, Didi, Kanzhun and Full Truck Alliance didn’t respond to requests for comment.

Full Truck Alliance, which…



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