Cybersecurity regulators in China have initiated a review of two apps from digital freight-matching platform Full Truck Alliance (NYSE:YMM), halting new user registrations less than two weeks after the company went public in the U.S.
The Cyberspace Administration of China announced the probe on Monday, saying its Cybersecurity Review Office will conduct the probe to “guard against” national security and data security risks. The government regulator is targeting FTA’s Yunmanman and Huochebang apps.
FTA said the company — known as Manbang in China — is complying with the review and is halting the registration of new users in line with the government’s demands. The Yunmanman and Huochebang apps will continue to function normally for existing users, FTA said in a statement.
“FTA will fully cooperate with CRO during the cybersecurity review process,” the company said. “FTA is conducting a comprehensive self-examination of any potential cybersecurity risks and will continue to improve its cybersecurity systems and technology capabilities. FTA hopes its full cooperation will assist CRO to complete its review process smoothly.”
The Cyberspace Administration of China did not explain why it was targeting FTA apps. The regulator is also reviewing Boss Zhipin, a job recruitment app from the company Kanzhun.
The cybersecurity probes came after ride-hailing app Didi got banned from app stores in China.
FTA, billed as an Uber freight of China, raised nearly $1.6 billion in its June IPO on the New York Stock Exchange. The company’s platform handled over $27 billion worth of transactions in 2020, according to FTA’s prospectus.
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