Staff of Reuters Read for 2 minutes BEIJING, China (Reuters) – China’s cabinet announced on Tuesday that it will tighten oversight of Chinese companies listed abroad, just days after Beijing opened a cybersecurity inquiry into Didi Global Inc, the ride-hailing giant that just floated on the New York Stock Exchange. According to a statement from China’s cabinet, the new measures will tighten regulation of cross-border data flows and security, crack down on illicit conduct in the securities market, and punish fraudulent securities issuance, market manipulation, and insider trading. China would also monitor funding sources for securities investments and leverage levels, according to the statement. Didi shares fell as much as 25% in pre-market trading in the United States on Tuesday, ahead of their first session since China’s Cyberspace Administration ordered the company’s app to be banned from app stores in the country just days after its $4.4 billion IPO on the New York Stock Exchange. After the CAC launched cybersecurity probes into their affiliated businesses on Monday, U.S.-listed Chinese companies such as Full Truck Alliance and Kanzhun Ltd were also poised to open lower on Tuesday. Colin Qian, Judy Hua, Kevin Yao, and Tony Munroe contributed reporting; Andrew Heavens and Carmel Crimmins edited the piece./n
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