China to step up supervision of overseas-listed companies
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 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.
U.S.-listed Chinese companies including Full Truck Alliance and Kanzhun Ltd 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)
