Beijing’s Probes Into U.S.-Listed Tech Companies Jolt Investors

HONG KONG—China’s regulatory probes into three technology companies shortly after their U.S. listings have caught global investors off guard, showing the risks of owning shares in fast-growing businesses that have come under Beijing’s microscope.

In a span of four days, a unit of China’s cybersecurity regulator said it launched data-security reviews into popular mobile apps operated by Didi Global Inc., Full Truck Alliance Co. and Kanzhun Ltd. The three raised close to $7 billion in total from U.S. initial public offerings in June, and their shares rose upon their trading debuts.

Didi’s Chinese ride-hailing app, Full Truck Alliance’s two truck-hailing platforms and Kanzhun’s online-recruiting app were ordered to stop adding users while the reviews take place. Didi, which went public on the New York Stock Exchange less than a week ago, was dealt a second setback after the Cyberspace Administration of China told app-store operators to remove the Beijing-based company’s China service.

On Tuesday, Didi shares tumbled 22% in early premarket trading, while Full Truck Alliance fell 16% and Kanzhun shares fell 10%. U.S. markets were closed on Monday for the July Fourth holiday.

The latest regulatory assault is problematic for the pipeline of Chinese companies seeking IPOs on U.S. stock exchanges. Some might put their listing plans on hold or go public in Hong Kong instead, said investment bankers who advise Chinese companies.