China’s government is trying to allay investor fears about tighter controls on Internet companies that have caused stock prices to plummet, saying Beijing supports their growth.
BEIJING — China’s government on Thursday tried to allay investor fears about tighter controls on Internet companies that stoked stock prices, saying Beijing supports their growth.
Foreign Ministry spokesman Wang Wenbin said regulators are reviewing data security “in accordance with law with the aim of preventing national security risks”.
Chinese internet shares fell in New York and Hong Kong after ride-hailing service Didi was ordered to stop signing up new users while it made changes to its handling of customer information. Others have been punished for anti-monopoly and other violations, raising concerns that the ruling Communist Party is trying to rein in companies rife with Chinese life.
“China’s policy of opening up and supporting the development of Internet platforms remains unchanged,” Wang told reporters. He added that Beijing “will continue to encourage relevant enterprises to develop global markets and strengthen international exchanges and cooperation.”
Shares of Alibaba Group in Hong Kong fell 4.1% on Thursday and Tencent Holdings Ltd. 3.7%.