An early Tuesday premarket price quote for leading online recruitment platform in China Kanzhun Limited (BZ) is $32.56 down -10.33%. Kazhun stock closed at $36.31 last session, down -2.13%. A total of 1.08 million shares were traded on the BZ stock, which is less than the 2.97M average daily volume for the last 50 days. BOSS Zhipin has lost -13.65% of its value in the last five days yet has experienced a -2.49% loss year-to-date. After commencement of the cybersecurity review in China, BZ stock has lost ground.
Why is BZ facing the review?
BOSS Zhipin, a Chinese online recruitment platform operated by Kanzhun, has the largest MAU of any recruitment platform in China in 2020. BZ connects company users and job seekers by utilizing a highly interactive mobile app that was established seven years ago. With BZ’s platform, companies are able to communicate two-way, create intelligent recommendations, and automate procedures related to online recruiting. BZ has realized higher recruitment efficiency and rapid expansion thanks to its large and diverse user base. By optimizing efficiency, equality, and choice, BZ is delivering an excellent user experience.
On July 5, 2021, KANZHUN announced that BZ was subject to a cybersecurity review under the Cyberspace Administration of China.
- In order to facilitate the review process, “BOSS Zhipin” app must suspend new user registration in China during the period of review.
- During the review process, BZ will cooperate fully with the Chinese government authority.
- A comprehensive examination of cybersecurity risks is in the works at BZ, and the company will continue to enhance its technology capability and cybersecurity awareness.
- While BZ has suspended new registrations for the “BOSS Zhipin” application in China, the company maintains regular operations.
- In announcing its investigation into online recruiter BZ, truck-hailing apps Huochebang and Yunmanman, China’s cyberspace watchdog increased its crackdown on mainland tech companies amid tightened data security regulations.
- Full Truck Alliance, a merging of Huochebang and Yunmanman, and BOSS Zhipin owner BZ went public in the US stock market last month.
- According to a statement from the CAC, new user registrations at BZ as well its merged businesses should be halted while the investigation is conducted “to prevent national data security risks and safeguard national security”.
How it will impact BZ?
Its platform boasts more than 10 million registered truck drivers and more than 5 million truck owners, making Full Truck Alliance an Uber for trucks. In its prospectus, Kanzhun said that BZ was China’s biggest online recruiter in the first quarter of 2021, with 24.9 million monthly active users.
