Hong Kong/London (CNN Business)WeChat is suspending all new user registrations until early August, the social messaging app announced on Tuesday.
In a brief post on social media, WeChat, known as Weixin in China, said the suspension relates to an upgrade of security technology “according to relevant laws and regulations.” “In the meantime, the registration of new WeChat personal accounts and public accounts will be temporarily suspended,” the app, which is owned by Chinese tech giant Tencent (TCEHY), added.
“The upgrade is expected to be completed in early August, and new registrations will be resumed after the upgrade is completed,” WeChat said.
It was not immediately clear which laws WeChat was referring to, but the development comes amid a widening crackdown on technology and now education companies by Chinese regulators that has spooked investors. Read MoreThe share prices of Chinese tech companies, including Alibaba (BABA), Tencent and food delivery platform Meituan have all taken a hammering this week. Tencent’s stock in Hong Kong closed down nearly 9% on Tuesday, its worst day in a decade.
Earlier this month, China’s Cyberspace Administration suspended the registration of new users from ride-hailing app Didi, torpedoing the company’s stock just two days after its blockbuster New York IPO, which was the biggest US share offering by a Chinese company since Alibaba debuted in 2014.— This is a developing story and will be updated.
Source: edition.cnn.com
