- China's cyberspace regulator has cracked down on counterfeit investment platforms, Reuters reports.
- The Cyberspace Administration of China (CAC) investigated and cracked down on some 42,000 counterfeit apps since 2022 and incorporated them into the national fraud-related database.
- It found multiple cases involving scammers creating fraudulent investment platforms by emulating popular tech companies, including JD.com, Inc's JD fintech arm JD Finance.
- Also Read: Alibaba And Other Chinese Stocks Go Jittery As China Tightens Rules On Overseas Data Transfer
- "App stores and other platforms should also strengthen the security scrutiny of App download to prevent fake Apps from fishing in troubled water to harm internet users," CAC said.
- Earlier this year, the U.S. added Alibaba Group Holding Ltd's (NYSE: BABA) AliExpress and Tencent Holdings Ltd's (OTC: TCEHY) WeChat messaging platforms to its list of notorious markets for counterfeiting and piracy.
- WeChat and Weixin, its China-facing version, were considered among the largest platforms for counterfeit goods in China, with more than 1.2 billion active users worldwide in 2021.
- The list also included Chinese online retailer Pinduoduo Inc PDD, Alibaba's Taobao, and Baidu Inc's (NASDAQ: BIDU) cloud-storage service Baidu Wangpan and e-commerce service provider DHgate.com Inc.
- According to a global survey, China is the number one producer of fake products and the largest online retailer of counterfeit goods.
- Price Action: BABA shares closed lower by 2% at $113.71 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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