Surge in Chinese Cybersecurity Companies

by Warren Seah

Chinese cybersecurity companies experienced a significant increase in their stock prices on Friday, driven by Beijing’s recent regulations regarding artificial intelligence (AI) that highlight the importance of cybersecurity and data safety.

Zhongfu Information Inc. – a provider of data protection solutions – saw a staggering 20% surge in its shares. Similarly, Shenzhen GuoHua Network Security Tech Co, a network security company, experienced a notable 10% increase, while Beijing Bohui Science & Technology Co. witnessed a growth of 12%.

This rally followed the release of draft measures by China on Thursday, aiming to regulate the emerging generative AI industry. The rules, jointly published by various government bodies such as Beijing’s internet regulator and the country’s top economic planner, underscored network security and data regulation as vital aspects of development and expansion within the nascent industry.

According to analysts at AVIC Securities, these new regulations are expected to drive demand for data security solutions among AI technology companies. The analysts stated, “This could create fresh growth opportunities for the overall cybersecurity market.”

by Yifan Wang

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