Shares of Chinese cybersecurity companies were sharply higher on Friday, boosted by Beijing’s latest artificial-intelligence regulations that emphasized cybersecurity and data safety.
Data protection solutions provider Zhongfu Information Inc.
jumped 20%, network security company Shenzhen GuoHua Network Security Tech Co.
surged 10% and Beijing Bohui Science & Technology Co.
was up 12%.
The rally came after China unveiled draft measures on Thursday to regulate the emerging generative AI industry. The rules, co-published by several top government agencies including Beijing’s internet regulator and the country’s top economic planner, stressed the importance of network security and data regulation as the nascent industry develops and grows.
Analysts at AVIC Securities said that the new rules could boost demand for data security solutions from AI technology companies. “This could bring about new growth opportunities for the cybersecurity market in general,” the analysts said.
Write to Yifan Wang at email@example.com