111 and XPeng's Apps Must Either Reorganize or Shut Down

Apps of 111 and XPeng accused of infringing on user rights and data privacy.
Benjamin WangJan 14,2021,20:42

Guangdong Communications Administration Announced a list of "209 apps that need to be reorganized or shut down."

Among them are the apps of 111, Inc. (Nasdaq: YI) and XPeng (NYSE: XPEV).

(Source: Guangdong Communications Administration)

The regulator accused the platforms to have infringed on user rights and were deemed security risks.

Early this week, XPeng announced it struck a deal with five banks to secure a credit line of 12.8 billion yuan ($2 billion) to help boost its manufacturing, sales, and service capabilities. It signed an agreement with the Agricultural Bank of China, the Bank of China, China Construction Bank, China CITIC Bank, and Guangzhou Rural Commercial Bank, Xpeng added.

Likewise, 111 announced in December that it completed of new capital injection at 515 million yuan ($78.75 million) in its principal PRC subsidiary by a selected group of strategic and mission-driven investors.

As of late Wednesday trading, shares of 111 rose 2% to $6.96, while shares of XPeng fell 2% to $50.73 per share.

Topics:111; XPeng; China; U.S.