Kuaishou Shares Slide After Cyberattack Disrupts Livestreaming Services
Shares of Chinese short video platform Kuaishou Technology fell sharply on Tuesday following a cyberattack that disrupted its livestreaming services the previous night. The stock dropped by as much as 6% to HK$62.70 ($8.06), marking its lowest level since 21 November and its steepest one-day decline since 14 October. Kuaishou also emerged as the biggest percentage loser on the Hang Seng Tech Index, which slipped 0.5%.
Livestreaming Service Targeted in Cyber Incident
Kuaishou, a leading rival to Douyin — the Chinese version of TikTok — confirmed that its platform had suffered a livestreaming cyber incident around 10 p.m. local time (1400 GMT) on Monday. The company immediately activated its emergency response plan to contain the breach and restore services.
According to Kuaishou’s statement, the livestreaming feature of its app has since begun returning to normal. However, several other functions remain disrupted as the company continues to address the aftermath of the attack.
Company Responds with Legal Measures
In its official statement, Kuaishou said it had reported the matter to the police and relevant authorities. The firm added that it would pursue further legal action against those responsible. The company reaffirmed its commitment to protecting user safety and maintaining the integrity of its digital environment.
Users Report Exposure to Inappropriate Content
Chinese media outlets and social media users reported that many Kuaishou users encountered vulgar, violent, and other explicit livestreaming content during the breach. Several online commenters described the incident as “unprecedented” in scale and severity.
The disruption, coming amid increasing scrutiny of online content in China, has drawn attention to the cybersecurity vulnerabilities facing major social media platforms. As Kuaishou works to restore full functionality, investors appear concerned about the potential reputational and regulatory impact on the company’s operations.
with inputs from Reuters