(Yicai Global) Nov. 20 -- The share price of China's Lakala Payment tumbled today after a media report said that a unit of the third-party payments provider is under investigation regarding leaked user data.
Lakala's [SHE:300773] stock price dropped by the daily limit of 10 percent to CNY49.29 (USD7) today with a turnover of nearly CNY300 million (USD42.7 million).
Authorities in eastern China's Jiangsu province have seized 20 suspects involved in a case of illegal queries to access 98 million users' IDs through Lakala's Kaola Zhengxin database while gaining CNY38 million (USD5.4 million), state-backed CCTV reported today.
Six other companies were also involved in the crackdown on user data violations that touch over 100 million victims.
Chinese credit platforms, including Ant Financial Services Group's Sesame Credit, allow their users to book services based on their credit scores instead of paying deposits when booking hotel rooms or using shared bicycles.
Beijing-based Lakala is the biggest shareholder of Kaola Kunlun Credit Management, the operator of the eponymous database, with a 32 percent stake, according to Tianyancha business registration data platform.
Editor: Emmi Laine