“Didi does seem to be attracting a lot of regulatory pressure. Two investors, however, told Reuters that company executives did not discuss possible cybersecurity regulation with investors at the call they joined for Didi’s IPO roadshow.ĭidi’s shares fell as much as 10.9% after the open and were down 7% at 1335 GMT.
It uses some of the data for autonomous driving technologies and traffic analysis.ĭidi laid out related regulations in China in its IPO prospectus and said, “we follow strict procedures in collecting, transmitting, storing and using user data pursuant to our data security and privacy policies.” The cyberspace agency did not offer details about its investigation into Didi, but said the investigation was also to prevent data security-related risks, citing China’s national security law and cybersecurity law.ĭidi, which offers a wide range of services in China and over 15 international markets, gathers vast amounts of real-time mobility data every day. In a filing, it said that apart from the suspension of new user registrations in China, it was operating normally.Ĭhinese internet regulators have tightened rules for the country’s tech giants in recent years, asking companies to collect, store and handle key data properly. The Cyberspace Administration of China (CAC) said on its website that Didi was not allowed to register new users during its investigation, which was announced just two days after Didi began trading on the New York Stock Exchange.īeijing-based Didi said in a statement to Reuters that it planned to conduct a comprehensive examination of cybersecurity risks and would cooperate fully with the relevant government authority. REUTERS/Florence Lo/IllustrationīEIJING/HONG KONG (Reuters) -Didi Global’s shares fell more than 10% in New York on Friday after China’s cyberspace agency said it had launched an investigation into the Chinese ride-hailing giant to protect national security and the public interest. The discussions are in early stages, and DiDi hasn't decided on a listing venue, they added.ĭiDi has accelerated talks on a potential IPO in part because one of its new rivals, Meituan-Dianping is moving forward with plans for a Hong Kong float later this year, the Journal said.ĭiDi is facing new challengers as several companies, including Meituan-Dianping and Ctrip, enter the ride-hailing market and launch related services, notching up the already intense competition.FILE PHOTO: A navigation map on the app of Chinese ride-hailing giant Didi is seen on a mobile phone in front of the app logo displayed in this illustration picture taken July 1, 2021. The Beijing-based company in recent weeks has been in talks with bankers about the feasibility of tapping the public markets for cash in the second half of 2018, people familiar with the matter told the Journal. The move would fetch a valuation of USD 70 billion to USD 80 billion and would make it one of the largest technology IPOs ever, the Journal said. DiDi Chuxing, China's largest ride-hailing provider, plans an initial public offering as early as this year, The Wall Street Journal reported on Tuesday.
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