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China’s cyber watchdog launches Didi ‘security’ probe

The investigation comes just a couple of days after the SoftBank-backed outfit’s spectacular New York market debut – the biggest US listing by a Chinese company since 2014


A specialist trader at the post where the IPO of Chinese ride hailing company Didi Global was traded on the New York Stock Exchange floor last week. Photo: Reuters.

The investigation comes just a couple of days after the SoftBank-backed outfit’s spectacular New York market debut – the biggest US listing by a Chinese company since 2014

 

China’s cyberspace administration has launched a new investigation into ride-hailing giant Didi Global Inc, it says, to ‘protect national security and public interest’.

The cyber watchdog did not offer more details on the investigation in its announcement on Friday. 

Didi, though, said it plans to conduct a comprehensive examination of cybersecurity risks and will fully cooperate with the relevant government authority.

 

Also on AF: Beijing signs up to global tax deal that could bring in $150bn annually

 

The review comes just two days after the SoftBank-backed company’s blockbuster New York market debut which was the biggest US listing by a Chinese company since 2014.

Didi, which is also backed by technology investment giants Alibaba, Tencent and Uber, was founded in 2012 by Cheng Wei as Didi Dache, a taxi-hailing app. It merged with peer Kuaidi Dache to become Didi Kuaidi and was later renamed Didi Chuxing.

The US-listed shares of the company were down 7.9% at $15.1 in pre-market trading.

 

  • Reporting by Reuters

 

Read more:

Didi pulls off biggest Chinese US IPO since Alibaba, outperforms Uber launch

Didi pressing on with mega-IPO despite antitrust violations probe

 

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.