China‘s powerful Cyberspace Administration of China has asked Didi to take the company off the New York Stock Exchange due to worries about leakage of sensitive data, Reuters reports. SOPA Images/LightRocket via Getty Images
Chinese regulators have pressed top executives of ride hailing giant Didi to devise a plan to delist from the New York Stock Exchange due to concerns about data security, two people with knowledge of the matter told Reuters.
China’s powerful Cyberspace Administration of China (CAC) has asked the management to take the company off the US bourse due to worries about leakage of sensitive data, said one of the people.
It also wants the ride-hailing giant to promise it would solve the delisting issue within a certain period of time, said the person.
The cyberspace regulator said, according to the person, the prerequisite for the relaunch of Didi’s ride-hailing and other apps in China is that the company has to agree to delist from New York.
Proposals under consideration include a straight-up privatization or a second listing in Hong Kong followed by a delisting from the United States, said the person.
In July, the CAC ordered app stores to remove 25 mobile apps operated by Didi – just days after the company listed in New York. It also told Didi to stop registering new users, citing national security and the public interest.
The prerequisite for the relaunch of Didi’s ride-hailing and other apps in China is that the company has to agree to delist from New York, sources told Reuters.
NurPhoto via Getty Images
Reuters reported earlier this month that Didi is preparing to relaunch its apps in the country by the end of the year in anticipation that Beijing’s cybersecurity investigation into the company would be wrapped up by then, citing sources directly involved in the relaunch.
Neither Didi nor the CAC responded to Reuters’ requests for comments.
The people declined to be identified as they were not authorized to speak to the media.
Shares of Didi, led by its president, Liu Qing (left), and its CEO, Cheng Wei, have fallen 42 percent since it went public in June 2021.
VCG via Getty Images
Bloomberg first reported regulators’ request for Didi to delist on Friday. Shares in Didi investors SoftBank and Tencent fell more than 5% and 3.1%, respectively following the report.
SoftBank Vision Fund owns 21.5% of Didi, followed by Uber with 12.8% and Tencent’s 6.8%, according to a filing in June by Didi.
If the privatization proceeds, shareholders would likely be offered at least the $14 per share IPO price, since a lower offer so soon after the June offering could prompt lawsuits or shareholder resistance, the report said, citing sources.
Chinese regulators launched an investigation into Didi over its collection and use of the app’s users’ personal data, which regulators said had been collected illegally.
South China Morning Post via Getty Images
Shares of Didi, which have fallen 42% since it went public in June, were down 6.3% at $7.60.
The company ran afoul of Chinese authorities when it pressed ahead with its New York listing, despite the regulator urging it to put it on hold while a cybersecurity review of its data practices was conducted, sources have told Reuters.
Soon after, the CAC launched an investigation into Didi over its collection and use of personal data. It said data had been collected illegally.
China, led by President Xi Jinping, has been aiming to rein in the power of tech giants after years of unfettered growth.
Didi responded at the time by saying it had stopped registering new users and would make changes to comply with rules on national security and personal data usage and would protect users’ rights.
China’s tech giants are under intense state scrutiny over anti-monopolistic behavior and handling of their vast consumer data, as the government tries to rein in their dominance after years of unfettered growth.News Related
Insiders report this to Bloomberg news agency. The second-largest department store chain in the United States is under pressure from activist shareholders because it would underperform and the company would be undervalued on the stock exchange. investor The offer comes from a group of investors led by Acacia Research, the ...
See Details: ‘Takeover hunt for department store giant Kohl's: $9 billion bid on the table'
Photo: ANP The US government is in talks with Qatar about supplies of liquefied natural gas (LNG) to Europe if Russia were to invade Ukraine, causing European gas shortages. According to sources against Bloomberg news agency, this is discussed between Qatar and officials of the administration of President Joe Biden. ...
See Details: Sources: US talks with Qatar about gas supplies to Europe
Hong Kong's home buyers snap up Henderson Land's The Harmonie flats, defying city's worst one-day explosion of new Covid-19 casesHong Kong’s property buyers turned out in droves, defying the city’s worst one-day explosion of new Covid-19 cases to snap up apartments at the first new housing project to be launched in 2022. Henderson Land Development sold 126 flats, or 93 per cent of the 136 units on offer in ...
See Details: Hong Kong's home buyers snap up Henderson Land's The Harmonie flats, defying city's worst one-day explosion of new Covid-19 cases
The big boss at Morgan Stanley was paid a base salary of $1.5 million in 2021. On top of that came a cash bonus of $8 million and $5 million in stock. In addition, he was good for a performance bonus worth $20 million, The Financial Times reports. With this ...
See Details: Bonus rain at top US bankers: boss Morgan Stanley goes home with $35 million
yes-bank-300_36683164 Yes Bank on Saturday reported a 77% year on year growth in December quarter profit at Rs 266 crore as lower provisions and higher loan recoveries drove earnings at the lender. Net interest income, a closely watched measure of how much money the bank makes from lending, was down ...
See Details: Yes Bank posts 77% rise in December quarter profit on lower provisions, higher recoveries
Photo: ANP The major American department store chain Kohl’s has received a takeover offer worth about $ 9 billion, converted almost 8 billion euros, from a group of investors. Insiders report this to Bloomberg news agency. The second-largest department store chain in the United States is under pressure from activist ...
See Details: Bloomberg: multi-billion dollar offer for major department store chain Kohl's
On crypto platform Coindesk, bitcoin sees another 10% of its value evaporate to a position of $35,580 around 8 a.m. (Dutch time). This means that the digital currency has returned to its lowest level since the end of July 2021. In November, a record level of just below $69,000 was ...
See Details: Bitcoin rumbles further down: 25% fall in new year