China asks Didi to pull out of US over security concerns: report

Chinese regulators have asked top executives at ride hailing giant Didi Global Inc to devise a plan to delist US exchanges over data security fears, Bloomberg News reported.

China’s tech watchdog wants management to remove the company from the New York Stock Exchange over concerns about sensitive data leaks. report said:, citing people familiar with the case.

Didi and China’s Cyberspace Administration did not respond to Reuters’ requests for comment. Shares in SoftBank Group Corp, which has a minority stake in Didi, fell more than 5%.

Proposals under consideration include outright privatization or an IPO in Hong Kong, followed by expulsion from the United States, according to the news report.

If privatization goes through, shareholders would likely be offered at least the $14 per share IPO price, as a lower offer so soon after the June IPO could spark lawsuits or resistance from shareholders, the report said, citing sources.

Didi came into contact with Chinese authorities when it went through its listing in New York in June, although the regulator had urged the company to put it on hold while a cybersecurity investigation of its data practices was conducted, sources have told Reuters.

Shortly afterwards, the CAC launched an investigation into Didi over his collection and use of personal data. It said data was collected illegally and ordered app stores to remove 25 of Didi’s mobile apps.

Didi responded at the time by saying that it had stopped registering new users and would make changes to comply with national security and personal data protection rules, as well as protect users’ rights.

(Except for the headline, this story has not been edited by NDTV staff and has been published from a syndicated feed.)

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