China’s Didi Called For US Expulsion, SoftBank Shares Fall: Report

A navigation map on the app from Chinese ride-hailing giant Didi can be seen on a mobile phone in front of the app logo shown in this illustration photo, taken on July 1, 2021.

Florence Lo | Reuters

GUANGZHOU, China — Shares of SoftBank expanded their losses Friday after Bloomberg reported that Chinese regulators had requested it didis executives to formulate a plan to delist from the US

SoftBank shares in Japan fell 4.77% over the lunch hour. SoftBank’s Vision Fund owned more than 20% of Didi after its listing in the US.

Bloomberg’s According to the report, regulators want Chinese ride-hailing giant Didi to be delisted from the New York Stock Exchange over concerns over sensitive data leaks. The news agency cited people familiar with the case and asked not to be identified due to the sensitivity of the case.

CNBC could not confirm the Bloomberg report. Didi declined to comment on the report when CNBC contacted him.

China’s Cyberspace Administration has asked Didi to work out the details for a deletion that will be subject to government approval, Bloomberg said.

Didi could go for privatization or listing in Hong Kong after delisting in the US, the report said.

A privatization would take place at the IPO price of $14 a share when the company listed, while an IPO in Hong Kong would likely discount where Didi’s shares traded in the US, according to Bloomberg.

A state-driven shutdown would be an unprecedented move, but highlights Beijing’s continued pressure to rule tech giants and place them under stricter regulation. Didi in particular is a special case. Shortly after his US IPO in June, regulators opened a cybersecurity assessment in the company.

didic Reportedly angered regulators by going ahead with an IPO without solving the outstanding cybersecurity issues the authorities wanted to solve. Didi is China’s largest ride-hailing app and contains a lot of data about itineraries and users.

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