China weighs serious penalties for Didi after market debut-Bloomberg News

23-Jul-2021 Intellasia | Reuters | 5:02 AM Print This Post

Chinese regulators are considering serious penalties for Didi Global Inc after the ride-hailing giant’s initial public offering last month, Bloomberg News reported on Thursday.

Regulators view Didi’s decision to go public despite pushback from the Cyberspace Administration of China (CAC) as a challenge to Beijing’s authority, the report quoted sources as saying. (bloom.bg/2UuxfSA)

Didi, whose shares were down 2.8 percent in premarket trading, did not immediately respond to a Reuters request for comment.

The CAC last week said officials from at least seven departments sent on-site teams to conduct a cybersecurity review of Didi.

Regulators are weighing a range of potential punishments, including a fine, suspension of certain operations or the introduction of a state-owned investor for Didi, according to Bloomberg News.

Earlier this month, the CAC launched a data-related cybersecurity probe into Didi just two days after the company raised $4.4 billion from its New York initial public offering.

Regulators also ordered Didi to remove its apps in China, which Didi said might hurt its revenue.

https://www.reuters.com/article/china-regulations-didi/china-weighs-serious-penalties-for-didi-after-market-debut-bloomberg-news-idUSL4N2OY1S9

 

Category: China

Print This Post

Comments are closed.