China demands Didi action over US listing - Mobile World Live

China demands Didi action over US listing

26 NOV 2021

Chinese authorities reportedly asked taxi-booking company Didi Chuxing to undo a $4 billion listing on the New York Stock Exchange (NYSE) over data security concerns, as officials continue to turn the screw on the company.

Bloomberg reported regulators pressed Didi Chuxing’s management to begin planning for a delisting and present details to the Cyberspace Administration of China (CAC).

The news agency reported options for the Didi Global US unit included privatisation or a float in Hong Kong, with discussions ongoing.

Didi Chuxing raised around $4.4 billion in the NYSE move in June, reportedly eclipsing a record set by Alibaba in a listing conducted in 2014.

The listing appears to have sparked concern in Didi Chuxing’s domestic market: CAC ordered the removal of its service from app stores a matter of days after its NYSE move, claiming the company had illegally gathered personal user data.

Didi Chuxing is not alone in being the target of Chinese authorities, with more than 100 apps targeted in 2021 alone due to concerns over the amount of user information gathered as part of a broader crackdown on major tech players.

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Yanitsa Boyadzhieva

Yanitsa joins Mobile World Live as a Reporter based in London. She has more than 5 years’ experience at various media outlets in her home country Bulgaria. She started her career as a political reporter, followed by taking editor roles...

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