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China to Conduct Cybersecurity Review of Ride-Hailer Didi Global

The company upset Chinese regulators by pushing ahead with a $4.4 billion listing in the US despite being asked to put it on hold. Shareholders will vote on its US delisting plan on May 23.


An NYSE trader works on the Didi IPO in New York last July.
Didi says it has already made rectifications to abide by a China internet watchdog's security review. Photo: Reuters.

 

Chinese authorities insist they must conduct a cybersecurity review of Didi Global before the ride-hailing giant can resume normal operations, the company said on Thursday.

The company had angered Chinese regulators by pushing ahead with a $4.4 billion listing in the US despite being asked to put it on hold.

Days after Didi went public last June, China’s internet watchdog began a cybersecurity review of its handling of domestic user data and ordered app stores to remove its mobile apps operated by Didi.

In Thursday’s filing, the company said it had already made rectifications to comply with the review, such as improving internal management mechanisms for data security.

 

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Must Finish Delisting

But it must also finish a planned delisting from the New York exchange for the review to be wrapped up, it added.

Didi has been unable to register new users since the regulator began its review.

Within six months of its listing, it succumbed to Beijing’s regulatory tightening and said it would delist its American Depositary Shares (ADR) in favour of a listing in Hong Kong. Didi shareholders are set to vote on May 23 on the ADR delisting plans.

However, in an annual filing this month, Didi said it was cooperating with an investigation launched by the US Securities Exchange Commission into the New York IPO, without giving further details.

 

  • Reuters, with additional editing by George Russell

 

 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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