The investigation comes just a couple of days after the SoftBank-backed outfit’s spectacular New York market debut – the biggest US listing by a Chinese company since 2014
China’s cyberspace administration has launched a new investigation into ride-hailing giant Didi Global Inc, it says, to ‘protect national security and public interest’.
The cyber watchdog did not offer more details on the investigation in its announcement on Friday.
Didi, though, said it plans to conduct a comprehensive examination of cybersecurity risks and will fully cooperate with the relevant government authority.
Also on AF: Beijing signs up to global tax deal that could bring in $150bn annually
The review comes just two days after the SoftBank-backed company’s blockbuster New York market debut which was the biggest US listing by a Chinese company since 2014.
Didi, which is also backed by technology investment giants Alibaba, Tencent and Uber, was founded in 2012 by Cheng Wei as Didi Dache, a taxi-hailing app. It merged with peer Kuaidi Dache to become Didi Kuaidi and was later renamed Didi Chuxing.
The US-listed shares of the company were down 7.9% at $15.1 in pre-market trading.
- Reporting by Reuters
Didi pulls off biggest Chinese US IPO since Alibaba, outperforms Uber launch
Didi pressing on with mega-IPO despite antitrust violations probe