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Didi Denies Reports that Beijing City is Coordinating Companies to Back it

Controversial ride-hailing giant swift in effort to quell speculation as it undergoes cybersecurity probe

The logo for Chinese ride-hailing company Didi Global is seen during the IPO on the New York Stock Exchange in June 30, 2021. Photo: Brendan McDermid, Reuters.

 

Didi Global said media reports that the Beijing city government is coordinating companies to invest in the ride-hailer are wrong.

“Didi is currently actively and fully cooperating with a cybersecurity probe, foreign media reports that Beijing city government is coordinating companies to invest in it are incorrect,” the company said on Weibo Saturday.

Bloomberg News reported on Friday, citing unidentified people familiar with the matter, that China’s capital city was considering taking Didi under state control and had proposed that government-run firms invest in it.

Under the preliminary proposal, some Beijing-based companies including Shouqi Group, part of the state-owned Beijing Tourism Group, would acquire a stake in Didi, Bloomberg reported.

Beijing-based Didi faces a cybersecurity investigation by Chinese authorities after its New York initial public offering in June. Chinese authorities have stepped up their regulation of technology firms in the past year to improve market competition, data handling and their treatment of employees.

Didi is controlled by the management team of co-founder Will Cheng and President Jean Liu. SoftBank Group, Uber Technologies and Alibaba are among investors in the company.

 

  • Reuters

 

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Mark McCord

Mark McCord is a financial journalist with more than three decades experience writing and editing at global news wires including Bloomberg and AFP, as well as daily newspapers in Hong Kong, Sydney and Melbourne. He has covered some of the biggest breaking news events in recent years including the Enron scandal, the New York terrorist attacks and the Iraq War. He is based in the UK. You can tweet to Mark at @MarkMcC64371550.

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