The announcement on Thursday by the Cyberspace Administration of China followed a year-long investigation into Didi's collection and use of its customer data
China's Didi Global is in talks to buy a third of Sinomach Zhijin Automobile, a small maker of electric vehicles, sources revealed on Wednesday
Chinese regulators are said to be concluding probes into Didi and two other firms and preparing to lift restrictions on their apps
Alibaba, JD.com, Baidu took a hit in the wake of the comments, while the NASDAQ Golden Dragon China Index shed some 6.59%.
Vote to delist the ride-hailing giant's ADS from the New York Stock Exchange ends saga after 2021 listing drew Beijing's ire.
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.
Ride-hailing firm says it won't apply to list shares on any other stock exchange before the delisting of its American Depositary Shares from NYSE is complete.
China's Didi Global has seen a 7.9% fall in its shares since the end of September and that will have hurt the institutional investors holding 27% of the company