Didi rebuffs report about going private to appease Chinese authorities
Category: #headlines  By Nikita Chaurasia  Date: 2021-08-03
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Didi rebuffs report about going private to appease Chinese authorities

Ride-hailing companies have been gaining global impetus lately for their flexible availability and tenable mobility. Chinese vehicle for hire company Didi Global Inc., listed in the U.S., has rebuffed a report that it was considering going private to appease Chinese authorities and atone for the losses incurred.

Didi was listed on the New York Stock Exchange after raising USD 4.4 billion in an initial public offering last month.

 Share prices jumped nearly 40% during premarket trading owing to speculations about Didi going private, although it pared gains after the denial of the company. The stock climbed 11.2% from 28th July 2021, closing at USD 9.86 per share.

However, share prices were down by 29.6%, as compared to the initial listing price on 30th June 2021.

If reports are to be believed, the Cyberspace Administration of China (CAC) has been scrutinizing Didi Global Inc. for cybersecurity and antitrust matters and asked to not register new customers, citing public interest and national security. The regulator also plans on removing Didi’s mobile apps from app stores.

It has been reported that Didi has been considering delisting plans as the clampdown in China for customer data privacy, antitrust probe, and other violations.

However, the company has refused the statement, commenting that it is cooperating with Chinese government authorities in the cybersecurity review.

Seven regulatory departments including CAC, State Administration for Market Regulation, and Ministry of Transport have been conducting Didi’s on-site cybersecurity review. As per sources, CAC investigated whether the company’s data was divulged to any foreign entity.

Notably, China’s recent crackdown on its tech giants has caused them to face increasing scrutiny by U.S authorities.

An official from the U.S. Securities and Exchange Commission said that Chinese companies listed in the U.S. will be required to disclose any risks of the government of China interfering in their business along with their regular reporting obligations.

Source Credits –

https://www.investing.com/news/stock-market-news/chinas-didi-global-considers-delisting-plans--wsj-2572132

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia     twitter

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More..

More News By Nikita Chaurasia

German automotive giants eyeing hydrogen cars to achieve climate goals

German automotive giants eyeing hydrogen cars to achieve climate goals

By Nikita Chaurasia

Prominent German automakers including Audi and BMW are reportedly developing hydrogen fuel-cell passenger vehicle prototypes in addition to battery cars to achieve the goal of shifting to green fuel alternatives. Germany has been investing billions ...

Worldwide automobile production to witness 9.3% drop in 2022: Report

Worldwide automobile production to witness 9.3% drop in 2022: Report

By Nikita Chaurasia

Global vehicle output is likely to be 75.8 million and 82.6 million vehicles in 2021 and 2022 respectively. The global automobile market is projected to witness a 1.1% fall in manufacturing in 2023. As per market experts, global car production i...

France suspends 3000 healthcare workers for failing vaccine compliance

France suspends 3000 healthcare workers for failing vaccine compliance

By Nikita Chaurasia

Several care homes, hospitals, and health centers across France have reportedly suspended approximately 3,000 workers for failing to comply with COVID-19 vaccination mandates. This news comes after several EU countries announced stricter measures to ...