Tech

Didi’s stock price falls after China announces cybersecurity review

The trader is working on the New York Stock Exchange (NYSE) floor in New York City, USA on June 30, 2021 during the IPO of Chinese ride-hailing service company Didi Global Inc.

Brendan MacDermid | Reuters

Didi shares fell nearly 9% in pre-market trading on Friday morning after the company’s base in China released its cybersecurity review.

According to the English translation of the Chinese announcement, new users will not be able to register for Diddy’s Ride Hailing service during a country’s cybersecurity review.

The Chinese move will take place just two days after Diddy’s IPO on the New York Stock Exchange. After closing nearly 16% on Thursday, stocks were ready to rise another day. Diddy’s stock rose about 5% in pre-market trading before China announced the announcement.

Diddy’s representative was unable to comment immediately.

The Chinese announcement also reflects the broader trend of the company’s crackdown on China-based tech companies, which was once loosely regulated. In June, Reuters reported that Chinese regulators were investigating Diddy for antitrust violations. It is also reported to be investigating the company’s pricing mechanism.

And last fall, after Chinese regulators intervened and interviewed the company’s executives, including Chairman Jack Ma, Ant Group’s IPOs in Shanghai and Hong Kong were postponed. Regulators fined Alibaba $ 2.8 billion in April, saying the company abused its market advantage.

Diddy warned in an IPO prospectus that he had met with regulators earlier this year, along with several other Chinese internet companies. The dispatcher said it could be subject to penalties because regulators may not be satisfied with the test results.

“We cannot guarantee that regulators will be satisfied with the results of our self-inspection or will not be penalized for anti-monopoly, anti-unfair competition, pricing, advertising or breach of privacy protection. Safety, product quality, taxes and other relevant laws and regulations. We look forward to more attention and oversight from regulators and the general public in these areas. “

Founded in 2012, Diddy said it has 439 million active riders annually and an average of 41 million transactions per day. We started international expansion in 2018 and are currently expanding our business in 14 countries other than China.

In addition to traditional ride hailing, Diddy has invested heavily in enabling autonomous taxis and operates several segments of mobility.

This story is developing. Update for update.

Didi’s stock price falls after China announces cybersecurity review

Source link Didi’s stock price falls after China announces cybersecurity review

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