China weighs critical penalties for Didi after market debut – Bloomberg Information

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Didi Chuxing’s logo can be seen at its headquarters in Beijing, China on August 28, 2018. REUTERS / Jason Lee / File Photo

July 22 (Reuters) – Chinese regulators are considering severe penalties for Didi Global Inc (DIDI.N) after the ride-hailing giant went public in New York last month, Bloomberg News reported Thursday.

Regulators see Didi’s decision to go public despite opposition from the Cyberspace Administration of China (CAC) as a challenge to Beijing’s authority, the report quoted sources as saying.

Didi did not immediately respond to a Reuters request for comment. Shares fell 7% on Thursday.

The CAC said last week that officials from at least seven departments sent teams on the ground to conduct a cybersecurity clearance of Didi. Continue reading

According to Bloomberg News, regulators are weighing a number of potential penalties, including a fine, suspension of certain operations, or the introduction of a state investor for Didi.

Earlier this month, the CAC launched a data-related cybersecurity investigation into Didi just two days after the company raised $ 4.4 billion from its New York IPO.

Regulators have also ordered Didi to remove his apps in China, which Didi said could hurt his earnings. Continue reading

Didi, which is also backed by tech investment giants Alibaba (9988.HK), Tencent (0700.HK) and Uber (UBER.N), was founded in 2012 by Cheng Wei as Didi Dache, a taxi calling app. It merged with Peer Kuaidi Dache to form Didi Kuaidi and was later renamed Didi Chuxing.

Reporting by Tiyashi Datta in Bengaluru; Editing by Ramakrishnan M. and Bernadette Baum

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