(WSJ) Requests by Chinese cybersecurity regulator to delay Didi’s US listing and allow a thorough self-examination of the company’s network security were ignored.
Didi went ahead with the US Initial public offering as it was facing investor pressure who had pumped billions of dollars in the ride hailing company.
Chinese regulators grew concerned that foreign listing would result in massive amounts of data into “foreign hands” given Washington’s greater requirements for disclosure.
China’s Cyberspace Administration started a cybersecurity review of Didi on Friday and required companies to block the ride hailing app from their platforms.
Some analysts support China’s crackdown in the tech sector, with the review on Didi’s expected to last for months
Didi’s $4.4 billion public listing on the NYSE was the biggest by a Chinese Company after Alibaba’s 2014 IPO.
Didi stock reacts. DIDI: NYSE is down -22.28% on premarket.
