China asks Didi to withdraw from US for security reasons: report


Chinese regulators have asked top executives at running giant Didi Global Inc to work out a plan to delist U.S. stock exchanges over data security concerns, Bloomberg News reported.

China’s tech watchdog wants management to remove the company from the New York Stock Exchange over concerns over the leak of sensitive data, the report said, citing people familiar with the matter.

Didi and the Cyberspace Administration of China did not respond to Reuters requests for comment. Shares of SoftBank Group Corp, which has a minority stake in Didi, fell more than 5%.

ALSO READ  Reliance withdraws from shale gas business in North America

The proposals under consideration include a direct privatization or a float of shares in Hong Kong followed by a delisting of the United States, according to the report.

If privatization continues, shareholders will likely be offered at least the IPO price of $ 14 per share, as a lower bid so soon after the initial June public offering could lead to lawsuits or resistance. of shareholders, according to the report, citing sources.

ALSO READ  Start-up Edtech Byju acquires Austrian GeoGebra

Didi clashed with Chinese authorities when he continued his listing in New York in June, even though the regulator had urged the company to suspend him while a cybersecurity review of its data practices was being conducted. sources told Reuters.

Shortly thereafter, the CAC launched an investigation into Didi for his collection and use of personal data. He said the data was collected illegally and ordered app stores to remove 25 mobile apps operated by Didi.

ALSO READ  The budget deficit for the period April-October amounted to 36.3% of the budget estimates

Didi responded at the time by saying that he had stopped registering new users and would make changes to comply with national security and personal data protection rules, and protect user rights.

(Except for the title, this story was not edited by The Bharat Express News staff and is posted Platforms.)



Please enter your comment!
Please enter your name here