Chinese regulators target passenger transport company Didi just days after IPO

Chinese regulators targeted Didi Global Inc. on Friday, days after the private transportation company went public, by preventing its business in China from adding new users while reviewing the company’s cybersecurity.

The investigation is aimed at preventing risks related to national data security, the China Cyberspace Administration said in a short statement.

The move comes as authorities seek to curb China’s big tech companies, which have become central to the daily life of Chinese society, and claim greater control over the data these companies own.

Didi Global’s US depository shares fell more than 6% in midday trading in New York, after rising 16% a day earlier. They were still up about 10% relative to the IPO price.

Didi said it will fully cooperate with the review. “We plan to conduct a comprehensive cybersecurity risk review and continually improve our cybersecurity systems and technology capabilities,” the company said in a statement.

Source: WSJ

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