Didi Dives as China Unveils New Cyber Probe After Mega IPO
Didi Global tumbled Friday after China said it's starting a cybersecurity review of the ride-hailing company just two days after it pulled off one of the biggest U.S. stock market debuts of the past decade. From a report: The move is to prevent data security risks, safeguard national security and protect public interest, according to a statement from the Cyberspace Administration of China. Didi has halted new user registrations during the probe. The company, which only started trading on Wednesday in New York after an initial public offering, fell 7% to $15.26. The surprise probe by China's internet regulator piles on the scrutiny of Didi over issues ranging from antitrust to data security. The company has been grappling with a broad antitrust probe into China's internet firms with uncertain outcomes for Didi and peers like major backer Tencent. More broadly, Beijing has been curbing the growing influence of China's largest internet corporations, widening an effort to tighten the ownership and handling of troves of information that internet giants from Alibaba Group to Tencent and Didi scoop up daily from hundreds of millions of users. Didi lost as much as 11% of its market value at one point on Friday, a rapid turnaround that underscores the uncertainty surrounding the Chinese government's crackdown on the internet sector.
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