{"id":289778,"date":"2021-07-02T20:53:46","date_gmt":"2021-07-02T17:53:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/china-investigates-didi-over-cybersecurity-days-after-huge-ipo\/"},"modified":"2021-07-02T20:53:46","modified_gmt":"2021-07-02T17:53:46","slug":"china-investigates-didi-over-cybersecurity-days-after-huge-ipo","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/china-investigates-didi-over-cybersecurity-days-after-huge-ipo\/","title":{"rendered":"#China investigates Didi over cybersecurity days after huge IPO"},"content":{"rendered":"

“#China investigates Didi over cybersecurity days after huge IPO<\/strong>”<\/p>\n

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Didi\u00a0Global\u2019s shares fell more than 10 percent in New York on Friday after China\u2019s cyberspace agency said it had launched an investigation into the Chinese ride-hailing giant to protect national security and the public interest.<\/p>\n

The Cyberspace Administration of China (CAC) said on its website that\u00a0Didi\u00a0was not allowed to register new users during its investigation, which was announced just two days after\u00a0Didi\u00a0began trading on the New York Stock Exchange.<\/p>\n

Beijing-based\u00a0Didi\u00a0said in a statement to Reuters that it planned to conduct a comprehensive examination of cybersecurity risks and would cooperate fully with the relevant government authority.<\/p>\n

In a filing, it said that apart from the suspension of new user registrations in China, it was operating normally.<\/p>\n

Chinese internet regulators have tightened rules for the country\u2019s tech giants in recent years, asking companies to collect, store and handle key data properly.<\/p>\n

The cyberspace agency did not offer details about its investigation into\u00a0Didi, but said the investigation was also to prevent data security-related risks, citing China\u2019s national security law and cybersecurity law.<\/p>\n

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\"A
Didi, which offers a wide range of services, including ride-hailing (seen here with this taxi driver in China), gathers vast amounts of real-time mobility data every day.<\/figcaption>
LightRocket via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

Didi, which offers a wide range of services in China and over 15 international markets, gathers vast amounts of real-time mobility data every day. It uses some of the data for autonomous driving technologies and traffic analysis.<\/p>\n

Didi\u00a0laid out related regulations in China in its IPO prospectus and said \u201cwe follow strict procedures in collecting, transmitting, storing and using user data pursuant to our data security and privacy policies.\u201d<\/p>\n

Two investors, however, told Reuters that company executives did not discuss possible cybersecurity regulation with investors at the call they joined for\u00a0Didi\u2019s IPO roadshow.<\/p>\n

Didi\u2019s shares fell as much as 10.9 percent after the open and were down almost 8 percent at 12:52 p.m. EDT.<\/p>\n

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\"Chart
Didi\u2019s stock price dropped on news<\/a> China was launching a probe of the ride-hailing giant.<\/figcaption>
Yahoo! Finance<\/span><\/figcaption><\/figure>\n<\/div>\n

\u201cDidi\u00a0does seem to be attracting a lot of regulatory pressure. The near-term impact depends a lot on how long a review lasts but\u00a0Didi\u00a0has a large enough base that we aren\u2019t going to change our forecasts yet,\u201d Redex Research analyst Kirk Boodry, who publishes on Smartkarma, told Reuters.<\/p>\n

Adam Segal, a cybersecurity expert at the Council on Foreign Relations in New York, said while it was hard to know what was going on without more detail, \u201cCAC has been looking at security of all large firms\u2019 data as part of a crackdown on big tech.\u201d<\/p>\n

Didi, which raised $4.4 billion from its initial public offering, did not hold a celebration event for its market debut, an unusual move among Chinese companies.<\/p>\n

Didi, founded by Wei \u201cWill\u201d Cheng in 2012, has faced several regulatory probes in China over safety and its operation license.<\/p>\n

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\"Didi
Wei \u201cWill\u201d Cheng founded Didi in 2012.<\/figcaption>
Visual China Group via Getty Images<\/span><\/figcaption><\/figure>\n<\/div>\n

The company is also facing an antitrust investigation, revealed by Reuters in June, looking at whether\u00a0Didi\u00a0used anti-competitive behaviors to drive out smaller rivals. It said at the time that it would not comment on \u201cunsubstantiated speculation from unnamed source(s).\u201d<\/p>\n

Didi\u2019s debut on Wednesday was the biggest US listing by a Chinese company since Alibaba in 2014.<\/p>\n

Didi\u00a0had aimed to raise up to $10 billion through its IPO to value the company at $100 billion. However, investors were critical of the valuation target during meetings ahead of the deal\u2019s launch which pushed its size down.<\/p>\n

Didi\u00a0is also backed by technology<\/a> investment giants including SoftBank Group, Alibaba, Tencent and Uber.\n <\/p><\/div>\n

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Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

“#China investigates Didi over cybersecurity days after huge IPO” Didi\u00a0Global\u2019s shares fell more than 10 percent in New York on Friday after China\u2019s cyberspace agency said it had launched an investigation into the Chinese ride-hailing giant to protect national security and the public interest. The Cyberspace Administration of China (CAC) said on its website that\u00a0Didi\u00a0was…<\/p>\n","protected":false},"author":1,"featured_media":289779,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2021\/06\/didi-files-for-ipo3.jpg?quality=90&strip=all&w=1200","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[110930,4973,70375,70358,5007,73424],"class_list":["post-289778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-7-2-21","tag-china","tag-cybersecurity","tag-investigations","tag-ipo","tag-ride-sharing"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/289778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=289778"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/289778\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/289779"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=289778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=289778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=289778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}