{"id":306397,"date":"2021-07-23T11:15:16","date_gmt":"2021-07-23T08:15:16","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/chinas-didi-facing-record-fine-weeks-after-us-listing-report\/"},"modified":"2021-07-23T11:15:16","modified_gmt":"2021-07-23T08:15:16","slug":"chinas-didi-facing-record-fine-weeks-after-us-listing-report","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/chinas-didi-facing-record-fine-weeks-after-us-listing-report\/","title":{"rendered":"#China’s Didi facing record fine, weeks after US listing: report"},"content":{"rendered":"

“#China’s Didi facing record fine, weeks after US listing: report<\/strong>”<\/p>\n

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\"Didi's
\n Didi’s decision to go ahead with the US listing has been seen as a challenge to Beijing.
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Chinese regulators could hit ride-hailing giant Didi Chuxing with a more severe punishment than Alibaba’s record fine, just weeks after its contentious New York initial public offering, a report said.<\/p>\n

Despite pushback from China against the move, Didi on June 30 went ahead with its debut in New York, surging 10 percent. However, just days later Beijing announced a probe into the company citing cybersecurity concerns, and ordered its app<\/a> be removed from stores.<\/p>\n

The move sent the firm’s shares plummeting and raised concerns about its business outlook.<\/p>\n

And its problems got worse earlier this month when officials from seven departments, including the ministry of public security, were sent to the firm for on-site cybersecurity investigations.<\/p>\n

Didi’s decision to go public despite Beijing’s displeasure has been seen as a challenge to the leadership, Bloomberg News<\/a> reported Thursday, citing people familiar with the matter.<\/p>\n

Regulators are now considering potential punishments that could include a huge fine, suspension of certain operations, or the introduction of a state-owned investor, the report added.<\/p>\n

The reprimand could even force a delisting or withdrawal of Didi’s US shares, it added.<\/p>\n

The people said they expected Beijing to impose harsher sanctions on Didi than it did on Alibaba.<\/p>\n

Regulators in April hit e-commerce titan Alibaba with a record $2.78 billion fine over practices deemed to be an abuse of its dominant market position, and have since expanded their clampdown to other companies.<\/p>\n

Didi’s shares closed 11 percent down in New York on Thursday and are now almost 30 percent off their IPO price.<\/p>\n

China’s regulators general<\/a>ly supported the idea of an IPO, but had expressed concerns about Didi’s data security practices, according to Bloomberg.<\/p>\n

Officials had urged Didi to ensure the security of its data before proceeding in the United States, or to shift the listing to Hong Kong or the mainland instead.<\/p>\n

China has launched investigations into several other US-listed Chinese tech companies as it beefs up its network security regime and tries to rein in some of its massively influential and popular tech apps.\n <\/p>\n\n

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Didi shares plunge in wake of Beijing crackdown\n <\/p><\/div>\n

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\n \u00a9 2021 AFP<\/p>\n

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Citation<\/strong>:
\n China’s Didi facing record fine, weeks after US listing: report (2021, July 23)
\n retrieved 23 July 2021
\n from https:\/\/techxplore.com\/news\/2021-07-china-didi-fine-weeks.html<\/p>\n

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