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Fearing data, China calls for Didi to be delisted from US – Bloomberg News

U.S.A.Fearing data, China calls for Didi to be delisted...

FILE PHOTO: An operator works during the IPO of Chinese trucking company Didi Global Inc on the New York Stock Exchange (NYSE), United States, on June 30, 2021. REUTERS / Brendan McDermid / File Photo

SHANGHAI, Nov 26 (Reuters) – Chinese regulators have asked executives from trucking giant Didi Global Inc to prepare a plan to delist it from the New York Stock Exchange due to concerns about the security of its data.

China‘s tech watchdog wants Didi executives to remove the company from the US stock market over concerns of leaking sensitive data, according to the article, which cited people familiar with the matter.

Neither Didi nor the China Cyberspace Administration (CAC) responded to Reuters requests for comment. Shares of Didi investors SoftBank Group Corp and Tencent Holdings fell more than 5% and 3.1%, respectively, after the article was published.

The proposals under consideration, according to the article, include a direct privatization in Hong Kong or a withdrawal from listing in the United States following an IPO.

If privatization does take place, shareholders could be offered an initial public offering of at least $14 per share, as lawsuits or resistance from shareholders could begin soon after the June IPO, the outlet said, citing sources. Said happened.

By the end of Wednesday, Didi’s shares had fallen 42% to $8.11 since going public in June.

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Sources told Reuters the company came into conflict with Chinese authorities when it went ahead with its listing in New York, despite the Chinese regulator urging it to keep it pending a cybersecurity review of its data practices.

Shortly thereafter, the CAC began investigating Didi regarding the collection and use of personal data. The Chinese regulator said the data was collected illegally and ordered mobile app stores to remove 25 mobile apps operated by Didi.

Didi then responded that it stopped registering new users and that it would make changes to comply with national security and rules on the use of personal data, and that it would protect users’ rights.

The Chinese tech giant is under intense state scrutiny for its antitrust behavior and handling of its vast collection of consumer data, as Beijing tries to curb its dominance after years of limitless growth.

According to a June Didi filing, SoftBank Vision Fund owns 21.5% of Didi, followed by Uber Technologies Inc. with 12.8% and Tencent with 6.8%.

(Reporting by Brenda Goh in Shanghai and Sneha Bhowmick in Bengaluru; Editing by Arun Koyur and Sam Holmes; Translation by Jose Munoz)

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