Chinese regulators will tighten controls of domestic firms listed overseas following a cybersecurity probe of Didi
REUTERS/Florence Lo/File Photo/File Photo
- Chinese regulators said they will tighten control of domestic firms listed overseas.
- The move came after the Beijing-led cybersecurity probe against Didi, Reuters reported.
- On Sunday, China said Didi “has serious violations of laws and regulations” in collecting and using personal information.
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Chinese regulators on Tuesday said they will tighten control of domestic firms listed overseas following a recent cybersecurity probe launched by Beijing against ride-hailing giant Didi Global, Reuters first reported.
China officials said they will ramp up the regulation of cross-border data flow, tighten measures on illegal activities in the securities market, and check the sources of funding for securities investments and control leverage ratios, according to Reuters, citing a statement by China’s cabinet.
Fraudulent securities issuance, market manipulation, and insider trading will all be punished, the statement also said.
The announcement comes after the probe of ride-hail giant Didi, which made its US debut on the New York Stock Exchange on June 30.
On Sunday, the Cyberspace Administration of China said that its investigation found that the Didi app “has serious violations of laws and regulations” in collecting and using personal information.
App stores were notified to remove Didi and “strictly follow the legal requirements.”
Didi, the world’s second-largest ride-hailing app by market valuation, said it would comply and make necessary changes.
Didi shares slumped as much as 25% in premarket trading Tuesday, days after its more than $4 billion listing in what was seen as the biggest US share offering by a Chinese firm since Alibaba’s IPO in 2014.
Weeks before, China had already urged Didi to delay its initial public offering, the Wall Street Journal reported.
