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China urges Diddy to exclude data security concerns from the U.S. stock exchange

According to Bloomberg News, Chinese regulators have urged executives of ridehaling giant Diddy Global, Inc. to plan to delist from the New York Stock Exchange due to data security concerns.

China’s tech watchdog wants management to withdraw the company from the U.S. stock exchange because of concerns about sensitive data leaks, the report quotes people familiar with the matter. Said.

Neither Diddy nor China’s Cyberspace Administration responded to Reuters’ request for comment. Shares of Didi investors SoftBank Group Corporation and Tencent Holdings fell by more than 5% and 3.1%, respectively, after the report.

According to news reports, the proposals under consideration include direct privatization in Hong Kong or a stock float followed by delisting from the United States.

Shareholders will be offered an initial public offering price of at least $ 14 per share, as privatization could lead to litigation and shareholder resistance if offers fall shortly after the June IPO. The report cites sources as likely.

As of Wednesday’s closing price, Diddy’s stock has fallen 42% to $ 8.11 since it went public in June.

According to Reuters, the company rebelled against Chinese authorities when it pushed for a listing in New York, despite regulatory demands to put it on hold during a cybersecurity review of data practices.

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

Diddy said at the time that he would suspend the registration of new users, make changes to comply with national security and rules regarding the use of personal data, and protect the rights of users.

China’s tech giants are under strict national oversight of anti-monopoly behavior and the handling of their vast consumer data as the government seeks to curb their control after years of free growth. ..

According to Didi’s submission in June, SoftBank Vision Fund owns 21.5% of Didi, followed by Uber Technologies Inc with 12.8% and Tencent with 6.8%.

China urges Diddy to exclude data security concerns from the U.S. stock exchange

Source link China urges Diddy to exclude data security concerns from the U.S. stock exchange

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