Friday, November 26

Didi shares plummet after China bans it from its app stores


The China Cyberspace Administration is ordering investigations against Chinese companies with US-listed parent companies, such as Didi.

Foto:
Andrew Burton / Getty Images

A bad day are living Didi Global Inc shares plummeted as much as 25 percent in operations on Tuesday in the United States, after Chinese regulators ordered the company’s application to be withdrawn from app stores and just days after its IPO in New York, Reuters reported.

This Sunday the China Cyberspace Administration (CAC) ordered the rideshare company’s app to be removed from Chinese mobile app stores, by an official investigation carried out on the handling of customer data by the firm.

Cybersecurity investigations against other Chinese companies with parent companies listed in the United States were also announced on Monday.

The US stock market was closed on Monday, but today Full Truck Alliance shares were down 18 percent, Kanzhun Ltd was down 12 percent and Alibaba was down 2 percent.

June 30 Didi Global shares were trading at $ 16.65, but today at noon they were around $ 11.97 in New York, a meltdown of more than $ 17 billion in market capitalization since Friday.

Regulators reportedly warned the trucking company. to delay the initial public offering (IPO) and examine the security of its network.

‚ÄúSome news sources say that Didi knew months in advance that repression was coming, so some people will also start to have doubts about the governance of the company, “said Sumeet Singh, director of Aequitas Research.

For Singh, if the suspension was planned months in advance, it would mean that the order will not disappear soon, which would explain the large correction in Didi’s share price.

CAC ordered stores to stop offering the Didi app after discover that the company had illegally collected personal data from users, in addition to that Didi will not be able to register new users during its investigation

Didi commented that banning the app would affect its revenue in China. He also told Reuters that he was unaware of an investigation prior to the IPO and that he would cooperate fully with the relevant government authority.

In China, internet regulators have tightened the rules for the country’s tech giants, requiring companies to collect, store and manage key data appropriately.

The agency did not provide details about the investigation, but ensures that it also seeks to prevent risks related to data security, based on China’s national security law and cybersecurity law.

Didi is a global company that offers different services in China and in more than 15 international markets. Collect mobility data in real time every day, The same ones you use for autonomous driving technologies and traffic analysis.

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