Ridesharing company Didi Chuxing investigated in China over data security in its taxi-app
The stock of the Chinese ride-hailing company Didi Chuxing has fallen hard on Wall Street. More than half an hour after opening, the share was down 27 percent. The panic on the stock market is big, because the Chinese government has been cracking down on the company’s app in recent days.
Didi Chuxing’s app under investigation (pic: lynx.nl)
The problems started last Friday when the internet regulator in China announced that an investigation into the company would be launched with the aim of “ensuring protection of national data security”. For the duration of the investigation, the company is not allowed to register new users.
The announcement could hardly have been more unfortunate: earlier that week, on Wednesday, the Didi Chuxing’s IPO had just taken place with company raising $4.4 billion.
Last Sunday it became clear that the app of the taxi service is in troubles as the regulator said it “violates rules regarding the collection and use of personal information”. Digital app stores in China were then ordered to remove the app from their offer.
It is a pharmaceutical product manufactured by Ajanta pharmacy and view these guys buy viagra india is obtainable through any authorized medical store. If cialis samples you have vague goals, you will get vague results, if any at all. But, the icing on the cake is that now you can get free sildenafil pfizer samples to use and does not give any side effects on the central nervous system and heart that may last up to 6 hours. Until recently, psychological problems were thought to be psychological only, later the research shown that it could be related with physiological health rx sildenafil too. Didi Chuxing has chosen to list on New York exchange because it has a large number of unlicensed drivers and therefore does not comply with legislation in Hong Kong, sources tell the Financial Times. In the weeks before the IPO, Chinese regulators would have advised the company to postpone the listing so that data security could be checked.
‘Targeted action’
“It seems a targeted action,” a Hong Kong fund manager told the British business newspaper. “People wonder if Beijing is angry that big tech companies are choosing to go overseas.”
Regulators were unable to stop the IPO, but according to media sources, the announced investigation and the order to remove the app from download app stores should be seen as “punishment” for ignoring warnings.
The Wall Street Journal reports that China announced new, stricter rules for companies that want to sell shares abroad. Supervision is also being tightened. The newspaper concludes that this could make it more difficult for Chinese companies to raise money in the US.