SoftBank shares rallied on Friday after Chinese regulators asked Didi executives to work out a plan to remove them from the U.S. list. SoftBank shares in Japan fell 4.77%. SoftBank’s Vision Fund owned more than 20% of Didi after listing in the U.S. Regulators reportedly want Chinese giant Didi to raise concerns about sensitive data leaks from the New York Stock Exchange. Didi is currently refusing to comment.
The Chinese Administration has told the company to plan details of the discharge from the list; affair to government consent. According to the report, Didi could go for privatization; Also included in the Hong Kong list after the sale in the U.S. The privatization will cost $14 per share IPO. The Hong Kong Fleet is likely to be at a discount than the more extensive stocks traded in the U.S.
Removal from the list by the state would be an unprecedented step; However, it underscores Beijing’s constant aspirations to dominate the tech giants and bring them under stricter regulation. A particular case is Didi. Shortly after the IPO in the U.S. In the summer, regulators created a cybersecurity review at the corporation.
According to reports, Didi has angered regulators by not addressing outstanding cybersecurity issues that the government wanted to address by leading the IPO. Didi is China’s largest travel app and stores much data on users and travel routes.
Softbank and Didi
As of Wednesday’s close, Didi shares were down 42% at $8.11 after they went public in June. The company challenged Chinese authorities when it resumed listing in New York, despite regulators urging it to suspend its cybersecurity review of its data practices.
In parallel, the CAC launched an investigation into the collection of personal data about the company. The CAC suspects the data was collected illegally. Accordingly, the app stores were ordered to remove 25 mobile apps run by Didi.
Didi then announced that it has stopped registering new users and plans to make changes to the rules for using personal data and national security to protect users’ rights. It is noteworthy that the Chinese tech giants are under intensive state control; this is the vast data processing of consumers and antitrust behavior. The government has been trying to maintain its dominance for years after unrestricted growth. SoftBank owns 21.5% of Didi Fund. Uber Technologies Inc follows it with 12.8%; Then Tencent by 6.8%.