Didi Global Denies Media Report About It’s Privatization

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Didi Global On It’s Privatization

On Thursday, the Chinese ride-hailing giant Didi Global denied a media report. The report by Wall Street Journal says that it is planning to go private. The report of going private was made because Didi Global to appease Chinese regulators and compensate investors after losses incurred after the company listed in US market.

Why Didi Global is going private?

A month ago, in the late June, Didi made a debut in US market, it has been on target by Chinese authorities. The Wall Street Journal cited people familiar with the matter saying the company is planning to go private. However, the privatization is because a series of crackdown made a major drop down in its market value. It has got support from cybersecurity branch.

On its official social media account, Didi confirmed that the report about Didi’s privatization is not true and the company is actively cooperating with regulators of cybersecurity review.

Unfortunately, after two days of Didi’s trade on New York’s Stock Exchange, it started facing challenges. Chinese internet started asking online stores not to offer it’s app claiming that it illegally collects user’s personal data.

On a social media platform, Weibo, Didi respoded to the Wall Street Journal report which cited the talk of privatization. The company is considering delisting its share in the US as it faced increasing pressure from regulators in China.

On Thursday, a group of Republican senators called on the country’s financial markets regulator to launch an inquiry into US-listed Chinese companies.

In the letter to the head of Securities and Exchanges Commission the seven lawmakers cited losses sustained by Didi investors. It was after Beijing’s took action against the company.

After days of Didi’s market debut, the Cyberspace Administration of China (CAC) launched an investigation into the company. They asked the company to stop registering new users, citing national security and the public interest.

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