Chinese regulators had suggested Didi delay its US IPO, says report

FILE PHOTO: The company logo of ride hailing company Didi Chuxing is seen on a car door in Beijing, China October 18, 2018. REUTERS/Thomas Peter

China’s cybersecurity watchdog suggested Didi Global Inc delay its initial public offering and urged it to review its network security, weeks before the Chinese ride-hailing giant went public, the Wall Street Journal reported on Monday, citing people familiar with the matter.

It isn’t known whether Didi carried out its own review, according to the WSJ report. [on.wsj.com/3jKuGWx] But a person close to the company told the newspaper the company ultimately decided to go ahead with the IPO as it faced increasing investor pressure for a big payout.

The Cyberspace Administration of China (CAC) launched the investigation into Didi on Friday, just two days after the company began trading on the New York Stock Exchange.

On Sunday, the agency ordered a suspension of app downloads for Didi after it found the company illegally collected personal user data.

Didi said in a statement on Monday it had no knowledge before its $4.4 billion listing that CAC would start to investigate the company and order its app to be taken down.

Officials in Beijing, especially those at CAC, were wary of the ride-hailing giant’s troves of data potentially falling into foreign hands as a result of the greater public disclosure associated with a U.S. listing, according to the WSJ report.

Chinese internet regulators have tightened rules for the country’s tech giants in recent years, asking companies to collect, store and handle key data properly.

Didi, which offers services in China and more than 15 other markets, gathers vast amounts of real-time mobility data every day.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.