Why Didi Shares Are Falling and Why China Is Cracking Down?
Two days after the IPO, the Cyberspace Administration of China said it was starting a cybersecurity review of the company to prevent data security risks, safeguard national security and protect the public interest. People familiar with the matter say the regulators had asked Didi as early as three months before to delay the IPO because of security concerns, but Didi went ahead. Two days after the listing, regulators said Didi had committed serious violations in the collection and usage of personal information and ordered the app pulled. There are no details on what precisely the investigation centers on, when or where the alleged violations occurred or whether there will be more penalties to come.