Ride-hailing giant Didi could face hefty fines from Chinese regulators as well as possible delisting from the New York Stock Exchange (NYSE), CNBC reported on Thursday (July 21), citing sources.
Didi shares dropped over 8 percent and its month-to-date losses totaled more than 25 percent. Fines from Chinese regulators could exceed the historic $2.8 billion penalties levied against Alibaba this year. Didi’s punishment could also force the company to delist or withdraw its U.S. shares, according to the sources.
Since Didi went public on June 30, shares dropped 25 percent to $10.50 per share from its trading debut at $14 a share. Regulators forced the removal of Didi’s app from WeChat and Alipay and app stores.
Beijing recently ramped up efforts to oversee Chinese companies going public in the U.S. The State Council recently said that mandates for foreign listings will be revised and will include further restrictions on how data is shared cross-border.
Chinese regulators from seven different agencies descended on Didi’s headquarters last week to conduct an on-site cybersecurity review. Officials had already forced the deletion of Didi’s apps and the company was instructed not to sign any new users. The Cyberspace Administration of China said that Didi was illegally collecting data from its user base.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI