China’s cyber security regulator has ordered that Didi be taken off domestic app stores just days after the ride-hailing giant raised $4.4 billion in the biggest Chinese listing in the US since Alibaba in 2014, reported the Financial Times.
The Cyberspace Administration of China said on Sunday evening that Didi’s app had “problems of seriously violating laws on collecting and using personal information”.
The decision came two days after the CAC announced a cyber security review into the tech company, sending its shares down 5.3% on Friday to $15.52. The move marks a fresh regulatory offensive on China’s tech groups, whose shares have suffered in recent months after Beijing’s market regulators intensified their antitrust campaign.
“This is another signal that, at the very least, Beijing will not let tech companies’ financing plans stand in the way of regulating them,” wrote Xiaomeng Lu, director of geotechnology at policy consultancy Eurasia Group, in a note. “These moves can also be seen as a sign of Beijing’s discomfort with overseas listings.”