![]() ![]() That was soon followed with an order for Didi's app be removed from app stores.īeijing also said on Tuesday it would strengthen supervision of all Chinese firms listed offshore, a sweeping regulatory shift that triggered a sell-off in U.S.-listed Chinese stocks. It is the first Chinese firm known to have pulled back from IPO plans since China's cybersecurity regulator toughened its approach to oversight last week with an investigation into ride-hailing giant Didi Global Inc (DIDI.N) just two days after its New York debut. In addition to ride-sharing, Didi operates different businesses around mobility, including electric vehicle charging networks, fleet management, car making and autonomous driving.HONG KONG, July 8 (Reuters) - Chinese medical data group LinkDoc Technology Ltd (LDOC.O) has shelved plans for an IPO in the United States due to Beijing's clampdown on overseas listings by domestic firms, according to three sources with direct knowledge of the matter. Some of Asia's largest technology investment firms, including SoftBank Group Corp, Alibaba and Tencent, have also invested in Didi. firm currently owns 12.8% stake in Didi, according to the Chinese company's prospectus. In 2016, Uber Technologies Inc sold its operation to Didi in exchange for a 17.5% stake in the Chinese firm, which also made a $1 billion investment in Uber. It reached its dominant position in the online ride-hailing business in China after years-long subsidy wars with Alibaba-backed Kuaidi and Silicon Valley-based Uber's China unit, both of which were merged into Didi as investors grew tired of burning cash and demanded profits. In March, SAMR fined the registered firm behind Didi's community group-buying platform Chengxin Youxuan 1.5 million yuan ($233,656) along with another four firms, citing "improper pricing behaviour".ĭidi, the world's largest mobility-technology platform, operates in 15 countries and counts over 493 million annual active users globally, according to its prospectus. In April, SAMR imposed a $2.75 billion fine on Alibaba, a record for the agency. In recent months China has sought to curb the economic and social power of its once loosely regulated internet giants, a clampdown backed by President Xi Jinping. ![]() The company now employs about 13 million annual active drivers in China, according to its prospectus. One of the sources said Didi believed pricing and unfair competition would be viewed as relatively minor offences, which had given the company enough confidence to move ahead with plans for the IPO.ĭidi is also highlighting its creation of jobs to regulators, a key factor that could merit a more lenient attitude from Beijing, the source said. The impact of the probe on the company's IPO, expected to be the biggest Chinese IPO in New York since Alibaba's $25 billion float in 2014, remains to be seen. Two of the sources familiar with the situation said that the probe by the markets regulator was in the initial stages, and that the regulator was yet to give the company detailed instructions. It warned that regulatory bodies might not be satisfied with the inspection results and the firm may be subject to potential penalties. The companies were asked to identify and correct possible violations of antimonopoly, anti-unfair competition, tax and other related laws and regulations, Didi said in the filing.ĭidi said it had completed the self-inspection and the "relevant governmental authorities have conducted onsite inspections". The regulators asked the companies to conduct a "self-inspection" and submit compliance commitments, it said. In its IPO prospectus made public last week, Didi disclosed that it and more than 30 other Chinese internet companies had met with regulators, including the SAMR, in April. SAMR did not respond to requests for comment. "We do not comment on unsubstantiated speculation from unnamed source(s)," Didi said in an emailed statement. ![]() The regulator is also examining whether the pricing mechanism used by Didi's core ride-hailing business is transparent enough, the three sources said. ![]()
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