Sumary of Didi set to feel China’s wrath after controversial Wall Street IPO:
- In one example of concern, Didi had disclosed statistics on taxi trips taken by government officials, one of the people said, although it’s not clear whether that specific issue was raised with the company.
- Credit:Bloomberg“Beijing wants the internet sector to understand that cybersecurity and data security are now among the government’s top priorities, and individual companies’ profit can be sacrificed when cybersecurity and data security may be exposed to risks,” said Feng Chucheng, an analyst with consultancy Plenum in Beijing.
- Xi Jinping’s government is trying to strike a delicate balance between reining in the power of China’s tech giants without inflicting serious damage on a critical sector that has bolstered economic growth.
- The crackdown began last year when Beijing forced Jack Ma’s Ant Group to call off what would have been the world’s largest-ever IPO.
- That was followed by antitrust investigations into giants from food-delivery pioneer Meituan to Alibaba, also founded by Ma.
- Didi began discussing IPO plans with its bankers at Goldman Sachs, Morgan Stanley and JPMorgan late last year, said people directly involved.
- It didn’t have licences to operate in certain cities and many of its drivers lacked a household registration, or hukou, for the cities where they lived, part of municipal requirements for providing on-demand ride-hailing services there.
- The filing ultimately hit about 3.45am China time the morning of June 11.Didi’s government relations team handled discussions with the CAC and its regulators, and management relayed the content of those talks to its bankers, the people said.