What happened when the ride-hailing service DiDi was blocked by the Chinese authorities immediately after its listing in the United States and the stock price plummeted?

The Chinese ride-hailing service 'DiDi' was listed on the US stock market on Wednesday, June 30, 2021, but on July 2, the China Cyber Space Administration (CAC) used the DiDi app for user information. Was improperly collected and used, and issued a statement that it violated the law. In response, authorities have instructed the Chinese app store to remove DiDi's apps indefinitely.

China takes Didi off app stores 2 days after Beijing announces cybersecurity review | South China Morning Post


China regulator orders Didi ride-hailing app removed from stores --The Verge

China Blocks Didi From App Stores Days After Mega US IPO --Bloomberg

Due to regulatory action, DiDi suspended new user registration on July 2nd.

China has shown ways to block DiDi from the app store, comply with regulations, and return to the app store. In response, DiDi thanked Chinese regulators for helping the company investigate risk in a statement and said it would correct mistakes to protect user privacy and data security. Said. Although new user registration has stopped, existing users can still use the DiDi app.

Chinese officials did not reveal which provision of which law DiDi violated in the action. Meanwhile, Zhai Wei, a law professor at East China University of Political Science and Law, said, 'This measure means that the Chinese authorities have confirmed that DiDi violates the'rights of users' information.' Not only cyber security law, but also the rights of individual users may be violated, and there may be lawsuits by users. '

It is not clear at the time of writing whether DiDi's IPO is related to the actions of the authorities.

DiDi's share price, which had been on the rise, plummeted on July 2 following the announcement by the authorities. At the time of writing the article, it was $ 15.53 per share (about 1730 yen).

in Software,   Web Service, Posted by darkhorse_log