Didi stock in sharp decline on Wall Street, with the Adrs reporting a drop of almost -7%, after the officials of seven Chinese government agencies raided the offices of the ride-sharing giant. Officials conducted an inspection to identify any cyber security risks.
One of the agencies, the Cyberspace Administration of China (CAC), had already accused the company of illegally collecting its users’ data. Along with China’s leading antitrust authority, the State Administration for Market Regulation (SAMR), the CAC is among the seven agencies that have raided Didi’s offices in China.
Chinese firm Didi Chuxing landed on the New York Stock Exchange on June 30, launching one of the largest US IPO deals in the past decade.
On July 7, news arrived regarding the Beijing government’s decision to remove Didi’s App from Tencent’s WeChat messaging service and from Ant Group’s Alipay. Both WeChat, which has more than 1 billion users, and Alipay, which has more than 900 million, are known as super apps, which means that users can open and use other APPs, such as Didi, without having to close Alipay or WeChat.
Earlier, Chinese authorities had prevented new users from downloading the Chinese Uber APP, out of concern over the collection of users’ personal data.