A navigation map on the app of the Chinese riding hill giant Didi is seen on a mobile phone in front of the app logo shown in this illustration taken July 1, 2021.
Florence Lo | Reuters
GUANGZHOU, China – Shares in SoftBank extended their losses on Friday after Bloomberg reported that Chinese regulators have asked Didi’s executives to formulate a US delisting plan
SoftBank shares in Japan fell 4.77% at lunchtime. SoftBank’s Vision Fund owned more than 20% of Didi after its listing in the United States.
Bloomberg’s report said regulators want Chinese equestrian giant Didi to be delisted from the New York Stock Exchange due to concerns about leaks of sensitive data. The news agency quoted people with knowledge of the case who asked not to be identified due to the sensitivity of the case.
CNBC was unable to confirm the Bloomberg report. Didi declined to comment for the report when contacted by CNBC.
The Cyberspace Administration of China has asked Didi to work out the details of a delisting, which will be subject to government approval, Bloomberg said.
Didi could either go for a privatization or an IPO in Hong Kong after delisting in the US, the report said.
A privatization would be at a listing price of $ 14 per share. share when the company was listed, while a plane in Hong Kong would likely have a discount on what Didi’s shares traded for in the US, according to Bloomberg.
A state-run delisting would be an unprecedented step, but highlights Beijing’s continued pressure to rule in technology giants and put them under tighter regulation. Didi in particular is a special case. Shortly after the U.S. IPO in June, regulators opened a cybersecurity review of the company.
Didi allegedly angered regulators by pushing ahead with an IPO without resolving outstanding cybersecurity issues that authorities wanted resolved. Didi is China’s largest ride-hailing app and holds lots of data on itineraries and users.