China asks Didi to remove names from US over security concerns – Bloomberg News

SHANGHAI (Reuters) – Chinese regulators have asked top executives to ride giant Didi Global for a welcome welcome. (DIDI.N) To put in place a plan to delist US stock exchanges over data security concerns, Bloomberg News reports.

China’s technical watchdog wants management to kick the company out of the New York Stock Exchange over concerns about sensitive data leaks, Report He said, citing people familiar with the matter.

Didi and the China Cyberspace Administration did not respond to Reuters requests for comment. Shares in SoftBank Group Corp (9984.T)which owns a minority stake in Didi, is down more than 5%.

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The proposals under consideration include a direct privatization or floatation of shares in Hong Kong followed by a write-off from the United States, according to the news report.

The report, citing sources, said that if the privatization continues, the shareholders will likely be offered the initial public offering price of at least $14 per share, because the lower offer shortly after the initial public offering in June may lead to lawsuits or shareholder resistance.

Sources told Reuters Didi clashed with Chinese authorities when it went ahead with its New York listing in June, even though the regulator urged the company to suspend it while it conducts a cybersecurity review of its data practices.

Soon after, the CAC launched an investigation into Didi over her collection and use of personal data. It said the data was collected illegally and ordered app stores to remove 25 mobile apps operated by Didi.

Didi responded at the time by saying that it had stopped registering new users and would make changes to comply with national security rules and protect personal data, and would protect users’ rights.

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Additional reporting by Brenda Goh in Shanghai and Sneha Bhumik in Bengaluru; Editing by Aaron Coeur and Sam Holmes

Our criteria: Thomson Reuters Trust Principles.


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