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Significance
China’s ride-hailing major Didi was targeted by the Cyberspace Administration of China (CAC) ahead of its initial public offering (IPO) on June 30. It is complying with the ongoing cybersecurity review mandated by Beijing and is battling rumours about plans to delist from the New York Stock Exchange and go private.
Impacts
Current investors in Chinese tech stocks need to consider this situation as a new normal, not a departure from trend.
The VIE structure will likely come under greater regulatory scrutiny, but is unlikely to be dissolved.
Didi may yet delist in the United States.
Keywords:
China,
AP,
economy,
industry,
social,
corporate,
government,
private sector,
regulation,
technology,
education,
IT software & services
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2021
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