China weighs serious penalties for Didi after market debut

didi chuxing

Chinese regulators are considering serious penalties for Didi Global Inc after the ride-hailing giant’s initial public offering last month, Bloomberg News reported on Thursday.

Regulators view Didi’s decision to go public despite pushback from the Cyberspace Administration of China (CAC) as a challenge to Beijing’s authority, the report quoted sources as saying.

The CAC last week said officials from at least seven departments sent on-site teams to conduct a cybersecurity review of Didi.

Regulators are weighing a range of potential punishments, including a fine, suspension of certain operations or the introduction of a state-owned investor for Didi, according to Bloomberg News.

Earlier this month, the CAC launched a data-related cybersecurity probe into Didi just two days after the company raised $4.4 billion from its New York initial public offering.

Regulators also ordered Didi to remove its apps in China, which Didi said might hurt its revenue.