Didi Global is said to halt its Hong Kong listing plan amid ongoing cybersecurity probe, sources say
- The Cyberspace Administration of China (CAC) informed Didi executives their proposals to prevent security and data leaks had fallen short, sources said
- Its main apps, removed from local app stores last year, will remain suspended for the time being, said one of the people
Didi Global has suspended preparations for its planned Hong Kong listing after failing to appease Chinese regulators’ demands that it overhaul its systems for handling sensitive user data, according to people familiar with the matter.
The Cyberspace Administration of China (CAC) informed Didi executives their proposals to prevent security and data leaks had fallen short, the people said. Its main apps, removed from local app stores last year, will remain suspended for the time being, said one of the people, who asked not to be identified as the information is private.
Didi and its bankers have halted work on the Hong Kong listing by way of introduction originally slated for around the summer of this year, the people said. In addition to dealing with the CAC review, Didi is also working to finalize its fourth-quarter results as required for a listing prospectus, they said.
The suspension threatens to derail Didi’s plans to move its listing closer to home, which would allay Beijing’s concerns about the leak of sensitive data overseas. Now, the CAC’s dissatisfaction with the proposed safeguards throws those plans in limbo and raises questions about what penalties regulators may have in store for the embattled firm.