Ride-hailing giant Didi Chuxing denies executive Jean Liu is leaving amid Beijing’s ongoing cybersecurity probe

Didi threatened legal action to combat ‘malicious rumours’ after Reuters reported that co-founder Jean Liu told associates she plans to leave

Liu reportedly repeated concerns about a possible government takeover of Didi as Beijing continues a cybersecurity probe with no end in sight

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Didi Chuxing co-founder and president Jean Liu attending a press event in Beijing on January 26, 2016. Following a report that Liu had confided to associates that she plans to leave amid the ride-hailing firms troubles in China, Didi threatened legal action over the spreading of rumours. Photo: AFP

Published: 1:19pm, 21 Sep 2021Updated: 12:12pm, 22 Sep 2021

Chinese ride-hailing giant Didi Chuxing denied a Reuters report that its co-founder and president Jean Liu was on her way out and threatened legal action to fight the “malicious” spreading of rumours.

Reuters reported on Monday that Liu told close associates that she plans to step down and encouraged others to look for new opportunities. She expects the government to take control of the ride-hailing giant and appoint new management, according to the news agency, citing sources familiar with the matter.

Didi’s shares plunged 6.6 per cent on the New York Stock Exchange on Monday.

In a post on microblogging platform Weibo, the company said the report was not accurate. “Didi is now actively and thoroughly cooperating with a cybersecurity inspection. Reuters’ rumour involving the management change at Didi is inaccurate information,” the Beijing-based tech giant said.

Didi has been at the centre of a regulatory storm in China since the Cyberspace Administration of China initiated a cybersecurity probe into the company in early July, just days after its blockbuster US$4.4 billion initial public offering in the US. A group of seven regulators, including the state security ministry and public security ministry, started an on-site investigation in mid-July.

While the investigation remains ongoing, 25 apps associated with Didi were removed from Chinese app stores and the ride-hailing firm was ordered to stop registering new users.

Neither Beijing nor Didi have offered information on the progress of the investigation, fanning speculation about the company’s fate after it “forced its way” to an IPO overseas against the advice of the cybersecurity regulator. The Wall Street Journal reported on Monday that Vice-Premier Liu He was forced to offer “self-criticism”, a practice once common under Mao Zedong, for failing to stop Didi from going public.

Since the start of the investigation, Didi has denied a slew of reports regarding its future. The company said it is not seeking to go private, as reported by Bloomberg in June. It also denied that it would hand data over to a third party, seek large new shareholders, or that the local Beijing government would take a stake in the company, as Reuters has reported.

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