Report: China mulls delisting, other penalties on Didi after IPO in the US

Details:

• According to the sources, Chinese officials are eyeing sanctions for Didi Global, including the imposition of a fine, suspension of certain operations, or the introduction of a state-owned investor in the firm. A forced delisting or withdrawal of Didi’s shares from the US exchange may also be on the cards, the people said. 
• The reported penalties may be harsher than what Alibaba was subjected to earlier this year. The ecommerce giant was slapped with a record US$2.8 billion penalty in April following an antitrust investigation into the company.

Dive deeper:

• Earlier this month, Didi Global’s US shares plunged 20% just hours after China’s cyberspace regulator banned the ride-hailing giant from all app stores on grounds of an alleged breach in data protection rules.
• The development is part of a broader crackdown on tech giants in the country. In November 2020, Ant Group’s blockbuster IPO was put on hold and was followed by antitrust investigations into Alibaba and Meituan.