US senators call on regulators to investigate Didi IPO
By Caoimhe Toman
Date: Friday 09 Jul 2021
(Sharecast News) - Two senior members of Congress have called on the Securities and Exchange Commission to investigate whether Didi Chuxing, the Chinese ride-sharing company, misled US investors ahead of its initial public offering last week.
Senators claim that Didi may not have been totally forthcoming regarding its contact with Chinese regulators prior to the listing of its shares.
In a statement to the Financial Times, Bill Hagerty, Republican Senator from Tennessee, said: "The Biden Administration and the SEC - whose core mission is to protect investors and maintain fair markets - should look into whether American investors were misled."
He added: "The SEC must enforce its transparency and disclosure rules, and American investors need to be fully aware of the inherently different risks of investing in companies from non-market, government-controlled economies such as China."
Shares in Didi slumped more than a quarter during their first week of trading on the New York Stock Exchange after China's internet regulator ordered its app be removed from domestic stores.
Beijing alleged concerns regarding the security of users' data as the reason for the probe into the company.
According to the FT, one person close to the company admitted that China's regulator advised Didi to delay the listing, although the company denied it had knowledge of the impending regulatory crackdown.
Didi raised $4.4bn at its IPO last week in the biggest Chinese offering in the US since Alibaba in 2014.
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