Chinese authorities on July 2 announced a cybersecurity investigation into Chinese ride-hailing giant Didi Chuxing. A few days later, they announced a crackdown on “illegal securities activities,” including expedited revision of regulations concerning information security and confidentiality in relation to security issuances and stock market listings outside China. These moves followed Didi’s listing on the New York Stock Exchange, the biggest Chinese tech IPO in the US since Alibaba’s USD 25 billion listing in 2014.
This was the first announcement by Chinese authorities of a cybersecurity investigation into a large Chinese internet platform. On Monday July 5, it was followed by announcement of cybersecurity investigations into three other Chinese internet businesses, Yunmanman and Huochebang in the freight transport sector and Boss Zhipin in job recruitment. While investigations continue, all four companies are prohibited from registering additional users, and Chinese app stores are not allowed to offer Didi’s app.