A trader works during the IPO for Chinese ride-hailing company Didi Global Inc on the New York Stock Exchange (NYSE) floor in New York City, U.S., June 30, 2021.
Brendan McDermid | Reuters
Didi shares fell as much as 8% in premarket trading Friday morning after China, where the company is based, announced a cybersecurity review of the company.
According to an English translation of China’s announcements, new users will not be able to register for Didi’s ride hailing service during the country’s cybersecurity review.
China’s move comes just two days after Didi held its IPO on the New York Stock Exchange. Shares of Didi were up about 5% in premarket trading before China released its announcement. The stock was poised to show another day of gains after closing up nearly 16% on Thursday.
China’s announcement also reflects a broader trend of the company’s regulatory crackdown on technology companies based there. Last fall, Ant Group’s IPO was delayed after Chinese regulators stepped in and interviewed the company’s top executives, including chairman Jack Ma.
This story is developing. Refresh for updates.
