[Asia Economy Reporter Kim Hyunjung] Chinese regulatory authorities have imposed a fine of over 8 billion yuan on the local ride-sharing company Didi Chuxing after more than a year of investigations into violations of the Cybersecurity Law and other regulations.
On the 21st (local time), Bloomberg News reported that China's Cyberspace Administration found Didi Chuxing in violation of the Cybersecurity Law, Data Security Law, and Personal Information Protection Law following a cybersecurity review, and announced a fine of 8.026 billion yuan (approximately 1.55 trillion KRW) on the company.
The authorities also stated that the company's co-CEOs, Cheng Wei and Liu Qing, were separately fined 1 million yuan each.
Despite China's opposition, Didi pursued a $4.4 billion initial public offering (IPO) in the U.S. market last June. Since then, it has continuously faced regulatory investigations for legal violations from Chinese authorities. Bloomberg described this decision as "removing some of the uncertainty that once wiped out more than 80% of the company's market value," and suggested it could be a sign that the company’s worst period may be over.
Meanwhile, after being forcibly delisted from the U.S. stock market, Didi is expected to prepare for a relisting in Hong Kong.
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