Advertisement
ExclusiveChina’s regulators suspect Didi’s US listing was ‘deliberate act of deceit’, a portrayal that shows severity of mistrust, sources say
- Some officials have privately described Didi’s move as 'yang feng yin wei' – to comply publicly, but defy privately
- Didi’s US IPO also casts the Cyberspace Administration of China in a bad light, raising questions about its competence, a source said
3-MIN READ3-MIN
24
China’s government regulators suspect the initial public offering by Didi Chuxing in New York on June 30 was a deliberate act of deceit, a characterisation that underscores the severity of the fundraising exercise and the potential storm to come, according to four sources familiar with the matter.
The Beijing-based ride-hailing service raised US$4.4 billion in a stock sale in the United States even as its core business is in China – where it dominates 90 per cent of the market.
Some officials have privately described Didi’s move as yang feng yin wei – to comply publicly, but defy privately – according to a source who was briefed, speaking on condition of anonymity for describing confidential discussions.
The characterisation is particularly striking, given the Communist Party’s priority to focus on getting rid of “two-faced men … who comply in public but resist secretly” from the party, according to the communique of a January 13, 2018 meeting of the Central Commission for Discipline Inspection (CCDI), the corruption-busting agency.
Select Voice
Select Speed
1x
AI-generated voice