- Didi shares dropped Friday after police and other regulators went to the ride-hailing app operator’s offices in Beijing.
- The Chinese government sent a task force of seven units including the internet regulator for the on-site visit as part of a cybersecurity review.
- Didi shares have slumped in the wake of the review, which was first launched earlier this month.
- See more stories on Insider’s business page.
Shares of Didi dropped Friday after reports that police in China went to the offices of the ride-hailing company as part of a cybersecurity review that was launched just after Didi raised $4.4 billion in an initial public offering in New York.
A task force of seven ministries including the national security and public security ministries and the Cyberspace Administration of China entered Didi’s offices on Friday to conduct what is China’s first cybersecurity review, according to the South China Morning Post.
NYSE-listed shares of Didi fell 3% during the regular session after losing as much as 8.6% in premarket trade.
The on-site visit is part of what Chinese officials have said are efforts to prevent national data security risks and to maintain national security. The Cyberspace Administration of China, the country’s internet regulator, last week ordered online stores to pull Didi’s apps after determining the apps used data that was collected illegally by Didi.
Didi said two weeks ago when the probe was launched that it would cooperate. The review triggered a selloff, and the stock through Thursday had dropped by more than 12% since its June 30 IPO. Didi was worth as much as $68 billion following its trading debut, making it one of the biggest IPOs in the US in the last 10 years.