Posted on Jul 9, 2021, 1:13 PMUpdated on Jul 9, 2021, 3:41 PM
Another setback for Didi. After having drawn the wrath of the authorities in its country of origin, the Chinese giant of the VTC now arouses the anger of the members of the American Congress, who call for an intervention of the SEC, the gendarme of the financial markets. Didi, who broke into Wall Street on June 30, saw a few days later his application withdrawn from application stores in China after a sanction from the national regulator. The Chinese VTC giant is accused of illegally collecting and exploiting the personal data of its users. A certain doubt hangs over the transparency which Didi would have shown during its quotation vis-à-vis these risks.
Republican Senator from Tennessee, Bill Hagerty, told the Financial Times that “the Biden administration and the SEC […] should consider whether US investors have been deceived ”. He believes that “the SEC must enforce its transparency and disclosure rules, and [que] US investors need to be fully aware of the inherently different risks involved in investing in companies from non-market economies that are government-controlled, such as China. “