China’s cyberspace agency has launched an investigation against ride-hailing company Didi to protect national security and public interest. Shares of the company fell more than 10% in New York on Friday post the announcement.
Didi will not be allowed to register new users for as long as it is under investigation. The announcement comes two days after the company had started trading on the New York Stock Exchange.
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In a statement given to Reuters, Didi said that will fully cooperate with government authorities and examine the cybersecurity risks.
Didi’s Wednesday debut was among the biggest U.S. listing by a Chinese company since Alibaba Group Holding Ltd in 2014.
However, the shares fell to10.9% after the opening and further down 7% at 1335 GMT.