WSJ "Chinese State-Owned Enterprises Seeking to Acquire Stake in Didi Chuxing"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] According to Bloomberg News and The Wall Street Journal (WSJ) on the 4th (local time), China's state-owned enterprises are reportedly pushing to acquire shares in Didi Chuxing, known as the "Chinese Uber."

Reports indicate that the Beijing municipal authorities are coordinating a plan proposed by a consortium of state-owned enterprises to invest in Didi Chuxing.

WSJ, citing sources familiar with the matter, stated that if the investment is successful, China's state-owned enterprises will gain control over Didi Chuxing, the world's largest ride-hailing service provider.

Bloomberg News reported that the consortium is considering acquiring enough shares to secure one seat on Didi Chuxing's board of directors and exercise veto power.

Another source told WSJ that these state-owned investors are seeking to obtain voting rights in Didi Chuxing.

This is expected to allow the Chinese government to exert significant influence over Didi Chuxing's data and critical decision-making processes.

The consortium also includes Beijing Shouchi, a "rival" of Didi Chuxing owned by a Beijing municipal enterprise. Shouchi, which has over 100 million users, is reportedly considering jointly operating ride-hailing services with Didi Chuxing if the investment goes through.

The push by state-owned enterprises to acquire shares in Didi Chuxing comes amid intense regulatory pressure from Chinese government authorities following the company's forced listing on the New York Stock Exchange at the end of June.

Seven national agencies, including the Cyberspace Administration of China, the Ministry of Public Security, and the Ministry of State Security, have initiated an internet security review of Didi Chuxing and removed the company's app from app stores within China.

Didi Chuxing, which raised $4.4 billion (approximately 5 trillion won) through its IPO, once saw its stock price exceed $18 but has sharply fallen to $9.06 as of the previous day's closing price.

This content was produced with the assistance of AI translation services.