Tag Archive for: sources

Beijing presses Didi to delist from U.S. over data security fears – sources

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HONG KONG/SHANGHAI, Nov 26 (Reuters) – Chinese regulators have pressed top executives of ride hailing giant Didi Global Inc (DIDI.N) to devise a plan to delist from the New York Stock Exchange due to concerns about data security, two people with knowledge of the matter told Reuters.

China’s powerful Cyberspace Administration of China (CAC) has asked the management to take the company off the U.S. bourse due to worries about leakage of sensitive data, said one of the people.

It also wants the ride-hailing giant to promise it would solve the delisting issue within a certain period of time, said the person.

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The cyberspace regulator said, according to the person, the prerequisite for the relaunch of Didi’s ride-hailing and other apps in China is that the company has to agree to delist from New York.

Proposals under consideration include a straight-up privatisation or a second listing in Hong Kong followed by a delisting from the United States, said the person.

In July, the CAC ordered app stores to remove 25 mobile apps operated by Didi – just days after the company listed in New York. It also told Didi to stop registering new users, citing national security and the public interest.

Reuters reported earlier this month that Didi is preparing to relaunch its apps in the country by the end of the year in anticipation that Beijing’s cybersecurity investigation into the company would be wrapped up by then, citing sources directly involved in the relaunch. read more

Neither Didi nor the CAC responded to Reuters’ requests for comments.

The app logo of Chinese ride-hailing giant Didi is seen through a magnifying glass on a computer screen showing binary digits in this illustration picture taken July 7, 2021. REUTERS/Florence Lo/Illustration

The people declined to be identified as they were not authorised to speak to the media.

Bloomberg first reported regulators’ request for Didi to delist on Friday. Shares in Didi investors SoftBank Group Corp (9984.T) and Tencent Holdings (0700.HK) fell more than 5% and 3.1%, respectively following the report.

SoftBank Vision Fund owns 21.5% of Didi, followed by Uber Technologies Inc (UBER.N)…

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China eyes pushing US IPO-bound firms to hand over data control: Sources

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HONG KONG: Chinese regulators are considering pressing data-rich companies to hand over management and supervision of their data to third-party firms if they want US stock listings, sources said, as part of Beijing’s unprecedented scrutiny of private sector firms.

The regulators believe bringing in third-party information security firms, ideally state-backed, to manage and monitor IPO hopefuls’ data could effectively limit their ability to transfer Chinese onshore data overseas, one of the people said.

That would help ease Beijing’s growing concerns that a foreign listing might force such Chinese companies to hand over some of their data to foreign entities and undermine national security, added the person.

The plan is one of several proposals under consideration by Chinese regulators as Beijing has tightened its grip on the country’s internet platforms in recent months, including looking to sharpen scrutiny of overseas listings.

The crackdown, which has smashed stocks and badly dented investor sentiment, has particularly targeted unfair competition and internet companies’ handling of an enormous cache of consumer data, after years of a more laissez-faire approach.

A final decision on the IPO-bound companies’ data handover plan is yet to be made, said the sources, who declined to be identified due to the sensitivity of the matter.

The regulatory officials have discussed the plan with capital market participants, said one of the sources, as part of moves to strengthen supervision of all Chinese firms listed offshore.

IPO advisers are hopeful a formal framework on the data handover issue could be delivered in September, said the source.

The China Securities Regulatory Commission (CSRC) and the Cyberspace Administration of China (CAC) did not respond to faxed requests for comment.

Chinese regulators have recently put companies’ overseas listing plans, particularly in the United States, on hold pending new rules on data security.

Last month, the CAC proposed draft rules calling for companies with over 1 million users to undergo security reviews before listing overseas.

The US Securities and Exchange Commission, which oversees US-listings, did not immediately respond to a request for…

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Colonial paid hackers nearly $5 million in ransom, sources say

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Colonial Pipeline Co. paid nearly $5 million to Eastern European hackers on Friday, contradicting reports earlier this week that the company had no intention of paying an extortion fee to help restore the country’s largest fuel pipeline, according to two people familiar with the transaction.

The company paid the hefty ransom in untraceable cryptocurrency within hours after the attack, underscoring the immense pressure faced by the Georgia-based operator to get gasoline and jet fuel flowing again to major cities along the East Coast, those people said. A third person familiar with the situation said U.S. government officials are aware that Colonial made the payment.

Once they received the payment, the hackers provided the operator with a decrypting tool to restore its disabled computer network. The tool was so slow that the company continued using its own backups to help restore the system, one of the people familiar with the company’s efforts said.

A representative from Colonial declined to comment, as did a spokesperson for the National Security Council.

The hackers, which the FBI said are linked to a group called DarkSide, specialize in digital extortion and are believed to be located in Russia or Eastern Europe.

On Wednesday, media outlets including the Washington Post and Reuters reported that the company had no immediate intention of paying the ransom. Those reports were based on anonymous sources.

Ransomware is a type of malware that locks up a victim’s files, which the attackers promise to unlock for a payment. More recently, some ransomware groups have also stolen victims’ data and threatened to release it unless paid — a kind of double extortion.

Deputy National Security Advisor Anne Neuberger on Monday acknowledged that sometimes companies may have no choice but to pay ransoms, telling reporters: “We recognize, though, that companies are often in a difficult position if their data is encrypted and they do not have backups and cannot recover the data.”

The FBI discourages organizations from paying ransom to hackers, saying there is no guarantee they will follow through on promises to unlock files. It also provides incentive to other would-be hackers, the agency…

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sources, Telecom News, ET Telecom

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Used electronics trading platform Aihuishou to raise up to $1 bln in U.S. IPO: sourcesHONG KONG: Chinese secondhand electronics trading platform Aihuishou is aiming to raise $500 million to $1 billion in a U.S. initial public offering by early June, said two people with direct knowledge.

The 10-year-old company, backed by online retailer JD.Com Inc, is targeting a valuation of $4 billion to $5 billion in the float, said the people.

Aihuishou has hired Bank of America and Goldman Sachs to work on the IPO and plans to file around mid-May, said the sources, who declined to be named as the information is confidential.

The company and the two banks declined to comment.

Aihuishou recycles second-hand mobile phones, computers, laptops, cameras and other electronics products from individuals and corporations and resells them on its website and apps, as well as offline stores in 140 cities, according to its website.

The company aims to attract investors with its environmental, social and governance (ESG)-friendly business nature, said one of the people.

It also counts International Finance Corporation and Tiger Global as investors, the website shows.

JD.Com disclosed in 2019 it would merge its own Paipai secondhand business into Aihuishou with certain exclusive traffic resources for the next five years, and additionally invest $20 million in cash in exchange for a non-controlling interest in the company.

In February, Aihuishou completed a $200 million pre-IPO fundraising in which JD.Com, its biggest shareholder, also invested, according to one of the people. The company declined to comment on the fundraising.

Chinese IPOs in the United States have been worth about $4.3 billion so far in 2021, according to Refinitiv.

There was $12.03 billion worth of deals in 2020, the data showed.

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