US senators call for inquiry into Didi Chuxing’s US$4.4 billion IPO following China’s crackdown
- Two members of the Senate banking committee said the SEC should review whether the ride-hailing giant misled investors
- Didi’s shares have lost more than US$24 billion in market capitalisation since Chinese regulatory actions began last week
Senator Bill Hagerty, a Tennessee Republican, and Senator Chris Van Hollen, a Maryland Democrat, separately said America’s top securities regulator should conduct an investigation into statements made by the operator of China’s dominant ride-hailing app ahead of its June 30 debut.
“American investors need confidence that the companies that list on US exchanges are not engaging in fraud and should have access to information on the risks posed by investing in foreign companies – especially those influenced by foreign governments,” Van Hollen said in a statement.
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Hagerty, a China hawk, said the SEC should examine whether Americans were misled, adding on his official Facebook page: “Communist China is not our ally. We must continue to hold them accountable.”
