Key Sentence:
- This morning, the Chinese travel-sharing app DiDi Global responded to Reuters reports.
- That President Jean Liu was planning to leave the company, saying, “Rumors of the Reuters government change is untrue and baseless.”
“We condemn the malicious and repeated Rumours Of A Government rumors created and spread in certain media against DiDi. And reserve the right to take legal action against such violations,” Didi said in a statement from PR firm SVC.
Liu “has told several close associates that Rumours Of A Government intends to retire. Reuters reported yesterday, citing two sources familiar with the matter. The executive has also told several staff over the past few weeks that they expect the government to take control of Didi. And appoint new leadership eventually, the two sources said, according to Reuters.
DiDi lost 6.6% in New York trading on Monday following the report. Rumours Of A Government ending 45% below its June IPO price of $14 per share. The company faces regulatory scrutiny and class action in China over its registration in New York. In addition, its use was banned a few days after the announcement by the App Store in China.
“DiDi is working actively and fully with cybersecurity reviews,” the statement said.
Liu is the daughter of Chinese computer industry pioneer Liu Chuanzhi and worked for Goldman. DiDi’s investors include Softbank’s New Vision Fund, which holds a 20% stake, Uber 12%, and Tencent 6%, according to the company’s prospectus.