Didi denies reports that Beijing city is coordinating govt-run firms to invest in it

Bloomberg News reported on Friday that China's capital city was considering taking Didi under state control and had proposed that government-run firms invest in it. PHOTO: REUTERS

BEIJING (REUTERS) - Chinese ride-hailing giant Didi Global said on Saturday (Sept 4) media reports that the Beijing city government is coordinating companies to invest in it are not correct.

"Didi is currently actively and fully cooperating with a cyber-security probe. Foreign media reports that the Beijing city government is coordinating companies to invest in it are incorrect," it said on Weibo.

Bloomberg News reported on Friday, citing unidentified people familiar with the matter, that China's capital city was considering taking Didi under state control and had proposed that government-run firms invest in it.

Under the preliminary proposal, some Beijing-based companies, including Shouqi Group, part of the state-owned Beijing Tourism Group, would acquire a stake in Didi, Bloomberg reported.

Beijing-based Didi faces a cyber-security investigation by the Chinese authorities after its New York initial public offering in June. The Chinese authorities have stepped up their regulation of technology firms in the past year to improve market competition, data handling and their treatment of employees.

Didi is controlled by the management team of co-founder Will Cheng and president Jean Liu. SoftBank Group, Uber Technologies and Alibaba are among investors in the company.

Join ST's Telegram channel and get the latest breaking news delivered to you.