BEIJING (CAIXIN GLOBAL) - The race by Chinese Internet companies to raise money in the United States stock market this year came to an abrupt halt after Didi's rush to sell shares on the New York Stock Exchange without the blessing of the Chinese authorities backfired.

Initial public offerings (IPOs) abroad by private companies like Didi did not previously require official approval by Chinese regulators, but they usually still needed an unofficial nod. By proceeding without such a signal, the Chinese ride-hailing giant wound up under national security review, its apps removed from app stores, and its shares trading 14.5 per cent below the IPO price.