It's part of the USA's ongoing harassment of China
Nothing new here.
Chinese ride-hailing company Didi Global is under a Securities and Exchange Commission (SEC) investigation regarding its $4.4 billion June 2021 initial public offering (IPO) in the United States. Details of the investigation were revealed in the company’s annual SEC filings on Monday. The document showed Didi Global had been …
Not really. Instead it is one of those lessons the us can learn from China.
If my memory serves me well DIDI, a company that could not list on the Chinese Exchange because of various issues, went public in the USA instead. A week or two after a massively successful IPO DIDI was sanctioned by the Chinese authorities because they saw it as a threat to the reputation of other Chinese companies. The excuse was lack of security disclosures in their APP but the consensus was that they were sanctioned because they were seen as a shell and a threat to the reputation of other Chinese companies particularly after the Luckin Coffee debacle.
There were immediate questions about material facts that should have been disclosed during the IPO. The Chinese sanctions were in the works before the IPO and should have been disclosed.
The questions then was how comes the Chinese Exchange had higher standards for listing than here in the Great US of A. And the big question today is "How did it take the SEC almost a whole year to announce a probe".