Jul 13, 2021 10:06 AM

CX Daily: How Didi’s Rush to Raise Funds in U.S. Backfired (Part 1)

Didi /

Cover Series: How Didi’s rush to raise funds in U.S. backfired (Part 1)

As one of the world’s largest ride-hailing companies with 493 million annual active users and 15 million drivers, Didi Global Inc.’s $4.4 billion U.S. initial public offering (IPO) was exceptionally low key.

No bell-ringing ceremony or executive speech took place at the New York Stock Exchange on the June 30 debut. Employees heard the news only several hours after the stock started trading and were told not to discuss the IPO publicly on social media. Didi founder Cheng Wei asked shareholders not to talk to media, an underwriter of Didi’s IPO told Caixin.

The ride-hailing giant’s quiet overseas share sale was followed by a devastating regulatory backlash, raising questions about whether the company received a nod from the domestic authorities in advance.

Cover Series: How SoftBank’s $11 billion bet on Didi turned sour (Part 2)

Data /

Chinese companies with over 1 million users’ data could face probe before listing abroad

A draft revision to regulations could mean any Chinese company that holds the personal information of 1 million or more users would have to seek a government cybersecurity review before listing abroad.

Beijing continues to tighten its grip over the country’s once-freewheeling tech sector, including measures to prevent risks arising from cross-border data transfers by foreign-listed companies.

The draft changes to the Measures for Cybersecurity Review (link in Chinese) were revealed Saturday by the Cyberspace Administration of China (CAC) and are open for public comment until July 25.



Dagong’s punishment underscores Beijing’s efforts to clean up the scandal-plagued credit ratings industry in the wake of a recent wave of corporate bond defaults. Photo: VCG

Ratings /

Top China credit ratings agency sanctioned twice in one month

Dagong Global Credit Rating Co. Ltd., one of China’s largest debt ratings agencies, has been ordered to rectify its operations after allegedly failing to adequately scrutinize or inspect the businesses it was evaluating, earning its second official sanction in a month.

The Beijing-based company had not conducted the necessary analysis of the major factors impacting solvency of some debt issuers and failed to carry out onsite inspections or interviews in accordance with the regulations when evaluating credit risks, according to a statement (link in Chinese) released Friday by the local branch of the China Securities Regulatory Commission (CSRC).

The company was also found to have adjusted its ratings models without giving sufficient reasons, it said.

China-U.S. /

Vice President Wang Qishan calls for China-U.S. dialogue

Chinese Vice President Wang Qishan Friday called for dialogue between China and the U.S. to manage differences and expand common interests.

Wang said bilateral ties are at a critical point and urged the two countries to uphold mutual trust and seek common ground while reserving differences. The two countries should respect each other's sovereignty, security and development interests, Wang said.

The biggest challenge the U.S. faces is not China but itself, Wang said, arguing that the U.S. strategy toward China should avoid misguidance and miscalculation.

Credit Suisse /

Credit Suisse names new China chief

Credit Suisse named Janice Hu as its China chief executive as the Swiss bank steps up expansion in the world’s second-largest economy.

Hu has more than 25 years of experience in the financial markets in China and held multiple senior positions in Credit Suisse’s China operations, including vice chairwoman of Credit Suisse China and head of China investment banking, the bank said Friday in a statement. Hu was appointed chairwoman of Credit Suisse‘s China securities business last year.

Quick hits /

China’s slowing V-shaped economic recovery sends global warning

Editorial: International tax reform can counter downsides of globalization



Chinese solar companies may be worried about the potential impact of a recent U.S. import ban on four Chinese makers of polysilicon. Photo: VCG

Solar /

Chinese solar giants seek sunnier valuations with home listings

Two of China’s top solar panel makers applied for secondary listings on China’s 2-year-old enterprise-style STAR Market, seeking valuations higher than their current U.S. listings.

Jinko Solar Co. Ltd. and CSI Solar Co. Ltd. have been carved out as the main operating assets of their U.S.-listed parents and filed IPO applications to raise 6 billion yuan ($927 million) and 4 billion yuan, respectively, on the STAR Market, according to the Shanghai bourse.

Bankruptcy /

Tsinghua Unigroup needs bankruptcy restructuring, creditor says

A creditor of Tsinghua Unigroup Co. Ltd. is demanding bankruptcy restructuring of the once high-flying semiconductor designer, which now sits under massive piles of debt.

Creditor Huishang Bank Co. Ltd. filed a petition seeking a court-led reorganization of the state-owned chip conglomerate, citing unpaid debts and insufficient assets, Tsinghua Unigroup said Friday. The company said it received a Beijing court notice of the filing.

Tsinghua Unigroup said it is unclear whether the court will take accept the case and there are uncertainties about whether the company will enter bankruptcy proceeding. Tsinghua Unigroup is 51% owned by China’s Tsinghua University.

Property /

Chinese developer Capital Land seeks to delist from Hong Kong bourse after 18 years

Property developer Beijing Capital Land Ltd. is seeking to delist from the Hong Kong bourse after 18 years and be absorbed by its controlling stakeholder after low share prices and sluggish trading hamstrung its ability to raise funds from the equity market.

The company will apply to the Hong Kong Stock Exchange to delist its H shares and be merged into Beijing Capital City Development Group Co. Ltd., a newly established entity for the purpose of the merger and wholly owned by state-owned Beijing Capital Group Co. Ltd., according to a company filing released Friday.

Electric cars /

China juices up drive into EV battery swapping centers

China is embarking on a building spree for battery swapping centers, as Beijing pushes electric-vehicle (EV) makers and others in the sector to build out infrastructure to support its aggressive drive into clean vehicles

The nation’s network of such battery swapping centers numbered 716 at the end of June, nearly three times the total at the end of last year, according to recently released data from the China Electric Vehicle Charging Infrastructure Promotion Alliance.

Quick hits /

China rail trips recover to 77% of pre-pandemic level

Huawei CFO suffers setback on evidence in extradition fight

Hot sales of made-in-China models prove Tesla’s popularity with Chinese drivers

Energy Insider /

Energy Insider: Shanghai outlines transportation hub ambition; Ministry vows to regulate rare earth elements

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Today's CX Daily was compiled and edited by Kevin Guo (

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