China put the suspension in place “to prevent the expansion of risk” during a “cybersecurity review” into the company, according to a statement from the country’s cyberspace administration.
Before the review, the company finished its first day of trading Wednesday at $14.14, 1% higher than its initial public offering price at $14. The stock climbed to a high of $18 during the trading session. At Wednesday’s closing price, Didi was valued at nearly $70 billion.
Shares were down 8% to just above $15 Friday.
A crackdown on Big Tech
Following these crackdowns, China’s State Administration for Market Regulation (SAMR) gathered 34 companies and issued a warning to stop any anti-competitive behavior and ordered internal inspections. Didi was among the summoned companies.
Didi said in a statement at the time that it would “not comment on unsubstantiated speculation from unnamed sources.” SAMR did not respond to a request for comment from CNN Business.
‘A fierce competitor’
The ride-hailing service has also expanded its offerings as it has grown, now including bike-sharing, taxi and carpooling service options.
— CNN’s Yong Xiong, Rob North, Michelle Toh, Laura He and Jill Disis contributed to this report