Shares in Didi have plunged since the company went public in New York this summer.
Jade Gao/AFP via Getty Images
Shares in ride-hailing group Didi Global rebounded Tuesday, as the Chinese group issued a stern denial of rumors circulating in the media Monday that its co-founder and president plans to step down.
Didi (ticker: DIDI) shares rose 3.2% in U.S. premarket trading after the stock slid 6.6% Monday.
Rumors swirled Monday that Jean Liu expected the Chinese government to eventually take control of Didi and appoint new management, based on a report from Reuters citing two anonymous sources. Liu told some close associates that she intends to step down, the report said.
Didi has come under pressure from Beijing in recent months—with the stock down more than 45% since the company went public in New York this summer. Scrutiny from China’s regulators, amid a wider crackdown on the tech sector and U.S.-listed Chinese companies, has centered on cybersecurity and the handling of sensitive user data.
Didi denied the Reuters report in a statement to Barron’s, highlighting that the company was cooperating with cybersecurity authorities.
“Rumors about management changes are untrue and unsubstantiated. We strongly condemn those malicious and repeated rumors fabricated and distributed on certain media against Didi,” the group said.
Write to Jack Denton at [email protected]
