Chinese vehicle for hire Didi Chuxing Technology Co. has indefinitely prevented its employees from unloading their shares in the firm, FT reported.
- The prohibition was earlier set to last for only 180 days but has since been extended without an updated end date scheduled. The regulation prevents current and former staff from selling shares.
- A source close to the matter said the prohibition would not be able to sell shares until after Didi had successfully started in Hong Kong, but the Chinese company has yet to comment on the matter.
- A number of Didi investors were still able to sell their shares on Monday, including its single-largest shareholder SoftBank’s Vision Fund, which acquired a 20.1% stake in 2019 for $11.8 billion.
- Chinese officials earlier launched a probe into Didi’s data security practice, following the company’s market debut. It also earlier said it would delist in the United States and instead push through with a listing in Hong Kong.
Didi shares declined by about 5.2% on Monday. DIDI is up 0.94% premarket.