FILE PHOTO: Logo of Didi Chuxing is seen at its headquarters in Beijing
INTERNATIONAL - A unit of Chinese ride-hailing firm Didi Chuxing has submitted an application to raise 10billion yuan (R18.84bn) through an issuance of asset-backed securities.

Didi, which said in December it had raised $4bn to support its overseas expansion, did not respond to a request for comment on how the funds would be used. The funds will be raised by Dirun (Tianjin) Technology, according to a filing published on the Shanghai Stock Exchange’s bond market website. 

Dirun’s sole shareholder is Didi Chuxing, local government records show. The state-run Beijing News newspaper, which reported the proposed fund raising on Saturday, cited sources as saying Didi was also preparing to launch a meal delivery business in the eastern city of Wuxi on April 1. 

Didi, which holds more than 87percent of the Chinese private ride-share market, is facing new challengers with several firms announcing plans to launch ride-hailing services.