(Yicai Global) May 18 -- Shenzhen's transport commission has released a circular on ride-sharing frim Didi Chuxing Technology Co.'s illegal deployment of shared bikes and e-bikes yesterday, saying that it has listed Didi's violations in its credit record, local media reported.

This will affect Didi's operations.

The Hangzhou-based alternative transit juggernaut submitted a plan to operate shared bikes and e-bikes to the city regulator and promised to deploy and manage them in strict accordance with city rules. It also pledged it would voluntarily withdraw from the Shenzhen market if it violated these commitments, local regulators said. Didi has ignored the government's administrative requirements and illegally put out shared-bicycles and e-bikes onto the city's streets on several occasions since March, however, the southern Chinese municipality said.

Shenzhen's transport commission and other city agencies met in April to study the circumstances under which Didi illegally introduced its shared bikes. The meeting unanimously agreed to include the company's infractions in its integrity record, which will be referenced with the follow-up policy regulators will apply to bar companies with bad credit records from shared-bike operations in the vast metropolis.

A dearth of effective penalties for bike-sharing enterprises ties authorities' hands. Shenzhen's transport commission is actively working with agencies to kick-start relevant legislation. The commission is also collaborating with the city's market supervision administration of the public credit agency to study and implement joint penal action against violators.

Companies with serious offenses will be subject to restrictions and penalties per law, including denial of business registration and administrative licensing, restraints on participation in government funding, awards, and government procurement and intensified routine supervision and inspections. Information on the violations of and penalties against companies that flout the law will be sent to the national credit information-sharing platform to spotlight these scofflaw firms' acts for the entire country to see.

Editor: Ben Armour