Investor confidence in Didi's business hit rock bottom just days after the company launched one of the biggest initial public offerings in the U.S. by a Chinese company. The company's stocks tumbled by as much as 11% after the Chinese government said it will be launching a cybersecurity review of Didi's operations.

The Cyberspace Administration of China said it wants to determine if Didi's business operations are a threat to national security and public interest. While it conducts its investigation, the agency has removed the company's application from all local application stores. The CAC said it will restore the application once corrections are made and the review is concluded.

The CAC said Monday that it has reason to believe that Didi's application has violated the nation's laws and regulations by improperly collecting user information. The agency said it has already drafted several corrective measures that Didi must perform to comply with existing regulations.

Didi has been facing stiff regulatory scrutiny in China because of alleged antitrust and data security infractions. The investigation is part of a wider national crackdown on large internet companies, including some of Didi's largest backers such as Tencent Holdings.

 "This is deeply unfair to investors. And as a crucial matter of market integrity, China's regulators should cease allowing companies to list while under investigation," analysts at Hong Kong-based private equity company, Kaiyuan Capital, said.

Didi issued a statement Monday, indicating its intention of fully cooperating with the government investigation. The company said it also plans to conduct its own comprehensive cybersecurity investigation.

The company's vice president, Li Min, said that the investigation was likely prompted by a "malicious rumor" that Didi had sought an offshore listing with plans to hand over user data to the U.S. government. Li said the company stores all of its user information on domestic servers and it would never hand over any data to the U.S. or any other foreign nation.

The company, which was founded in 2012 by Cheng Wei, is one of the largest ride-hailing companies in the world. The company said it now has more than 550 million users and tens of millions of drivers operating in 15 different markets. In 2016, Didi forced its U.S. rival, Uber Technologies, to exit the Chinese market. Since then, the company has embarked on an ambitious international expansion, culminating in its $4.4 billion U.S. IPO.