Didi Plunges As Chinese Authorities Crack Down

imageStock Markets19 minutes ago (Jul 06, 2021 05:31AM ET)

(C) Reuters.

By Dhirendra Tripathi – Didi Global (NYSE:DIDI) was trading more than 20% lower in Monday’s premarket trading as authorities in China blocked the company from accepting new users and told mobile app stores to take the ride-hailing app off their platforms.

Reports says the authorities in China are concerned over the vast troves of consumer data the company possesses. Didi is now a listed company in the U.S. and therefore has to make disclosures to comply with the norms laid down by the Securities and Exchange Commission, a scenario the Chinese authorities may not be very comfortable with.

A WSJ report said China’s cybersecurity watchdog had suggested the Chinese giant delay its initial public offering and urged it to conduct a thorough self-examination of its network security. Didi listed on the NYSE on Wednesday, reportedly under pressure from early investors looking to cash out. It closed Friday’s session at a market cap of $18.51 billion. Markets were shut in the U.S. on June 5 on account of Independence Day.

The move is also likely to be reflected in SoftBank (OTC:SFTBY) ADRs, given that the Japanese company is a big investor in Didi. Softbank’s shares in Japan fell over 5% on Monday but recovered by 1% on Tuesday.

Didi Plunges As Chinese Authorities Crack Down

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.