(Bloomberg) -- Didi Global Inc. plunged Tuesday in U.S. trading as the ride-hailing company faced scrutiny over its data security and a broader Chines

Didi Plunges Below IPO Price as China Expands Listings Crackdown

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2021-07-06 19:00:08

(Bloomberg) -- Didi Global Inc. plunged Tuesday in U.S. trading as the ride-hailing company faced scrutiny over its data security and a broader Chinese crackdown on companies listing their shares abroad.

China’s State Council issued a sweeping warning to China’s biggest companies, vowing to tighten oversight of data security and overseas listings. That announcement followed the opening of a security review by China’s internet regulator last week and a demand for app stores to remove Didi.

Didi’s American depositary shares fell as much as 25% to $11.58, wiping out about $22 billion of market value and taking the stock below the $14 price from its initial public offering. Beijing-based Didi controls almost the entire ride-hailing market in China and raised $4.4 billion last week in the second-largest U.S. IPO for a Chinese firm.

The State Council’s broadside marked an escalation in President Xi Jinping’s campaign to bring the nation’s technology firms -- and their reams of valuable data -- under control. Over the weekend, China also moved against two other companies that also recently listed in New York, -- Full Truck Alliance Co. and Kanzhun Ltd., Ltd.

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