Editor: Dhirendra Tripathi
investing. com – Didi Global (NYSE: DIDI) fell more than 20% premarket. Chinese authorities prevented the company from accepting new users and told portable app stores to remove the company’s app from their platforms.
According to reports, authorities in China are concerned about the large amount of consumer data the company has. Didi is now listed on the US stock exchange and therefore has to make a statement to comply with the rules set by the Securities and Exchange Board (SEC), a scenario that Chinese officials may not be too happy about.
A report by the Wall Street Journal said that China’s cybersecurity overseer had offered the Chinese company to postpone its initial public offering (IPO) and invited it to conduct a self-examination for its network security. Didi was listed on the NYSE Wednesday and is under pressure from early investors seeking cash. It closed Friday’s session with a market cap of $18.51 billion. Markets were closed on July 5 for Independence Day.
SoftBank, a major investor in Didi (OTC: SFTBY) ADR also got its share from this development. Shares in Japan fell more than 5% on Monday, but recovered 1% on Tuesday.