Didi Global’s stock continued to fall on Wednesday after China ordered the app to be withdrawn from app stores as part of a broader crackdown on Chinese companies with foreign listings. The stock was last down 5.1 percent in its sixth day of trading as a publicly traded firm in the United States, or around 29 percent below its $16.65 offer price. Beijing announced on Tuesday that it would boost up oversight of Chinese businesses listed offshore in order to crack down on illegal conduct and penalize fraudulent securities issuance, extending its operations beyond the tech industry. On Wednesday, internet businesses such as Didi, Tencent Holdings, and Alibaba Group Holdings were fined for failing to notify past merger and acquisition deals for clearance, as part of Beijing’s campaign. Alibaba and Tencent Music Entertainment Group’s shares were down 1.1 percent and 2.5 percent, respectively, on the New York Stock Exchange. According to Refinitiv statistics, Chinese corporations listing in the United States have raised a record $12.5 billion in 2021, including Didi, the highest U.S. IPO by a Chinese company since 2014. In a hint of investor concern over Didi, index publisher FTSE Russell also stated that if trading is halted in Wednesday’s session, it will not include Didi’s shares in its global equities indexes. “The scenario is gloomy for Didi, but it may be even bleaker for Chinese companies trying to list in the United States,” said Samuel Indyk, senior analyst at uk.Investing.com. “As the danger of investing in Chinese technology in the United States rises, so does the ability of Chinese tech businesses to acquire funds, making listings in the United States less appealing in the future.” (Reuters)/n
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