By Kuldip K. Ambastha
DiDi Global Inc. (DIDI) is a Chinese vehicle for hire company, with corporate headquarters in Beijing. The company went public on Wednesday, June 30, 2021, on the New York Stock Exchange (NYSE). On Tuesday, July 6, 2021, the stock had a significant -19.6% decline for the day. The Cyberspace Administration of China has announced a probe of DiDi. 25 DiDi mobile apps are going to be removed from app stores, with the Cyberspace Administration of China stating that these apps have been illegally collecting user data. Furthermore, the Cyberspace Administration of China has instructed DiDi to stop registering new users.
The prospect of aggressive Chinese government crackdowns on various China-linked companies such as DiDi has spooked many investors. While Tuesday, July 6, 2021 had the largest daily percentage decline for the stock of DiDi since the company went public, every trading day from Friday, July 2, 2021 through Thursday, July 8, 2021 showed a negative daily percentage return for the stock. On Friday, July 9, 2021, instead the stock was up by +7.3% for the trading day. If the Communist Party of China makes more efforts to rein in companies connected to the People’s Republic of China, expect even greater turbulence going forward.
Keywords – DiDi Global Inc., DiDi Global, DiDi, DIDI, vehicle for hire, apps, New York Stock Exchange, NYSE, People’s Republic of China, China, Communist Party of China, Cyberspace Administration of China, government, regulation, user, data.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in DIDI.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2021 – Ambastha Financial LLC.