Didi shares drop on report China is planning unprecedented penalties


Budrul Chukrut | LightRocket | Getty Images

Chinese ride-hailing large Didi got here beneath strain once more on Thursday after a report that Beijing is contemplating harsh penalties from an enormous tremendous to even a compelled delisting after its IPO final month.

Shares of Didi fell greater than 7% Thursday, bringing its month-to-date losses to over 24%. Bloomberg News reported Chinese regulators are planning a slew of punishments in opposition to Didi, together with a tremendous doubtless larger than the file $2.8 billion that Alibaba paid earlier this yr.

The penalties might additionally embrace suspension of sure operations, delisting or withdrawal of Didi’s U.S. shares, the report mentioned, citing individuals conversant in the matter.

Didi shares have misplaced about 20% to $10.7 a share since its market debut on June 30 when it began buying and selling at $14 a share.

Last week, officers from seven Chinese authorities departments visited the ride-hailing large’s workplaces to conduct a cybersecurity assessment. The ride-hailing large was compelled to cease signing up new customers and its app was also removed from Chinese app stores.

The Cyberspace Administration of China alleged that Didi had illegally collected customers’ knowledge.

Beijing is stepping up its oversight on the flood of Chinese listings within the U.S., that are overwhelmingly tech corporations. The State Council mentioned in a latest assertion that the principles of “the overseas listing system for domestic enterprises” will likely be up to date, whereas it can additionally tighten restrictions on cross-border knowledge flows and safety.

— Click right here to learn the unique Bloomberg News story.

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