Connect with us

Hi, what are you looking for?

Stock

Didi shares slump 25% on China crackdown

Stock Markets19 minutes ago (Jul 06, 2021 04:50AM ET)

(C) Reuters. FILE PHOTO: The app logo of Chinese ride-hailing giant Didi is seen reflected on its navigation map displayed on a mobile phone in this illustration picture taken July 1, 2021. REUTERS/Florence Lo/Illustration/File Photo

HONG KONG/LONDON (Reuters) -Didi Global Inc shares slumped 25% in U.S. pre-market trade on Tuesday, ahead of its first session since China’s cyberspace regulators ordered that the company’s app be taken down days after its $4.4 billion listing on the New York Stock Exchange.

The ride-hailing giant’s app was ordered to be removed from mobile app stores in China on Sunday by the Cyberspace Administration of China (CAC) which followed an official investigation into the company’s handling of customer data.

The U.S. market was closed on Monday for the July 4 holiday.

Didi said on Monday the app’s ban would have an adverse impact on its revenue in China despite it remaining available for existing users.

The company told Reuters on Monday it had no prior knowledge of the investigation before the IPO went ahead last week.

In pre-market trading on Tuesday, Didi shares were trading at $11.59, well below its debut price of $16.65 on June 30.

Didi shares were sold at $14 each in the IPO which was the largest listing of a Chinese company in the US since Alibaba (NYSE:BABA) raised $25 billion in 2014.

The company had been valued at up to $75 billion as of Friday.

CAC said it had ordered app stores to stop offering Didi’s app after finding that the company had illegally collected users’ personal data.

Didi shares slump 25% on China crackdown

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock

Stock Markets25 minutes ago (Jul 16, 2021 05:46PM ET) (C) Reuters. FILE PHOTO: Johnson & Johnson’s Neutrogena Cool Dry Sport sunscreen, which is part...

Tech

Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products...

Disclaimer: Wisegazette.com it's managers and its employees (collectively "The Company") do not make any guarantee or warranty about what is advertised or above. Information provided by this website is for research purposes only and should not be considered as personalized financial or health advice. Copyright © 2021 Wise Gazette. All Rights Reserved