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Didi lost its fifth share in the market after Chinese regulators announced a search for a public awareness program that last week earned more than $ 4bn from the New York IPO.
China posed a challenge for women in New York before the start of the trade when it said it would set limits on foreign direct investment, which would put it on the economy Chinese corporate pipelines eager to make money on Wall Street.
China’s largest government agency, the State Council, has said it will help protect secrecy related to foreign registers, as well as “integrate security services with listed foreign companies”.
“These are high-level advice,” said Bruce Pang, chief research officer at China Renaissance bank. “China’s market share and regulation could change dramatically.”
Pang added that the new rules could give long-term impetus to any companies that expect foreign registration that could “affect business perceptions, disrupt IPO monitoring in the US and make it difficult to make money in New York”.
Thirty-four Chinese companies made $ 12.4bn in New York in the first year of 2021, according to Dealogic, which also showed that Wall Street financial banks earned about $ 460m during that period.
Didi led the collapse of Chinese shares in New York, with a $ 11.58 low in the first companies – a 25% drop – before closing 20% to $ 12.49. The company sold weekly last week for $ 14.
When the market closed on Monday due to the July 4 holiday, the session was the first opportunity for investors to take action by ordering the Cyberspace Administration of China on Sunday that Didi remove its program from the Chinese market. The CAC said Didi had violated the rules regarding the collection and use of personal information.
On Monday the CAC reopened an investigation into the Full Truck Alliance, another Chinese company to register recently in the US. FTA shares fell 7 percent; Baidu and JD.com both fell 5%, while Alibaba’s stock was down 3%.
Didi said “they have worked hard to address any issues, help raise awareness of the risks and expertise, protect user privacy and data security, and continue to provide secure and convenient services to users”.
The group also said it was “hoping that the download of the program could be a problem in China”.
The CAC recommended a few weeks before the US announced that the company would delay the IPO until it reviewed its data security, said a person close to Didi. Didi said on Monday that he “had no knowledge” of the management’s decision to intervene until his IPO expires.
Additional reports of Sun Yu and Christian Shepherd in Beijing.
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