Didi shares drop on report China is planning unprecedented penalties

6 days ago

Budrul Chukrut | LightRocket | Getty Images

Chinese ride-hailing elephantine Didi came nether unit again connected Thursday aft a study that Beijing is considering harsh penalties from a monolithic good to adjacent a forced delisting aft its IPO past month.

Shares of Didi fell astir 3% successful premarket trading Thursday aft shedding 18% this month. Bloomberg News reported Chinese regulators are readying a slew of punishments against Didi, including a good apt bigger than the grounds $2.8 cardinal that Alibaba paid earlier this year.

The penalties could besides see suspension of definite operations, delisting oregon withdrawal of Didi's U.S. shares, the study said, citing radical acquainted with the matter.

Didi shares person mislaid astir 18% to $11.50 a stock since its marketplace debut connected June 30 erstwhile it started trading astatine $14 a share.

Last week, officials from 7 Chinese authorities departments visited the ride-hailing giant's offices to behaviour a cybersecurity review. The ride-hailing elephantine was forced to halt signing up caller users and its app was besides removed from Chinese app stores.

The Cyberspace Administration of China alleged that Didi had illegally collected users' data.

Beijing is stepping up its oversight connected the flood of Chinese listings successful the U.S., which are overwhelmingly tech companies. The State Council said successful a caller connection that the rules of "the overseas listing strategy for home enterprises" volition beryllium updated, portion it volition besides tighten restrictions connected cross-border information flows and security.

— Click present to work the archetypal Bloomberg News story.

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