Chinese ride-hailing giant Didi came under severe regulatory pressure after a report that Beijing is pushing for harsh penalties from a massive to even forced delisting after its IPO last month’s IPO, according to CNBC.
- Didi shares dropped more than 8%, bringing its month-to-date losses to over 25%. Chinese regulators are planning to make punishments against Didi, including a larger fine than the record of $2.8 billion paid by Alibaba earlier in 2021.
- The penalties might include suspension of certain company operations, delisting or withdrawal of Didi’s U.S. shares.
- Didi shares have slumped about 25% to $10.50 per share since its U.S-listing on June 30 when it started trading at $14 per share.
Last week, Chinese government officials from seven departments visited Didi’s offices to perform a cybersecurity assessment. Beijing is ramping up its oversight on the flood of Chinese listings in the U.S stock markets, which are mainly tech companies. DIDI down -9.30%.