Didi Global Inc dropped after a report that current and former employees of the firm have been banned from selling stocks indefinitely, according to a report by Bloomberg on Monday.

  • Shares of the Chinese ride-hailing company dropped nearly 3.9% in pre-market trading and were 1.1% as of 8:20 a.m. in New York.
  • The move to ban employees from selling their stocks comes after early investors were able to start selling their stocks on Monday at the expiry of Didi’s 180-day lock-up after its June IPO.
  • Even though Didi’s overseas investors, including Uber Technologies Inc., Softbank, and Tencent Holdings, were able to sell their shares on Monday, they would suffer massive losses after months of building up pressure to sell.
  • A series of regulatory clampdowns by authorities in Beijing and Washington have plagued the stock since its IPO.

Didi shares plunged 60% in six months of trading, wiping out nearly $41Bn market capitalization over that period. DIDI down 2.50%, Pre-market trading.