In the paperwork Didi filed before its initial public offering, the Chinese ride-hailing platform gave no shortage of warnings to investors that regulators in Beijing were hovering. Those warnings barely hinted at the sudden clampdown that has cut short Didi’s coming-out party. Shares of Didi lost a fifth of their value on Tuesday and fell 4.6 percent on Wednesday. The company closed at $11.91 — 15 percent below its price when it debuted on the New York Stock Exchange a week ago. The plunge was born of a rapid-fire series of actions taken by government agencies in Beijing, where top policymakers declared this week that they would aim to strengthen oversight of Chinese companies that, like Didi, listed their shares on exchanges overseas.

Source: New York Times July 07, 2021 16:41 UTC