Didi’s shares took a hit after insiders stopped selling stocks.
- ByStartupStory | December 28, 2021
Chinese Giant Didi Global Inc slumps to 5.4% after reports came out that current and former employees of the firm have been banned from selling any of their stock indefinitely. Shares of the Chinese ride-hailing giant fell 5.4% to close at $5.30 per share in New York trading.
Regulatory crackdowns by authorities in both Beijing and Washington have dogged the stock since its trading debut. Didi shares have dropped 62% in just short of six months of trading, erasing about $42 billion in market capitalization over that span. Earlier this month, Didi said it had begun preparations to delist from U.S. exchanges and pursue a listing in Hong Kong. The move to block employees from unloading their shares comes just as early investors are able to sell stock on Monday with the end of Didi’s 180-day lock-up following its June initial public offering.
China’s National Development and Reform Commission and the Ministry of Commerce said that they will impose new restrictions on offshore IPOs from restricted sectors. It represents one of the biggest moves by Beijing to step up scrutiny of overseas listings in the wake of Didi’s IPO that proceeded despite concerns from regulators over data security.
Didi’s outside investors, Uber Technologies Inc, SoftBank Group Corp. and Tencent Holdings Ltd. will still be able to offload shares according to the FT, they will likely face steep losses after months of selling pressure.
Follow Startup Story
Related Posts
