Who owns Didi?
When I spoke to Didi Chuxing's founder Cheng Wei in 2018, the one thing that was apparent was that this was a man on a mission. He wanted to take the Chinese firm global, and to offer a new vision of what a company driven by data could make possible. BBC NewsDidi says removal of app in China will affect business
As Beijing probes Didi Global Inc. -- China’s version of Uber -- and two other firms that recently debuted on Wall Street, global equity managers are questioning if the regulatory threat posed by the Asian nation’s increasing efforts to control big data is a risk worth taking.
“The Didi situation reinforces the fact that China is annoyed by the flood of U.S. IPOs by Chinese tech companies, and is attempting to slow the reception of these IPOs in the West,” said Hans Albrecht, portfolio manager at Horizons ETFs Management Canada Inc. “While Chinese names look like better value, they will suffer from this overhang for some time.”
Beijing’s latest crackdown on the technology industry threatens to chill investor sentiment at a time when there are as many as 34 pending filings for U.S. listings by firms based in China or Hong Kong announced this year, according to data compiled by Bloomberg. Such deals have been running at a record pace, with more than $15 billion priced in New York IPOs so far this year.
QuickTake: What Is Didi and Why Is China Cracking Down on It?
Didi’s shares plunged more than 25% in U.S. premarket as trading resumed after Monday’s holiday. That follows a 5.3% drop on Friday after China said it’s starting a cybersecurity review of the ride-hailing company. The regulator said two days after later that the firm had committed serious violations in the collection and usage of personal information. It then ordered the company’s app to be removed from stores.
China is also probing Kanzhun Ltd., the owner of an online recruitment platform, and Full Truck Alliance Co., an Uber-like trucking startup. Both companies listed in the U.S. recently. Their shares also dropped in U.S. premarket trading Tuesday.
“The Chinese government could have stopped the IPOs from happening, like how they did with Ant,” said Sharif Farha, a Dubai-based portfolio manager at Safehouse Global Consumer Fund. “Instead, they allowed global investors to take pain, and consequently have broken trust with a lot of foreign investors. While we did not participate in any of these listings, we would imagine that several funds would consider exiting.”
One company poised to test sentiment soon is Hong Kong’s on-demand logistics and delivery firm Lalamove. It filed confidentially for a U.S. initial public offering last month, according to people with knowledge of the matter, and is seeking to raise at least $1 billion.
The latest crackdown is “very bad news for these Chinese companies’ image abroad,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Group Holdings SA. “It’s a terrible hit to foreign investor appetite.”
READ: Didi Shows China’s Tech Giants Must First Answer to Beijing
(Adds Didi’s share move in the fifth paragraph.)
More stories like this are available on bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
Investors will return on Tuesday to a holiday-shortened week, with the stock market closed Monday in observance of the Fourth of July in the U.S.
HONG KONG/LONDON (Reuters) -Didi Global Inc shares slumped as much as 25% in U.S. pre-market trade on Tuesday, ahead of its first session since Chinese regulators ordered the company's app be taken down days after its $4.4 billion listing on the New York Stock Exchange. The ride-hailing giant's app was ordered to be removed from mobile app stores in China on Sunday by the Cyberspace Administration of China (CAC) which followed an official investigation into the company's handling of customer data. In pre-market trade on Tuesday, Didi shares fell as much as 25% to $11.59, well below its debut price of $16.65 on June 30.
Hundreds of Chinese companies trade in the U.S., but which China stocks should you consider? Here are the best Chinese stocks to buy and watch.
Using technical analysis of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet's Quant Ratings, we zero in on five names. While we will not be weighing in with fundamental analysis, we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names. Cohu Inc. recently was downgraded to Hold with a C+ rating by TheStreet's Quant Ratings.
The suit is an all but certain loser in light of Brnovich v. DNC.
(Bloomberg) -- Didi Global Inc. plunged in premarket trading after a Chinese regulator ordered the removal of the company’s platform from app stores, days after a $4.4 billion initial public offering in the U.S.Shares of the China-based tech firm fell as much as 30% to $10.90, wiping out about $22 billion of market value and taking the stock below the $14 IPO price. They traded at $12.17 as of 6 a.m. in New York.The Cyberspace Administration of China barred new users from Didi’s app, citing secu
(Bloomberg) -- Hong Kong Chief Executive Carrie Lam on Tuesday dismissed concerns about proposed legal amendments that would give its privacy commissioner far-reaching powers to investigate so-called doxxing offenses online.A June 25 letter from the Asia Internet Coalition, an industry group representing companies like Facebook Inc., Alphabet Inc.’s Google and Twitter Inc., detailed a set of objections to the new rules. In particular, it concluded the sanctions contemplated in the new provisions
We're not talking about the 1970s here, but still, rising prices are a definite economic trend now and need to be factored into your personal financial planning.
Innoviz, a maker of lidar, the laser-based radar used in self-driving cars, believes it has the right strategy to win market share from competitors.
(Bloomberg) -- When will China overtake the U.S. to become the world’s biggest economy?Few questions are more consequential, whether it’s for executives wondering where long-term profits will come from, investors weighing the dollar’s status as global reserve currency, or generals strategizing over geopolitical flashpoints.In Beijing, where they’ve just been celebrating the 100th anniversary of the Chinese Communist Party, leaders are doing their best to present the baton-change as imminent and
Tensions rose with the official arrival of Blake, and Michael A.'s group date injury left "Bachelorette" star Katie "pretty emotional."
(Bloomberg) -- Hong Kong stock exchange is set to shorten the time for an initial public offering from pricing to listing to two days from the current five by the fourth quarter next year at the earliest, aligning its market more with other financial hubs.Through a digital platform called “FINI,” brokers, underwriters and regulators and other involved parties will be able to monitor and coordinate work flow of the whole process to the start of trading, according to a Hong Kong Exchanges & Cleari
Russia-linked hackers suspected in this weekend's mass attack on software provider Kaseya, which could affect thousands of companies worldwide, demanded $70 million to restore data they are holding for ransom, Reuters reports.Why it matters: The hack is the latest and most dramatic in a series of high-profile ransomware attacks this year, exposing the pandemic-style threat that this type of cybercrime poses to companies and governments around the world.Stay on top of the latest market trends and
Millions of laid-off women helped to create what some observers have recently called a “she-cession.”
Tough restrictions on people traveling from the U.K. and four other countries to Germany have been eased, opening up quarantine-free travel for fully vaccinated visitors and those with COVID-19 antibodies.
It isn’t known whether Didi carried out its own review, according to the WSJ report. The Cyberspace Administration of China (CAC) launched the investigation into Didi on Friday, just two days after the company began trading on the New York Stock Exchange.
The U.S. created 850,000 new jobs in June. Great. Yet 9 million people who likely would be working right now had there been no pandemic are still sitting at home.
Hanwha, an early investor in alternative-fuel truck maker Nikola, said in March it would sell shares. It didn’t sell any Nikola shares until June, after the stock rallied.
If you're not a seasoned cryptocurrency investor, a crash could come as a shock. Here's what crypto experts say you should consider before you dabble in digital currencies.
Read full article at Yahoo Finance
06 July, 2021 - 05:02am
The Cyberspace Administration of China (CAC) said the probe had been opened to "prevent national data security risks" as the crackdown on the country's technology sector continues.
Yunmanman and Huochebang, subsidiaries of the New York-listed Full Truck Alliance were two of the firms named by regulators. Boss Zhipin, an online recruitment platform backed by tech giant Tencent and listed on the Nasdaq, was also targeted by the CAC.
During the cybersecurity review, these companies are not allowed to register new users.
U.S. markets are closed Monday so the stocks will not reflect investor reaction until Tuesday.
The latest regulatory crackdown comes after the CAC ordered China's app stores to remove ride-hailing app Didi for download just days after its initial public offering in the U.S. The regulator alleged Didi had illegally collected users' personal information and asked the company to fix the problems.
Data is a big focus for the Chinese government in a broader attempt to regulate the technology sector which has grown largely unchecked over the years. In June, Beijing passed a new Data Security Law that lays out how companies collect, store and use data.
Beijing is also focusing on antitrust and financial technology regulation. In April, e-commerce giant Alibaba was slapped with a $2.8 billion fine in anti-monopoly probe while food delivery firm Meituan is currently being investigated under the same rules.
Got a confidential news tip? We want to hear from you.
Sign up for free newsletters and get more CNBC delivered to your inbox
Get this delivered to your inbox, and more info about our products and services.
Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.
06 July, 2021 - 05:02am
06 July, 2021 - 05:02am