Ride-sharing group Didi’s shares tumble after China crackdown
Full Truck Alliance Co and Kanzhun Ltd, both of which recently went public in the US, plummeted 14 per cent and 10 per cennt, respectively, after China expanded its probe on the technology industry to include the firms. Beijing ordered both to halt new user registrations, in addition to Didi.
‘The decision to crack down on Didi three days after the IPO looks very unfair to investors. It would have been better to prevent the company going public, as they did with Ant Group.’
Charles Henry Monchau, FlowBank SA
The number of companies based in China filing for New York IPOs has climbed for a third straight quarter despite weakness in other US-listed stocks that conduct most of their business in China and amid the broad antitrust probe into the nation’s internet firms. The Golden Dragon China Index is down about 8 per cent for the year, lagging behind the 14 per cent gain in the Nasdaq Composite Index.
“With Beijing now clearly seeking to make a political statement in the capital markets, it is unclear who, if anyone, will be there to invest in China’s next mega public offering in the US,” said Charles-Henry Monchau, the chief financial and chief investment officer at FlowBank SA in Geneva. “The decision to crack down on Didi three days after the IPO looks very unfair to investors. It would have been better to prevent the company going public, as they did with Ant Group.”
Bloomberg
