Didi shares fell more than 7% during pre-market trading hours. The stock opened at $7.67 per share, down 5.42% from its previous day’s intraday close of $8.11 per share. SoftBank shares listed on the Tokyo stock exchange sank 5.19% in the trading hours. SoftBank’s Vision Fund has more than a 20% stake in Didi.
The social engagement for the stock amongst the users of Twitter and Reddit for the day on the dashboard of Quantale will be printed as the day proceeds.
But the social engagement for the stock amongst the users of Twitter and Reddit, on November 24, rose 3650%, whereas the trading volume decreased 38.27%.
China’s tech watchdog wants the ride-hailing giant Didi to delist from the US Bourse owing to concerns regarding leakage of sensitive data, the report said, citing people familiar with the development.
The Cyberspace Administration of China (CAC) has asked Didi to formulate a plan for a delisting, subject to government approval, Bloomberg said.
Didi could either consider opting for privatisation or a listing in Hong Kong following delisting in the U.S, the report said.
According to Bloomberg, if the company proceeds with privatisation, it would be at the $14 per share IPO price, but the secondary listing in Hong Kong would likely be at a discount to what Didi’s shares were trading at in the US.
China’s tech giants are under state scrutiny over anti-monopolistic practices, and their handling of consumer data as the government strives to rein in their supremacy after years of rampant growth.
According to Reuters, the company drew the ire of Chinese regulators when it went ahead with New York Stock Exchange listing despite the regulator requesting the company to put it on hold until a cybersecurity review of its data procedures is undertaken.
Soon after, CAC investigated Didi over its collection and usage of users’ data, to which it found that the company had been collecting data illegally. Subsequently, the regulator asked the play store to pull out 25 apps operated by Didi.
Later, Didi assured the Chinese regulators that it had ceased registering new users and would make necessary changes to comply with rules on national security and personal data usage.
Didi, China’s largest ride-hailing app, holds a lot of data on travel routes and users.