Didi shares tank as traders react to Chinas crackdown
Summary
Shares in ride-hailing giant Didi Chuxing closed down more than 19% on Tuesday, less than a week after the Chinese app listed on the New York Stock Exchange. The fall comes after China announced late Friday that new users in the country would not be able to download the app while it conducts a cybersecurity review of the company. Traders, who couldnt buy or sell the stock on Monday as markets were closed, reacted to the news Tuesday. Shares in other Chinese names that are listed on U.S. stock markets also fell, with Baidu dropping around 4%, JD shedding roughly 3.5% and Alibaba slipping more than 2%. Tuesdays slide in Didis share price comes after The Wall Street Journal on Monday, citing people familiar with the matter, reported that Didi was advised by Chinese regulators to postpone its U.S. listing and review its network security several weeks before it went public.