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Didi shares fell in New York

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Didi shares fell in New York

On Thursday, Shares in Chinese giant Didi fell by more than 12% in New York.

This came after a report that regulators in China are thinking about severe penalties for the company.

Didi had its US stock market debut at the end of June when it rose to $4.5bn (£3.3bn).

China’s internet regulator started investigating the company how it collects user data two days later.

According to Bloomberg News, the penalties might include some fines, suspending several operations or investment in the company.

The report said that regulators might even force the company to remove its shares from the US market.

It added that the punishment might be more severe than a fine presented on Chinese Alibaba earlier this year.

Alibaba accepted a record $2.9bn fine after an official investigation uncovered that it had violated its market position for years.

At the beginning of July, China’s Cyberspace Administration released an order for online stores to stop offering Didi’s app. CAC was saying that Didi illegally collected users’ data.

That decreased Didi’s share price, and now it has fallen by over 28% since making its debut in June New York Stock Exchange.

Didi did not directly respond to a request from the BBC.

Other issues and fines

China’s significant internet companies have come under increasing survey from China this year.

This week, the country’s internet watchdog ordered some of its biggest online platforms to remove unsuitable children content.

Another agency released fines for 12 companies related to deals that violated rules.

The State Administration for Market Regulation stated that these companies included Baidu, Tencent, Didi, and a ByteDance-backed company.

According to state broadcaster CCTV, President Xi Jinping decided to order regulators to crack down on monopolies, step up their mistake of internet companies,  and promote fair competition.

The post Didi shares fell in New York appeared first on FinanceBrokerage.

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