Didi’s stock dropping by more than 20% after the information came to light. This announcement came as a complete surprise to investors and triggered a sell-off. It was also ordered to remove its app from the Chinese app store and was prohibited from enrolling new customers. Days after Didi’s massive IPO, the CAC launched an investigation on Didi over the concern of their collection and usage of personal data. The CAC was established in 2014 by President Xi JinPing, which enforces online censorship and promotes Beijing’s ‘internet sovereignty’ policy. Cyberspace Administration of China’s (CAC) investigation on Didi
Let’s take a closer look at these developments. To end off the eventful week, news outlets started to pick up rumours on the CCP’s intention to close the VIE structure loophole.Īll of this news instilled fear in investors, resulting in the current sell-off. Both of which were recently listed in the US due to data security concerns.
DIDI KEEP XIMALAYA LINKDOC IPOTIMES FULL
The CAC began investigating other companies concurrently, some companies include Full Truck Alliance Co. While Didi took centre stage in the latest crackdown, it wasn’t the only victim. During this time, Didi was ordered to be removed from app stores while investigations were ongoing. The Cyberspace Administration of China (CAC) launched an inquiry into Didi just days after its IPO, citing concerns about its users’ data being mismanaged. What exactly are these events which led to this panic selling? Is the selling justified, or is this an opportunity for us to buy? Let’s have a look at it! What happened?!Īll of this began with Didi’s initial public offering (IPO), which was one of the largest IPO to hit the US market this year.
DIDI KEEP XIMALAYA LINKDOC IPOTIMES SERIES
This sell-off comes after a series of actions by the Chinese Communist Party (CCP) as they tighten the regulation on Chinese companies. All Rights Reserved.If you have investments in the Chinese market, the recent sell-off has likely done a number on your portfolio. LinkDoc Technology is now planning to lead a $200 to $300 million financing round before its upcoming IPO in Hong Kong, according to Bloomberg. LinkDoc Technology Limited, a medical data platform company backed by Alibaba, was the first to scrape its IPO plan in the U.S. Securities and Exchange Commission is also issuing new disclosure requirements, asking Chinese companies to reveal their use of variable interest entities (VIEs) to investors. Yet the pressure for Chinese tech companies doesn't stop there - the U.S. IPO plans since July.Īccording to Reuters, China is currently framing new regulations to ban IPOs outside of the country for tech companies with data security risks. Under pressure from regulators and distrust from investors, many Chinese companies such as Xiaohongshu, a social commerce platform backed by Alibaba and Tencent Keep, a fitness app backed by Tencent and Ximalaya, have either dropped or suspended their U.S. IPO plan and list in Hong Kong instead since May. Amid a cybersecurity probe, Chinese authorities have pressured Ximalaya to drop its U.S. Ximalaya has previously suspended its IPO plan after DiDi's disastrous IPO in July. Thursday, Ximalaya, one of China's most prominent audio streaming platforms backed by Tencent, said it will drop its IPO plan in the United States filed in April. Ximalaya drops US IPO plan amid China's crackdown on overseas listing Septem3:59 pm Ximalaya drops US IPO plan amid China's crackdown on overseas listing - PingWest English 中文
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