Didi App Download Suspended in China, Faces Lawsuit for Misleading Investor
10th July 2021 | Hong Kong
Didi Global, China’s largest ride-hailing service and the world’s largest mobility technology company, has its Didi’s app suspended from downloads in China for data violation. On 4th July 2021, just days after Didi Global IPO (30/6/21), Chinese authorities instructed app stores to disallow new users from downloading Didi’s app in China. The suspension caused Didi Global share price to decline 14% (9/7/21) since IPO and with Didi Global now facing a potential class action lawsuit for misleading investors (9th July 2021). (IPO ~ Initial Public Offering) View: Potential Class Action
” Didi App Download Suspended in China, Faces Lawsuit for Misleading Investor “
China Increased Scrutiny on Chinese Companies, Technology Firms
In recent times, China is increasing its scrutiny and oversight on Chinese companies seeking foreign listing (IPO) and technology companies, requiring Chinese companies to seek approval for foreign IPOand to undergo cybersecurity review. Chinese companies with more than 1 million users must apply for cybersecurity approval as the data and personal information could be exploited by foreign governments.
The new rules could impact companies such as TikTok (ByteDance) potential IPO. Chinese technology stocks Didi Global, Alibaba, Tencent, JD.com, Bilibili and Meituan’ share prices immediately declined.
In November 2020, Ant Group planned IPO that will raise $34.5 billion and create a Chinese financial technology giant with more than $300 billion market capitalization, was suspended by both Shanghai and Hong Kong Exchange. China regulators have reported Ant Group have failed in major issues including meeting listing conditions and information disclosure requirement.
In May 2021, Alibaba Group posted its first quarterly loss since IPO in 2014 with $1.17 billion losses for Q1 2021. The Q1 2021 earnings was hit by a $2.78 billion fine in April 2021 by China’s State Administration for Market Regulation Anti-monopoly Law, representing around 4% of Alibaba’s 2019 revenue.
Didi Global IPO
On 30th June 202, Didi Global IPO on New York Stock Exchange (NYSE) at the IPO price of $14, rising 1% on Day 1 with a market value of $68 billion (30/6/21, Wed). Didi Global share price opened at $16.65 (+18%), reaching a high of $18.01 (+29%), and a low of $14.10 before closing at $14.14 (+1% of IPO price $14). Didi Global and known as Didi Chuxing in China, was founded in 2012 in Beijing (China), receiving investments from Softbank Vision Fund and Tencent, and in 2016 bought Uber China with Uber becoming a key shareholder (12.8%) of Didi Global.
The IPO also created 2 self-made in CEO & founder Will Cheng Wei ($4.4 billion) and President Jean Liu Qing ($1.08 billion).
Related:
- China Increased Scrutiny on Foreign IPOs & Tech Giants, Requires Pre-Approval for Offshore IPOs
- Donald Trump Files Class Action Lawsuits Against Tech Giants and CEOs of Facebook, Twitter and Google
- China Regulator Issues Warning on Stock Market Manipulation, Crackdown on Bitcoin
- Alibaba First Quarterly Loss with $1.17 Billion Since IPO, Hit by Anti-Monopoly Fine of $2.78 Billion
- Alibaba Fined $2.78 Billion by China State Regulator for Anti-Monopoly Practices
- Ant Group $300 Billion Record IPO Suspended in both Shanghai and Hong Kong Exchange
- 150 Stocks Suspended Trading on Hong Kong Stock Exchange for Missing Filing Deadline
- Hong Kong SFC: Police Arrested 12 People Suspected of Ramp & Dump Manipulation Schemes
- Hong Kong SFC Issues Restriction Notices to 13 Brokers for 54 Accounts Related to Social Media Scam
- Hong Kong & Singapore Regulators Warn Investors of Increased Trading Risks Triggered by Social Media & Online Forums
- Hong Kong SFC Warns of Investment Scams on Social Media Platforms
- Singapore Exchange Issues Alert on Stocks Trading Scam in Chat Groups
IPOs
- Didi Global IPO on NYSE, Rises 1% on Day 1 with Market Value of $68 Billion
- Hong Kong Insurance Group FWD Files for US IPO in United States, Valuation Around $13 Billion
- Didi Chuxing IPO Creates 2 New Self-Made Billionaires, Founder Will Cheng Wei with $7 Billion
- China Didi Chuxing Files for IPO in United States, Valuation at $100 Billion
- Grab $39.6 Billion SPAC IPO Delayed to Q4 2021, Pending Accounts Clearance
- JD Logistics IPO in Hong Kong, 3.3% Higher on Day 1 with $32 Billion Market Value
- Indonesia Tech Giants Gojek and Tokopedia Merge to Form GoTo Group, Eyes $35 Billion Future IPO
- UK-Based Deliveroo IPO on London Stock Exchange, Down 26.4% on 1st Day
- Baidu IPO on Hong Kong Exchange, Price Remains Unchanged on Day 1
- South Korea E-Commerce Giant Coupang IPO on NYSE, Rises 41% on Day 1
- Kuaishou IPO Rises 160% on Day 1, Raised $5.32 Billion
- Airbnb IPO Rises 112% on Day 1, Raised $3.5 billion
- DoorDash IPO Rises 85% on Day 1, Raised $3.3 billion
- JD Health IPO Rises 55% on Day 1, Raised $3.4 billion
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