Shares of Didi Global Inc (NYSE: DIDI) is witnessing ups & downs. In the previous week, Didi has lost a whopping amount of over $17 billion. For the Chinese firm, the company’s offering is the second-largest listing in the United States.
In the previous, the company lost almost $17 billion, including $15 billion on Tuesday alone. Steve Sosnick, the chief strategist of Interactive Brokers, said that the government of China would act what will suit them. However, he also added that regardless of rules set by the Chinese government, they should invest in China.
According to some reports, Chinese regulators aim to change rules and bring some more rules that would empower them to blocklist a Chinese company from listing overseas.
On overseas listings, The China Securities Regulatory Commission is planning to revise rules that have been in effect since 1994. The proposed rules which need to be approved by the State Council before implementation could affect firms. Significantly, the companies that are using the Variable Interest Entity model would be badly hit.
On Tuesday, In New York & Los Angeles, two U.S. shareholder lawsuits were filed in federal court. The lawsuits claim the firm did not disclose the talks held with the Chinese authorities on cybersecurity laws & regulations. Prominent executives, directors, and firms that include Will Wei Cheng, Chief Executive Officer, JPMorgan Chase & Co (NYSE: JPM), Goldman Sachs Group Inc (NYSE: GS), and Morgan Stanley (NYSE: MS) were named as defendants. Neither Didi nor JPMorgan, nor Goldman issued any statements on the matter.
On Tuesday, China issued a warning to prominent companies, vowing to tighten oversight of overseas listings & data security. Thanks to that, the country’s technology giants, including Baidu Inc & Alibaba Group Holding Ltd, witnessed tremendous decreases in their shares.