Should You Buy the Dip in DiDi Global? By StockNews

Should You Buy the Dip in DiDi Global? By StockNews

© Reuters. Should You Buy the Dip in DiDi Global?

China-based DiDi Global’s (DIDI) shares have lost roughly 33% since the company’s impressive stock market debut on June 30 due to a crackdown by China’s regulatory authorities. But can the stock rebound in the coming months on its market dominance in China’s ride-hailing service sector ? Read on for some insight.Headquartered in Beijing, China, mobility technology platform operator DiDi Global Inc. (DIDI) had an impressive stock market debut on June 30, 2021. However, the stock’s price has declined by roughly 33% since the listing, to close yesterday’s trading session at $11.16.

A recent report by the Cyberspace Administration of China () stated that the company violated several laws and regulations in relation to users’ personal information. The report was primarily responsible for the shares’ decline.

Furthermore, China’s cyberspace regulators have been imposing tighter restrictions on data collection and data storage, and tightening rules for companies listed overseas or seeking to sell shares abroad, which is expected to continue affecting DIDI, among other China-based companies. In addition, the company has reported losses over the last three years. So, we think DIDI’s near-term prospects look uncertain.

Continue reading on StockNews

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: