FILE PHOTO: The app logo of Chinese ride-hailing giant Didi is seen reflected on its navigation map displayed on a mobile phone in this illustration picture taken July 1, 2021. REUTERS/Florence Lo/Illustration
July 8, 2021
(Reuters) – Shares of Didi Global Inc dropped for the fourth day in early deals on Thursday, along with other tech giants, on fears of a fallout from China’s increased scrutiny on domestic technology companies and firms listed offshore recently.
Secondary shares of other U.S.-listed Chinese tech giants including Alibaba Group Holding Ltd, JD.com Inc and Baidu Inc also fell in the range of 2.7% and 4.0%.
“There’s a lot of fear right now. It’s a sell-first-and-ask-questions-later approach,” said Dave Wang, portfolio manager at Nuvest Capital.
“End of era for China tech? I think that’s overblown. Sentiments come and go. We probably need a couple of good earnings seasons … to show the impact, if any, on earnings.”
Shares of ride-hailing platform Didi, whose app was taken down by Chinese regulators days after its New York Stock Exchange debut, have lost about $21.5 billion in market value over the past three sessions.
(Reporting by Medha Singh in Bengaluru; Additional reporting by Tom Westbrook in Singapore; Editing by Shounak Dasgupta)
