China scrutiny fears hit Didi for fourth day

FAN Editor
FILE PHOTO: Illustration picture of Chinese ride-hailing giant Didi
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, 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)

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