Didi Dives as China Unveils New Cyber Probe After Mega IPO (bloomberg.com) 23
Didi Global tumbled Friday after China said it's starting a cybersecurity review of the ride-hailing company just two days after it pulled off one of the biggest U.S. stock market debuts of the past decade. From a report: The move is to prevent data security risks, safeguard national security and protect public interest, according to a statement from the Cyberspace Administration of China. Didi has halted new user registrations during the probe. The company, which only started trading on Wednesday in New York after an initial public offering, fell 7% to $15.26.
The surprise probe by China's internet regulator piles on the scrutiny of Didi over issues ranging from antitrust to data security. The company has been grappling with a broad antitrust probe into China's internet firms with uncertain outcomes for Didi and peers like major backer Tencent. More broadly, Beijing has been curbing the growing influence of China's largest internet corporations, widening an effort to tighten the ownership and handling of troves of information that internet giants from Alibaba Group to Tencent and Didi scoop up daily from hundreds of millions of users. Didi lost as much as 11% of its market value at one point on Friday, a rapid turnaround that underscores the uncertainty surrounding the Chinese government's crackdown on the internet sector.
The surprise probe by China's internet regulator piles on the scrutiny of Didi over issues ranging from antitrust to data security. The company has been grappling with a broad antitrust probe into China's internet firms with uncertain outcomes for Didi and peers like major backer Tencent. More broadly, Beijing has been curbing the growing influence of China's largest internet corporations, widening an effort to tighten the ownership and handling of troves of information that internet giants from Alibaba Group to Tencent and Didi scoop up daily from hundreds of millions of users. Didi lost as much as 11% of its market value at one point on Friday, a rapid turnaround that underscores the uncertainty surrounding the Chinese government's crackdown on the internet sector.
Tee Hee. Don't get suckered. (Score:3)
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I find it interesting how the Chinese Communist Party's intense, obsessive, paranoid, schizophrenic fear of its own population, leads them to destroy their own companies, when not entire economy sectors, for the sake of so-called "harmony".
Sometimes I worry China may indeed become the new global superpower. Then they play this kind of stunt, and it reminds me again that, although Chinese rulers are intelligent and ruthless, in the end they cannot avoid being also, all things considered, stupid.
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At least someone is facing the billionaires of the Gilded Age.
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At least someone is facing the billionaires of the Gilded Age.
The Chinese government, and by extension their subjects and slaves, forms a single unified corporation, complete with the exact same lack of democracy any megacorp has, so I fail to see how, exactly, a multitrillionaire one-upping a handful of billionaires is a net positive. As aliens vs. predator put it, whoever wins, we lose.
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How are they destroying their own companies? Got a single example?
RTFS.
They are protecting their economy and their citizens.
Oh? Protecting their economy and their citizens from what?
If America had some consumer protection laws, or cared about not blowing up the economy via get rich quick speculation, You'd possibly understand.
I'm not from or in the USA.
Oh noes!!!1 (Score:2)
"Rookie numbers" - Bitcoin
Who? (Score:1)
Was anyone going to explain what this company even does?
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You can't even read one sentence of the summary?
Didi Global tumbled Friday after China said it's starting a cybersecurity review of the ride-hailing company just two days after it pulled off one of the biggest U.S. stock market debuts of the past decade.
They're trying to operate an Uber clone for the Chinese market.
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They're trying to operate an Uber clone for the Chinese market.
How is DiDi an Uber clone when Uber doesn't operate in China anymore? Uber sold their China business to DiDi because Uber couldn't compete with them and were tired of losing money as they fought for market share.
And DiDi doesn't just operate in China. They operate in 15 international markets [reuters.com] including South America, Mexico, Japan, Australia, Russia and South Africa. They also provide services including food delivery and logistics.
Oh, and DiDi is developing a fleet of autonomous taxis. There are already over
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"How is DiDi an Uber clone when Uber doesn't operate in China anymore?"
Non sequitur argument: an invalid argument whose conclusion is not supported by its premises
" Uber sold their China business to DiDi because Uber couldn't compete with them and were tired of losing money as they fought for market share."
They were not allowed to compete would be more precise. There are two different set of rules in China, the one for foreigners and the one for locals
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"" Uber sold their China business to DiDi because Uber couldn't compete with them and were tired of losing money as they fought for market share.""
"They were not allowed to compete would be more precise. There are two different set of rules in China, the one for foreigners and the one for locals"
Or better said, the rules apply only for foreigners but not for locals (at discretion of the local official in charge )
"Dives"?! (Score:2)
The company, which only started trading on Wednesday in New York after an initial public offering, fell 7% to $15.26....
...Didi lost as much as 11% of its market value at one point on Friday
Call me when it "dives" to losing 90% of its value.
FTFY (Score:4, Insightful)
underscores the uncertainty surrounding the Chinese government
Fun fact, foreigners are not allowed to legally own anything in China all. All of these are actually shell front companies in places like the Cayman Islands.
Wall Street is riddled with greedy traitors. I'm sure many of them are more deserving of the CCP concentrations camps than the Uyghurs and others currently there.
A fool and their money (Score:4, Insightful)
Investing in China right now is just optimistic blindness.
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Why would anyone invest in a Chinese company, or any company that relies heavily on revenue from China?
Because they have the largest middle class in the world. And their incomes have been rising consistently for 30+ years.