In a bizarre turn of events, Chinese regulators asked app stores to remove Didi (China's version of Uber), just days after its blockbuster IPO in the US, which raised $4.4 billion and valued Didi at nearly $70 billion. The Cyberspace Administration of China announced the ban on Sunday, citing serious violations of data collection and usage of personal information. The specifics of the investigation still remain unclear.
It seems like the Didi crackdown is only the tip of the iceberg. Beijing is out to curb its big tech's growing influence. Companies from Alibaba to Tencent have troves of information on millions of users. To protect personal data as well as national security, China is getting stricter in its oversight, especially of US-listed companies. The regulatory agency widened its probe to two more US-listed companies, Full Truck Alliance and Kanzhun, soon after launching the review into Didi.
Short Squeez Takeway: Shares of SoftBank Group, a major Didi shareholder, fell as much as 5.9% Monday, its biggest intraday fall since May 13. The US stock market remained closed on Monday but Didi investors (& other US-listed Chinese stocks) should brace for a rough trading day today. #thots&prayers