Due to tighter regulations by the Chinese authorities, Didi Chuxing’s stock price, which was recently listed on the stock market, plunged by 20% and plunged nearly 5% again on the 8th (local time), falling below the public offering price.
Shares of Didi Chuxing plunged 5.40% percent to $11.91 on the New York Stock Exchange.
The previous day Didi Chuxing plunged nearly 20 percent. Shares of Didi Chuxing plunged 19.58% to $12.49 from the previous trading day as China announced it would tighten standards for listing overseas stock markets.
This is a drop below the public offering price. Didi Chuxing’s offering price was $14.
Earlier, the Chinese government has been increasing pressure on Didi Chuxing by banning it from downloading Didi Chuxing’s app from the App Store due to cyber security reasons.
The Chinese government recommended Didi Chuxing to postpone the listing, saying “the timing is not good,” before it went public on the New York Stock Exchange, but Didi Chuxing officially debuted on the 30th of last month.
The Chinese government is said to have been angered by Didi Chuxing’s actions. As a result, the Chinese authorities have issued a series of retaliatory measures against Didi Chuxing. In addition, if Chinese companies are listed on overseas stock markets, the standards will be further strengthened.