The stock of the Chinese ride-hailing company Didi Chuxing has fallen hard on Wall Street. More than half an hour after opening, the share was down 27 percent. The panic on the stock market is big, because the Chinese government has been cracking down on the company’s app in recent days.
Didi Chuxing’s app under investigation (pic: lynx.nl)
The problems started last Friday when the internet regulator in China announced that an investigation into the company would be launched with the aim of “ensuring protection of national data security”. For the duration of the investigation, the company is not allowed to register new users.
The announcement could hardly have been more unfortunate: earlier that week, on Wednesday, the Didi Chuxing’s IPO had just taken place with company raising $4.4 billion.
Last Sunday it became clear that the app of the taxi service is in troubles as the regu...