© Reuters. Didi Leads Slump in U.S.-Listed Chinese Shares Amid SEC Probe
(Bloomberg) — Didi Global Inc. led a drop in U.S.-listed Chinese internet stocks after news of a U.S. Securities and Exchange Commission investigation into the ride-hailing company’s 2021 debut in New York added to investor concerns around the sector.
Didi (NYSE:) shares slid 7% in early premarket trading, extending a decline of nearly 60% this year. Among other large-cap Chinese tech stocks, Alibaba Group Holding Ltd. (NYSE:) and JD.com Inc (NASDAQ:) both lost 2.1%. The retreat in American depositary receipts tracked a 3.3% fall in the Tech Index, ending a recent rally fueled by Beijing’s pledge to boost economic growth and support tech firms.
A filing on Wednesday showed that U.S. lawmakers had called last year for an investigation into Didi’s controversial IPO, which has already been under scrutiny by Beijing regulators. The news dealt a fresh blow to Chinese tech, a sector that investors are increasingly avoiding amid delisting risks and concern over an economic slowdown.
©2022 Bloomberg L.P.
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