Why Is DiDi (DIDI) Stock Up Today?

Today, Chinese ride-hailing company DiDi Global (NYSE:DIDI) is up a staggering 52% as Chinese regulators ease off a number of stocks. DiDi joins the likes of Alibaba (NYSE:BABA) and TAL Education (NYSE:TAL) in the best multi-day rally for Chinese stocks this century, according to The Motley Fool. 

DiDi logo on smartphone
Source: Piotr Swat / Shutterstock.com

So, what do you need to know about DIDI stock today?

Well, amidst mounting regulatory fears for a host of Chinese companies listed on foreign exchanges, there appears to be a bright spot. Earlier this week, Chinese regulators stated they are working to resolve ongoing auditing issues with U.S. regulators. Indeed, a number of Chinese companies are at risk of being delisted, stemming from failure to meet audit requirements with the U.S. Securities and Exchange Commission (SEC). Last week, DiDi even announced plans to remove itself from the New York Stock Exchange in favor of a Hong Kong listing.

As such, today’s news comes as a welcome change of pace for a number of big names. What else do you need to know about DiDi lately?

DIDI Stock Jumps After Major Losses Recently

Today’s surge in Chinese stocks comes after DIDI recorded some major losses in its share price. Last week, shares fell more than 50% as part of the regulatory fiasco. Now, though, it seems like the positive signs out of China have investors cautiously optimistic for DiDi.

DiDi in particular has been hit with regulatory hurdle after hurdle. Even aside from its current conflicts with U.S. regulators, it was forced to suspend a number of its applications from apps stores in numerous countries. This was due to data security concerns levied against the company.

It’s truly unfortunate, because otherwise DiDi and others present strong growth potential across the board. Speaking about Chinese stocks, Great Hill Capital’s Thomas Hayes pointed the following out to Yahoo! Finance just this week:

“The only two things holding these companies back were … the tech crackdown over the summer, in earnest, and then the delisting risk […] The businesses were growing despite the regulatory crackdowns, despite the zero-COVID shutdowns.”

All told, it now looks like DIDI stock may be back on track.

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.

Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

With degrees in economics and journalism, Shrey Dua leverages his ample experience in media and reporting to contribute well-informed articles covering everything from financial regulation and the electric vehicle industry to the housing market and monetary policy. Shrey’s articles have featured in the likes of Morning Brew, Real Clear Markets, the Downline Podcast, and more.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/why-is-didi-didi-stock-up-today/.

©2023 InvestorPlace Media, LLC