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.
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.
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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.
