what to do with didi stock

Why you should be wary of buying Didi global stock?

Dec 07, 2021 · What to Do With Didi After Panicked Investors Sold off Shares DIDI Stock in Freefall. Didi lost 22.18% of its value on Dec. 3 after the ride-hailing firm said it would delist from... Limited Trading Strategy. Existing shareholders could keep the …

How to buy Didi IPO stock and whether you should?

Apr 12, 2022 · DIDI Chuxing NYSE Updated Apr 12, 2022 9:10 PM. DIDI 2.46 0.09 (3.53%). Post-Market 0.01 (0.41%)

Should I Sell Didi?

6 hours ago · Is DIDI Stock a Buy, Hold or Sell? DiDi went public at $14 per share last June and became one of the worst-performing IPOs of 2021. It fell into the penny stock category from an all-time high of...

When will Didi start trading?

Dec 10, 2021 · Chinese ride-hailing app Didi announced last week that it would delist from the New York Stock Exchange and pursue a listing in Hong Kong. Delisting means a Chinese company traded on an exchange —...

What will happen to Didi stock after delisting?

“If Didi delists, one of the possible outcomes for the investors would be a share transfer,” Dechert's Chan said. Didi, which is pursuing a listing on the main board of the Hong Kong stock exchange, said it plans to allow its shareholders to convert their US American depositary receipts into Hong Kong shares.Feb 17, 2022

What should you do with Didi stock?

Investors should assume Didi needs to post year-end financials. After that, it could apply for a Hong Kong listing in 2022. The time gap will cause further uncertainties for investors. After this year's bull market, shareholders may sell the stock now to book the capital gains losses.Dec 7, 2021

Will Didi stock be delisted?

(Bloomberg) -- Didi Global Inc. is preparing to delist from the New York Stock Exchange, after its initial public offering there last year drew the wrath of Beijing. The Chinese ride-hailing giant said it plans to list in Hong Kong instead, allowing existing shareholders to convert their holdings in the company.Mar 10, 2022

Can Didi stock recover?

DIDI Stock Can Recover Those who take DIDI stock for a trade should consider booking profits there.Aug 27, 2021

What happens when a stock delists?

Here's what happens when a stock is delisted. A company receives a warning from an exchange for being out of compliance. That warning comes with a deadline, and if the company has not remedied the issue by then, it is removed from the exchange and instead trades over the counter (OTC), meaning through a dealer network.Mar 7, 2022

Is NIO in danger of being delisted?

Your Takeaway on NIO Stock Nio's delisting risk is modest at this time. Investors should care more about the company's path to profitability. When it gets there this year at the earliest, shareholders may hold the stock as it lists on an Asian exchange.Feb 25, 2022

What happens if a Chinese stock is delisted?

If any delisting actually happens, the fund won't be able to switch to the Hong Kong shares like other funds. But again, that would be at least two years away. Invesco says it will “fully comply” with the sanctions when the day comes.Mar 18, 2022

Political pressure on both sides

Delisting is not the end

Amid rising tensions between the U.S. and China, former U.S. President Donald Trump took steps toward removing U.S. investment in Chinese companies, especially those deemed to have alleged ties to the Chinese military.

Hong Kong Listing

Chinese stocks have been delisted from U.S. exchanges for reasons other than politics.

Tencent Reiterates Issue

Back on Oct. 21, China’s internet watchdog recommended that DiDi explore a listing in Hong Kong. That recommendation was made as a cybersecurity probe into it and two other U.S.-listed firms wrapped up.

What to Do

Tencent has committed to working with the Chinese government as it reshapes policy toward domestic firms operating internationally. Martin Lau, its president, noted that this is the new normal in China.

China wants Didi to delist over security concerns

It’s clear that DiDi doesn’t have power over its trajectory on U.S. exchanges at present. It doesn’t appear that Beijing is slowing down. Regulatory risk is the main story affecting all Chinese stocks.

It's unclear what would happen to your Didi stock

China is concerned about the security of its citizens’ data. Not only is Didi listed in the U.S., but two of its biggest stockholders, Uber and SoftBank, are non-Chinese companies.

SoftBank could lose billions from the Didi fiasco

Bloomberg first reported that China wants Didi to either list on Hong Kong, which is now fully part of China, or go private. If the company lists in Hong Kong, U.S. Didi investors would get its Hong Kong-listed shares. However, the Hong Kong listing may be at a lower price than its current U.S. price.

Other Chinese stocks might also fall

SoftBank, which is Didi's largest stockholder, would be the biggest loser in a delisting. So would Uber, which got a stake in Didi in exchange for selling its Chinese operations to the company. Uber has been facing tough competition outside the U.S. and has exited several other markets in Asia.

Xi Jinping might not care much

Chinese stocks tumbled amid the tech crackdown. Furthermore, just when fears of further Chinese crackdowns were abating, concerns of a slowdown in the world’s second-largest economy grew, exacerbated by Alibaba's tepid outlook during its Q2 2022 earnings release.

DIDI Stock in Freefall

For Chinese president Xi Jinping, social stability and national security are a far bigger concern than Didi stockholders losing billions of dollars. The country has taken a hard turn toward the left, erasing the gains it has made over the last two decades. Didi’s delisting would also impact other Chinese companies seeking a U.S. listing.

Limited Trading Strategy

Didi lost 22.18% of its value on Dec. 3 after the ride-hailing firm said it would delist from the New York Stock Exchange (NYSE). Bloomberg initially reported on the rumors a week previously.

NYSE: DIDI

Existing shareholders could keep the stock to the very end, hoping for speculative buying ahead of the listing change. Those who hold the stock after its Hang Seng Stock Exchange listing could benefit.

China's top ride-hailing platform still faces daunting challenges

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How fast was DiDi growing?

DiDi Global ( DIDI 6.08% ), China's largest ride hailing company, went public five months ago at $14 per share. Today, it trades at less than $8. Its decline was caused by an abrupt government crackdown shortly after its public debut.

NYSE: DIDI

In 2020, DiDi generated 94% of its revenue from its Chinese mobility services segment, which provides its ride-hailing and ride-sharing services.

How did the Chinese government cripple DiDi?

At the time of its IPO, DiDi's growth rates looked promising. Its revenue rose 14% in 2019, fell 8% in 2020 as the pandemic spread, but surged 106% year-over-year in the first quarter of 2021 as those headwinds waned.

DiDi's platform isn't dead yet

In early July, the Cyberspace Administration of China (CAC) suspended all new user registrations for DiDi's app in China as part of a vague "cybersecurity review". The CAC then ordered the removal of DiDi's 25 apps from all of China's mobile app stores.

DiDi's stock looks cheap -- but it could get a lot cheaper

DiDi is probably still making plenty of money. The platform's 377 million annual active users and 13 million annual active drivers in China (as of this March) can still access its platform if they've already downloaded the app.