DiDi Global Stock Continues To Fall: Here Is Why

The stock market of American depositary receipts of Chinese companies declined on Friday after the announcement of Didi Global Inc., the operator of China’s largest online taxi ordering service, about delisting from the New York Stock Exchange and placing shares in Hong Kong. At the same time, Chinese stocks listed in the U.S. have also been pummeled this year. ADR manufacturers of electric vehicles Nio and Li Auto Inc. fell by 11.2% and 16%, online retailers Alibaba Group Holding and Pinduoduo Inc. by 8.3% and 8.2%, respectively, game developer NetEase Inc. by 6.9%. During the months, the price of DIDI is continuously declining from $9.55 to the current price of $5.70, losing over 40%. 

According to the latest statements, the Chinese stock market, which is trading in the U.S market, its sell-off in 2021 significantly decreased the value by almost $1 trillion since February while both sides continue to put pressure on several Chinese firms. Didi’s announcement marks a stunning reversal of fortune after the firm raised $4.4 billion in an initial public offering at the end of June and adds even more uncertainty to the prospects of other Chinese firms listed in the United States.