How China’s Crackdown On Didi IPO Could Ruin Future Listings

The Chinese government could jeopardize trading on the Asian markets as we know it… and there’s nothing investors can do about it. If you haven’t heard the shocking news yet surrounding the Didi stock IPO, then you’re in for a bitter pill. Just days after Didi Global — the Chinese version of Uber — went live with an IPO, Chinese regulators demanded the company’s app be removed from all mobile stores in China. 

This means that new or old users will not be able to download/use the app anymore.

This move from the Chinese government came late Friday — a few days after Didi’s $4.4 billion listing on the New York Stock Exchange — and definitely feels like a kick in the face to Chinese and American investors alike. 

Traders that couldn’t buy or sell the stock on Monday, due to the holiday, reacted to the news on Tuesday… and things got ugly. Didi stock fell as much as 25% after the Cyberspace Administration of China (CAC) began an investigation into the ride-hailing company for how it handles customer information. 

The CAC also announced it would launch more cybersecurity investigations into other Chinese firms whose parent companies have listed shares in America.

And when I saw the Chinese government make this move, I saw it for what it was: They don’t want money leaving the country and going into America.

And that’s extremely dangerous for the future of IPOs.

The Didi Stock IPO Was a Disaster: Here’s Why

If you want to talk about buyer’s remorse, then this stock is the perfect example. I can’t imagine being an investor and buying into this IPO only to have one of the most powerful regions in the world pull the rug out from under you.

These investors lost almost 30% of their investments three days after getting into DiDi Global Inc. – ADR (NYSE: DIDI).

And I don’t think investors understand how big of a geopolitical problem this actually is.

We used to worry about the Soviet Union and terrorism. Now, we have to worry about the Chinese government messing with Western capitalist systems and markets. Who’s to say that their next move isn’t to ban U.S. companies from doing any type of business in China?

To put it plainly, they’re effing with our money. That’s something I won’t stand for, and neither should investors.

Which is exactly why I’m giving away my current Money Link pairs trade, which should help the investors struggling from the botched Didi stock IPO disaster.

There are trillions of dollars moving out of the Asian markets right now, and there are only a few places it can realistically go…

And I might have landed on a gold mine. 

Check out my short video below to learn more about the Didi stock IPO and my Money Link trade.

 Also be sure to share your thoughts in the comments section below. 

And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.

didi stock ipo

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