26 Nov 2021: Didi reportedly being asked to delist from US
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China's Didi has been under pressure since the first few days after its IPO. Being on the wrong side of PRC authorities, it proceeded to list its company on US exchange despite not having the blessing of the cyberspace administration of China. Why not against the authoritiees?
If you read my articles on my views on Didi, you would have known that for any investment into the chinese tech stocks isnt that clear for a win until the Didi ruling is out. Well Jack Ma being out of the woods having been to Europe temporarily let markets perceive the end is near. Well it wasnt that wrong but Hang Seng Tech retesting a few times above 6700 before falling back to around 6100 doesnt look pretty. Range bound for HS Tech is here isnt it?
But not all is bad! With one of the major overhangs concerning Chinese tech stocks due to the unclear direction for Didi, at least seeing it being delisted and maybe relisted to Hong Kong isnt that bad. For delisting to be so near to the IPO in US, there is a good chance that Didi cannot underpay for this in a way of lowballing the IPO investors. There may be a chance that speculators may take the chance to punt a delisting price of 14 USD. Will they be right or wrong?
That I cannot say for sure...
All I can say is China has been clearing alot of roadblocks and one of the 2 big hurdles for the flurry of regulations was catalysed (i) by Jack Ma comments that banks are like pawnshops in China and (ii) another being Didi insisting its listing in US despite not being blessed by China's authorities...
For trading, one has to remain agile and know how to cut loss. For investment, one has to really play the long game by staying focused on the business fundamentals and have a clear understanding of the macro and regulatory environments not only in China but as well as in the whole world.
As always, this should not be construed as any investment or trading advice.
$Hang Seng Index(800000.HK$ $Hang Seng TECH Index(800700.HK$ $DiDi Global (Delisted)(DIDI.US$ $Youdao(DAO.US$ $NetEase(NTES.US$ $NTES-S(09999.HK$ $JD.com(JD.US$ $MEITUAN-W(03690.HK$ $BILIBILI-W(09626.HK$ $Bilibili(BILI.US$ $HAIER SMARTHOME(06690.HK$ $HUYA Inc(HUYA.US$ $UP Fintech(TIGR.US$ $XIAOMI-W(01810.HK$ $Alibaba(BABA.US$ $ALI PICTURES(01060.HK$ $Alibaba Group Holding(05843.HK$ $Futu Holdings Ltd(FUTU.US$ $TENCENT(00700.HK$ $BABA-SW(09988.HK$ $JOYY(YY.US$
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Path To Wisdom 2828282828282828: In your dream
102355763 2828282828282828: Where the news? Please post here
Path To Wisdom 2828282828282828: No way, Didi n investors will vomit money out. Historical losses by Didi in China.
doctorpot1 102355763: moomoo news got say also
Path To Wisdom doctorpot1: pls buy later and let the others to jump boats
Day Trader 881 : Have to Analyze your self and place bets, If they dont buy back at at Least IPO price, many institution investors will go after them.. for me i am already in so i will just hold on,
I dont think it will go to 0 and bust, Risk to rewards still quite good if it ends at 14 or more..
Day Trader 881 : Softbank and many backers have pumped money years ago, just waiting for IPO to get their money back, Good Luck to all bag holders and all who is placing bets.. Short or Long ,Lets earn together
YC Xiao : Amazingly, Didi's 90% customers are in China but listed in US.