Didi Shares Slump as Insiders Blocked From Selling Stock
$DiDi Global (Delisted)(DIDI.US)$ Didi Global Inc. tumbled on Monday after the Financial Times reported that current and former employees of the firm have been banned from selling any of their stock indefinitely.
Shares of the Chinese ride-hailing giant fell 5.4% to close at $5.30 per share in New York trading. The move to block employees from unloading their shares comes just as early investors are able to sell stock on Monday with the end of Didi‘s 180-day lock-up following its June initial public offering.
While Didi’s outside investors -- which include $Uber Technologies(UBER.US)$, $SOFTBANK GROUP CO(SFTBY.US)$, and $Tencent(TCEHY.US)$ -- will still be able to offload shares on Monday, according to the FT, they likely face steep losses after months of selling pressure.
A flurry of regulatory crackdowns by authorities in both Beijing and Washington have dogged the stock since its trading debut. Didi shares have dropped 62% in just short of six months of trading, erasing about $42 billion in market capitalization over that span. Earlier this month, Didi said it had begun preparations to delist from U.S. exchanges and pursue a listing in Hong Kong.
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TheGeneral : insider trading is a criminal offense after stealing money from all the people that invested in this company the employees that are participating in these actions do not belong with other people they belong Behind Bars in jail everything you do will one day come out in the open and when it does that's when it's going to bite you