Following Didi’s controversial initial public offering, Chinese regulators are reportedly considering handing down serious and unprecedented penalties on the ride-share company
The decision made by Didi to go public has been viewed as an attack against the Cyberspace Administration of China and Beijing’s rule.
Chinese officials have begun an intense on-site investigation at the company in recent days.
Punishments may include a hefty fine, suspension of operations, or even the possibility of requiring a state-owned investor to become part of the organisation.
It’s also possible that Beijing will try and delist or withdraw Didi entirely from the US share market.
This follows e-commerce giant Alibaba
It was handed a record $2.8 billion fine following a lengthy anti-trust investigation – and experts believe Didi’s penalty will far surpass this.
Should investors stay away from Didi?
Didi’s share have dropped on the back of this news.
Christopher Uhl from 10 Minutes Trading is warning investors to steer clear.