China scrutiny fears hit Didi for fourth day

Business

Shares of Didi Global Inc (DIDI.N) dropped for the fourth day in early deals on Thursday, along with other tech giants, on fears of a fallout from China’s increased scrutiny on domestic technology companies and firms listed offshore recently.

Secondary shares of other U.S.-listed Chinese tech giants including Alibaba Group Holding Ltd , JD.com Inc and Baidu Inc also fell in the range of 2.7% and 4.0%.

“There’s a lot of fear right now. It’s a sell-first-and-ask-questions-later approach,” said Dave Wang, portfolio manager at Nuvest Capital.

“End of era for China tech? I think that’s overblown. Sentiments come and go. We probably need a couple of good earnings seasons … to show the impact, if any, on earnings.”

Shares of ride-hailing platform Didi, whose app was taken down by Chinese regulators days after its New York Stock Exchange debut, have lost about $21.5 billion in market value over the past three sessions.