Home Naijamerit News The Didi clampdown marks a sea change in the politics of global...

The Didi clampdown marks a sea change in the politics of global investment


For Beijing ‘data security’ now trumps the old desire to have its tech firms seen as global champions

It’s tech, it’s Chinese and it looks a bit like Uber, so it must be hugely valuable. That, we must assume, was the analysis of those US investors who piled into Didi last week as the ride-sharing app listed in New York at the mighty valuation of $80bn (£60bn). If anybody read the warning in the IPO prospectus about regulatory risks in China, they probably dismissed it as boilerplate stuff.

They’re wiser now. The scary-sounding Cyberspace Administration of China has clobbered Didi by ordering that its app be removed from domestic online stores, a move the company said with brilliant understatement “may have an adverse impact” on its revenues in China, its biggest market by far. Cue a 25% plunge in the share price at one point on Tuesday, only the fourth day of trading, a farcical state of affairs.

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from The Guardian https://ift.tt/3jPxzpg
via Google News

Author: Naijamerit

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