DIDI Share Price: DiDi Global Inc extends slide on China stock pullback

NYSE:DIDI fell by 3.71% on Wednesday as China weakness continued.
The ongoing investigation into Didi could result in an executive shuffle.
Softbank announces it will pull out of investing in China stocks.

Stocks Reporter FXStreet

NYSE:DIDI fell once again on Wednesday, a sigh that shareholders are getting all too used to unfortunately. The Chinese ride-hailing stock fell below the $9.00 price threshold for the first time since late-July, as the ongoing investigation by the Chinese government has erased any gains that were made since. Shares of Didi fell by a further 3.71% on Wednesday, and closed the trading session at $8.83. It was another session of tech weakness as the Dow Jones and S&P 500 were once again carried to new all-time highs on the strength of cyclical stocks. Blue-chip and value sectors have been showing strength lately on the back of the impending approval of the new infrastructure bill from President Biden.

Stay up to speed with hot stocks' news!

One potential outcome from the investigation into Didi is that high ranking officials within the company may be ousted. The executive shuffle would come as the Chinese government looks into the chain of command and who ultimately gave the green light for the company to IPO on the U.S. markets. Chinese officials have labeled the IPO a ‘deliberate act of deceit’ and Didi awaits the final verdict which could bring historic financial penalties.

NYSE:DIDI news

Softbank, a major stakeholder in Didi, reported its earnings yesterday and net profit fell nearly 40% sequentially from the first quarter. The company’s investments in Chinese companies like Didi and AliBaba (NYSE:BABA) have plummeted during the recent sell-off, and CEO Masayoshi Son reported that the company would scale back investments in China until ‘the situation is clearer’. For Softbank this could mean holding off for another year or two, until the political mess sorts itself out.

Like this article? Help us with some feedback by answering this survey:

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.