Taxi-hailing operator Didi’s shares fell 7% on Thursday following a report that the Chinese regulators are planning tough penalties against it.
Didi’s month-to-date losses now stand at over 24% following a series of entanglement with the Chinese market regulator.
Some of the penalties, which are said to be likely meted on the firm, could include delisting, withdrawal of Didi’s US shares, or even suspension of some of its operations.
Didi is accused of collecting user’s data which emerged after a raid by the Chinese government officials.
The operator was consequently stopped from signing new users and its app removed from the Chinese app stores.
China is tightening regulations on the upsurge in home companies listing in the U.S., with concern the same could have on data flow and security.
DIDI: NYSE is down -7.84%.
