(Bloomberg) Shares of Didi Global dropped more than 6% on Wednesday, leading declines among Chinese stocks listed in the US exchanges amid crackdown concerns.
The decline in Didi followed news that the US Securities and Exchange Commission was investigating the company’s 2021 NYSE debut. A Wednesday filing revealed that the US legislators called for an investigation of Didi’s IPO, which has also been a subject of scrutiny by China.
The reported Didi investigation raised concerns in the sector, with the shares of Alibaba and JD.com also falling by up to 3% on Wednesday.
The fall in the Chinese stocks happens after several days of renewed optimism after Beijing hinted at supporting the tech firms to boost the ailing economy. Investors have been cautious of the Chinese stocks amid growing risks of delisting from US exchanges.
DIDI is currently down -6.11%, BABA is down -2.37%, JD is down -2.38%.
