Why DiDi Global Declined 20.3% in August
Shares of DiDi Global (NYSE: DIDI) fell 20.3% in August, according to data from S&P Global Market Intelligence. There wasn't any specific news that came out of DiDi last month, but the stock continued to be pummeled by new regulations, or speculation over new regulations. The Chinese Communist Party began a crackdown on the company's tech sector last year, but that campaign kicked into a much higher gear beginning in July, reaching a crescendo in August.
DiDi's stock had fallen even more in July, when the Communist Party suspended DiDi from adding new users over an alleged violation of user data and privacy rights. While DiDi set about working on its data policies, the Ministry of Transportation then announced in August it was working on regulating the treatment of drivers and truckers in China's ascendant sharing economy. In addition to new company-specific regulations, the Chinese Communist Party aggressively rolled out other measures aimed to rein in more tech giants during August, souring market sentiment on the country's tech sector in general.
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Source Fool.com
