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Beijing's Didi blast shakes $2tn of China stocks in US

I have been doing little invest on stock market since last year and invested some Chinese companies, but since July 2, I lost lots of money because of DIDI. So let us take look at what happened that day.

On July 2, the biggest Chinese vehicle for hire company has been invested and forced to stop the IPO in USA by Chinese government due to the date security. Due to the Chinese government's move and new rules, Chinese companies’ stocks price dropped 10.5% Since July 2. There are 248 Chinese companies listed on US exchanges with the total value of $2.1 trillion and these companies may face some regulations like DIDI, which may cause disasters in their stock market.

DIDI is like a Chinese Uber, which control the Chinese market. It has over 550 million users and tens of millions of drivers. This big crisis may destroy this company since the government already removed all their apps on all the stores.

The challenge for DIDI right now is making sure the data they give to USA may not be dangerous for the Chinese government and stop giving more data until further investigation, but we have no idea what DIDI actual give them and if it is possible to take it back. DIDI do make a statement saying that they did not give their data to the USA government but based on the Chinese government's move, they clearly gave their data over, which may contain all the detailed route information or time information to some special people, or some places and it can be really helpful in the future war because they can know the unknown zone and do the precision strike if they want to.

What DIDI did, by making a "NO and NO" statement is useless at this moment because it is not about the market anymore and it is about national security. I do not think there is a way to change the situation, except try their best to work with the government to make it up if possible. 

This event also rings the bell for other companies that they all need to set some rules related to national security. Only by keep the bottom line, they would be able to make money.

If I am the manager or the owner right now, I will try my best to work with the government and give them all the details about what data have been given. For the company, I would go over about all the policy and set strict rules about the national security. 

DIDI may just be the start, and all the other big companies should take look at their data and think about the same issues as DIDI and try to make up their holes before it is too late.

The people who are investing in Chinese companies may be little more careful at this time because the market will not be that strong when face the government's rules or policy.

  

 

https://asia.nikkei.com/Spotlight/Market-Spotlight/Beijing-s-Didi-blast-shakes-2tn-of-China-stocks-in-US