DiDi Global Inc – ADR (NYSE: DIDI), is learned ran into trouble with the Chinese Government with its $4.4 billion initial public offerings (IPO) in New York. Knowing well that the Chinese Government is unhappy with this, the group still went ahead with the listing. However, according to Bloomberg, the corporate house intentionally delayed its listing as regulators were vocal and expressed concerns.
DiDi Global Inc – ADR faced trouble from regulators
Under the leadership of President Xi Jinping, the Communist Party is somewhat impulsive when it comes to controlling the growth of private companies. On multiple occasions, the Chinese Government has sent signals to corporate houses that must strictly adhere to operating in a manner that works well with it. According to sources, this is the reality on ground zero in China. As a result, companies that have developed at a fast pace have been on the radar of the Chinese Government. With the Government in China keeping tabs on such organizations, it has made sure that the groups are in sync with the Government’s likes, dislikes, and priorities. Trouble for DiDi Global Inc – ADR began this year when the Chinese Government decided to crack the whip on internet firms. The ruling Government was too afraid, so much so that it imposed a significant clampdown that impacted industries including technology, entertainment, education, among other sectors.
Chinese Government wanted to limit the growth of DiDi Global Inc – ADR
A majority of market analysts echo the opinion that the Government in power in China was afraid of how powerful DiDi Global Inc – ADR had become. In a nutshell, the Chinese Government wanted to, if not control, at least limit the company’s growth. Commenting on this, Tu Le, founder and managing director for Beijing-based consultancy Sino Auto Insights went on record to state that from the perspective of the Government, the company was growing at a super-fast rate, making it a challenge for the Government to control. Additionally, the Government wanted to use DiDi Global Inc – ADR as an example to send a strong message no individual or organization can survive if they fail to sync with the party in power in China.
