Why DiDi Global Shares Are Trading Lower On Friday

Shares of DiDi Global DIDI are trading lower, continuing to fall following recent reports suggesting China is said to weigh penalties on the company.

Thursday reports suggested Chinese regulators are considering the possibility of ‘serious, perhaps unprecedented penalties’. The regulators claimed that the company’s decision to go public was a 'challenge' to Beijing’s authority. The firm had received pushback from the Cyberspace Administration of China prior to its initial public offering date.

DiDi Global is a mobility technology platform that provides ride hailing and other services in the People’s Republic of China, Brazil, Mexico and internationally. It offers ride hailing, taxi hailing, refueling, and maintenance and repair services as well as electric vehicle leasing services, e-bike sharing and financial services.

At the time of publication, shares of DiDi Global were trading 20.6% lower at $8.09. The stock has a 52-week low of $7.97 and a 52-week high of $18.01 since its initial public offering last month.