Why DiDi Stock Is Plunging Today

DiDi Global Inc. DIDI shares are trading lower after the company announced its app is being removed from Chinese app stores due to personal data collection concerns by the Chinese government.

The Cyberspace Administration of China notified app stores to take down the "DiDi Chuxing" app in China, and required the company to strictly comply with relevant laws and regulations, follow the relevant standards set by the PRC government authorities, and rectify the problem to ensure the security of users' personal information, according to the company's press release.

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.

DiDi's stock was trading about 20% lower at $12.42 per share premarket Tuesday. The stock has a 52-week high of $18.01 and set a new low at $12.40.