watchdog begins investigating nvidia billion

The SAMR probe is also looking into whether the pricing mechanism of its ride-hailing business is transparent enough.ĭidi, which dominates China's ride-hailing market, said at the time it would not comment on speculation.ĭidi listed in New York on June 30, after roadshows and pre-deal investor education meetings and calls from June 11. market, and that will need time to allow the investors to adjust to valuation,' Pun added.ĭidi is also being probed by China's State Administration of Market Regulation (SAMR) antitrust watchdog over whether it used anti-competitive practices to drive out smaller rivals unfairly, Reuters reported last month. 'The suspension (of Didi's app download) will definitely hurt investment confidence as it's just listed in the U.S. 'It caught everyone by surprise, but occasional antitrust action is what we could expect from tech names,' Edison Pun, senior market analyst at Saxo Markets, said of the move. On Monday, Didi said the order to remove its app from stores in China could hurt revenue. The CAC commenced review and suspended Didi's presence on Chinese app stores just days after its public debut,' he added. 'But this step is an escalation because it is retroactive, effectively punishing investors that participated in a completed IPO. 'The (Chinese Communist) Party had previously targeted Ant Group, which was planning an IPO and was forced to cancel,' said Ryan Fedasiuk, research analyst at Georgetown's Centre for Security and Emerging Technology.

The move was interpreted as a ratcheting up of pressure on Chinese tech companies, which started with the scuttling of a $37 billion listing planned by Alibaba fintech affiliate Ant Group late last year. The CAC said its action was to protect national security and the public interest, but spooked investors said the timing would cast a shadow over plans by other Chinese tech companies to list in the United States or raise funds in global markets.

One hedge fund source, who could not be named as he was not permitted to speak to the media, said the CAC news was bizarre and unexpected given it came so soon after the IPO.

News that the order to remove the apps from sale caught six fund investors who had attended Didi's IPO roadshow, including two of whom were allocated stock in the deal, off guard.

Watchdog begins investigating nvidia billion