Chinese regulators decided last Friday to block new users from downloading the country’s most popular ride-hailing app, Didi, just weeks after the company debuted on the New York Stock Exchange, sending the company’s shares down as much as 25% and triggering a broad reevaluation of the risks of investing in Chinese stocks.
Sen. Bob Casey, a Pennsylvania Democrat, blasted the Chinese for “restricting market access to U.S. firms in order to support its national champions,” in a comment to MarketWatch. He added that these policies “distort markets” and “harm workers,” and shouldn’t be aided by allowing Chinese companies to raise money from Americans if they don’t follow U.S. regulations.
Owen Tetford, a research analyst at Beacon Policy Advisors, told MarketWatch in an interview that it’s unlikely that the Rubio-Casey bill will pass this year, given other anti-China legislation that is nearing passage. But he noted that there is a strong commitment by both parties to protect U.S. technology and innovative American companies, and little support for policies that could advantage the Chinese tech sector.
Nevertheless, plaintiffs’ lawyers have already begun preparing class action lawsuits, with the law firm Glancy Prongay & Murray submitting a complaint Tuesday on behalf of Didi investors, alleging that Didi knew about the investigation as long as three months ago and therefore submitted documents to U.S. regulators that were “materially false and misleading and [which] omitted…material adverse facts.
But the severe losses as of now appear to only bolster Rubio’s argument that the SEC should have blocked the Didi IPO in the first place. In a June statement he called on the regulator to do just that, arguing that “every time the SEC allows companies like Didi to list on American exchanges, it funnels desperately needed U.S. dollars into Beijing and puts the investments of American retirees at risk.”Not only are U.S. lawmakers growing more skeptical of U.S.
Now they want us to believe they're trying to protect us? Such bs on SO MANY levels - watch The China Hustle and watch who's been allowing it and why. I'd bet they're more mad China won't give them user data unlike the US who steals it from citizens
funnels desperately needed U.S. dollars into Beijing.🤣🤣