- NYSE:DIDI fell a further 5.56% to close out another tumultuous week.
- Chinese stocks sell off once again as sector weakness continues into the weekend.
- A major U.S. investor initiates a position in Didi after dumping UBER.
NYSE:DIDI continued its downward slide on Friday, and there doesn’t appear to be any end in sight for the beleaguered ride-hailing giant from China. Just when investors think the stock can’t drop anymore, Didi fell a further 5.56% on Friday to close out yet another red week for the recently public stock. The fall lagged the broader markets which saw a relatively flat day to end the week, despite all three major indices finishing in the green with the S&P 500 once again eking out new all-time highs at the close.
Didi wasn’t the only Chinese stock in the red on Friday as China-based companies sold off once again amidst ongoing investigations and cybersecurity probes. AliBaba (NYSE:BABA) fell 1.60%, JD.com (NASDAQ:JD) dipped by 0.95%, and Baidu (NASDAQ:BIDU) continued its decline from Thursday and dropped by a further 4.50%. Will there be an end to the carnage for Chinese ADRs? Next week tech conglomerate Tencent (TCEHY) will report its second quarter earnings, and the week after that PinDuoDuo (NASDAQ:PDD) will as well. It's difficult to see an end to the bearish sentiment for at least as long as the investigation into Didi continues.
At least one investor may be seeing a bottom for shares of Didi, as George Soros reportedly initiated a $2.72 million sponsored ADSs of the company. The move comes after Soros’ fund dissolved its position in Didi’s rival Uber (NYSE:UBER). It’s the first sign of any institutional investors showing bullishness towards Didi since the cybersecurity probe into the company began.
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