Cheng Wei, Chairman and CEO of Beijing Xiaoju Keji Didi Dache, pauses at the annual conference of the Boao Forum for Asia in Boao, China, on Wednesday, March 23, 2016. The annual event sees business and political leaders come together from March 22-25.
Kelay Shane | Bloomberg | Getty Images
Already in a free-fall amid a crackdown by the Chinese government on domestic companies listed in the US, Didi said in December it would be removed from the New York Stock Exchange and instead listed in Hong Kong. on Friday, Bloomberg mentioned That Didi did not comply with the data security requirements necessary to initiate the sale of shares in Hong Kong.
SoftBank owns about 20% of Didi. The Japanese conglomerate’s stake is now worth about $1.8 billion, down from nearly $14 billion in Subscription time. Uber’s roughly 12% share has fallen from more than $8 billion in June to just over $1 billion today.
Uber acquired the stake in 2016 after selling its China business to Didi. Uber said at the end Annual Report that in 2021 she realized an unrealized loss of $3 billion on her investment in Didi.
The gap is deepening and reflecting broader headwinds for the tech sector, which is being battered in the general market.
Earlier this week, a database software maker inspiration said its investments In Oxford Nanobore The Ampere computing low profit In the fiscal third quarter, about 5 cents a share. electric car maker Rivianwho matters Amazon As a major investor, it fell 8% on Friday after a Disappointing predictions It is now down 63% this year.
For SoftBank, Didi was one of 83 companies it supported through its original Vision Fund. CNBC reported last year that SoftBank She was selling part of her Uber position in part to cover Didi’s losses.
“Since we invested in Didi, we’ve seen a massive loss in value,” SoftBank CEO Masayoshi Son said on a February call to discuss results for the nine months ending December 31.
SoftBank shares fell 6.6% at the close, while Uber shares rose 1.2%.
Didi wasn’t the only Chinese tech stock to drop on Friday, although its decline was the biggest. e-commerce sites Alibaba Group And the JD.com So is the electric car maker New Everything fell Fears are back Regarding dual-list companies in the United States and Hong Kong.
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