News: Didi (DIDI US) shares tumble
MAINLAND CHINA & HONG KONG
Didi Global Inc (DIDI US) is quickly becoming one of the worst initial public offerings (IPOs) of this year among foreign companies on news China is mulling additional penalties – from fines to a delisting – for the ride hailing giant.
Thirty-seven companies domiciled in China and Hong Kong listed shares in New York this year at a record breaking pace, raising nearly USD13b. But the returns have yet to match the flurry of activity. The shares are trading an average of 9.1% below their IPO prices, according to data compiled by Bloomberg.
Didi’s travails, amid a broader crackdown by Chinese regulators on technology companies, has already started to sour the outlook for further China listings in the US this year. – Bloomberg News.
The Shanghai Composite Index gained 0.34% to 3,574.73 while the Hang Seng Index rose 1.83% to 27,723.84.
REST OF ASIA
Hyundai Motor Co Ltd (5380 KS) posted its biggest profit in seven years, helped by sales of luxury Genesis cars and Ioniq 5 electric vehicles, but warned the global chip shortage could impact third quarter deliveries.
Hyundai temporarily halted production at its plants globally in the quarter amid the ongoing chip shortage. To minimise the impact, it reduced output of less popular models such as Sonata sedans. Higher raw material costs, such as rubber and steel, are also expected to impact automakers.
The shortage of some semiconductors is expected to gradually improve as soon as this quarter, Seo said. The company has shifted to securing chip supplies on an annual basis to help minimise production disruptions, he added, and has already secured supply for this year and next. – Bloomberg News.
South Korea’s Kospi Index opened little changed at 3,248.42 on Friday. The benchmark rose 1.07% to 3,250.21 the previous session.
Australia’s S&P/ASX 200 Index dipped 0.22% to 7,370.20 on Friday morning, reversing Thursday’s 1.06% gain to 7,386.40.
The Taiwan Stock Exchange Weighted Index gained 0.65% to 17,572.33.
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