Hello and welcome. You are listening to Patrick Boyle on Finance, a podcast exploring ideas from quantitative finance, examining events occurring in markets right now and financial history to see what lessons can be taken away, including interviews with some of the most interesting people in the world of finance. To learn more about the podcast, visit onfinance.org.

Welcome back, guys. Just a quick video today to discuss the goings-on this weekend with the Chinese

ride-hailing company, Didi. For those of you who don't know, Didi is a Chinese version of Uber and they raised $4.4 billion

in their listing on the New York Stock Exchange this Wednesday.

This was the biggest Chinese listing in the US since Alibaba listed about seven years ago.

So Didi went public at $14 on Wednesday. The stock rallied sharply,

and then two days later on Friday, news broke that the Chinese regulators are investigating the

company. They say they're doing this in order to maintain national security and protect the public

interest.

The stock fell around 5.3% I think on Friday to $15.52 on this announcement.

The IPO investors who got in at $14 will still have been up at that point.

Now the cyberspace administration of China, which is called the CAC, then went on to announce

today, Sunday evening, that Didi's app had problems of seriously violating laws on collecting

and using personal information, and they ordered the DD be taken down from

Chinese app stores.

The decision to publicize this review and the timing are fairly surprising to say the least.

These actions are all based on China's new cybersecurity review system, which is about a year old.

So the US markets are closed this Monday to observe the 4th of July, happy birthday America,

but it will be interesting to see how DD trades when markets open on Tuesday.

I'd probably bet on a bit of a down open.

I made a video about a year ago when the US Senate approved new legislation that could

lead to Chinese companies possibly being delisted from US stock exchanges.

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