Chinese Taxi Service Didi Shoots Up on Wall Street

Chinese Taxi Service Didi Shoots Up on Wall Street

Didi Global rose more than 56 percent on Monday on the stock exchanges in New York. Investors welcomed a report from the business newspaper The Wall Street Journal that Chinese authorities will complete their investigation into the taxi service this week.


Uber’s competitor was suspected, among other things, of illegally collecting personal data from users and violating competition rules.

Due to the investigation, app stores had to remove Didi’s app. But according to The Wall Street Journal, the taxi app may return to stores this week. Didi will reportedly receive a hefty fine and the company must give 1 percent of the shares to the Chinese government.

Didi’s approach by China is part of a broader campaign by Beijing to curb its powerful tech sector. Due to stricter regulations in both China and the United States, Didi is already in the process of delisting in New York and is preparing for an IPO in Hong Kong.

Twitter also attracted attention. Shares fell more than 4 percent as Elon Musk has complained that Twitter is violating its social media takeover agreements by not providing him with certain information about spam and fake accounts. This is stated in a new document that the well-known entrepreneur has filed with the US stock market regulator SEC. In it, Musk also emphasizes that he still has the right to opt-out of the takeover of Twitter.

The overall mood on Wall Street was positive after Friday’s significant loss. In addition to the European interest rate decision on Thursday, investors’ attention this week will mainly be on US inflation figures, which will not be released until the end of the week. Shortly after opening, the Dow was 0.6 percent higher at 33,085 points. The broad S&P 500 gained 0.9 percent to 4146 points and the tech gauge Nasdaq gained 1.2 percent at 12,156 points.

Spirit Airlines, in turn, added more than 4 percent. Airline JetBlue has improved its takeover bid for its peer. The budget carrier has been trying to thwart the proposed merger between Spirit and Frontier Airlines for some time, but Spirit’s board continues to resist hostile takeover attempts by JetBlue.

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