Didi shares drop on report China is planning unprecedented penalties

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Didi shares drop on report China is planning unprecedented penalties
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Bloomberg News reported China is planning a slew of punishments against Didi, including a fine likely bigger than the record $2.8 billion that Alibaba paid,

came under pressure again on Thursday after a report that Beijing is considering harsh penalties from a massive fine to even a forced delisting after its IPO last month.Bloomberg News reported

Chinese regulators are planning a slew of punishments against Didi, including a fine likely bigger than the record $2.8 billion that Alibaba paid earlier this year. The penalties could also include suspension of certain operations, delisting or withdrawal of Didi's U.S. shares, the report said, citing people familiar with the matter.

Didi shares have lost about 18% to $11.50 a share since its market debut on June 30 when it started trading at $14 a share.Last week, officials from seven Chinese government departments visited the ride-hailing giant's offices to conduct a cybersecurity review. The ride-hailing giant was forced to stop signing up new users and itsBeijing is stepping up its oversight on the flood of Chinese listings in the U.S., which are overwhelmingly tech companies.

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