One early hint of trouble was that the company played down the blockbuster listing. The facts are that Didi Global began trading on the New York Stock Exchange on June 30, auspiciously one day ahead of the CCP centennial celebration. It is now more likely to be Chinese regulators themselves who plug the spigot. Until this week, the greatest concern for investors was that new US accounting rules would stymie that flow. Dealogic shows that Chinese companies have raised $26 billion from new U.S. The ripples could be long-lasting and far-reaching for the lucrative relations between China and Wall Street. initial public offering (IPO) of the world's largest ride-hailing and food delivery service, Didi. The story that triggered this week's stir was the $4.4 billion U.S. investors shouldn't be trusting their futures to China Inc.' 'Wall Street must now acknowledge that the risk of investing in these companies can't be known, much less disclosed,' writes Josh Rogin in the Washington Post. Foreign investors, only too happy to accept risk for the long-proven upside of Chinese stocks, now must factor in a growing risk premium as Xi tightens the screws. What is clear is that Chinese President Xi Jinping, during this month's celebration of the one hundredth anniversary of the CCP, has sent an unmistakable message at home and abroad of who is in charge.Ĭhinese domestic companies, particularly of the tech and data-rich variety, will be more likely to shun Western capital markets and adhere to party preferences.

Graph courtesy of the Rhodium Group and Atlantic Council GeoEconomics Center's China Pathfinder Project

Sources didi linkdoc us