China Soothes Investors’ Nerves, Didi Soars on Reports It Could Go Private
One of China’s top regulators said the world’s second-largest economy was not looking to decouple from capital markets after a regulatory crackdown caused intense volatility in stocks, **The Wall Street Journal reported**. The message comes as a Chinese tech giant considers going private and after major investors pulled out of the country.
* The vice-chair of China’s securities regulator met with representatives from investment banking giants **Goldman Sachs** and **UBS**, and others, on Wednesday, according to the report. Fang Xinghai’s message: recent pressure was focused on specific problems in select sectors, and that **Beijing will consider market impacts** before introducing future policies.
* China’s message comes after **regulatory scrutiny on sectors including technology, finance, and private education** in the past week **caused a massive selloff**. Hong Kong’s **Hang Seng Index** saw its steepest dive since the Covid-19 pandemic rocked financial markets in March 2020. Stocks **began to stage a recovery** on Thursday, with the Hang Seng rising 3.3% as Chinese tech giants notched near 10% gains.
* But the recent overture may not be enough for **Didi**, the ride-hailing group that **saw its stock price go into freefall** after it got on the wrong side of regulators. Didi is considering going private to placate authorities in China and compensate investors, the **Journal reported**. Didi shares **soared more than 30%** in New York premarket trading.
**What’s Next:** While many investors will be reassured by the signal of stability, for some it could be too little too late—Cathie Wood’s ARK Innovation ETF **sold nearly all its Chinese stocks**. For Didi shareholders, a move to go private may be a welcome act of mercy as sentiment on Chinese investments remains uncertain.
—*Jack Denton*
https://www.reddit.com/r/StockMarket/comments/otvxa9/china_soothes_investors_nerves_didi_soars_on/
