Didi Plunges After App Removal in China Tech Crackdown

The transcript discusses the surprise reaction of investors to DD's IPO, which was the second largest for a Chinese company in New York since Alibaba. Despite regulatory concerns communicated by Chinese regulators months before the IPO, DD proceeded as it was not in breach of any rules. The discussion highlights the attractiveness of the US market for Chinese companies due to higher valuations and a deep pool of capital. However, Beijing's lack of a comprehensive regulatory framework, especially concerning cybersecurity and data control, poses challenges. The need for more time to establish rules is emphasized, given the national security implications of foreign investment in Chinese companies.

What was the reaction of investors to the crackdown on DD after its IPO?

• Investors were well-prepared for the crackdown.

• Investors were surprised by the crackdown.

• Investors were indifferent to the crackdown.

• Investors had anticipated the crackdown.

What was the main reason DD proceeded with its IPO despite regulatory concerns?

• DD wanted to avoid regulatory scrutiny.

• DD was in breach of existing rules.

• DD had no knowledge of any regulatory review.

• DD was not in breach of any rules.

Why is New York considered an attractive place for Chinese companies to list?

• Due to lower listing costs.

• Because of lower regulatory requirements.

• Due to higher valuations and better stock market performance.

• Because of proximity to China.

What is a major concern for Beijing regarding Chinese companies listing abroad?

• The lack of a regulatory framework for data security.

• The low valuations of Chinese companies.

• The limited access to foreign investors.

• The high costs of listing abroad.

What is a new challenge for China regarding data security?

• China has no interest in data security.

• The cybersecurity rules are newly implemented.

• The cybersecurity rules have been in place for decades.

• Data security is not a concern for Chinese companies.