Why Pinduoduo Is Down More Than 9% Today

Shares of Pinduoduo (NASDAQ: PDD) are lower by 9.1% as of 11:45 a.m. ET on Friday, caught up in a sweeping sell-off of U.S.-listed Chinese companies following reports that Beijing could apply more regulatory pressure on all such names going forward.

Blame DiDi Global (NYSE: DIDI), mostly. The ride-hailing company has clearly been in Beijing's crosshairs since July when China's Ministry of Public Security and other agencies raided the company's offices. Government officials claim DiDi failed to properly secure its customers' digital data. The raid, however, was just part of a deeper and wider crackdown on many of China's technology companies. As part of this same effort, Beijing suggested last month that DiDi delist its shares listed on the New York Stock Exchange and instead offer its stock to shareholders via Hong Kong's stock exchange.

Late Thursday, DiDi announced it would be doing just that.

Source Fool.com