Potential Hong Kong Listing Strengthens Shares of DiDi

DIDI is up over 10% this month

Deputy Editor
Oct 21, 2021 at 9:53 AM
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The shares of DiDi Global Inc (NYSE:DIDI) are up 3.6% at $8.90 this morning, following a media report from China's internet watchdog, which suggested that Chinese lawmakers are nudging the rideshare company, along with two other U.S. listed tech names, to look into listing their stocks on the Hong Kong exchange. According to those familiar with the matter, regulators are also pushing Full Truck Alliance (YMM) and Kanzhun (BZ) toward Hong Kong offerings, with the former ready to add a listing as early as next year. 

DIDI has come under immense pressure this year, mostly thanks to Chinese government crackdowns on U.S.-listed firms, while several other speedbumps have pushed the stock further away from its June initial public offering (IPO) price of $14. Though the stock has been middling just above its July 26 record low of $7.16 since running out of steam near the $10 mark, it appears that the 20-day moving average has formed a recent floor on the charts. Plus, the security has added 10.7% in October. 

Calls are incredibly popular, despite this unimpressive price action. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), more than five calls have been picked up for every put over the past 10 days. 

Meanwhile, there's still just one overwhelmingly optimistic analyst in coverage. This particular analyst sports a "buy" rating and a $25 12-month consensus price target, which is a whopping 181.2% premium to current levels. 

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