Retail investors sold a net $3.37 million worth of Didi shares on Friday, data from Vanda Research showed, and the stock tumbled 22.2% after the company said it planned to pursue a Hong Kong listing, a stunning reversal as it bends to Chinese regulators angered by its U.S. IPO.
“I believe that most investors do not fully understand how the de-listing process works â€“ or at least, they cannot be bothered to know,” Giacomo Pierantoni, research analyst at Vanda, said in an email. “As a result, they prefer to just get rid of the stock.”
Didi shares rebounded on Monday and were up about 8% in early afternoon trading to $6.56, still down over 50% from their June IPO price.
Graphic:Retail investors and Didi shares-https://graphics.reuters.com/DIDI-STOCKS/RETAIL/jnvweaxgnvw/chart.png
(Reporting by Lewis Krauskopf; Additional reporting by Ira Iosebashvili; Editing by David Gregorio and Jan Harvey)