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Didi App Takedown Causes Hong Kong Stock Market To Plunge Down Extensively

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Brent Crude Futures a deliverable contract based on EFP delivery remained still and showed no motion due to which Singapore- Asia Pacific shares got mixed up even after the second meeting between

OPEC and its allies. This happened on Monday. 

The stock market had been in a downtrend and was going through a bearish market due to which the Tech shares in Asia had fallen drastically. This also impacted the Chinese tech firms’ shares in Hong Kong and they fell on Monday. This mostly happened due to people fearing the bearish market and pulling out their money from these shares.

Tencent, a global Chinese company famous for its internet-related services, saw its shares drop to 3.92% while Alibaba, known for e-commerce saw a 2.36 % drop in its shares. Meituan, a Chinese shopping platform for products and services found locally, saw its shares drop by 5.46 %. The Hang Sang Tech index fell by 2.23 % in Hong Kong.

In the afternoon trade, Japanese firms also saw a downtrend like SoftBank Group fell by 5.04 % on Monday.

The real cause for the downtrend of all these sites, Chinese, Japanese firms, can be traced back to one app. The Didi app is very similar to Uber and is known for arranging rides for its users. The Chinese regulatory firms claimed that this app is stealing the private information of the users and used it illegally. 

The Didi app was backed by SoftBank Group. The Chinese regulators instructed the app store to take down the app completely. This impacted SoftBank on the counterpart and led to a drop in its shares by 5.04 %. This happened just when the giant made a market debut on the New York Stock Exchange Market.

This app has been taken down in China and no one can download it or use it. but the earlier users who already had the app and have uninstalled it can use the app as addressed by Didi on Sunday. On Friday the app confirmed that it will discontinue taking new user registrations.

Other markets did see a rise like the S&P/ ASX in Australia which is an index that saw a rise of about 0.1 %. Sales also increased in Australia in May as shown by the Australian Bureau of Statistics.

Some Chinese stocks like Shanghai composites also saw a rise by 0.16 % and the Shenzhen component did not show any movement. 

A survey done on China’s service sector showed growth in the initial phases till June and then a 14 month low. The index of Caixin/Markit services Purchasing Managers’ Index also fell from 55.1 to 50 .3 from May. There is still growth seen in the market as the PIM readings were above 50 levels showing a good monthly rise in the market.

Japan’s Nikkie 225 also dipped by 0.55 %. Topix also dipped 0.26%. 

With the Stock Market rising and falling it’s very common for these shares to rise today and fall tomorrow as people who buy these shares look at prices instead of trend lines and candles thus causing a huge dip and a huge upsurge in the prices of the shares.

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