Didi Chuxing shares plunged early this week following a report that says the Chinese ride-hailing giant barred employees from selling the company’s stocks.
Nikkei Asia stated that people familiar with the matter reported that Monday (Dec. 27) marked the end of the 180-day lock-up period in which Didi did not allow its current and former employees to sell shares. However, the app-based ride-hailing services company has extended the prohibition period without a new expiration date.
Didi’s shares fell nearly 4% on Monday to $5.39. The move was the latest setback to its employees since Didi has lost about $38 billion in market capitalization after its IPO in June.
Didi announced earlier in December that it would delist from the U.S. stock market and sought a listing in Hong Kong.
A source forecasts that the employees could sell shares after the company started trading in Hong Kong market.
Li Chengdong, head of e-commerce think tank Haitun, said that many people would be disappointed with the matter and would leave after having their reviews for three or four years.