Why Are DiDi Shares Trading Lower Thursday?

DiDi Global Inc DIDI lost 30% of its daily users since its June U.S. initial public offering following China's tech crackdown, Financial Times reports.
Didi's average daily user count for August fell to 10.9 million from 15.6 million in June. However, the number of ride-hailing companies that completed over 300,000 monthly rides grew to 17 for the first time in July, as per China's transport department.
China had banned DiDi from signing up new customers while they investigated its data security. The ban is costing DiDi 4 million users per month.
The regulators also ordered app stores to remove 25 of Didi's other apps, including those that register new drivers. The regulations banned ride-hailers from onboarding drivers or cars unlicensed for ride-hailing.
In July, just 41% of Didi rides were fully compliant, while Piggy Express stood only 24%, FT reported.
Didi's shares have plunged over 40% since the IPO while rivals enticed its customers and drivers with promotions. The peers include Alibaba Group Holding Ltd's BABA Amap, Meituan MPNGF MPNGY Cao Cao Mobility.
DiDi is yet to report its Q2 earnings, unlike its peers, which reported weeks ago.
Didi could hit a rough patch if China seeks to split or abandon its exclusive agreements with drivers.
Price Action: DIDI shares traded lower by 1.45% at $8.16, and BABA shares traded lower by 1.34% at $155.74 in the premarket session on the last check Thursday.