Didi Global will be added to FTSE Russell's worldwide equity indexes July 8, but not if trading in Didi shares is halted during U.S. market hours Wednesday, the index publisher said.
Didi's American depositary shares dropped 25% to $12.49 Tuesday, in the first trading since China regulators ordered the company's app to be removed from mobile app stores days after its $4.4 billion initial public offering on the New York Stock Exchange, reports said.
Didi's Tuesday's close wiped out around $15 billion of market value and took the company's stock below the $14 price from its initial public offering.
China's cybersecurity watchdog advised the Chinese ride-hailing company to postpone its initial public offering and urged it to carry out a thorough self-evaluation of its network security weeks before its New York Stock Exchange listing, The Wall Street Journal said.
Two days after the initial public offering, regulators said Didi had committed serious violations in the collection and usage of personal data and ordered the app taken down.
Did is China's largest ride-hailing company. The company accounted for almost 90% of total trips in China in the fourth quarter last year.
Didi reported a net loss of $1.6 billion on revenue of $21.6 billion last year, based on filings with the U.S. Securities and Exchange Commission. For the first quarter this year, Didi reported a net income of $837 million.
Didi's blockbuster listing June 30 was the second-biggest in the U.S. by a China-headquartered company, next to Alibaba Group, giving Didi a market value of around $68 billion.
Founded in 2012, Didi said it has more than 490 million active riders per year, and 40 million average daily transactions.
In 2018, Didi started expanding internationally, and the company now has presence in 14 countries outside of China.
"With some news sources saying that Didi knew months in advance that a crackdown was coming, some people will start to have their doubts on governance of the company as well," Sumeet Singh, Aequitas Research chief, said in quotes by Reuters.
In an editorial by The Global Times, it said that Didi has the most detailed travel data on individuals among major internet companies and appears to have the capability to conduct "big data analysis" of individual behaviors and habits.
According to Kendra Schaefer, a partner at Beijing-based strategic advisory consultancy Trivium China, Didi "should have considered pulling the offering."
China's internet watchdog has also widened its investigation to two more U.S.-listed companies, targeting Full Truck Alliance and Kanzhun Ltd. soon after launching the review into Didi.
Meanwhile, the pressure was also felt in other Chinese companies with listings in the U.S.
American depositary share receipts of e-commerce company Pinduoduo lost nearly 3%, JD.com shed 2.2% and Baidu was down 2.8%.
