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Didi shares drop after Tencent said it did not buy new shares

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Chinese ride-hailing service shares DidiPre-market trading in the U.S. fell Friday, after Tencent stated that it had not increased its stake.

A Thursday regulatory filing revealed that Tencent has added 1.78 Million Didi Class A Ordinary shares to its 7.4% stake in the ride-hailing company.

CNBC was informed Friday by a spokesperson for Tencent that the shares were already owned but not disclosed and that they had not purchased any Didi stocks.

After an initial report on ThursdayTencent claimed that it had increased its stake at Didi. Didi’s stock rose more than 8%. After Tencent had clarified their position, Didi stock plummeted in U.S. premarket trade.

Didi, a controversial company right now, reportedly went ahead with an American listing despite regulators’ concerns. China’s cyberspace regulator was appointed days after Didi’s IPO. opened a cybersecurity review into the tech firm. Didi’s shares are now worth nearly 70% less than their IPO prices.

Didi declared it in December delist from the New York Stock ExchangeInstead, make plans for Hong Kong’s public offering.

Tencent is being more cautious about investing in recent months and has sought to reduce stakes rather than increasing them. Last month Tencent cut its stakeSingapore-based gaming and online commerce firm Sea, and in December, the internet giant said it would give most of its shares in online retailer JD.com away to shareholders. Tencent has been a consistent investor in many companies around the globe, including in China.

After months of Chinese regulatory tightening, Beijing has issued new regulations. anti-monopoly rulesIn areas ranging from data protectionTo the governing of algorithms.

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