SoftBank Stock Plummets Over 9% Intraday Amid Negative Factors from 'ARM·Didi Chuxing'

[Asia Economy Reporter Park Byung-hee] Japan's SoftBank stock is plummeting on the 6th.

This is due to overlapping negative factors concerning ARM, a UK semiconductor design company in which SoftBank holds shares, and Didi Chuxing, a Chinese ride-hailing service company.

Didi Chuxing officially announced its delisting from the New York Stock Exchange last weekend. Didi Chuxing made a spectacular debut on the NYSE on June 30, raising about $44 billion, just one day before the 100th anniversary of the founding of the Chinese Communist Party. However, it paid a heavy price for pushing through the NYSE listing despite opposition from the Chinese government. As Chinese authorities launched a cybersecurity investigation into Didi Chuxing and imposed strong sanctions, Didi Chuxing's stock price plummeted relentlessly.

Last week, Didi Chuxing's stock closed at $6.07 on the NYSE, less than half of the IPO price ($14).

SoftBank's sale of ARM, which it acquired in 2016 for $32 billion, has also been stalled.

The U.S. Federal Trade Commission (FTC), equivalent to South Korea's Fair Trade Commission, officially filed a lawsuit against Nvidia's acquisition of ARM on the 2nd. The FTC opposed the merger, stating that it could hinder fair competition.

Nvidia plans to acquire ARM for about $40 billion.

SoftBank's stock price fell as much as 9.03% intraday on this day. It has been declining for six consecutive trading days.

SoftBank's stock price fell throughout the five trading days last week, recording a weekly decline rate of 12.26%.

SoftBank's stock price decline rate this year has also expanded to over 35%, marking the worst performance since 2006.