Is the Didi Global share price set to crash after last weeks IPO?
Thats whats happened to Didi Global (NYSE: DIDI), a Chinese company that launched only last week. Didi, dubbed the Chinese answer to Uber, is the latest company from China to float in the US. IPO day on the New York Stock Exchange on 30 June saw the shares lose a little. 5G is here  and shares of this sleeping giant could be a great way for you to potentially profit! According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air And if you click here well show you something that could be key to unlocking 5Gs full potential... The price picked up the next day, then fell back on 2 July when the first murmurs of discontent began emerging from Beijing. After the Cyberspace Administration of China (CAC) said it was investigating Didi, the shares lost 5% on the Friday. Regulators dont appear to need much time for their, no doubt, careful and in-depth investigations in China. And on Sunday, CAC ordered app stores to remove the Didi app. CAC said: After checks and verification, the Didi Chuxing app was found to be in serious violation of regulations in its collection and use of personal information.  US markets were closed Monday after the Independence Day weekend. But all eyes will be on the Didi share price when the market opens Tuesday, with many investors fearing heavy losses. There are three main fears that generally keep me from investing in IPOs these days. And this one checked all three. I dont like IPO investing at the best of times, as they so often lead to early losses. Still, in this case, its a New York flotation, and US investors do seem more bullish about flotations. So that fear would be lessened here. Next up is valuation. Didi Global posted its very first profit, of $30m, in the first quarter of this year. Thats after a $1.6bn loss in 2020, hit by the pandemic. Annualising it to $120m would suggest a P/E multiple of more than 600. Thats perhaps a little misleading at this stage, with serious growth expectations ahead. But I wouldnt call it cheap. My third red flag is a literal one, China. I get twitchy about investing in regulated business in the UK, and Im thinking here of firms like BT and National Grid. But at least UK regulators dont have arbitrary authority. I dont think Id ever invest in companies operating under totalitarian regimes. Its the data  Didi Globals valuation isnt based solely on its potential taxi revenues. No, its partly about data collection, which is increasingly big business. And thats whats attracted Beijings ire. An internet giant absolutely cannot have a better command than the state of the super-database that is Chinese peoples personal data, wrote the state-run Global Times on Monday. If Didi satisfies Beijings requirements and gets its app back in the stores, I see a good chance that it will go on to become a booming success. But if not, maybe the fears of those calling this an existential crisis will come to pass. I wont buy. But Ill be watching todays market opening in New York.