What happened
Shares of Chindata Group Holdings (CD +0.00%) tanked over 30% after the company announced that its CEO Jing Ju would be stepping down, effective immediately. The stock was down as much as 38.8% on Friday, and as of 1 p.m. ET is down 31.9% for the day.
So what
On Dec. 3, Chindata put out a press release stating that Ju would be stepping down from his role leading the company, with current company president Fei Xu taking over the interim CEO role. Chindata is a data center company focused on serving the Chinese, Indian, and other Asian markets with advanced artificial intelligence and cloud computing solutions. An abrupt CEO change is never a good thing, with investors in the company likely spooked by the news.
Image source: Getty Images.
On top of this, today Chinese stocks are getting hit extra hard after Didi (DIDI +3.55%) announced that it would be delisting from the New York Stock Exchange. Investors are fearing that this is the end of Chinese stocks listing in the U.S., which likely caused some selling pressure as Western investors continue to get out of their positions.
Now what
Chindata, as of this writing, is now down almost 75% this year. One might think this means it could be time to pick up shares of the stock at a discount. But with so much uncertainty around what will happen with Chinese stocks listed in the U.S. going forward, it is probably smart to stay far away from Chindata stock, even after this sell-off.
